Poverty & Race

PRRAC POVERTY & RACE RESEARCH ACTION COUNCIL

January/February 2005 Volume 14: Number 1

Why Housing Mobility? The Research Evidence Today by Margery Austin Turner and Dolores Acevedo-Garcia

For too much of the last century, How Neighborhoods teenager or going to jail are seen as federal housing programs helped cre- Affect Our Lives unexceptional or “normal.” ate and sustain patterns of racial seg- • Peer influences. Young people are regation and concentrated poverty. What is it about neighborhoods that profoundly influenced by their im- But beginning in the mid-1990s, hous- affect the well-being and life chances mediate peer groups, which are of- ing mobility emerged as an explicit of their residents? Social science sug- ten composed primarily of neigh- goal of federal housing policy, and gests six important causal mechanisms bors and schoolmates. And peers efforts were launched in as many as — channels through which neighbor- become especially important during 33 metro areas to help low-income hoods can shape or constrain opportu- the teen years, when they have the families move from poor and predomi- nities. These six mechanisms make potential to fuel healthy competi- nantly minority neighborhoods to intuitive sense when we think about (Please turn to page 2) more affluent and racially integrated our own families and about the kinds communities. Many of these efforts of neighborhoods in which we want were inspired by research on the to live. CONTENTS: Gautreaux demonstration, part of the • Local service quality. Many essen- remedy achieved by a landmark de- Housing Mobility tial public and private services are Research ...... 1 segregation lawsuit in Chicago. The delivered at the neighborhood level. Symposium — Gautreaux research showed that chil- Most of us think about the quality A National Gautreaux dren whose families moved from pre- of public schools as an important dominantly black neighborhoods of factor in choosing a neighborhood, Program: Chicago to integrated neighborhoods but distressed neighborhoods often Paul Wachtel ...... 3 in the suburbs were substantially more lack decent grocery stores, reliable john powell ...... 4 likely to succeed in school and to go child care, engaging after-school Sudhir Venkatesh ..... 5 on to college or jobs. activities, and healthy recreational Sheryll Cashin ...... 6 Since then, considerably more re- facilities as well. George Galster ...... 7 search has explored both the conse- • Shared norms and social control. Libby Perl ...... 8 quences of living in a distressed com- In healthy neighborhoods, shared David Rusk ...... 9 munity and the potential benefits of norms and values help control Community Land moving. Overall, the research evi- everybody’s behavior and teach Trusts ...... 11 dence provides strong support for poli- children what is expected of them Predatory Lending .... 17 cies that promote housing mobility. as they mature. Most of us would Apologies/ But some findings raise questions or rather live in a neighborhood where Reparations ...... 20 doubts about who is likely to benefit other parents let us know when our PRRAC Update ...... 21 and how. And, not surprisingly, the children misbehave than one in Resources ...... 22 research record remains inconclusive which dealing drugs, dropping out or incomplete in some respects. of school, getting pregnant as a

Poverty & Race Research Action Council • 3000 Connecticut Avenue NW • Suite 200 • Washington, DC 20008 202/387-9887 • FAX: 202/387-0764 • E-mail: [email protected] • www.prrac.org Recycled Paper (MOBILITY: Continued from page 1) Consequences of which they grew up than by those in Neighborhood Distress which they currently live. Nonethe- tion over grades and athletics or to less, some research has found evidence humiliate kids who do well in school A considerable body of social sci- that distance from jobs reduces employ- and pressure them to join in on risky ence research finds evidence that liv- ment rates, particularly among lower- adventures. ing in profoundly poor or distressed skilled adults. • Social networks. Adults often get neighborhoods can have a significant help and support from the networks impact on people’s well-being and of people they know, including longer-term life chances. These im- Influence of Neighbor– neighbors. Who we know (and who pacts — and the extent to which they hoods on Health we get to know because of where have been rigorously studied — vary we live) can be an important source across different age groups. Since the 1980s, public health re- of job leads, parenting support, or Relatively little research has fo- searchers and practitioners have been health advice and referrals. cused on how neighborhood distress increasingly interested in the influence • Crime and violence. Living in a affects infants and young children. of neighborhood conditions on the high-crime area increases risks for But studies have found that having health of residents. Individuals in both adults and children, including more affluent neighbors is associated lower socioeconomic positions (i.e., the risk of being a victim of bur- those with lower education, income glary or assault. But research in- Overall, the research and occupational status) tend to have creasingly suggests that exposure to higher rates of mortality and disease crime and violence has more far- evidence provides than individuals in higher socioeco- reaching consequences, including strong support for nomic positions. Additionally, re- persistent anxiety and emotional policies that promote search suggests that living in disadvan- trauma. housing mobility. taged neighborhoods increases the risk • Job access. As jobs become in- of mortality and disease. This means creasingly decentralized in most that a poor person living in a disad- metropolitan areas, some inner-city with higher IQ for preschool kids; that vantaged neighborhood would tend to neighborhoods have become physi- preschool children living in low-in- have worse health than a poor person cally isolated from economic oppor- come neighborhoods exhibit more ag- living in a more prosperous neighbor- tunity. Although few of us work gressive behavior when interacting hood. Thus, improving neighborhood in the same neighborhoods where with others; and that elementary conditions might significantly improve we live, people who rely on public school performance is linked to neigh- population health. In an article pub- transportation may have real diffi- borhood social and economic status. lished in the June 2003 Journal of Epi- culty finding jobs that are accessible Many more studies have focused on demiology and Community Health, to poor, inner-city neighborhoods. links between neighborhood environ- Winkleby and Cubbin showed that ment and the social and economic well- deaths would hypothetically be re- being of adolescents. Young people duced by about 20% among white, from high-poverty and distressed black and Mexican-American men and neighborhoods are less successful in women if everyone had the same death Poverty and Race (ISSN 1075-3591) school than their counterparts from rates as those people living in the neigh- is published six times a year by the more affluent communities; they earn borhoods with the most favorable so- Poverty & Race Research Action lower grades, are more likely to drop Council, 3000 Conn. Ave. NW, #200, cioeconomic conditions. Washington, DC 20008, 202/387- out, and less likely to go on to col- Possible mechanisms through which 9887, fax: 202/387-0764, E-mail: lege. Kids from poor neighborhoods neighborhoods influence health may [email protected]. Chester Hartman, are also less likely to get jobs during range from direct physical influences, Editor. Subscriptions are $25/year, and immediately after high school. such as exposure to toxic waste, to the $45/two years. Foreign postage ex- Studies have also documented that cumulative stress associated with liv- tra. Articles, article suggestions, let- neighborhood environment influences ing in unsafe neighborhoods with lim- ters and general comments are wel- teens’ sexual activity and the likeli- come, as are notices of publications, ited resources. Additionally, since dis- conferences, job openings, etc. for our hood that girls will become pregnant advantaged neighborhoods may limit Resources Section. Articles generally during their teen years. And finally, opportunities for upward social mo- may be reprinted, providing PRRAC young people who live in high-crime bility, neighborhoods may also influ- gives advance permission. areas have been found to be more ence health status by shaping socioeco- © Copyright 2005 by the Poverty likely to commit crimes themselves. nomic attainment throughout the life & Race Research Action Council. All Adults may be influenced more by course. In turn, the distribution of rights reserved. the neighborhood environments in (Please turn to page 13)

2 • Poverty & Race • Vol. 14, No. 1 • January/February 2005 Symposium: A National Gautreaux Program

Our Nov./Dec. issue featured Alexander Polikoff’s proposal for a national program to “end the ghetto as we know it,” building on Chicago’s Gautreaux program (if you missed that issue, it’s on our website — www.prrac.org — or send us a large SASE — $1.06 postage). We asked a range of knowledgeable folks, all committed to the goal Polikoff put forth, to offer their comments. We’ll print Polikoff’s comment on the comments in our March/April issue.

The Conflict Behind Our Racial Conflict

by Paul L. Wachtel

As a psychologist, I think of po- the fissionable space of our inner cit- how intricately connected and inter- litical attitudes not as fixed and singu- ies. Polikoff aims not just to provide twined are the behavior and attitudes lar but as the end result of emotion- a better opportunity for those families of blacks and whites. Each side re- ally powerful conflicts that lie beneath who make the move, but, in essence, sponds to the other, and each, simul- what might seem to be monolithic to defuse the generators of explosive taneously, partially “creates” the other opinions and dispositions. The task for misery and rage that have sent out to which it responds. This reciprocal those of us committed to progressive shock waves to our entire society. He (if mostly unwitting) participation in social change is to make contact with aims, it seems to me, at nothing less the perpetuation of a circular pattern the side of our seeming opponents that than another “character change” in of response and counter-response, with might be more receptive to our mes- each side experiencing its behavior and sage or our concerns than their present attitudes as purely the product of the manifest stance might suggest. The national character other’s, has been at the heart of our The point is not that every racist or change we so urgently continuing racial tragedy. Polikoff’s every greedy pursuer of self-interest need will not occur if proposal offers a way out of this pat- has a hidden heart of gold. There are the receiving tern, a way to break into its dynamics certainly people who are pretty thor- communities perceive by opening the pressure gauge in our oughly opposed to what progressives themselves to be the inner cities and by paying careful at- stand for. But many millions more tention to the experience of people in are considerably more complex in their losers in this exchange. the receiving communities as well. If feelings than they themselves are aware his proposals are implemented, it will of. The attitudes they manifest reflect be utterly essential to maintain this the current resolution of conflicting American society, one much more con- dual perspective. However valuable forces; but as with a picture that comes genial to justice and caring. it is to improve the lives of those indi- crashing to the ground after hanging That character change is possible for viduals who are enabled to move, the on the wall for years, a slight shift in precisely the reason of the conflict that national character change we so ur- the forces which have been invisibly underlies any character configuration. gently need will not occur if the re- contending can yield a dramatic change Americans have not become converted ceiving communities perceive them- in the overall result. in recent decades into totally different selves to be the losers in this exchange. Implementation of Polikoff’s exten- kinds of souls. The balance of forces In that sense, community-building and sion of the Gautreaux program has the in their psyches has shifted, a shift that “revitalization” is almost as important potential to contribute usefully to that for many is probably no more abso- to invest in in the receiving communi- needed shift in the balance of forces. lute or categorical than a 51 to 48 per- ties as it is in those communities more Polikoff notes that the image of the cent division in the electorate. In both obviously in need. We must make this “ghetto black” has cast a shadow over instances, we must remind ourselves work. race relations generally and contrib- not to despair or to conclude that an uted to what he calls a negative “char- irrevocable change has occurred. Paul L. Wachtel (plw79w@yahoo. acter change” in our entire society. Once any change in a complex con- com) is CUNY Distinguished Profes- That image is constructed mostly of figuration of visible and less visible sor at the City College of New York. myth and stereotype, but it is rein- forces or attitudes begins to occur, He is the author of Race in the Mind forced by some of the unfortunate re- other things begin to alter as well, of- of America: Breaking the Vicious alities that have accrued from our com- ten in unpredictable ways. I have de- Circle between Blacks and Whites pressing a critical mass of misery into scribed in Race in the Mind of America (Routledge, 1999). ❏

January/February 2005 • Poverty & Race • Vol.14, No. 1 • 3 Needed: More Focus on Whiteness by john a. powell Alexander Polikoff has written an For example, he asserts that the whites to adopt policies to isolate important and timely challenge to ghettoization of blacks cannot be un- blacks from whites and then use this America. He challenges us to deal with derstood or addressed in race-neutral isolation and the conditions it engen- white racism toward blacks by adopt- terms, citing the very different expe- ders to justify anti-black feeling. But ing a nationwide mobility program. rience of poor whites in their hous- this “vicious circle” is not just a psy- This program would be modeled after ing, neighborhood and school lives. chological error on the part of the famous Gautreaux program. This He also raises and rejects the position whites. It is more fundamental in the program came out of possibly the most that black isolation is overstated be- understanding of our being and our important anti-discrimination housing cause of the existence of the black institutional arrangements. We have lawsuit in United States history. middle class or the claim that this is- moved away from publicly accepting Polikoff was the lead attorney in the sue can be addressed through neigh- explicit racism towards accepting and case and is still involved with imple- borhood revitalization instead of a promoting racial arrangements such as mentation of the suit. Among other Gautreaux mobility program. black ghettos and the protection of things, the suit allowed for low-income Polikoff is to be commended for white space and white racial hoarding blacks in the Chicago area to move to putting race — particularly anti-black that limit the life options and meaning areas where there were few blacks and racism — on the table when many lib- for poor blacks but also generally for low poverty. While some have ques- erals and progressives are at best con- all nonwhites. The present arrange- tioned the success of those black fami- ment has ushered in a new white sta- lies who moved, the program is gen- There is too little focus tus and privilege without the articu- erally considered one of the most suc- on how whiteness has lated stigma of being a racist. How is cessful in addressing the deprivation it that there has been a substantial im- associated with concentrated poverty been constructed and provement in white racial attitudes and black confinement in areas of low maintained. while there has been an intensification opportunity. of poor black ghettoization? Polikoff has been at the center of fused about the continued significance This question helps us see some of attempts to address racial injustice for of racism and too often flirting with the limitations of Alex’s suggestion. almost four decades. He is a brilliant the reductionist position that racism There is too little focus on whiteness and courageous spirit whom the coun- can be explain by class. Polikoff be- and the inherent way it has been con- try has benefited from. He is also a gins to suggest a new racial alignment structed and maintained. This is not good friend. His article should be that makes some sense out of today’s just white attitudes but also white sta- looked at with seriousness and care. racism. Three things are worth not- tus, space and meaning. On the one He warns us that the failure to address ing. First, it is the isolation of poor hand, Alex states that it is white atti- the issue of racial inequality and in- blacks that is the policy of our new tudes, anti-black hostility, that caused justice is not only wrong but, citing racism. Second, coded racism, re- our current national policy of black Toqueville, that this failure could ferred to as the Southern strategy, is confinement. Then he wishes to ad- eventually destroy America. Polikoff working – liberals have not found an dress white fear by limiting the num- finds the current racial arrangements effective response. And third, as this ber of blacks who will be allowed into partially responsible for loss of the last election demonstrated, it is not just any given white community. And these New Deal. He cites exploitation of “the economy, stupid.” We are com- poor blacks will be certified before black fear by the Republican Party and plex beings with multiple values, not they move in. When stated like this, their pandering to Southern prejudice just economic beings. We understand it might suggest that this plan is com- in developing coded racial policies to this when multi-billionaire George pletely flawed. It is not. But it is enliven white fear and prejudice and Soros supports Kerry instead of Bush limited and needs to be reframed. Cer- to punish blacks while becoming a for President, but we often forget this tainly there is dyfunctionality that majority party. Dixiecrats are now when trying to understand why poor comes out of concentrated poverty. solid Republicans. While other non- and working-class Southern whites But this is not the only aspect of our white groups experience discrimina- might support Bush by a large mar- society that is dysfunctional. We must tion, Polikoff argues that none have gin. If white anti-black prejudice is not also understand and begin to address experienced the persistence and antipa- just economic, then what else is at play the dysfunctional spaces and practices thy that blacks have from whites. and how should we think of it? that created the confinement in the first Many will find Polikoff’s piece off- This last question takes me to place. Are we confident that whites — putting. He anticipates and attempts to Polikoff’s article. Alex acknowledges collectively, functionally — have answer some of his would-be critics. that white anti-black feeling causes changed so they can now accept blacks

