CPD IN THE NEWS

New York Daily News - November 15, 2014, by Celeste Katz - Local advocacy groups — eager for details on President Obama’s plan to shield undocumented immigrants from deportation — are concerned many families may still be vulnerable.

At issue is the possibility Obama may limit work permits for parents of children who are in the U.S. legally to those who have been in the country 10 years.

“It’s very important that the President acts to include that segment of folks that have been here more than five years but less than 10 years,” said Steven Choi, executive director of the New York Immigration Coalition.

Some advocates were careful to be gentle in their criticisms.

Lucia Gomez of La Fuente said, “The general consensus is everyone is extremely excited,” but added her members hope Obama goes “full force” with protections.

“We hope the Obama administration announces policies that will keep families together and allow for as many people as possible to live with dignity,” said Ana Maria Archila of the Center for Popular Democracy.

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Ady Barkan, a progressive health-care activist whose videotaped pleadings with U.S. Sen. Jeff Flake, R-Arizona, last year briefly became a viral hit, has formed a group trying to raise money for Democrats, starting with Tipirneni.

Read the full article here.

Two liberal advocacy groups have published a provocative study accusing the Department of Housing & Urban Development and the Federal Housing Finance Agencyof helping Wall Street at the expense of low-income communities by selling non-performing loans to investors.

The Center for Popular Democracy and the ACCE Institute’s report “Do Hedge Funds Make Good Neighbors?:  How Fannie Mae, Freddie Mac and HUD are Selling Off Our Neighborhoods to Wall Street” is lengthy and accusatory.

The study looks at how HUD has since 2012 auctioned off, at a discount, some 120,000 Non-Performing Loans that they want to get off their books.

They also take into account similar actions by the FHFA through Fannie Mae and Freddie Mac, which have sold over 10,000 mortgages already this year. 

The study, which can be read here, notes that nearly all of the roughly 130,000 mortgages have been sold to Wall Street hedge funds and private equities firms, leading to what they call the rise of a new phenomenon in this country – Wall Street as major landlord and neighbor in communities across the country.

“An initial examination into four of the largest purchasers of HUD and FHFA loans has unearthed an array of disturbing business practices, ranging from those that clearly run counter to the goals of homeownership preservation and neighborhood stability to those that break laws, deceive homeowners, and harm taxpayers more generally,” the study claims. 

The authors argue that HUD and FHFA should sell these troubled mortgages to entities working to preserve homeownership and create affordable housing, not to Wall Street speculators with a history of defrauding taxpayers and harming homeowners, tenants and neighborhoods.

“Nearly eight years after the start of the global financial crisis, hedge funds and private equity firms have found yet another way to make big profits: distressed housing assets. Often, the very same corporate actors that precipitated the housing crash in the first place are buying and selling off delinquent mortgages and vacant houses that are a product of the crash,” the study says. “Together, these Wall Street entities have raised over $20 billion to buy the notes for as many as 200,000 homes in the United States. The newly consolidated single-family rental market is a lucrative business. A 2014 study estimated that the four largest holders of these assets have seen as much as a 23% rate of return on the properties they purchased in the last three years.”

However, HUD has been making changes to how it deals with distressed assets and NPL sales.

Just two months ago, HUD announced significant changes to its Distressed Asset Stabilization Program. HUD also announced additional improvements to the Neighborhood Stabilization Outcome sales portion of DASP which are aimed at increasing non-profit participation.

Updates include giving non-profits a first look at vacant properties, allowing purchasers to re-sell notes to non-profits, and offering a non-profit only pool.

Previously, loan servicers could foreclose 6 months after they received the loan and were encouraged, though not required to assess a borrower’s qualifications for loss mitigation programs. Purchasers of the geographically targeted neighborhood stabilization pools have always been required to ensure that at least 50% of the loans in a pool achieve outcomes that help areas hardest hit by foreclosure avoid the neighborhood decline associated with numerous vacant properties.

“These changes reflect our desire to make improvements that encourage investors to work with delinquent borrowers to find the right solutions for dealing with the potential loss of their home and encourage greater non-profit participation in our sales,” said Genger Charles, Acting General Deputy Assistant Secretary, Office of Housing, when it was announced. “The improvements not only strengthen the program but help to ensure it continues to serve its intended purposes of supporting the MMI Fund and offering borrowers a second chance at avoiding foreclosure.”

The groups are calling on HUD and FHFA to “establish much higher standards and criteria for the kind of companies that are eligible to purchase delinquent mortgages” and to “prioritize companies that have a clearly defined program to offer permanent modifications with principal reduction and to create affordable housing with vacant properties.” ?

They also want FHFA to “immediately begin to offer principal reduction in their own modification process.”

“Two distinct paths forward are available: the abuses of the biggest purchasers to date of the HUD and FHFA non-performing loans; or, the approach of community development financial institutions with both the ability and the commitment to create affordable housing to better local communities. The status quo benefits the very actors that hastened the financial crisis and actively created the conditions that sucked over half the wealth from millions of American families. These companies profit from new predatory practices and speculative business models that once again take advantage of ordinary people,” the study concludes.

