It’s true: HUD policy really does hurt our neighborhoods
It’s true: HUD policy really does hurt our neighborhoods
HUD has a program that sells tens of thousands of troubled mortgages across the country, many in black and Latino...
HUD has a program that sells tens of thousands of troubled mortgages across the country, many in black and Latino neighborhoods hard hit by the housing crisis, to Wall Street speculators - at a discount! Please let that sink in.
Since 2010, the Department of Housing and Urban Development (HUD) has been auctioning off pools of very delinquent mortgages through a program they call Distressed Asset Sales Program, or DASP. In most cases, the sales have gone to the highest bidder, which have been hedge funds and private equity firms.
Lone Star Fund, a private equity firm started by a Texas billionaire, and Bayview Asset Management, an affiliate of the private equity firm Blackstone Group, have been two of the primary beneficiaries of these sales. The result? Struggling homeowners lose their homes and speculators turn the properties into high-cost rentals that contribute to displacement in communities across the country.
This month, over 110,000 people from across the country signed a petition calling on HUD Secretary Julian Castro, to change this program. This comes on the heels of a March 1st letter to HUD from 45 members of Congress issuing a similar call for reforms to this mortgage sale program. In fact, for over two years, housing advocates and national policy groups have been pushing HUD to fix this program.
In an interview on WNYC Studio’s “The New York Radio Hour,” Secretary Castro referred to our protests that his program is enriching Wall Street as “sloganeering.” We wish that were the case. Unfortunately, it is simply a fact that 98% of the mortgages sold through HUD’s DASP program are going to Wall Street, one that can be verified on HUD’s own website where they post reports from these sales. Most, if not all, of these Wall Street buyers are what the industry itself calls “vulture capitalists” – investors that specialized in distressed assets in the hopes of making them more profitable and selling them for a profit.
In an effort to suggest that he has addressed the problem, Secretary Castro touts the agency’s 2015 auctions of troubled mortgages in which only non-profits were eligible to bid. Let’s be clear. Only 172 mortgages were sold to non-profits through these auctions, while a whopping 15,309 went to Wall Street investors in 2015. So yes, a gesture was made by the agency, but at such a miniscule scale he surely cannot suggest that the problem is solved.
There is no reason to sell such a high percentage of these loans to some of the same culprits responsible for the housing crisis in the first place. In fact, it seems to be in direct conflict with HUD’s mission to create strong, sustainable, inclusive communities and quality affordable homes for all. Call me skeptical, but I don’t trust a private equity firm like Blackstone – a company whose CEO made $734 million last year - to help fulfill that mission. Blackstone and other major speculators have a goal of making as much money as possible, and in the process are chipping away at the wealth and stability of neighborhoods in the process.
There is a viable alternative, that housing and civil rights groups across the country are calling for. HUD should prioritize selling these loans to good actors that have a community-centered plan to save homes from foreclosure when possible and, when foreclosure cannot be avoided, to meet the affordable housing needs of the community with their property disposition plans.
A growing number of Community Development Financial Institutions (CDFIs) have programs to do just this, and have raised the capital needed to buy pools of these delinquent mortgages. But so far, they haven’t been able to get their hands on the number of mortgages that they can afford. HUD should do all it can to make sure CDFIs and other good actors are prioritized for these sales.
I have seen too many people in my community lose their homes and their wealth to Wall Street speculators. We cannot allow the same policies that ravaged our communities to continue. For me the choice is very clear: will Secretary Castro make sure that HUD helps families stay in their homes, or will he allow HUD to continue to sign over these loans to Wall Street and fuel neighborhood displacement?
It’s time for HUD to make the right choice and partner with non-profit CDFIs and other organizations that will keep our neighborhoods together. I encourage everyone who cares about the stability of neighborhoods across the country to join with me in calling on Secretary Castro and HUD to change the DASP program so that it prioritizes foreclosure avoidance and the creation of affordable housing.
By Ana Maria Archila
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City Bar Statement Praising New York City Council’s Efforts to Fund Immigration Public Defender System, and Urging Nationwide Action
New York City Bar - July 19, 2013 - The New York City Bar Association applauds the New York City Council for allocating...
New York City Bar - July 19, 2013 - The New York City Bar Association applauds the New York City Council for allocating $500,000 for the “nation’s first public defender system for immigrants facing deportation,” as the New York Times described it. The Council’s effort is a model for what Congress should enact nationwide, to support justice, economic fairness and efficient administration of the courts.
The City Bar salutes the City Council’s commitment to fund lawyers for New York’s low-income immigrants through the New York Immigrant Family Unity Project. Research by a study group convened by Second Circuit Judge Robert Katzmann has demonstrated the inability of immigrant detainees to represent themselves, with only three percent of them achieving success in their cases without counsel. Lenni Benson, the chair of the City Bar’s Immigration and Nationality Committee, and Lynn Kelly, the Executive Director of the City Bar Justice Center, are participants in Judge Katzmann’s efforts.