4 • Poverty & Race • Vol. 14, No. 1 • January/February 2005 not engaged in destructive behavior? And what of white behavior, attitudes We Must Acknowledge and space? Will whites insist on domi- How Poor People Live nating space and meaning? Anthony Downs explains this insistence in terms of middle-class domination, not just by Sudhir Alladi Venkatesh of poor blacks but also middle-class blacks. This need for dominance is one Polikoff offers a persuasive pro- Polikoff’s proposal for a “National of the explanations for white flight as posal to dismantle America’s ghettos. Gautreaux Program.” Namely, move the nonwhite other “invades.” The I leave to others a critique of its tech- the “family” out of the ghetto and into need for white domination cannot be nocratic merits. Instead, I address the the “mainstream.” First, the “family” adequately explained by class. sociological underpinning, as it is a may not be as meaningful to the poor Maybe it is just too hard to think most elegant rendition of the liberal as it is to the middle class. “Family” pragmatically about addressing white hymn for social justice. is an administrative/juridical designa- fear, white space or white hoarding. Polikoff’s spirited argument presup- tion affirmed by public policy. But the Maybe to talk about such things is what poses a folk model of the ghetto. poor live in networks and households. Gerald Torres calls a conversation-end- “Folk” is not a pejorative label. All These fluid ties, rooted in kin and the ing strategy. Whites may not allow it. of us make claims about the social exchange of symbolic goods (e.g., in- These are difficult issues, but it does world that are based on our own timacy) and commodities (e.g., things that are beyond Polikoff’s largely untested assumptions. When babysitting), hold for white ethnics and project. As Dubois and others have Latinos as well as blacks. How to in- recognized, the race(ism) problem in corporate this variability in a voucher the United States is largely the white Public housing families program? I’m not sure, but it would problem. Certainly, racial arrange- who move, voluntarily be nice if the leading minds would take ments and racism have changed. But or not, continue to it seriously. even in its more gentle, non-signify- show strong Second, public housing families ing expression, white and anti-black connections to their old who move, voluntarily or not, con- policies dominate with a nod and a tinue to show strong connections to wink. I do not believe this can be ad- neighborhoods.. their old neighborhoods. My own dressed by just focusing on the mani- study of Chicago relocatees shows festation of this new racial arrange- they motivate policies to help others, 1/3 of families sending kids back to ment, Nor can we fix it by just focus- they surely must be interrogated. their familiar, decrepit schools — they ing on the manifestation of it, black The ghetto, in his perspective, is trust teachers, draw on free daycare ghettos. the result of historic, institutionalized nearby, get credit from stores. An even I have some concerns, but I strongly racism. True enough, but Polikoff greater percentage are returning to support Polikoff’s project, with some knows from his life of public service their old areas after two years, even if changes. I would expand and reframe that the black ghetto, like its Jewish they are leaving behind non-poor Alex’s project in term of opportunity, predecessor, arose from the interplay neighborhoods. We must do a better race and space. I have written about of segregation and conscious prefer- job of understanding why. FYI: only this in “Opportunity-Based Housing” ences. To be sure, the dialectic was a (Please turn to page 6) (123 J. of Affordable Housing and perverse one. Black Americans’ pre- Community Development Law 2 - dilection for culturally/ethnically fa- 2003). I would also continue to think miliar spaces did not cause racism. about dysfunctional practices, but I Instead, discrimination and poverty The Passion would not limit the discussion to the created the conditions whereby com- of My Times black poor. And, as Toni Morrison has fort became a motive for mistreated suggested, I would look more carefully souls to live near one another. In this PRRAC Board member Will- at how racism marks whites, but I era of near evangelical faith in the iam L. Taylor’s memoir (subtitled would try to do it in a way that leaves power of mobility vouchers, this ba- An Advocate’s Fifty-Year Journey the conversation open. sic structural feature of the black ur- in the Civil Rights Movement) is john a. powell (powell.355@OSU. ban poor still makes liberals uneasy. now out (Carroll & Graf, 251 pp). edu), a PRRAC board member, is Di- Alas, the ghetto may not be dismantled You can order it directly from us rector of the Kirwan Inst. for the Study until we renounce our bourgeois sen- at a discounted price of $20, s/h of Race & Ethnicity & holder of the sibility and acknowledge how poor included (it lists for $26). We’re Williams Chair in Civil Rights & Civil people live. sure Bill will be happy to inscribe Liberties at the Moritz School of Law, Look, for example, at the goal of it, if you let us know. Ohio State Univ. ❏ mobility proponents — exemplified in

January/February 2005 • Poverty & Race • Vol.14, No. 1 • 5 (VENKATESH: Continued from page 5) played the courage not to trust the be- blinded to their limits and we fail to neficence of government officials. appreciate when those who need the part of the answer involves improving Why does he now trust private-mar- help do not accept it. relocation services. ket developers ruled entirely by the Finally, Polikoff’s embrace of the profit motive? Sudhir Alladi Venkatesh (sv185@ mixed-Income vision is questionable. None of these points necessarily in- columbia.edu) is on the faculty in So- There is no evidence that mixed-in- validate a voucher program. I endorse ciology and African-American Studies come communities improve the lives much of Polikoff’s proposal, in spirit at Columbia Univ,, where he also is of poor families — in fact, most ex- and substance. But there are dangers Director of the Center for Urban Re- clude the poor because of unrealistic to forging policies solely on the as- search & Policy. ❏ leasing criteria such as strict work re- sumption of middle-class resources and quirements. Polikoff’s career dis- perspectives. One is that we become

Getting the Politics Right on a National Gautreaux Program by Sheryll Cashin

Alex Polikoff has provided an im- that Polikoff’s proposal would be ex- of the highest-poverty communities portant national service in identifying traordinarily difficult to sell to Con- would be substituted for blacks in the black ghetto as a singular, nation- gress. The Moving to Opportunity Polikoff’s proposal. And I would sell threatening challenge that is also emi- (MTO) program was a modest, small- the program as an effort to eliminate nently redressable. His essay resonated scale demonstration effort that used concentrated poverty, not to give poor greatly with me when I read it. After class rather than race as the means of blacks more mobility. Like the diver- three years of working in the Clinton targeting, and yet its expansion was sity rationale that ultimately held sway White House on urban policy and five with the Supreme Court in the Grutter years of writing academic articles about I would sell the program case (upholding certain of the Univer- race and class segregation in America, sity of Michigan’s affirmative action I came to virtually the same conclu- as an effort to eliminate policies), I believe a forward-looking, sion about the costs and consequences concentrated poverty, optimistic account of what diverse of the black ghetto. In my recent not to give poor blacks American cities could be like is more book, The Failures of Integration: more mobility. likely to persuade in legal and policy How Race and Class are Undermin- arenas. Metropolitan and city life will ing the American Dream (Public Af- be much better for everyone in a met- fairs, 2004), I devoted an entire chap- blocked after white community oppo- ropolitan America where all concen- ter to the subject, and my first public sition in only one key Congress- trated-poverty neighborhoods have policy recommendation was to abol- person’s district. The “reparations” been replaced with vibrant mixed-in- ish the black ghetto through a combi- justification Polikoff offers for his come neighborhoods and where the nation of mobility vouchers and tax proposal is intellectually honest and poor have meaningful housing options incentives for homeownership. So I consistent with our nation’s history. in middle-class settings. A nationwide wholeheartedly agree both with There is an indelible trajectory from Gautreaux program ultimately would Polikoff’s analysis of the devastating slavery, to Jim Crow, to the black mean that one day ordinary Americans impact of the black ghetto on its resi- ghetto. Following emancipation, with will be able to live in a diverse society dents and American race relations, and each succeeding generation America without fear because no neighborhoods with his policy prescription: “mobil- found different ways to suppress the would be overwhelmed by poverty. ity and ghetto-dismantling.” I take is- racial minority it so greatly feared. Sheryll Cashin (cashins@law. sue, however, with his program de- However, given the political realities georgetown.edu) is Professor of Law sign, largely because of the politics that of a Republican-dominated Congress at Georgetown Univ. Following gradu- are set against a rigid quota whereby and White House — MTO was termi- ation from Harvard Law School, she half of the benefits would be available nated when Clinton was President and clerked for Supreme Court Justice only to black people, albeit ghetto resi- Democrats led the Senate — I think Thurgood Marshall and DC Circuit dents. there is a better way to pursue the Court of Appeals Judge Abner Mikva, Beyond the serious constitutional ghetto-dismantling objective. I would and worked as an advisor on urban and challenges that will inevitably be raised use tight, geographic targeting as a economic policy in the Clinton White against such a racial preference, I think rough proxy for race — i.e., residents House. ❏

6 • Poverty & Race • Vol. 14, No. 1 • January/February 2005 Making a Nationwide Gautreaux Program More “Neighborhood Friendly”

by George Galster

Alex Polikoff, in his famously lu- tion of one more poor household. The Threshold Effects for Negative cid, engaging and persuasive manner, literature identifies two thresholds. Property Value Impacts in Destina- presents a compelling proposal for a One appears at the intuitive demarca- tion Neighborhoods national, Gautreaux-like voucher pro- tion between low- and moderate-pov- The second mechanism, closely re- gram as a solution for black ghetto erty neighborhoods (approximately 15 lated to the first, is that, in sufficient poverty. In principle, I am a supporter to 20 percent) and denotes a point af- concentrations, poor households with of this proposal. However, despite its ter which socially problematic out- housing vouchers can have a deleteri- many prospective advantages, such a comes begin to rise rapidly with in- ous effect on property values in the plan has the potential of being imple- creasing concentrations of the poor. nearby neighborhood. In the recently mented in ways that might be economi- The second appears at the demarca- published Why NOT In My Back Yard cally, socially and politically counter- tion between moderate- and high-pov- (Rutgers Univ. Ctr. for Urban Policy productive. These dire consequences Research, 2003), my colleagues and I would transpire if new voucher recipi- report that stereotypical NIMBY con- ents were to move out of the ghetto We must worry about cerns may be valid in certain (but not but overwhelmingly concentrate in a the neighborhood level all) circumstances. The magnitude of few “almost ghetto” neighborhoods: distribution of voucher impacts from the in-migration of those with moderate poverty rates with holders. voucher holders was clearly contingent vulnerable housing markets. The con- on neighborhood context and spatial sequences would transpire through two concentration. There was a widespread related mechanisms and would mani- erty neighborhoods (approximately 30 pattern of threshold effects, whereby fest themselves as an upsurge in a va- to 40 percent) and denotes a point af- home price impacts became negative riety of socially problematic behaviors ter which further concentrations of the when more than a critical mass of and falling property values in the des- poor produce no noticeable additional voucher holders was located in the vi- tination neighborhoods where voucher negative consequences. How rapidly cinity. This danger of “re-concentra- recipients might cluster in this worst- the incidence of problems rises after tion” was most acute in lower-value case scenario. In this comment, I the first threshold is exceeded appears neighborhoods already possessing a outline this danger and raise the chal- to depend on the outcome indicator in modicum of poor households, espe- lenges to policymakers in order to en- question. Of course, the evidence con- cially where homeowners perceived a sure that inappropriate clustering of sistently supports the conventional wis- vulnerability to their quality of life and new voucher recipients would not oc- dom that the highest level of negative neighborhood’s competitiveness. In- cur. social impacts of all sorts occurs in the deed, in some especially vulnerable highest-poverty neighborhoods. circumstances we observed that any Distribution of the Poor and Over- But, it is the relative differences in additional voucher recipients would all Level of Social Problems in an marginal impacts of one more poor have harmful impacts on property val- Urban Area households when they move between ues. But even in the most favorable The first potential problem from low-, moderate-, and high-poverty neighborhood contexts observed, we clustering arises due to the threshold neighborhoods that is the central con- estimated that a tiny number of such nature of the relationship between the sideration here. If social problems in assisted households concentrated within percentage of poor residents in a neigh- the destination neighborhood to which 2,000 feet could lead to ensuing nega- borhood and a variety of socially prob- the voucher holders move rise in ag- tive impacts. lematic behaviors that will be gener- gregate more than they decline in ori- ated there, such as crime, out-of-wed- gin neighborhoods from whence they Implications for the Implementation lock teen parenting, dropping out of moved, society overall will be worse of a National Gautreaux Plan secondary school or not participating off. This circumstance is most likely Both potential concerns above lead in the labor force. The research lit- if voucher holders move from high- to an implication about where recipi- erature consistently suggests the exist- to moderate-poverty neighborhoods ents of a new voucher program should ence of thresholds: critical values of or, by concentrating in erstwhile low- move in order to maximize the overall neighborhood poverty after which sig- poverty destinations, convert them into well-being of society. Clearly, they nificantly different impacts on resi- moderate- or high-poverty ones. should move to low- (not moderate-) dents’ behaviors occur with the addi- (Please turn to page 8)

January/February 2005 • Poverty & Race • Vol.14, No. 1 • 7 (GALSTER: Continued from page 7) vantageous for the community as a MIT. Other of his recent writings in- whole, vouchers should only be used clude “The Effects of MTO on Send- poverty neighborhoods, and even then in certain types of neighborhoods in ing and Receiving Neighborhoods,” in at very low concentrations (not in large certain maximum concentrations. Choosing a Better Life? Evaluating the “Section 8 apartment complexes”). Failing that, the resulting problems Moving to Opportunity. eds. John Polikoff suggests some recognition of will undoubtedly create a severe po- Goering & Judith Feins (Urban Insti- this in his discussion of the “relatively litical backlash to curtail the program. tute Press, 2003) and “An Economic few numbers of new voucher recipi- Efficiency Analysis of Deconcen- ents compared to the hundreds of po- George Galster (aa3571@wayne. trating Poverty Populations,” Journal tential destination communities.” But edu) is Clarence Hilberry Professor of of Housing Economics 11 (No. 4, the programmatic challenge is greater Urban Affairs at Wayne State Univ. 2002): 303-329. ❏ than cursory consideration of “desti- He holds a PhD in economics from nation communities” alone. We must worry about the neighborhood level distribution of voucher holders, for it is at this small scale where critically important consequences for social Needed Element: Laws Prohibiting problems and property values emerge. Source of Income Discrimination This raises several key operational questions. Will any conceivable mo- bility counseling program guarantee by Libby Perl that all or even most new voucher hold- ers will move into (and remain in) low- I agree with the premise of to tenants based on their source of in- poverty neighborhoods? Or, might it Alexander Polikoff’s proposal that come, including housing vouchers. be more effective to tag these new housing vouchers are the best way to Although a national law against vouchers with the proviso that they attack concentrations of poverty and voucher discrimination may politi- only may be used in census tracts with segregation in urban communities. Yet cally be a tough sell, if Gautreaux were less than 10% poverty rates (includ- Polikoff’s worthy program is likely to to be a national program, efforts to ing any voucher holders already liv- fail unless the law governing housing prevent source of income discrimina- ing there) and in locations at least vouchers is changed. As voucher law tion should be national as well. In the minimally separated from other poor exists in most communities, landlords families? Will there be sufficient va- can and do refuse to accept vouchers. cant units below HUD Fair Market The high standards for the neighbor- The refusal to accept Rents in such neighborhoods, or will hoods into which voucher tenants vouchers often hides a most voucher holders be frustrated and would move in Polikoff’s proposal malignant basis for ultimately be forced to turn in their (less than 10% poverty, and non-mi- denying housing to voucher unused? If there are insuffi- nority impacted neighborhoods) could voucher tenants. cient FMR housing units in these low- therefore present a problem. While poverty areas, what would need to be Gautreaux moved tenants into neigh- done to increase the supply? Might borhoods that were not more than 30% meantime, it might be necessary to all landlords be required to participate black, it did not use poverty thresh- scale back the plan’s expectations for in the voucher program, perhaps by olds. And while it is true that Chi- neighborhood poverty and minority making it a federal fair housing viola- cago has had continued success plac- thresholds. tion to discriminate on the basis of ing voucher tenants in less poor neigh- Currently, 12 states and the District source of income? And, will any lo- borhoods since Gautreaux, the pro- of Columbia have laws that prevent cal housing authority have the institu- gram there still sets its poverty thresh- source of income discrimination, al- tional capacity to micro-manage such old at 24%, and does not use racial though the language in some of the a complex, neighborhood-sensitive composition as a criterion. Finally, statutes makes it unclear whether hous- program? Moving to Opportunity families ing vouchers are included. Various Clearly, these questions are easier moved to low-poverty neighborhoods cities and counties also prohibit source to ask than answer. But if a national on a smaller scale without taking ac- of income discrimination. These laws Gautreaux plan is to be contemplated count of racial composition. improve the ability of voucher hold- seriously, it must be “neighborhood To assist in attacking concentrations ers to find housing. A November 2001 friendly” and consider carefully how of poverty, a nationwide Gautreaux Department of Housing and Urban it will achieve the socially optimal program should be accompanied by Development study found that voucher destinations for new voucher holders. efforts to amend fair housing law to holders in jurisdictions with laws pro- To be economically and socially ad- forbid landlords from refusing to rent hibiting source of income discrimina-