Source: HousingWire

The Nation - September 3, 2014, by Michelle Chen - With all the filthy lucre sloshing around on Wall Street, New York City may not strike you as a bastion of organized labor. But the city is in fact the nation’s leading union town. And in the past year, according to researchers at the City University of New York, there has even been a slight increase in unionization in the five boroughs.

About 24 percent of wage and salary workers in New York City are union members, a small but significant increase over the past year, from about 21.5 percent in 2012 . Statewide, according to Current Population Survey data analyzed in the study, New York remains the most union dense state in the country at 24.6 percent of workers.

According to the authors, Ruth Milkman and Stephanie Luce, the increase—amid a multi-year trend of decline—appears to be driven by hiring trends, not organizing new sectors. As the so-called “recovery” boosts labor demand, long unionized industries are just hiring more. “There are some new organizing efforts here and there, but nothing that accounts for this [increase],” Milkman tells The Nation. “It seems to just be shifts in the labor market reflecting long-unionized sectors that are rebounding.”

Union density in a large population offers only a rough gauge of actual labor activity. The overall number of union members may fluctuate from year to year whenever big unionized industries add or shed jobs, Milkman explains, but that does not capture, and could even mask, the effect of new union formation in smaller-scale workplaces—like the handful of immigrant workers who have recently unionized at local carwashes.

Much of last year’s growth in union workers has come in the construction industry, where unionization in the NYC metro area is about 27 percent, and 30 percent statewide—about twice the industry rate nationwide. But construction trades are a mixed bag, because employers can use both union and non-union workers on different jobs, and the industry runs on short-term contract work. Milkman says the recent trendlines point to growth in both union and non-union construction jobs, but with relatively strong growth among union members.

Overall, New York’s unionization rates are highest in the public sector, at about 70 percent. But surprisingly, recent expansion of union membership centers on private-sector workplaces. Alongside union boosts in the building trades, unions have made gains in building-based services, like janitors and porters, and hotels, where over a third of the labor force is union.

Though undocumented immigrants often work non-union jobs, immigrants (who make up about 37 percent of the city’s population) are rapidly joining the union ranks. Though newer immigrants have relatively low rates of unionization, according to the report, among immigrants who arrived before 1980, the rate is actually higher than that for US-born workers in both New York City and statewide. Black unionization rates have been the highest of any racial or ethnic group, Asians the lowest.

Though union workplaces generally offer higher wages and better benefits, union jobs face multiple threats from displacement and eroding working conditions. Building trades employers, for example, have recently shifted away from a longstanding agreement to stick to using union labor, enabling large developers to hire cheaper non-union and “off the books” workers, including many undocumented immigrants. A “two tier” labor structure, in which union and informal workers “compete,” may squeeze down job quality and undermine wages across the sector, by constraining workers’ ability to negotiate working conditions. A new condominium development plan in mid-town Manhattan seems to exhibit how the city’s economic “recovery” is banking on this trend. According to Crains, the project was recently sealed with “a special package of work-rule and wage concessions from construction unions that is expected to shave as much as 20 percent off labor costs—a savings of millions of dollars.”

According to a 2007 report by the think tank Fiscal Policy Institute, the prevalence of “underground” non-union construction workers led to hundreds of millions of dollars in hidden social costs, due to unpaid payroll taxes and public healthcare spending.

The city’s relatively high union density is rooted in a historical legacy of labor militancy, particularly in blue-collar trades and public services like mass transit. Over the course of the twentieth century, tough union shops cultivated what Milkman calls a workplace culture of “social democracy.”

Yet unions have not significantly penetrated newer, rapidly growing, service industries like retail and restaurants. Meanwhile, New York’s established manufacturing sectors maintain relatively high unionization rates, but the city has shed about half its manufacturing jobs since 2001.

Nonetheless, unions are more welcome in New York than most places in the country. Nationwide, unionization has tumbled since the 1980s after decades of deindustrialization and global offshoring. Today, only about 11 percent of workers belong to a union, and the right-wing backlash continues with “right to work” legislation, which impedes union organizing, and attacks on public sector collective bargaining rights.

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Andrew Friedman of the Center for Popular Democracy, which advocates for low-income workers and communities of color, says “the vast majority of New York’s workers are not unionized, do not have a voice at work and are forced to confront ever-more exploitative treatment at work.” For the city’s working class as a whole, Friedman says via e-mail:

Not withstanding this recent uptick in unionization rates, far too many workers, particularly workers of color, women and immigrant workers, in particular, continue to receive inadequate wages, inadequate hours, inadequate control over their schedules and inadequate respect and dignity on the job.

Unions are not the only way to empower workers. Recent efforts to “organize the unorganized”—the unprecedented wildcat mobilization of non-union fast-food workers, organizing day laborers through worker centers, or community-driven campaigns for a $15 minimum wage—all illustrate the promise as well as the challenges of building labor power, with or without a formal union.

The right to good, safe jobs is universal; unionization is sadly not. But the struggle is the same whether you’re a hotel housekeeper striking for a better contract, or a day laborer suing for unpaid back wages. New Yorkers are holding onto traditionally unionized jobs. But a revival of the labor movement requires building new traditions of organizing in workplaces where activism makes the most difference.

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