8 • Poverty & Race • Vol. 14, No. 1 • January/February 2005 tion had a probability of success in finding housing that was 12 percent- Inclusionary Zoning — age points greater (and statistically sig- Gautreaux by Another Pathway nificant) than tenants in jurisdictions without protection. by David Rusk The refusal to accept vouchers of- ten hides a malignant basis for deny- ing housing to voucher tenants — the What my colleague john powell ket forces, not public dollars, to sub- deformed fruits that Polikoff de- has termed creating “opportunity-based sidize the creation of affordable hous- scribes. Granted, laws that prohibit housing” is the goal of Alex Polikoff’s ing. In higher-cost markets, home- source of income discrimination will call for a sustained, Gautreaux-type builders have a powerful, profit-driven not stop this behavior; even though program of 100,000 federal housing incentive to build the maximum Chicago has a law prohibiting source vouchers a year to relocate poor black amount of market-rate housing on a of income discrimination, a study by families from high-poverty, opportu- given parcel of land. Local IZ laws the Lawyers’ Committee for Better nity-poor ghettoes to low-poverty, mandate that 10% or 15% of new Housing found that 55% of landlords opportunity-rich communities. housing must be affordable for mod- in areas preferred by the housing au- For the next four years we won’t est- and low-income families, but they thority would not accept vouchers. see such a commitment (political or also provide automatic density bonuses Yet the laws give advocates a tool to fiscal) emerge from a Republican-con- allowing builders to put up more begin discouraging discriminatory be- homes than the underlying zoning havior, give tenants access to landlords Achieving Alex would otherwise allow. The density who follow the law and do not dis- Polikoff’s admirable bonus means that bonus units have zero criminate, and could eventually bring land cost. A well-designed IZ law goal requires a strategy provides a large enough density bonus about a change in attitudes toward that does not rely on voucher tenants and make them an ac- to lower the cost of inclusionary units cepted part of every community. federal dollars. and also to generate very profitable Polikoff’s idea to expand Gautreaux bonus market-rate units as well. An effective IZ law must be fair to for- is a good one, I simply do not have as trolled Congress and a second Bush profit builders as well as meet com- much faith that landlords in low-pov- Administration intent on further slash- munity housing needs. erty communities would step forward ing federal taxes paid by corporations Over 135 county and city govern- and voluntarily rent their apartments and wealthy Americans. Indeed, if the ments have enacted mandatory IZ laws to enough voucher tenants for it to White House succeeds in making its since Montgomery County, Maryland work on a large scale. tax cuts permanent, we probably won’t created the oldest IZ program in 1973. see such a commitment ever. Even if Most IZ laws have been enacted in Libby Perl ([email protected]) is a pro- a less conservative federal government high-cost markets like Northern and gram officer at The Century Founda- develops the will, it won’t have the Southern California, the Washington, tion and previously worked on hous- way to do it in a post-Bush future. By DC and Boston areas. However, IZ ing issues as a Legal Aid attorney. ❏ 2004, just four federal programs — the laws have been passed recently by com- Defense Department, Social Security, munities in the Denver area, Illinois, Medicare and payments on the $7.2 Our Award-winning Wisconsin and North Carolina. Some trillion national debt — accounted for Civil Rights Book 13 million people — 5% of the nation two-thirds of all federal outlays. The — live in communities that mandate first wave of baby boomers becomes The National Association of mixed-income housing development. eligible for Social Security payments Multicultural Education (NAME) If the Chicago Board of Aldermen and in 2008 and for Medicare coverage in has given Putting the Movement New York City Council approve pend- 2011; federal money for most other Back Into Civil Rights Teaching ing IZ laws for their rapidly domestic needs will dry up. With one its 2004 Multicultural Book gentrifying neighborhoods, that statis- of the weakest Washington lobbies Award. And the book received an tic will double. around, housing subsidies for poor Honorable Mention in the 2004 Who qualifies for inclusionary families will be an early victim of a Myers Outstanding Book Award housing? Local governments invari- revenue-strapped federal budget. of the Gustavus Myers Ctr. for ably set their income eligibility ceil- Achieving Alex Polikoff’s admi- the Study of Bigotry & Human ing as a percentage of the annual, rable goal requires a strategy that does Rights at Simmons College. If HUD-established Area Median Income not rely on federal dollars. Fortunately, you haven’t already looked at/or- (AMI). Several dozen California com- that strategy exists — inclusionary zon- dered the book, go to www. munities target a portion of their IZ civilrightsteaching.org. ing laws. Inclusionary zoning (IZ) uses mar- (Please turn to page 10)

January/February 2005 • Poverty & Race • Vol.14, No. 1 • 9 (RUSK: Continued from page 9) That’s over ten times the amount of 30% of AMI). Our rallying cry is affordable housing aided nationally by “Anyone good enough to work here is units to 80-120% of AMI. That’s far LISC and the Enterprise Foundation, good enough to live here.” beyond the income of poverty-im- the two largest national affordable Second, the public finance chal- pacted ghetto dwellers. (Eligibility for housing support organizations. lenge — a tough issue with federal federal housing subsidies tops out at How could a significant proportion housing subsidies drying up. How- 50% of AMI; the federal poverty ceil- of these 3.6 million units best aid very ever, creative housing agencies like the ing is around 30% of AMI.) But half low-income families (less than 50% Montgomery County Housing Oppor- of all IZ jurisdictions earmark at least AMI)? By implementing the policy tunities Commission have found a va- a portion of IZ units for families at that a public housing authority buy or riety of ways to generate capital to pur- less than 50% of AMI. And Mont- rent one-third of the IZ units. Some chase inclusionary units: capitalizing gomery County, Maryland and Fairfax 1.2 million such IZ units would federal housing subsidies; using fees County, Virginia pursue an even more roughly equal the entire inventory of earned as the county’s housing finance targeted policy. By law, their county project-based units owned by the agency; securing modest county appro- housing authorities buy one-third of priations; using “in lieu of” fees paid all IZ units produced as a permanent by builders when technical site prob- inventory of homes to be rented to Some 13 million people lems prevent producing IZ units; tap- very-low-income families. – 5% of the nation — ping into state housing subsidy pro- I’ve calculated what would have live in communities that grams, etc. It can be done, though it been the impact if, by waving some mandate mixed-income requires creativity and persistence. political magic wand, IZ laws had been housing development. Does such a program truly help in effect throughout the 100 largest move poor black residents out of in- metro areas over the past two decades. ner-city ghettoes? Over time, yes. From 1980 to 2000, 30 million hous- USA’s 3,000 local public housing Labor markets are far less segregated ing units were built in these 100 larg- agencies. If implemented, such a pro- and more mobile than housing mar- est metro areas — almost all by pri- gram would cut the level of economic kets or school systems. If the pro- vate, for-profit builders. Let’s assume segregation in the USA’s 100 largest gram could be tied partially to state that our hypothetical IZ law applies to metro areas by 40% and meet a sub- “welfare to workfare” programs, new housing development of ten or stantial chunk of the affordable hous- progress would be accelerated. more units (the most common IZ stan- ing need. Promoting “workforce housing” dard); that means about 20% of all new This is all, of course, fantasy math. through IZ laws that serve the entire units would be in smaller develop- How do we get from here to there as a range of the workforce would ulti- ments exempted from IZ require- matter of practical politics and practi- mately achieve Alex’s goal. Indeed, ments. Applying a 15% set-aside (also, cal public finance? First, the political Business and Professional People in the the most common IZ standard) would challenge. Sell IZ laws not as an is- Public Interest (BPI), which Alex have produced 3.6 million inclusionary sue of social justice but as an issue of founded, is a major advocate of housing units. That’s three to four sound economic policy. Sell IZ as an inclusionary zoning. In short, we times the amount of affordable hous- answer to the need for “workforce don’t have to be “waiting for ing produced nationally through using housing.” Arguing for the need for Gautreaux” outside the US Treasury. Low Income Housing Tax Credits, affordable housing for a community’s It’s likely to be a long, long wait. which, HUD claims, were involved in own teachers, police officers and David Rusk (www.davidrusk.com) 90% of all affordable housing pro- firefighters (at 60%-80% of AMI) is is former mayor of Albuquerque and a duced during a comparable period. easy. But IZ advocates have to cham- New Mexico state legislator. He is au- pion the cause of the entire range of thor of Inside Game/Outside Game workers. We must change the public (Brookings Inst. Press, 1999) and Cit- Request image from the stereotype of the “wel- ies Without Suburbs (Woodrow Wil- for Syllabi fare queen and her drug-dealing boy- son Ctr. Press, 3rd ed., 2003). He friend” to the reality of hard-working serves as a national strategic partner We’ve received several syllabi people you depend on every day in of the Gamaliel Foundation and is a for courses dealing with race and your community: your garbageman founding board member of the Inno- poverty issues. We’d like to list (50%-60% of AMI), the ambulance vative Housing Institute. For more in- them (and how to access them) in driver who responds to your 911 call formation on inclusionary zoning, con- a future issue of P&R. If you teach/ (40%-50% of AMI), the nursing home tact the Innovative Housing Institute taught or are taking/took such a aide taking care of your elderly parent (www.inhousing.org), Business and course, please pass on (preferably (30%-40% of AMI), the clerk at the Professional People in the Public In- by email) such a syllabus. nearby dry cleaners or convenience terest (www.bpichicago.org), or store you’ve dealt with for years (20%- PolicyLink (www.policylink,org). ❏

10 • Poverty & Race • Vol. 14, No. 1 • January/February 2005 The CLT Model: A Tool for Permanently Affordable Housing and Wealth Generation by Gus Newport

The gap between wealth and pov- the years, the model has evolved and time providing an opportunity to build erty is growing in the U.S., because been applied primarily to the devel- equity and benefit from a portion (typi- policies to stabilize the lives of the poor opment of permanently affordable cally 25%) of the appreciation on the and people of color do not focus on housing within intentional communi- home, should property values increase. long-term solutions. Our economy is ties and more broadly in urban, sub- By removing the cost of the land unstable, in an inflationary spiral that urban and rural communities across the from the home price and bringing fur- continues to raise the cost of basic country. Terms within the ground lease ther cost reductions through govern- goods, including food, gasoline, medi- balance community interests with ment-provided affordable housing sub- cine and health care. Most depressing those of the individual, providing an sidies, the CLT brings homeownership is the lack of affordable housing for opportunity for lower-income people within the reach of lower-income the poor, working and unemployed, to earn equity, while limiting appre- families (CLTs generally seek to serve and seniors with limited retirement ciation to ensure affordability for fu- families earning less than 80% of area income. The severity of the shortage ture lower-income homebuyers. median income). The interests of the of affordable housing has multiplied individual homebuyer are balanced in recent years. Barbara Ehrenreich A CLT acquires land with the desire to maintain a perma- demonstrated the stark reality of the nent stock of affordable housing for situation facing low-income wage with the intention of future families in need. The homebuyer earners in her book Nickel and Dimed holding it in perpetuity. gains the opportunity to earn equity in America. She found from personal through monthly mortgage payments, experience that in today’s America, rather than building the equity of an two incomes are required in order to According to the classic CLT absentee landlord through rental pay- live “indoors,” let alone reside in safe, model, the trust is a geographically ments. However, rather than gaining adequate housing. Insufficient afford- defined, membership-based, nonprofit a one-time windfall should the home able housing is being developed to ful- organization created to hold land for value appreciate substantially, the fill the need, and most that is devel- public purposes — usually for the cre- seller foregoes this full capital gain in oped remains affordable only during ation of permanently affordable hous- order to retain affordability for the next the terms of the initial financing, due ing. Like a conservation land trust, a CLT homebuyer. The CLTs long-term to relatively short-term subsidies, af- CLT acquires land with the intention interest in the land and property as- ter which time it reverts to market of holding it in perpetuity. A central sures that this balance of interests is rates. As a result, over the longer term, feature of the model is a dual owner- maintained and community wealth is public affordable housing resources ac- ship structure whereby the CLT owns retained. The value of public subsi- tually aid gentrification, eventually dis- the land, but individuals, public or dies used to develop the affordable placing the very people they were private organizations own the build- housing are permanently tied to the meant to assist. ings located on the land. Through housing, thus recycling subsidy dol- long-term, renewable ground leases, lars from owner to owner, assuring each party’s ownership interest in the long-term affordability and commu- The CLT Model land is protected. The CLT retains the nity benefit. ability to repurchase any improvement The governance structure of the Thirty-eight years ago, Bob Swann on the land through a resale formula CLT is an important aspect of this and Ralph Borsodi developed the Com- written into the lease, limiting resale stewardship. The classic CLT struc- munity Land Trust model, arising value to maintain affordability. The ture has a community-based member- from their concerns related to poverty lease also enables the CLT to impose ship open to all adult residents within and land tenure. The model, drawn further restrictions which maintain its defined geographic region — often from the Indian gramdan land reform housing quality and neighborhood sta- a neighborhood, city or county. The movement, was conceived as a demo- bility — such as requiring that homes CLT is governed by an elected, tri- cratically-controlled institution that be owner-occupied, preventing absen- partite board that shares governance would hold land for the common good tee landlordism. The ground lease is equally among leaseholders residing on of any community, while making it equally protective of the individual CLT-owned land; nearby residents available to individuals within the com- homebuyer’s interests, providing who do not live on CLT-owned land; munity through long-term leases. Over long-term security, while at the same (Please turn to page 12)

January/February 2005 • Poverty & Race • Vol.14, No. 1 • 11 (CLT: Continued from page 11) nonprofit organization in the country community-controlled land trust, the to be awarded eminent domain pow- residents were able to create a vibrant and public officials, local funders, ers over vacant land in a 1.3 square multicultural community, developing non-profit professionals and others mile area of the city of Bos- hundreds of affordable homes and pro- representing the public interest who ton. Through a seldom-used statute on viding an opportunity for residents to bring to the board essential skills and the books in Massachusetts known as personally benefit from the commu- abilities needed for effective nonprofit “special study status,” the community nity revitalization they themselves administration. plan became the zoning plan for the planned. The land trust, with its area. Having received eminent domain ground lease and resale formula, has rights over 30 acres of land, DSNI been proven to empower people by The Dudley Street sought a mechanism to assure perma- providing an opportunity for Experience nent affordability and discovered the homeownership and equity generation Community Land Trust model. We that is normally out of reach for lower- I first became aware of the Com- invited the Institute for Community income, largely minority residents. munity Land Trust model during my Economics, the national intermediary tenure as the Director of Boston’s for CLTs, to assist us with the pro- Dudley Street Neighborhood Initiative cess. The Racial Wealth Gap (DSNI). This initiative grew out of What we learned was that the CLT the community’s concerns about a new did much more than provide a mecha- In his highly acclaimed book, The Redevelopment Area plan which was nism to hold the land. It provided a Hidden Cost of Being African Ameri- being brought forth supposedly to raise can: How Wealth Perpetuates Inequal- the quality of life for the residents, Through long-term, ity, Brandeis Univ. sociologist Tho- through improvements such as hous- renewal ground leases, mas Shapiro presents an extensive ing, open space, recreation and cul- each party’s ownership analysis of the wealth gap from a per- spective of race and discrimination in tural institutions. When this planning interest in the land is process became public, the community America. His central argument is that came out in large numbers to voice its protected. family wealth/inherited assets are the opinion as to what the planning pro- key source of the wealth gap, as the cess ought to be, and why a method black-white earnings gap due to in- had to be imposed that would assure means to stabilize lives and the com- come discrimination has narrowed con- the community’s input in all pertinent munity through homeownership. As is siderably since the 1960s. As the pri- planning decisions and protect current the case for the majority of the nation’s mary asset for most families, housing residents’ ability to enjoy the improve- lower-income inner-city residents, the is the most salient source of the wealth ments into the future. families of the Dudley Street neigh- gap. Lacking the “transformative” as- The majority of residents in the borhood had little or no control over set of family wealth, African Ameri- Dudley area were low-income, and their own housing — the most funda- can families must rely on their income many of them remembered previous mental aspect of household security. and personal savings to qualify for a redevelopment processes in the West With no opportunity to own their own home mortgage. In contrast to white End and South End of Boston, which homes, they were forced to live in sub- families with a similar income level, had resulted in their displacement due standard absentee-owned rental hous- who often benefit from their parents’ to gentrification. The plans’ promise ing, subject to displacement when and wealth through inheritance or other of improvements to these neighbor- if rents increased beyond their means. financial assistance when the time hoods was not realized by these resi- In addition to the stability of comes to buy their first homes, Afri- dents, who were gentrified out due to homeownership, Dudley area residents can American families do not have ac- rising housing costs and limited afford- sought to take control of the neigh- cess to this “leg up.” They pay higher able rental housing. The Dudley area borhood outside their windows — to interest rates and incur additional costs residents did not want to see this re- deal with abandoned property, to stop for mortgage insurance, and as a re- sult repeated yet again, insisting on a illegal dumping, to stop providing sult build less equity over time. With process whereby they could participate havens for drug dealers and other each successive generation this gap in designing the community plan and criminal activity. increases. improvements. At the heart of their Dudley Street has become a re- As schools and social services are concerns was the desire to promote nowned example of the power of truly tied to residence location, the wealth homeownership opportunities for the participatory community-building for gap is effectively leading to ever lower-income residents of the neigh- the long term, which addresses the fun- greater racial segregation. The current borhood. damental policies and practices that way we fund and provide access to Through a series of policy firsts, have caused poverty and decline in cit- services produces, in Shapiro’s words, DSNI became the first community ies across the country. Through the a “privatized notion of citizenship in

12 • Poverty & Race • Vol. 14, No. 1 • January/February 2005 which communities, families and in- (MOBILITY: Continued from page 2) A Note of Caution dividuals try to capture or purchase resources and services for their own good health in society is strongly re- Although a substantial (and grow- benefit rather than invest in an infra- lated to socioeconomic position, with ing) body of both theory and evidence structure that would help everyone.” those at the top of the socioeconomic points to the critical role of neighbor- By creating shared stewardship of ladder having better health than those hood in people’s lives, it would be a land and a mechanism for the wealth at the middle and those at the bottom. mistake to overstate these conclusions. generated through housing apprecia- Living in disadvantaged neighbor- More specifically, there are two im- tion to be shared from one lower-in- hoods may increase stress, which is as- portant caveats to keep in mind in come family to another, the CLT of- sociated with health problems such as thinking about the evidence of neigh- fers an antidote for these interrelated cardiovascular disease. Stress may re- borhood effects. problems. The land trust can, in ef- sult, for example, from high exposure First, individual and family char- fect, substitute for inherited wealth, to violence. As landmark research by acteristics interact with neighborhood and thus has the potential to address Arlene Geronimus has indicated, cu- environment and play a hugely impor- the racial wealth gap in this country. mulative stress may in turn result in tant role in shaping outcomes. Some Examples like Dudley Street demon- “weathering” or premature health de- people can withstand the disadvantages strate the ability of the CLT to change terioration. For example, the risk of of even the most distressed environ- the dynamics, to provide opportunity hypertension and the risk of having a ment; and some families can help their for all residents, to prevent displace- low birthweight baby may increase children succeed despite their surround- ment, gentrification and the associated more rapidly with age among African ings. Other individuals and families, racial segregation. American women than among white however, may be particularly vulner- Faced with an administration that women, because the former are more able to neighborhood influences. And seems focused, more than any in re- likely to be systematically and chroni- still others are likely to encounter se- cent memory, on increasing the wealth cally exposed to stressors such as poor of the top few at the expense of the neighborhoods and discrimination. Research suggests that many, we have little choice but to find There is also increasing evidence that our own solutions and implement residents of poor and minority neigh- living in disadvantaged them. In my new role as Executive borhoods find it much harder to sus- neighborhoods Director of the Institute for Commu- tain healthy behaviors, not only be- increases the risk of nity Economics, I hope to raise aware- cause those neighborhoods have more mortality and disease. ness about the potential for commu- limited opportunities (e.g., there are nity land trusts to level the playing fewer open spaces where one can ex- field, creating opportunities for people ercise and fewer grocery stores with a rious problems regardless of the neigh- of color. Dudley Street is the quintes- variety of healthy food choices), but borhoods in which they live. It would sential melting pot, a laboratory where also because they are the target of com- be a mistake, therefore, to assume that the CLT model has been tested and panies that promote unhealthy neighborhood environment is the only proven to provide opportunity across lifestyles. Tobacco, alcohol and fast important factor in a family’s life — race lines. food are disproportionately advertised or even the most important factor. and placed in primarily minority and In addition, just because we observe Gus Newport ([email protected]) is the low-income neighborhoods. In the a high incidence of a problem in high- newly appointed Executive Director of October 2004 American Journal of poverty, distressed neighborhoods does the Institute for Community Econom- Preventive Medicine, Block and col- not necessarily mean that the neigh- ics in Springfield, MA. He is a former leagues reported that in New Orleans, borhood environment actually caused two-term (1979-86) Mayor of Berke- the number of fast food restaurants per the problem. It may simply mean that ley, CA and Director of Boston’s square mile was higher in neighbor- many families with problems ended up Dudley Street Neighborhood Initiative. hoods with lower household median living in the same neighborhood, per- He has served on the faculty of Univ. income and in neighborhoods with a haps because housing is more afford- Calif.-Santa Cruz, Univ. Mass.-Bos- larger proportion of African Ameri- able there or discrimination closed the ton, Yale and Portland St. Univ. ❏ can residents. Thus, such disparities door to other neighborhoods. This is in neighborhood environment may the most common criticism raised by contribute to the disparities we observe researchers who are skeptical about the Don’t forget in health conditions, such as obesity, evidence of neighborhood impacts. that are largely dependent on health Consequently, the studies summarized to send us items behaviors — e.g., diet and physical here all use statistical techniques to for our Resources activity. control for individual and family char- section. acteristics, so as to measure the inde- (Please turn to page 14)

January/February 2005 • Poverty & Race • Vol.14, No. 1 • 13 (MOBILITY: Continued from page 13) that assisted housing mobility yields dramatic improvements in safety and The House We Live In pendent effect of neighborhood con- security. Escape from crime and dis- ditions on outcomes. order is a primary motivation for fami- California Newsreel has produced lies to participate in assisted housing a great 3-part series, RACE – The mobility programs. For example, 53% Power of an Illusion, the final Benefits of Mobility of MTO applicants said that their most episode of which, “The House important reason for moving was to We Live In,” documents persua- Now we turn to what research to get away from drugs and gangs; an- sively the legacy of federal poli- date has found about the benefits of other 29% gave this as their second cies (FHA, the federal highway moving from a high-poverty, dis- most important reason. program, urban renewal, public tressed neighborhood to a lower-pov- Those who move end up in much housing) in creating segregated erty, more opportunity-rich neighbor- safer neighborhoods. MTO research housing (hence school) patterns hood. Evidence on this issue is drawn finds that moving with a regular and the resultant racial wealth from three primary sources: voucher (which supplements what gap. Of the $120 billion in hous- • Gautreaux demonstration – research low-income families can afford to pay ing underwritten by the federal conducted over many years (prima- government between 1932 and rily by researchers at Northwestern 1964, less than 2% went to non- We should be looking whites. For more information, University) on families who moved for strategies to link from poor, predominantly black go to www.pbs. org/race, and to neighborhoods in Chicago to ra- mobility programs with order a copy of the video or cially integrated suburban commu- other forms of DVD, go to www.newsreel.org. nities. assistance and support. • Moving to Opportunity (MTO) dem- onstration – research conducted by researchers from a number of dif- for rental homes and apartments in the So far, the MTO evidence is not as ferent institutions on a carefully private market but requires recipients strong. Families have moved to neigh- controlled experiment to test the im- to conduct their own housing search) borhoods with better schools, but – pacts of helping families move from — generally to intermediate-poverty unlikely Gautreaux movers — rela- high-poverty assisted housing neighborhoods — increased families’ tively few have left central city school projects (in Baltimore, Boston, perceptions of safety by 15.6 percent- districts. Moreover, some MTO chil- Chicago, New York and Los An- age points, while moving with an dren continue to attend the same geles) to low-poverty neighbor- MTO voucher (to low-poverty neigh- schools, despite the fact that their fami- hoods. borhoods) produced a 30.3 percentage lies have moved. To date, there is no • HOPE VI program – research con- point increase. We see similar gains evidence that MTO moves have led to ducted by the Urban Institute on among HOPE VI relocatees; in the better educational outcomes, possibly what is happening to the original Urban Institute’s sample, eight out of because so few children are attending residents of five distressed public ten families who moved with vouch- significantly better schools, or because housing projects that are being de- ers see their new neighborhood as it may be too soon to see benefits. molished and replaced under safer. And families place tremendous HOPE VI relocatees who have HUD’s HOPE VI initiative. value on these improvements, telling moved with vouchers report improve- interviewers what a relief it is not to ments in the schools their children at- The first key lesson from all three worry every day about possible vio- tend. They see the schools as safer and of these initiatives is that assisted hous- lence and to have the freedom to let better quality, and they also report that ing mobility is feasible. Low-income children play outside. their kids are having fewer problems families will apply for the opportunity We have mixed evidence on how at schools, including trouble with to move to a better neighborhood. moving to a better neighborhood may teachers, disobedience at school and And many – though not all – succeed affect children’s educational achieve- at home, and problems getting along in using the combination of a voucher ment. Gautreaux research found dra- with other children. and some search assistance to find hous- matic benefits for children whose fami- Some of the early research on MTO ing in lower-income and less racially lies moved to suburban neighborhoods. families in individual sites suggested segregated communities. For example, They were substantially more likely to that young people whose families the share of MTO families who were complete high school, take college- moved to low-poverty neighborhoods successful in moving ranged from a track courses, attend college and enter were engaging in less risky behavior low of 34% in Chicago to a high of the work force than children from simi- and committing fewer crimes. In Bal- 61% in Los Angeles. lar families who moved to neighbor- timore, for example, moving to a low- Research to date clearly establishes hoods within Chicago. poverty neighborhood was found to cut 14 • Poverty & Race • Vol. 14, No. 1 • January/February 2005 violent crime arrests among juveniles consequence, employment effects may sumption of fruits and vegetables. roughly in half. More recent and com- take more time to materialize than MTO adults also showed signifi- prehensive data for all sites suggests other outcomes. Long-term research cant improvements in mental health, that moving to a lower-poverty envi- on Gautreaux families has found sig- including reductions in psychological ronment is indeed improving the be- nificant increases in employment and distress and depression, and increas- havior of teen-aged girls, but not boys. reductions in welfare recipiency. To ing feelings of calm and peacefulness. Specifically, for girls aged 15 to 19 date, we see no statistically significant Improved mental health was also in MTO families there were signifi- employment or earnings effects across shown in the first MTO follow-up cant reductions in risky behavior, es- the total sample of MTO families. study in New York and Boston, as well pecially in marijuana use and smok- When we look at the sites individu- as in the Yonkers study of scattered- ing, as well as a reduction in the share ally, we do see significant impacts on site public housing. The consistency of girls working rather than attending employment and earnings among MTO of these results across three different school. MTO boys in this age range, families in New York and Los Ange- studies is encouraging. Improvements however, exhibit significant increases les, but it is not clear why there would in mental health are not surprising in smoking and arrests for property be an impact in these sites and not in given that fear of crime was the main crime. Research is currently under others. reason why MTO participants wanted way to better understand what is hap- to move out of their neighborhoods. pening to the boys, and why they do As discussed above, adults and chil- not seem to be enjoying the same ben- Housing Mobility dren moving to low-poverty neighbor- efits from mobility as girls. One pos- and Health hoods reported increases in their per- sible explanation is that black and His- ception of safety and reductions in the panic boys moving to integrated or pre- The MTO demonstration has shown likelihood of observing and being vic- dominantly white neighborhoods are improvements in the health of the tims of crime. Considerable stress in not engaging in any more criminal MTO group, and in some instances the neighborhoods of origin may have behavior, but are being arrested more also in the health of the regular Sec- also resulted from chronic exposure to due to racial profiling. Another pos- poor-quality housing and schools, two sibility is that girls and boys respond additional reasons why participants differently to the loneliness and fears The MTO demonstration looked forward to moving out of those of relocation. has shown improve- neighborhoods. The current evidence on how mo- ments in the health of In addition to improvements in bility affects adult employment and the MTO group. adult mental health, girls in the MTO earnings is mixed and still somewhat group, and in some instances also girls inconclusive. It is important to note in the regular voucher group, reported that mobility assistance does not di- improvements in their mental health, rectly address employment problems, tion 8 voucher group. The most re- including reductions in psychological although it may remove barriers stand- cent follow-up study indicated a re- distress, depression and generalized ing in the way of employment. As a duction in adult obesity among the anxiety disorder. As discussed above, MTO group. This effect is notewor- girls aged 15-19 in the MTO group thy because the prevention of obesity also had better health behaviors than New on has emerged as a national public health their counterparts in public housing — PRRAC’s website priority. The United States is facing e.g., lower rates of smoking and mari- (www.prrac.org): an epidemic of overweight and obe- juana use. sity, which disproportionately affects Although the reductions in obesity • “Civil Rights Mandates in African Americans and Hispanics, as and mental health problems are prom- the Low Income Housing Tax well as those with lower socioeconomic ising, we should also note that at the Credit Program” (an advocates’ status. The prevalence of obesity latest follow-up, the MTO demonstra- guide) among US adults is 30.5% and has in- tion did not find significant improve- creased markedly over the past decade. ments in other health outcomes such • Conference presentations Obesity increases the risk of illness as asthma, blood pressure, smoking from the Third National Con- from some 30 serious medical condi- and alcohol use, all of which could also ference on Housing Mobility tions, results in approximately be influenced by neighborhood con- (Dec. 2004) 300,000 premature deaths each year, ditions. Additionally, evidence from and is associated with $117 billion in the Gautreaux mobility program indi- • Annotated Bibliography of costs. In the MTO demonstration, re- cated that suburban movers may be less Housing Mobility Research, duction in obesity in adults may be satisfied with medical care, possibly 1997-2004. partly due to healthier diets, as the because in those neighborhoods there MTO group showed increased con- (Please turn to page 16)

January/February 2005 • Poverty & Race • Vol.14, No. 1 • 15 (MOBILITY: Continued from page 15) to low-poverty areas is both feasible that the impact of mobility on educa- and beneficial. This evidence provides tional achievement may depend on may be fewer health care providers, strong support for policies that help whether children actually change to or former residents of public housing families move out of distressed neigh- significantly better schools (perhaps may be less familiar with them. In borhoods and into lower-poverty com- even better school districts), and that MTO, among those eligible to move, munities. Ironically, although health impacts on employment and earnings some did not want to because they were improvements were not among the may occur indirectly and over a rela- afraid of losing access to health care stated goals of MTO, they are cur- tively long time horizon. Finally, as in their neighborhood. Also, families rently among the most apparent gains we learn more about how residential with a disabled member were less suc- realized by participating families, and mobility works — and for whom — cessful in moving to low-poverty MTO has provided some of the most we should be looking for strategies to neighborhoods. This suggests that al- compelling evidence to date that link mobility programs with other though more prosperous neighbor- neighborhoods matter for health. In forms of assistance and support that hoods may offer some better opportu- the long run, the positive effects of families need to be stable and success- nities to maintain good health, resi- housing mobility on health may lead ful — including counseling for teens, dents’ attachment to health care pro- to improvements in other areas over job training and placement services, viders in disadvantaged neighborhoods the life course. For instance, healthier treatment for mental or physical health may be a barrier to moving. There- children may do better in school, and problems, and assistance with budget- fore, comprehensive mobility pro- healthier adults may be able to hold ing and financial management. grams may need to address access to better and more stable jobs. Addition- health care in their housing search ally, the promise of housing mobil- Marjorie Austin Turner (maturner@ counseling. ity, if implemented at a large scale, ui.urban.org) directs the Urban may enhance population health, in- Institute’s Metropolitan Housing and cluding contributing to reducing racial Communities Policy Center. She served How Does It All Add Up? and ethnic disparities in health. as HUD’s Deputy Assistant Secretary But research to date also highlights for Research from 1993-96. Rigorous social science research some limitations of assisted housing Dolores Acevedo-Garcia (dacevedo convincingly shows that living in a se- mobility. Not every family will be @hsph.harvard.edu) is Assistant Pro- verely distressed neighborhood under- able to take advantage of mobility as- fessor in the Dept. of Society, Human mines the health and well-being of both sistance, and not everyone who moves Development & Health, Harvard adults and children, and that moving will necessarily benefit. It seems likely School of Public Health. ❏

Resources African-American Women and Infants: Evi- Rosenbaum, James E. (1995). “Chang- dence and Speculations” Ethnicity & Disease ing the Geography of Opportunity by Ex- Acevedo-Garcia, Dolores, Theresa L. 2(3): 207-21. panding Residential Choice: Lessons from Osypuk et al. (2004). “Does Housing Mo- the Gautreaux Program” Housing Policy bility Policy Improve Health?” Housing Goering, John & Judith Feins, eds. (2003). Debate, Vol. 6, Issue 1: 231-269. Policy Debate 15(1): 49-98. Choosing a Better Life? Evaluating the Mov- ing to Opportunity Social Experiment. Wash- Rosenbaum, James E. & Stephanie Block, Jason P., Richard A.Scribner et ington, DC: The Urban Institute Press. DeLuca (2000). Is Housing Mobility the al. (2004). “Fast Food, Race/ethnicity, and Key to Welfare Reform? Lessons from Income: A Geographic Analysis” Ameri- Massey, Douglas S. (2004). “Segregation Chicago’s Gautreaux Program. Wash- can Journal of Preventive Medicine 27(3): and Stratification: A Biosocial Perspective” ington, DC: The Brookings Institution. 211-217. Du Bois Review 1(1): 1-19. Williams, David R. & Chiquita Collins Ellen, Ingrid Gould & Margery Austin Orr, Larry et al. (2003). Moving to Oppor- (2001). “Racial Residential Segregation: Turner (1997). “Does Neighborhood Mat- tunity for Fair Housing Demonstration Pro- A Fundamental Cause of Racial Dispari- ter? Assessing Recent Evidence” Hous- gram: Interim Impacts Evaluation. Wash- ties in Health” Public Health Reports 116 ing Policy Debate, Vol. 8, Issue 4: 833- ington, DC: U.S. Department of Housing (September-October): 404-416. 866. and Urban Development Winkleby, Marilyn A. & Catherine Flournoy, Rebecca & Irene Yen (2004). PolicyLink (Fall 2004). The Influence of Cubbin (2003). “Influence of Individual “The Influence of Community Factors on Community Factors on Health: An Anno- and Neighbourhood Socioeconomic Sta- Health. An Annotated Bibliography” Oak- tated Bibliography. Available at http:// tus on Mortality Among Black, Mexican- land, CA: PolicyLink & The California www.policylink.org/pdfs/AnnotatedBib.pdf. American, and White Women and Men in Endowment. Popkin, Susan et al. (2004). Series of re- the United States” Journal of Epidemiol- ogy and Community Health 57(6): 444- Geronimus, Arlene T. (1992). “The search briefs titled How Are HOPE VI Fami- 452. Weathering Hypothesis and the Health of lies Faring? Available at www.urban.org.

16 • Poverty & Race • Vol. 14, No. 1 • January/February 2005 Predatory Lending: Undermining Economic Progress in Communities of Color by Mike Calhoun and Nikitra Bailey

Only a few years ago, one of the (HOEPA). In 1999, North Carolina The Wealth–Ownership most notorious and pernicious practices became the first state to do so, and its Connection in American lending was redlining – landmark legislation became a model the practice of systematically restrict- for many other state anti-predatory In America, wealth (versus simple ing mortgage lending in minority com- mortgage lending laws. The North income) is critical to a family’s eco- munities. Redlining served as a ma- Carolina law, which reflects a consen- nomic stability and security. The jor barrier to homeownership and sus built among bankers, consumer wealth gap between whites and people wealth among communities of color. advocates and civil rights leaders, pro- of color is well established and grow- Today, access to credit has improved, vides meaningful protections for high- ing. According to a recent report by but race still matters in a lending en- cost loans while preserving access to the Pew Hispanic Center, in 2002 Af- vironment where abusive lending prac- credit. rican-Americans and Latinos had re- tices are rampant. Predatory lending spective median net worths of $5,998 restrains economic progress among Predatory lending helps and $7,932 — shockingly low, all the vulnerable communities and helps pre- more so compared to whites’ median serve a troubling and persistent wealth preserve a troubling and net worth of $88,651. Moreover, the gap between whites and people of persistent wealth gap figures for African-Americans and color. between whites and Latinos represent a decline from their Predatory lending occurs when loan people of color. median net worth levels in 2000, which terms or conditions are abusive or when were $7,500 and $9,750, respectively, borrowers who could qualify for credit compared to $79,400 for whites. on better terms are steered into higher- Today, such state laws are in dan- Homeownership is one of the most cost loans. This type of abusive lend- ger of being preempted by weaker na- reliable and accessible ways for eco- ing has found fertile soil for growth tional legislation. Several proposals nomically disadvantaged populations in today’s two-tiered, separate-but-un- were floated in Congress during 2004, to close the wealth gap and obtain a equal financial services system. including a bill sponsored by Repre- secure position in the middle class. Wealthier borrowers, mainly white, sentative Robert Ney (R-Ohio) that However, despite homeownership are served by banks and other conven- seeks to override existing state laws gains in recent years, less than 50% of tional financial institutions. Lower- and, on balance, weaken existing pro- African-American and Latino families income borrowers and persons of color tections for borrowers. have achieved homeownership, com- are targeted by higher-cost lenders, If Congress revisits the issue of pared to roughly 75% of white fami- including subprime mortgage lenders, predatory lending, the stakes will be lies. This gap is significant, especially check cashers, payday lenders and high for borrowers in the subprime given the importance of home equity other fringe bankers. market. The Center for Responsible as a component of wealth. For ex- Not all of these lenders are preda- Lending (CRL) estimates that preda- ample, when home equity is excluded tory, but nearly all predatory lending tory lending of all kinds costs low-in- from 2000 data, the median net worth occurs in these markets. In some cases, come borrowers over $16 billion each of African-American and Latino fami- lenders find ways to circumvent exist- year — comparable to the amount lies drops drastically, down to $1,160 ing consumer protection laws. In most spent by the U.S. government on fund- and $1,850, respectively. In other cases, current federal law provides in- ing for Community Development words, of the wealth that African- sufficient protections against abusive block grants, Head Start and public Americans and Latinos possess, nearly practices. housing programs combined. A dis- two-thirds consists of home equity, A number of states have enacted proportionate number of these borrow- compared to only one-third of the anti-predatory mortgage lending laws ers are African-Americans, Latinos, wealth of white Americans. These fig- in response to unscrupulous mortgage women and rural residents. As de- ures illustrate the fragile financial po- lenders who engage in lending prac- scribed below, the majority of the sition of families in communities of tices that fall just below the thresholds money siphoned from these commu- color, and also the vital importance of set in 1994 by the federal Home Own- nities occurs in the subprime mortgage home equity to their wealth. ership and Equity Protection Act market and through payday lending. (Please turn to page 18)

January/February 2005 • Poverty & Race • Vol.14, No. 1 • 17 (LENDING: Continued from page 17) show that 30-50% of borrowers with main trapped in a higher-cost mort- subprime mortgages could have quali- gage. Preliminary research by CRL fied for loans with better terms. This shows that prepayment penalties oc- Predatory Mortgage point is further illustrated by joint U.S. cur disproportionately in zip code ar- Lending Department of Housing and Urban De- eas with a higher concentration of mi- velopment - Treasury Department re- nority residents. When finalized, the Because of pervasive predatory search showing that upper-income study will contribute to growing evi- mortgage lending practices, the slen- African-American homeowners in pre- dence that predatory lending imposes der home equity gain made in com- dominantly African-American neigh- proportionately higher economic bur- munities of color is under attack. Un- borhoods are twice as likely as low- dens on the most vulnerable commu- scrupulous lenders operating in the income white borrowers to have nities. subprime mortgage market target the subprime loans. most vulnerable borrowers for costly Similarly, borrowers in rural areas refinances that strip home equity while appear to be more vulnerable to preda- Payday Lending — providing no net benefit. CRL esti- tory lenders. A recent CRL study Who Pays? mates that predatory mortgage lend- ing costs borrowers approximately $9.1 Payday lending is another form of billion every year. Predatory lending of all predatory lending that greatly affects The threat posed by predatory lend- kinds costs low-income communities of color. This type of ing is severe. Home equity is the only borrowers over $16 lending, sometimes called cash ad- savings account that many low-wealth billion each year. vance, is the practice of making small, families possess. The rise in home- short-term loans (typically two weeks ownership among women, African- or less) using a check dated in the fu- Americans and Latinos has resulted showed that rural borrowers are more ture as collateral. Usually borrowers from great effort and sacrifices. This likely than similar urban borrowers to cannot repay the full loan amount by progress can be wiped away quickly have subprime mortgages with prepay- their next payday, so they are forced by unscrupulous lenders who strip eq- ment penalties imposed for three years to renew the loan repeatedly for addi- uity savings in order to collect exorbi- or longer. Such penalties force bor- tional two-week terms, paying new tant fees, lock borrowers in over-priced rowers who later qualify for more af- fees with each renewal. Over 5 mil- loans and close access to the judicial fordable loans to give up equity or re- lion American families are caught in a system through mandatory arbitration requirements. (See Box) African-Americans and Latinos are Common Abuses in the Subprime Mortgage Market overrepresented in the subprime mort- gage market and have borne the brunt • Excessive fees: Points and fees are costs not directly reflected in interest of abusive practices. According to a rates. Because these costs can be financed, they are easy to disguise or 2004 study published by ACORN, downplay. On predatory loans, fees totaling more than 5% of the loan African-Americans were 3.6 times as amount are common. likely as whites to receive a home pur- chase loan from a subprime lender and • Abusive prepayment penalties: In the prime market, only about 2% of 4.1 times as likely as whites to receive home loans carry prepayment penalties, while up to 80% of subprime a refinance loan from a subprime mortgages come with a penalty for early payoff. lender in 2002. In 2002, for both • Kickbacks to brokers (“yield spread premiums”): A yield spread pre- home purchase and refinance loans, mium is a cash bonus that a broker receives from a lender for placing Latinos were 2.5 times as likely as borrowers in a loan with a higher interest rate than the lender would whites to receive a loan from a otherwise accept. subprime lender. These figures are even more dis- • Loan “flipping”: A lender “flips” a loan by refinancing a loan to gen- turbing when one considers the high erate fee income without providing any net tangible benefit to the bor- prevalence of “steering” and “push rower. marketing.” Predatory lenders are • Unnecessary products: Unscrupulous lenders may sell and finance un- known to steer borrowers into necessary insurance or other products (e.g., auto club memberships) subprime mortgages, even when the along with the loan. borrowers could qualify for a main- stream loan. Vulnerable borrowers are • Mandatory arbitration clauses: Prevent borrowers from seeking legal subjected to aggressive sales tactics and remedies in a court of law. sometimes outright fraud. Studies

18 • Poverty & Race • Vol. 14, No. 1 • January/February 2005 cycle of payday debt each year, pay- ing $3.4 billion in excess fees. Nine Signs of Predatory Payday Loans Payday lending targets people with steady but limited incomes, such as • Repeated loan “flipping”: Payday lenders charge more fees for no new service workers, soldiers, government money (the debt trap) through renewals, extensions or back-to-back loans. employees, clerical workers and retir- ees. According to a study published • Short minimum loan term: Terms are usually two weeks — 75% of cus- by researchers at North Carolina A&T tomers are forced to extend the loan at additional cost. State University, payday lenders tend • Single balloon payment: Payday loans are not payable in installments. to locate in urban areas with high mi- nority concentrations. A recent analy- • Triple-digit interest rates: Annual percentage rates (APR) on payday sis by the New York Times reveals that loans typically exceed 400%. at least 26% of military households • Simultaneous borrowing from multiple lenders: Many borrowers “bor- have been caught up in payday lend- row from Peter to pay Paul.” ing. This has strong implications for African-Americans and other non- • No consideration of ability to repay: The lender collects fees when bor- white groups, since people of color rowers are unable to repay on time. make up well over one-third of en- • Deferred check mechanism: Borrowers pay repeat fees to avoid bounced listed military personnel. check fees and/or the threat of prosecution for writing a “bad check.” Payday lending is generally mar- keted as quick cash for a short-term • Mandatory arbitration clauses: Prevent borrowers from seeking legal emergency. However, only 1% of remedies in a court of law. all loans go to one-time emergency borrowers. The typical structure al- • Violations of lending laws: Payday loans are often more expensive than lows only two weeks for repayment, state law allows. fails to consider the borrower’s abil- ity to repay, and operates on back-to- through laws that curb specific abu- tunities to build a better future. To back transactions that can easily con- sive practices while preserving access the extent that hard-earned equity and fuse borrowers into believing they are to credit in the subprime market. Fed- other assets are stripped away, oppor- receiving additional funds when they eral legislation that nullifies these ex- tunities vanish, and the negative ripple actually are paying fees repeatedly on isting laws would seriously impair effects are passed down to the fami- the same loan principal. progress already made. Any new na- lies’ future generations and the wider CRL research shows that borrow- tional mortgage legislation should pro- communities in which they live. ers who receive five or more loans a vide a floor, not a ceiling, on con- year account for 91% of payday lend- sumer protections. It should elimi- Mike Calhoun ([email protected]) ers’ business. The fees are high, but it nate excessive fees, broker kickbacks, is General Counsel for Self-Help and is the debt trap that makes payday “flipping” and abusive prepayment the Center for Responsible Lending; lending a faulty form of credit and a penalties. It should also require man- he was a lead drafter of North poor substitute for legitimate banking datory counseling for all high-cost Carolina’s landmark predatory lend- services in communities of color. loans and preserve a borrower’s abil- ing law. ity to seek legal remedies in a court of Nikitra Bailey (nikitra.bailey @self- law. Advocates and concerned citi- help.org) is a Policy Associate for the Conclusion zens can play a key role by urging their Center. representatives to oppose the Ney bill The Center for Reponsible Lending Access to healthy credit contributes referred to above (H.R. 833) and sup- (www.responsiblelending.org) is a to sustainable prosperity; destructive port legislation that preserves state national nonprofit, nonpartisan re- debt and equity-draining loans impose laws and strengthens protections, such search and policy organization in hardships on families and ultimately as “The Prohibit Predatory Lending Durham, NC, dedicated to protecting harm entire communities. Greater Act” (H.R. 3974), sponsored by homeownership and family wealth by awareness of predatory lending and in- North Carolina Representatives Mel working to eliminate abusive financial creased focus on financial education Watt and Brad Miller. practices. It is affiliated with Self- are helpful, but education campaigns As long as predatory lending is per- Help, one of the nation’s largest com- alone are not enough. Borrowers need mitted, much of the economic munity development financial institu- strong protections eliminating most progress made in communities of color tions. predatory lending before it happens. will be largely wiped out. To the ex- See Why the Poor Pay More: How A number of states are successfully tent that families own property, they to Stop Predatory Lending, ed. Gre- addressing predatory lending issues have many more options and oppor- gory D. Squires (Praeger, 2004). ❏

January/February 2005 • Poverty & Race • Vol.14, No. 1 • 19 Apologies/Reparations

We periodically offer a compendium of recent reports dealing with apologies and reparations around the world – for whatever lessons and models they might provide here at home. The most recent appeared in our March/April 2003 issue. We’ll be happy to send you a compendium of all 8 earlier such reports: just send us a SASE (60¢ postage).

• The Chilean government released a 1200-page report on Washington State, was exonerated by a special Historical torture practiced by the Pinochet government following the Court of Inquiry and Justice, led by the chief justice of the 1973 coup, noting that “torture was a policy of the state, State Supreme Court, at the request of the state legislature. meant to repress and terrorize the population.” The Army The unanimous, but not legally binding ruling (by 7 active commander acknowledged “institutional responsibility for and recently retired Wash. judges) held that if Chief Leschi ‘punishable and morally unacceptable acts in the past’,” — a revered icon of the tribe and a celebrated Indian mar- leading to mounting calls for the judiciary and new media tyr — did in fact kill the soldier (the evidence is by no to offer a similar mea culpa for not denouncing the abuses. means convincing), a murder charge was not justified, as Chilean President Ricardo Lagos has proposed lifetime pen- they were lawful combatants in a time of war. (NY Times, sions and other reparations (preferential access to educa- 12/5/04, 12/12/04) tion, health care and housing) for the more than 28,000 Chileans who were tortured. Chile has already made repa- • Sen. John McCain is seeking a posthumous Presidential rations to families of people who died or disappeared in the pardon for Jack Johnson, the first black world heavyweight political violence as well as to dissidents forced into exile. boxing champ, who went to jail “on a trumped-up charge An initiative is under way to create a National Monument [abetting prostitution – relating to his open relationships to Memory, to be constructed in a privileged, highly vis- with white women] to punish him for being an African- ible location in Santiago. (NY Times, 11/28/2004, 11/30/ American in a white man’s sport” (Sen. McCain’s words). 2004; Wash. Post, 11/29/04; [email protected]; see also Johnson is the subject of a new Ken Burns film. (Parade, 9/ “My Tortured Inheritance,” the moving op-ed in the 12/ 12/04) 13/04 NY Times by Chilean journalist Rafael Gumucio) • Civil Rights Movement hero James Lawson – avatar of • Bosnian Serb authorities issued a public apology for the non-violence — was expelled from Vanderbilt Univ. for his killings of up to 8,000 Muslim men and boys in the town of participation in the Nashville sit-ins. In 1996, Rev. Lawson Srebrenica, following issuance of a government-sponsored was honored as the first Vanderbilt Divinity School Distin- report acknowledging that the killings had been orches- guished Alumnus. (“The Lawson Affair, 1960: A Conversa- trated by Serbian forces toward the end of the 1992-94 tion,” in Dale A. Johnson, ed. Vanderbilt Divinity School: Bosnian conflict. The government also said it would meet Education, Context and Change — Vanderbilt Univ. Press, its obligations to arrest those responsible for the atrocities. 2001) (NY Times, 11/11/04) • The Jackson, MS International Airport has been renamed • Argentina will compensate children who were detained, Jackson-Evers International Airport, honoring the memory stolen or born in captivity during a brutal 1976-83 dicta- of assassinated NAACP Field Director Medgar Evers. The torship, according to Pres. Nestor Kirchner, “asking them Jackson Municipal Airport Authority plans to create an ex- to forgive the state.” Military officials adopted babies of hibit in the terminal honoring Evers. (NAACP News, 12/ women who gave birth in detention and were then killed. 23/04) The children stand to receive up to $75,000 each under the compensation legislation. (Wash. Post, 3/31/04) • On Nov. 3, 1979, in Greensboro, North Carolina, 5 com- munity activists protesting Ku Klux Klan racism, in a le- • Mayor Thomas Menino took the first step toward re- gally scheduled march, were shot and killed, 10 others moving a ban on Indians entering Boston — “for fear mem- wounded, in broad daylight – an action caught on film by bers of their ‘barbarous crew’ would cause residents to be cameramen from 4 TV stations. The killers, members of the ‘exposed to mischief’” — which has been in the law since KKK and American Nazi Party, were exonerated by an all- 1675. (NY Times, 11/25/04) white jury in state court in 1981, by reasons of “self-de- fense”; a second federal civil rights trial ended in 1984 • In June, the Virginia legislature approved $1 million with acquittal by another all-white jury. Later, the widows (matched by $1 million from a private philanthropist) in and other survivors successfully sued the Klan, Nazis and scholarships (the Brown v. Board of Education Scholarship Greensboro police (who were complicit in the violence) for Program & Fund) for African-Americans who had suffered wrongful deaths, and the City of Greensboro paid the small gaps in their education decades ago when their local public judgement (not the KKK or Nazis), funds that formed the schools closed rather than enroll blacks. Implementation basis for The Greensboro Justice Fund. Now, 25 years later, has been slow, however. (Education Week, 11/17/04) the Greensboro Truth and Reconciliation Commission (mod- eled after what post-apartheid South Africa and other coun- • Chief Leschi of the Nisqually Indian tribe, hanged in tries have put in place) has been created and will issue a 1858 for the death of a white militia soldier in what is now report and recommendations for community reconciliation

20 • Poverty & Race • Vol. 14, No. 1 • January/February 2005 (www.gtrcp.org). Two of the seven Commission members nents feared guaranteeing a right to public education (hor- are NC Congressman Mel Watt and former Greensboro Mayor rors!) “would have opened the door for ‘rogue’ federal judges Carolyn Allen. (Greensboro Justice Fund, www.gjf.org; see to order the state to raise taxes to pay for improvements in also Signe Waller, Love and Revolution: A Political Mem- its public school system.” (Wash. Post, 11/28, 12/4/04) ❏ oir: People’s History of the Greensboro Massacre, Its Set- ting and Aftermath (Rowman & Littlefield, 2002) & Sally Amery Bermanzohn, Through Survivors’ Eyes: From the Six- ties to the Greensboro Massacre (Vanderbilt Univ. Press, PRRAC Contributors 2003) We are extremely grateful to those who responded to • Ray, the terrific Jamie Foxx film portrait of Ray Charles, our end-of-the year funding appeal in the last issue of P&R has a great scene wherein Charles, arriving in Atlanta in the — and hope others may be similarly inspired — thereby 50s or 60s for a concert, is repeatedly harangued by a fan getting a head-start on their 2005 contributions (received for playing before a segregated audience. Charles blows him as of January 3, 2005). off, then at the last minute reconsiders and gets back on the bus with his entire entourage. In retaliation, Charles is banned David R. Barclay Henry W. McGee from the city and state. Then, in 1979, the Georgia Legisla- Marcia Bok Michael Meltsner ture passed a formal proclamation and apology, in the pro- Cornelius Collins Dorothy Miller & cess making “Georgia on My Mind” the state song. In a Mimi Conway & Daniel Klubock nice contemporary touch, the movie has none other than Dennis Houlihan NAACP Chair Julian Bond, a former Georgia legislator him- Seymour M. Miller self expelled for his opposition to the Vietnam War, por- Judith Eisenberg David & Kathryn Nelson traying the legislator reading the proclamation. James & Kathryn Gibson Theodore Pearson Joseph & Shelly James Perlstein • Can’t win ‘em all: Alabama voters narrowly voted to Guggenheim Florence Roisman keep this language (of course unenforceable, per Brown) in Alice & Louis Henkin Jay P. Siegel & the state constitution: “separate schools shall be provided Victor & Lorraine Honig Mona Sarfaty for white and colored children, and no child of either race Charles M. Judd Gregory Squires shall be permitted to attend a school of the other race.” Victoria Kaplan Walter Thabit Voters rejected as well deletion of language referring to a Richard Kazis Howard Winant & poll tax (now unconstitutional). The ballot measure also would Alan Mallach Deborah Rogow have removed language — inserted after the 1954 Brown Frances & Peter Marcuse Jody Yetzer decision — that there is no right to public education; oppo- Harriette McAdoo PRRAC Update

• Congrats. to new PRRAC Board Member Darrell Nakahara Kochiyama, published by the UCLA Asian Armstrong on birth of their first child, Amaris Kayla Amer. Studies Ctr. Press (headed by Don Nakanishi); Armstrong! and BRIDGE: Building a Race and Immigration Dia- logue in the Global Economy: A Popular Education • And congrats. to PRRAC and partner organization Resource for Immigrants and Refugee Community Or- Teaching for Change re receipt our second recent award ganizers, published by the Natl. Network for Immigrant for our book Putting the Movement Back Into Civil and Refugee Rights (headed by Catherine Tactaquin). Rights Teaching — this, an Honorable Mention in the Both were awarded an Outstanding Book Prize by the 2004 Myers Outstanding Book Awards of the Gustavus Myers Ctr. A full list of the awards is available from Myers Ctr. for the Study of Bigotry & Human Rights at the Center, [email protected] Simmons College. (Our first was the annual book award from the Natl. Assn. for Multicultural Education.) • Email address mistake: In our Sept./Oct. symposium on “Schools and the Achievement Gap,” we had the • And final congrats. to the organizations headed by wrong address for commentator Dianne Piché of the Citi- two of our Board members for their book awards: Pass- zens Commn. on Civil Rights: it’s [email protected] ing It On — A Memoir, by human rights activist Yuri

January/February 2005 • Poverty & Race • Vol.14, No. 1 • 21 Resources

Most Resources are Dir., John Charles Boger, available directly from the is PRRAC’s Board Chair), Please drop us a line letting us know how useful issuing organization, Nov. 12, 2004. Issues of our Resources Section is to you, as both a lister either on their website (if annexation, municipal and requester of items. We hear good things, but given) or via other services, gerrymandering only sporadically. Having a more complete sense contact information listed. were covered through a of the effectiveness of this networking function will Materials published by racial lens. Inf., copies of help us greatly in foundation fundraising work PRRAC are available papers and the conf. CD (and is awfully good for our morale). Drop us a through our website: are available from Prof. short note, letting us know if it has been/is useful to www.prrac.org. Prices Boger, UNC Law School, you (how many requests you get when you list an include the shipping/ CB3380, Van Hecke- item, how many items you send away for, etc.) handling (s/h) charge Wettach Hall, Chapel Thank you. when this information is Hill, NC 27599, 919/843- provided to PRRAC. “No 9288, jcboger@email. price listed” items often unc.edu [9170] are free. • “An Introduction to Pew Hispanic Ctr. report, • Civil Rights Monitor Grassroots Anti-Racist is available at When ordering items from (Vol. l4, No. 1, Fall Organizing” is a series of www.prewhispanic.org/ PRRAC: SASE = self- 2004, 22 pp.) is available Sunday sessions in SF, site/docs/pdf/ addressed stamped (no price listed) from the March 7 – June 12, The%20Wealth%20of%20 envelope (37¢ unless Leadership Conf. on Civil produced by the Chal- Hispanic%20Households.pdf otherwise indicated). Rights Educ. Fund, 1629 lenging White Supremacy [9169] Orders may not be placed K St. NW, 10th flr., Workshops of San by telephone or fax. Wash., DC 20006, 202/ Francisco. Applics. due • Focus, the Univ. Please indicate from 466-3434, www. by Feb. 12, 2005, Wisc. Inst. for Research which issue of P&R you civilrights.org [9186] [email protected], www. on Poverty publication, are ordering. cwsworkshop.org [9215] in its Summer 2004 issue, • White Supremacy: has articles on the Behind the Eyes of Hate, • Grutter v. Bollinger negative income tax, the Race/Racism by Michael Reid & Kelly et al.: The Challenges & effects of welfare reform Roberts (452 pp., June Opportunities is the on participating families, • Recovering the 2004, $30.08), has been theme of a Feb. 24-25, the consequences of a Sacred: The Power of published by Trafford 2005 Symposium on the criminal record for Naming & Claiming, by Publishing, mkreid@ recent Supreme Court employment & other Winona LaDuke (300 pp., epix.net, www. decisions in the Univ. of topics. Copies/subs. to 2004, $14), has been fightthehate.com [9201] Mich. affirmative action the (2-3x/yr.) publication published by South End cases, and the 25-year appear to be free, from Press, 800/533-8478. • “Jack O’Dell: ‘Just a timeline/challenge IPR, 1180 Observatory Their Fall 2004/Winter Human Rights Foot suggested by Justice Dr., Madison, WI 53706, 2005 catalog is also Soldier’: A Conversation O’Connor. The Sympo- www.ssc.wisc.edu/irp/ available. [9152] with James Early” will sium is being organized focus/ [9171] be held Jan. 13, 2005, by The Kirwin Inst. for • “Robert F. Kennedy: 7:30 pm, at the Natl. the Study of Race & • “Lives & Times of An Oral History on Civil Museum of Natural Ethnicity at Ohio St. Baby Boomers,” by Rights” was a 3-week History, Wash., DC. Univ., headed by PRRAC Mary Elizabeth Hughes & series in which RFK O’Dell was Director of Bd. member john powell. Angela M. O’Rand (32 discusses civil rights Voter Registration in 7 Inf. from Rebecca pp., Oct. 2004), con- issues in a 1964 inter- Southern states from Millard, 614/292-9869, cludes that 40 years after view. Aired (2004) on C- 1961-63, later Assoc. [email protected] the end of baby boom, SPAN radio — likely still Editor of Freedomways. [9220] black Americans born available, C-SPAN.org Inf. (and possibly tran- between 1946 and 1964 [9160] script) from Early, “are no better off relative Acting-Interim Dir. of the Poverty/ to whites than their • “Invisible Fences: Smithsonian Institution’s parents and grandpar- Municipal Under- Anacostia Museum & Ctr. Welfare ents.” This Duke Univ. bounding & Minority for African American study is available Exclusion” was the 3rd History & Culture, • “The Wealth of ($10.95) from the Popula- annual conf. of the UNC [email protected] Hispanic Households: tion Reference Bureau & Law School Ctr. for Civil [9221] 1996 to 2002,” by Russell Sage Fdn., Rights (whose Deputy Rakesh Kochbar, a 2004 www.prb.org [9178]

22 • Poverty & Race • Vol. 14, No. 1 • January/February 2005 • The Two-Income 4thworldmovement.org, San Diego, Seattle, Des special issue (Vol. 73, Trap: Why Middle-Class www.4thworldmovement.org Moines, Milwaukee, No. 3) of The Journal of Mothers & Fathers Are [9209] Oakland, Providence, Negro Education, edited Going Broke, by Eliza- DC, Winston-Salem). Inf. by Prof. Frank Brown of beth Warren & Amelia from the Justice Policy the Univ. No. Carolina Warren Tyagi (288 pp., Criminal Ctr. at the Inst., 202/261- School of Education. The 2003, $16.38), has been 5709, [email protected]. 17 articles are divided published by Basic Justice org, http://jpc.urban.org/ into 3 parts: “Historical Books. [9179] reentry [9222] Retrospectives & Legal • “Ending Racial Perspectives of Brown”; • “After PRWORA: Profiling of African- Socioeconomic & Educa- Barriers to Employment, Americans in the Selec- Economic/ tional Dynamics of Work & Well-being tive Enforcement of Brown’s School Desegre- among Current & Law: In Search of Viable Community gation”; and “Brown & Former Welfare Recipi- Remedies,” by Floyd Development Higher Education: ents,” by Kristin Seefeldt, Weatherspoon, appeared Desegregation of Col- appeared in the Fall 2004 in the Summer 2004 Univ. • America Beyond leges & Universities.” issue of Poverty Research of Pittsburgh Law Capitalism: Reclaiming Subs. to the quarterly are Insights, published by the Review. Reprints of the Our Wealth, Our Liberty $32; this issue available Natl. Poverty Ctr., Univ. 41-page article may be & Our Democracy, by Gar for $12, from the Journal, of Mich., 1015 E. Huron available from Prof. Alperovitz (320 pp., PO Box 311, Howard St., Ann Arbor, MI Witherspoon, Capital 2005, $24.95), has been Univ., Wash., DC 20059, 48104-1689, Univ. Law School, 303 E. published by Wiley, 800/ 202/806-8120, jne@ www.npc.umich.edu Broad St., Columbus, OH 762-2974. [9153] howard.edu, www. [9189] 43215-3200, 614/236- journalnegroed.org 6500, www.law.capital. • “Advancing Regional [9132] • “Welfare Reform & edu [9129] Equity & Smart Children’s Well-Being,” Growth,” the 2nd Natl. • “Top Line: A Status by Andrew J. Cherlin, • “Prisoner Reentry & Summit, sponsored by Report on African appeared in the Fall 2004 Community Policing: PolicyLink (headed by American Leadership in issue of Poverty Research Strategies for Enhancing former PRRAC Bd. Higher & Postsecondary Insights, published by the Public Safety,” by Karen member Angela Education” is a special Natl. Poverty Ctr., Univ. Beckman, Kenneth L. Blackwell) & the Funders 52-page, 5-article section of Mich., 1015 E. Huron Johnson, Amy Solomon & Network for Smart in the Winter 2004 issue St., Ann Arbor, MI Jeremy Travis (2004), is Growth & Livable (Vol. 73, No. 1) of The 48104-1689, available from The Urban Communities, will be Journal of Negro Educa- www.npc.umich.edu Inst., 2100 M St. NW, held May 23-25, 2005 in tion, available ($12) from [9190] Wash., DC 20037, 202/ Phila. Inf. from the Journal, Box 311, 261-5709, paffairs@ui. PolicyLink, 101 Broad- Howard Univ., Wash., • “The State of the urban.org [9158] way, Oakland, CA 94607, DC 20059, 202/806- Dream 2005: Disowned 510/663-2333, 8120, [email protected], in the Ownership Soci- • “Triple-Decker www.policylilnk.org www.journalnegroed.org ety” “presents evidence Disenfranchisement: [9128] [9133] that African Americans, First-Person Accounts of Latinos (Hispanics) & Losing the Right to Vote • “Title I as an Asian Americans have among Poor, Homeless Education Instrument for Achieving gone backwards on Americans with a Felony Desegregation & Equal unemployment, income & Conviction” (19 pp., • “Public Education Educational Opportu- poverty since 2000, after Nov. 2004) is available and Black Male Students: nity,” by PRRAC Bd. making significant strides from The Sentencing A State Report Card” (47 member William L. from 1988 to 2000.” Proj., 514 10th St. NW, pp., 2004) is available Taylor, appeared in the Available on United for #1000, Wash., DC (no price listed, but May 2003 North Caro- Fair Economy’s website, 20004, 202/628-0871, downloadable) from The lina Law Review. Re- www.Faireconomy.org/ www.sentencingproject.org/ Schott Fdn. for Public prints of the 18-page 1223 [9193] pdfs/mcardinale.pdf Education, 678 Mass. article may be available [9167] Ave., #301, Cambridge, from Taylor, 2000 M St. • “How Poverty MA 02139, 617/876- NW, #400, Wash., DC Separates Parents & • The Urban Inst. 7700, www. 20036, 202/659-5565, Children” (2004) is Reentry Mapping schottfoundation.org [email protected] [9150] available ($5) from the Network addresses the [9123] Fourth World Movement, challenges of ex-prisoners • “You Now Have a 7600 Willow Hill Dr., returning to society, •“Brown v. Board of Right to Know, it’s the Landover, MD 20785, focusing on partner sites Education at 50” is the Law!” is a 1-page (2004?) 301/336-9489, (Denver, Hartford, 209-page Summer 2004 information sheet, from nationalcenter@ Indianapolis, Louisville, the E. Penn. Organizing

January/February 2005 • Poverty & Race • Vol.14, No. 1 • 23 Project (215/634-8922), =5&TopicID=3&ArticleD Joblessness in NYC, Copies of the 10-page describing parents’ rights =129 [9211] 2003,” by Mark Levitan article are available from under the No Child Left (Feb. 2004), a Commu- [email protected] Behind Act. It’s been • Voices in Urban nity Service Soc. study, is [9144] reprinted by the Citizens’ Education has a special available at www.cssny. Commn. on Civil Rights 2004 issue examining org/pubs/special/ • “Taking the Next and may be available some of the challenges 2004_02labormarket.pdf Step: What Can the US from them as well: 2000 urban education faces 50 [9175] Learn about Parental M St. NW, #400, Wash., years after Brown, Leave from New DC 20036, 202/659- www.annenberginstitute.org/ • “Can We Motivate Zealand?,” by Jodie 5565, www.cccr.org VUE/index.html [9212] People to Become Steady Levin-Epstein, is a 2004 [9159] Workers? 19-Month Policy Brief from the Ctr. • “1.1 Million Findings from Project for Law & Social Policy • “America’s Charter Homeschooled Students Match’s Retention (headed by former Schools: Results from the in the US 2003,” by Dan Incentives Experiment,” PRRAC Bd. member Alan NAEP 2003 Pilot Study” Princiotta, Stacey Bielick by Suzanne L. Wagner, Houseman); available at (Dec. 2004), from the & Chris Chapman (3 pp., Diana Brooks & Toby www.clasp.org/publica- Natl. Assessment of Aug. 2004), has been Herr (7 pp., Nov 2004), tions/work_life.brfl.pdf Educational Progress, is published by the Natl. is a Research & Policy [9196] available at nces.ed.gov/ Ctr. for Educ. Statistics, Update, available (possi- pubsearch/pubsinfo. nces.ed.gov/pubs2004/ bly free) from Project • “Early Childhood asp?pubid=2005456 2004115.pdf [9225] Match, 420 N. Wabash Measures Profiles, [9181] Ave., 6th flr., Chicago, 2004,” from the HHS • “Breeding Animos- IL 60611, 312/893-7241, Office of Asst. Sec. for • “Leave No City ity: The ‘Burden of www.pmatch.org [9192] Planning & Eval. and the Behind: England/United Acting White’ & Other Adm. for Children & States Dialogue on Urban Problems of Status • “Left Behind: A Families, is available at Education Reform,” by Group Hierarchies in Survey of Low-Wage nccic.acf.hhs.gov/ Jane Hannaway, Marilyn Schools,” by William A. Workers in Downtown poptopics/ Murphy & Jodie Reed, a Darity, Jr. (2004), is San Diego” (24 pp., Dec. childhoodoutcome.html 2004 Urban Inst. study, is available from Prof. 2004) is available from [9198] available from 202/261- Darity, [email protected] the Ctr. on Policy 5709, paffairs@ [9226] Initiatives, 619/584-5744, • “The State of the ui.urban.org [9182] x29, [email protected], World’s Children,” • “A Civil Rights onlinecpi.org/pdf/ UNICEF’s 164-page, • “ESC Report to the Education Summit” is Left%20Behind_CPI.pdf Dec. 2004 report — Nation: State Implemen- being proposed (possibly [9204] documenting that more tation of the No Child for June 2005) in Phila- than one billion children Left Behind Act” (2004) delphia, MS, by the — more than half the is available on the William Winter Inst. for Environment children in the world — Education Commn. of the Racial Reconciliation at suffer extreme depriva- States website, the Univ. of Miss. • Clearinghouse tion because of war, HIV/ www.ecs.org/html/special/ Contact Dr. Susan Review, the monthly law AIDS or poverty, is nclb/reporttothenation/ Glisson, 662/915-6727, journal for the Legal available at www.unicef. reporttothenation/htm [email protected] for Services community, will org/publications/files/ [9187] further inf. [9185] devote its June 2005 issue SOWC_2005_(English).pdf to children’s environmen- [9207] •“Brown Fifty Years • “The Real Mandate: tal health & environmen- & Beyond: Promise & Educate & Fight for tal justice. Submissions • “When Women Gain, Progress — Advocacy Social Justice” is the due by March 8. Contact So Does the World,” the Report” (38 pp., 2004) is 2005 natl. conf. of the Steven Fischbach, 401/ 8th Internatl. Women’s available (no price listed) Natl. Coal. of Education 274-2652, x164, Policy Research Conf., from the NAACP, 4805 Activists, July 21-24, [email protected]. sponsored by the Inst. for Mt. Hope Dr., Baltimore, 2005 in Phila. Inf. from Women’s Policy Research MD 21215, 866/63- [email protected] (headed by PRRAC Soc. NAACP, www.NAACP. [9140] Sci. Adv. Bd. member org [9194] Families/ Heidi Hartmann), will be Women/ held June 20-21, 2005 in • Charter School Event Employment/ DC. Inf. from 202/785- was a 2004 presentation Children 5100, conference@ by The Century Founda- Jobs Policy iwpr.org [9162] tion. A transcript of the • “Saving Black event is available at • “A Crisis of Black Boys,” by Rosa Smith, www.tcf.org/4L/ Male Employment: appeared in the Jan. 2005 4LMain.asp?SubjectID Unemployment & The School Administrator.

24 • Poverty & Race • Vol. 14, No. 1 • January/February 2005 Food/ Families USA Grassroots Homelessness & Poverty. Patricia A. McCoy, Conf., will be held Jan. Registration required, or appeared in Housing Nutrition/ 25-27, 2005 in DC. Inf. call 800/403-3303 Policy Debate (2004, Vol. Hunger from Families, 1334 G St. (Wendy Simmer/Joe 15, Issue 3). Reprints of NW, Wash., DC 20005, Hodges), c3.econfcall.net/ the 37-page article likely • “Household Food 202/628-3030, info@ msrsvpform. are available from Prof. Security in the US, 2003” familiesusa.org, jsp?refno=5559146 Engel, Cleveland- is the annual US Dept. www.familiesusa.org [9157] Marshall College of Law, Agriculture report, [9154] 2121 Euclid Ave. LB available at www.ers. 222, Cleveland, OH usda.gov/publications/ Housing 44115-2214, 216/687- fanrr42/ [9146] Homelessness 2535, kathleen.engel.law. • “Housing in the csuohio.edu, www.law. • “The 2004 Hunger & • Beyond the Shelter Nation’s Capital 2004" csuohio.edu [9134] Homelessness Survey” Wall: Homeless Families (72 pp.) is available from the US Conf. of Speak Out, by Ralph da (likely free) from the • “Race, Place & Mayors is available at Costa Nunez (129 pp., Fannie Mae Foundation, Housing: Housing www.usmayors.org/uscm/ 2004), is available (no 4000 Wisconsin Ave. Conditions in Rural hungersurvey/2004/ price listed) from the Inst. NW, No. Tower #1, Minority Counties” is a onlinereport/ for Children & Poverty, Wash., DC 20016-2804, 2004 report, available HungerAndHomelessness 36 Cooper Sq., 6th flr., 202/274-8000, ($15 or downloadable Report2004.pdf [9217] NYC, NY 10003, 212/ www.fanniemae free) from the Housing 529-5252, www. foundation.org [9117] Assistance Council, 1025 • “Estimating the whitetigerpress.com Vermont Ave. NW, #606, Probabilities & Patterns [9118] • “Putting the ‘Choice’ Wash., DC 20005, 202/ of Food Stamp Use in Housing Choice 842-8600, HAC@ Across Life Courses,” by • “Illegal to be Home- Vouchers (Part 3)” (July ruralhome.org, Mark Rank & Thomas less: The Criminalization 2004, 9 pp.+ tables/ www.ruralhome.org Hirschl (37 pp., 2004), of Homelessness in the maps) is available (no [9138] has been published by the US” is a 2004 report from price listed) from the Jt. Ctr. for Poverty the Natl. Coal. for the Chicago Area Fair • “Paycheck to Pay- Research; available at Homeless. It surveys Housing Alliance, PO check: Wages & the Cost www.jcpr.org/wpfiles/ current laws and practices Box 1892, Chicago, IL of Housing in the rank_hirschl.pdf?CFID=1 and identifies the 5 60690, 312/409-3854, Counties, 2004,” by 778207&CFTOKEN= “meanest” cities: Little [email protected]. [9127] Barbara Lipman (54 pp., 65422323 [9228] Rock, Atlanta, Cincin- July 2004), from the Ctr. nati, Las Vegas & • “Increasing Housing for Housing Policy & the Gainesville. CA is the Opportunity in NYC: The Natl. Assn. of Counties, Health “meanest” state, followed Case for Inclusionary is available (no price by FL, HI & TX. Avail- Zoning” (52 pp. Fall given) from the Ctr., • “State Profile of able at http:// 2004), a PolicyLink/Pratt 1801 K St. NW, #M-100, California: Data from nationalhomeless.org/ Inst. for Comm. & Env. Wash., DC 20006, 202/ the 2002 National Survey civilrights/crim2003/ Dev. publication, is 466-2121. An online, of America’s Families,” index.html [9161] available (no price listed) interactive db is at by Adam Safir, a 2004 from PolicyLink, 101 www.nhc.org/ Urban Inst. report, is • “Ending Family Broadway, Oakland, CA centerforhousingpolicy.htm available from them, 202/ Homelessness” was the 94607, 510/663-2333, [9147] 261-5709, paffairs@ui. theme of the Oct. 2004 www.policylink.org urban.org. [9172] LA conf. of the Natl. [9130] • “Characteristics of Alliance to End Farmworker Family • The World Health Homelessness. Univ. of • “Expanding Housing Housing in North Org. Commn. on Social Penn. Prof. Dennis Opportunity in Washing- Carolina,” by Thomas Determinants of Health Culhane’s plenary ton, DC” (47 pp., Fall Arcury et al. (24 pp., has issued a Call for presentation is available 2003), a PolicyLink Spring 2004), is available Proposals for its Knowl- on the NAEH website, publication, is available (no price listed) from Dr. edge Networks hub, on a www.endhomelessness.org (no price listed) from Arcury, Ctr. for Latino range of topics, including [9165] PolicyLink, 101 Broad- Health Research, Dept. Human Settlements and way, Oakland, CA 94607, Fam. & Comm. Medicine, Social Exclusion. Jan. 21, • “Helping Homeless 510/663-2333, www. Wake Forest Univ. 2005 deadline. Inf. from Workers Get Their Tax policylilnk.org [9131] School of Medicine, [email protected] [9216] Refunds” is a Jan. 19, Winston-Salem, NC 2005 audio training, to • “Predatory Lending: 27157-1084, 336/716- • “Health Action be conducted by the Natl. What Does Wall Street 9438. [9148] 2005” the 10th annual Law Ctr. on Have to Do with It?,” by Kathleen C. Engel & • 2004 Housing Rights

January/February 2005 • Poverty & Race • Vol.14, No. 1 • 25 Awards were announced assisted by one of the able from the Housing & Education & Housing by the Geneva-based 100+ members of the Land Rights Network, 7 Opportunity” (36 pp., Centre on Housing Rights Natl. Fair Housing Muhammad Shafiq St. Sept. 2004), The NIMBY & Evictions (COHRE). Alliance. $6 from the No. 8, Muhandisin, Report, is available ($10) The US (along with Ctr., 1249 Washington Cairo, Egypt, hic-mena@ from the Natl. Low Russia & Sudan) received Blvd., #1312, Detroit, MI hic-mena.org [9206] Income Housing Coal., their Housing Rights 48226, 313/963-1274. 1012 14th St. NW, #610, Violator Award for [9184] • “Opportunity Wash., DC 20005, 202/ “systematic violation of Knocks” is a 23-page 662-1530, info@nlihc. the human right to • “A Case Study - pamphlet (n.d.) for org, www.nlihc.org adequate housing & Columbia Heights families considering [9234] continued failure to abide Apartments Relocation moves out of racially- and by their international Report,” by Kristin poverty-impacted neigh- • “Deconstructing legal obligations.” Carbone, is an Oct. 2004 borhoods under programs ‘Deconcentration’” (31 Detailed inf. from report, released by like Gautreaux in Chi- pp., March 2004), The www.cohre.org/awards- BRAVO (Buyers & cago. Available from the NIMBY Report, is 2004/awards-2004.html Renters Arlington Voice) Chicago Housing Choice available ($10) from the [9163] on the issue of displace- Voucher Program, 312/ Natl. Low Income ment & relocation of low- 986-9400, www.chacinc. Housing Coal., 1012 14th • “Changing Priorities: income tenants from a com [9224] St. NW, #610, Wash., DC The Federal Budget & 152-unit apartment 20005, 202/662-1530, Housing Assistance, complex in Arlington, • Opportunity & [email protected], 1976-2005,” from the VA, renovated by a for- Progress: A Bipartisan www.nlihc.org [9235] Natl. Low Inc. Housing profit developer using Platform for National Coal. (headed by PRRAC low income housing tax Housing Policy, by • “Radicals in the Bd. member Sheila credits and public funds. Henry Cisneros, Jack Bronx” is a marvelous Crowley), is online at Free from 703/912-1633, Kemp, Kent Colton & exhibit on 4 1920s labor www.nlihc.org [9168] [email protected] Nicolas P. Retsinas union-sponsored housing [9200] (2004), is available ($20) cooperatives and the • Defending the Right from the Harvard Joint politics and programs to a Home: The Power of • “Vouchers Thwarted Ctr. for Housing Studies, underlying each (by a Anti-Poverty Lawyers, by & Threatened,” by Beth 617/495-7908, www.nhc. socialist, a Communist- Beth Harris (246 pp., Kodluboy & Paul org/JCHS_ POLICY_ dominated, a labor 2004, $99.95), has been Birnberg (17 pp., Nov. BOOK.pdf [9229] Zionist, and an anarchist published by Ashgate, 2004), is HOME Line’s union). Until March 20, www.ashgate.com [9177] 10th annual survey of • “America’s Neigh- 2005 at the Museum of landlords in Anoka, bors: The Affordable the City of NY, 103rd & • “Changing Minds, Dakota & suburban Housing Crisis & the 5th Ave., Manhattan, Building Communities: Hennepin [MN] Counties. People It Affects” (14 212/534-1672, Advancing Affordable Available (likely free) pp., Feb. 2004) is www.mcny.org [9137] Housing Through from 612/728-5770, available ($10) from the Communications Cam- x107, www.homelinemn. Natl. Low Income paigns” is a special 2004 org/downloads/section8/ Housing Coal., 1012 14th Miscellaneous issue of the Neighbor- 2004_section8_report.pdf St. NW, #610, Wash., DC hood Investment Corp. [9202] 20005, 202/662-1530, • “The Midnite School: Neighborworks journal, [email protected], Creating a Vision for available (possibly free) • “Focus Group www.nlihc.org [9231] Our Movement,” ed. from 202/376-2576 (fax), Findings: Cross-Site Stephanie Guillord (30 www.nw.org/network/ Report” (2004?), a joint • “Losing Ground in pp.), is a Reportback neighborworksprogs/ report from the Congres- the Best of Times: Low from the Project South multifamily/symposia/ sional Hispanic Caucus Income Renters in the Gathering 2004, available symposium2004.asp Inst. & the Natl. Housing 1990s,” by Kathryn P. (no price listed) from [9183] Initiative, on impediments Nelson, Mark Treskon & Project South, 9 Gammon to homeownership for Danilo Pelletiere (18 pp., Ave., Atlanta, GA 30315, • “$205,000,000 and Latinos, based on focus March 2004), is available 404/622-0602, general- Counting” is the 10th groups in 11 cities, is ($10) from the Natl. Low [email protected], volume compiled & available at Income Housing Coal., www.projectsouth.org published by the Fair www.chci.org/nhi/ 1012 14th St. NW, #610, [9136] Housing Ctr. of Met. nhi_focus.html [9205] Wash., DC 20005, 202/ Detroit, reporting on the 662-1530, info@nlihc. • Campus Progressive cumulative amount in • “Children & the org, www.nlihc.org Network is a new (2004) settlements & awards Right to Adequate [9233] effort of the Center for between 1/1/90 and 12/ Housing: An Interna- American Progress, 31/03 in 2,156 housing tional Law Resource • “Fifty Years Later: designed “to counter the discrimination lawsuits Guide” (2004) is avail- Brown v. Board of growing strength &

26 • Poverty & Race • Vol. 14, No. 1 • January/February 2005 influence of right-wing • The Natl. Low Reg. Planning is seeking • The Southern groups on college & Income Housing Coali- to fill a tenure-track Asst. Poverty Law Ctr. is univ. campuses, and to tion is seeking applicants Prof. position — emph. hiring a Deputy Director identify, assist & em- for a one-year Fannie on community dev./ of Teaching Tolerance power new generations of Mae Research Fellow housing. Contact Prof. Programs. SPLC is progressive leaders.” position. Must have PhD Phil Berke, 919/962- located in Montgomery, campusprogress.org or PhD candidacy in 4765, pberke@email. AL. Ltr./resume/relevant [9176] economics, pol. sci., unc.edu [9239] writing sample to the sociology or similar Ctr., 400 Washington social policy-related field. • The Univ. of Mass.- Ave., Montgomery, AL Job $30,000 stipend. Ltr./ Boston Grad. College of 36104, humanresources@ resume (immediately) to Education has an opening splcenter.org [9241] Opportunities/ Research Dir., NLIHC, for a tenure-track Asst. Fellowships/ 1012 14th St. NW, #610, Prof. of Higher Educ.. • The Southern Grants Wash., DC 20005. [9219] C.v./at least 1 peer- Poverty Law Ctr. is reviewed example of hiring a Chief Operating • The Calif. Civil scholarship/names-email Officer. . SPLC is located • The Lawyers’ Comm. Liberties Public Educa- addresses-tel.#s of 3 refs. in Montgomery, AL. for Civil Rights Under tion Program of the to Dr. Alicia Dowd, Nominations or applic. Law is hiring a Legal Calif. State Library is Search 605b, UMass.- materials should be the Secretary to support its seeking a Program Boston, 100 Morrissey search firm they’ve Education, Env. Justice & Director. Inf. from Blvd., Boston, MA engaged, Katherine Housing/Comm. Dev. Phyllis Smith, 916/651- 02125-3393, 617/287- Jacobs, 1275 K St. NW, Projects. Ltr./min. salary 8341. Applic. for position 7593, alicia.dowd@ #1025, Wash., DC req/availability/resume/ (STD.678) available at umb.edu [9240] 20005, 2870@IMsearch. names+tel.#s of at least 3 www.spb.ca.gov [9236] com www.splcenter.org profl. refs. to Kathy • 2005-2006 [9242] Coates at the Lawyers’ • Tenants’ & Workers’ Postdoctoral/Visiting Comm., 1401 NY Ave. Support Comm., a Scholar Fellowship NW, #400, Wash., DC • The Lawyers’ Comm. democratically-controlled Program in Ethnic for Civil Rights Under 20005, fax: 202/783- grassroots org. in No. Studies at UCLA (9 mos.) 0857. [9142] Law is hiring a Staff Virginia, seeks a Racial - $30-35,000 stipend + Atty. for their Voting & Econ. Justice Fellow research support/health • The Lawyers’ Comm Rights Proj. Resume/ (2-yr. position). $35,000. benefits. Jan. 14, 2005 writing sample by Jan. 31 for Civil Rights Under Resume/list of refs. to deadline. Inf./applics. Law seeks a Director for to Kathy Coates at the John Liss, TWSC, PO Box from 310/825-1233, Comm., 1401 NY Ave. their Fair Housing & 2327, Alexandria, VA [email protected]. Comm. Dev. Project. NW, #300, Wash., DC 22305, [email protected] edu, www.gdnet.ucla./ 20005-2124, www. Ltr./resume/substantial [9238] edu/iacweb/iachome.htm writing sample/list of refs. lawyerscommittee.org [9223] [9243] soon by email, kcoates@ • The Univ. of No. lawyerscomm.org [9141 Carolina Dept. of City &

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January/February 2005 • Poverty & Race • Vol.14, No. 1 • 27 POVERTY & RACE RESEARCH ACTION COUNCIL Board of Directors CHAIR Darrell Armstrong S.M. Miller William L. Taylor John Charles Boger Shiloh Baptist Church The Commonwealth Citizens Commission University of North Carolina Trenton, NJ Institute on Civil Rights School of Law Craig Flournoy Cambridge, MA Washington, DC Chapel Hill, NC Southern Methodist Don Nakanishi [Organizations listed for University University of California identification purposes only] VICE-CHAIR Dallas, TX Los Angeles, CA Thomas Henderson Florence Wagman José Padilla Philip D. Tegeler Sprenger & Lang Roisman California Rural Legal President/Executive Director Assistance Washington, DC Indiana University San Francisco, CA Camille Holmes School of Law Chester W. Hartman Center for Law & Social Indianapolis, IN Director of Research SECRETARY Policy Anthony Sarmiento john powell Washington, DC Senior Service America Brenda Fleet Kirwin Institute for the Study Olati Johnson Silver Spring, MD Office Manager of Race & Ethnicity Columbia Law School Theodore M. Shaw Rebekah Park Ohio State University New York, NY NAACP Legal Defense Research Associate Columbus,OH Elizabeth Julian & Educational Fund Inclusive Communities New York, NY Nisha Agarwal Project Catherine Tactaquin TREASURER Law Student Intern Sheila Crowley Dallas, TX National Network for National Low Income Immigrant & Refugee Housing Coalition Rights Washington, DC Oakland, CA

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