Congress should build upon New York’s model and provide appointed counsel to indigent non-citizens in immigration proceedings nationwide. In its position letter and in continued meetings with Congressional members and staff, the City Bar, through its Immigration & Nationality Committee, has emphasized that a right to counsel advances fundamental American values of fairness and due process. As the letter stated, “There is no citizenship test for counsel in America.” The familiar words “You have the right to an attorney. If you cannot afford an attorney, one will be provided for you” do not include “only if you are a citizen.”
City Bar President Carey R. Dunne said, “When you consider that Congress, with bipartisan support, has granted a right to counsel to sex offenders and Al Qaeda suspects in detention hearings, and that 76 percent of Americans support a right to counsel for immigrants facing deportation, it’s hard to see why appointed counsel is still denied to non-citizen residents facing detention and deportation.”
Counsel also provides economic and social benefits that outweigh its costs. Appointing counsel in these cases pays for itself by reducing costly detention, increasing court efficiency, and reducing societal costs due to the splitting up of families and the resulting abandonment of children. “Increasing access to justice by funding legal services for the City’s poorest residents actually benefits the entire City’s economy,” said Dunne. The City Bar’s 2013 Policy Recommendations for New York City’s Next Mayor sets out these benefits in more detail, and the City Bar’s Immigration & Nationality Law Committee is currently preparing a report to more specifically articulate these benefits in the immigration context.
The City Bar’s efforts to expand the right to counsel in immigration proceedings follows its decades of advocacy to provide lawyers to those unable to adequately represent themselves when liberty and basic needs are at stake. In 1959, the City Bar’s groundbreaking report Equal Justice for the Accused advocated appointed counsel for criminal defendants as reflecting society’s interest in “fundamental human rights,” and provided support for the U.S. Supreme Court’s 1963’s Gideon v. Wainwright decision. In 2006, the City Bar co-sponsored the American Bar Association’s resolution supporting a right to appointed counsel in civil proceedings. In 2009, the City Bar’s Immigration & Nationality Committee released a report arguing for a right to appointed counsel for detainees in immigration removal proceedings.
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At Unprecedented Meeting, Fed Officials Voice Support for Activists’ Issues
At Unprecedented Meeting, Fed Officials Voice Support for Activists’ Issues
JACKSON HOLE, Wyo.—Federal Reserve officials sought to reassure a group of labor activists that the central bank isn’t...
JACKSON HOLE, Wyo.—Federal Reserve officials sought to reassure a group of labor activists that the central bank isn’t going to cool down the economy just as a stronger labor market is reaching a broader swath of Americans.
“We’re going to run [the economy] hot, get the unemployment rate down lower,” San Francisco Federal Reserve Bank President John Williams said at an unprecedented meeting with activists from the Campaign for Popular Democracy’s Fed Up Campaign.
The meeting of activists and high-ranking Fed officials took place shortly before the start of the Kansas City Fed’s high-profile policy conference in Jackson Hole, Wyo. Central bankers in attendance included Fed Chairwoman Janet Yellen’s two top lieutenants, New York Fed President William Dudley and Vice Chairman Stanley Fischer. Ms. Yellen, although scheduled to speak at the Jackson Hole symposium early Friday, didn’t attend.
The left-leaning activist group Fed Up publicly met with eight Federal Reserve presidents Thursday to discuss inequality and interest rates during the central bank's annual meeting in Jackson Hole, Wyoming.
Nine regional Fed bank presidents and two governors held a public discussion with the left-leaning group, whose goal is to convince Fed officials to keep short-term interest rates low to boost short-term growth and drive unemployment further down. It came as pressure mounts on Fed officials on many fronts to explain a disappointing economy.
Several Fed Up activists argued the only way to lower unemployment in the black community is to heat up the broader labor market.
Rod Adams, a 27-year-old community group organizer from Minneapolis, told the meeting, “I don’t understand how you can think that,” when confronting Fed officials’ statement that the U.S. is near full employment.
“I don’t want to be sacrificed for a war against an inflation enemy that isn’t here,” Mr. Adams said.
Transcript: Fed Officials Meet With Fed Up Activists at Jackson Hole
Fed Up activists also challenged Fed representatives on diversity. The group doubled down on its earlier criticism of the Federal Reserve’s leadership as overly male, almost entirely white and drawn too frequently from the banking community.
The composition of Federal Reserve leadership has also received criticism from Democratic elected officials who say the institution doesn’t adequately reflect the demographics of the nation it is meant to serve.
New York Fed President William Dudley told the meeting Thursday that the Fed’s record on diversity has been “pretty lousy.” His counterpart from the Minneapolis Fed, Neel Kashkari, said that “we have made progress and can make more progress.”
A recent paper by the Brookings Institution noted that of the 134 different presidents of regional Fed banks in history, none has been Hispanic or African-American. Ms. Yellen is the central bank’s first female leader, and she and Federal Reserve governor Lael Brainard are two of only nine women to serve on the Fed’s board in its history. Currently, two of the Fed’s 12 regional banks—Cleveland and Kansas City—have female presidents.
The central bankers at Thursday’s meeting expressed support for the issues that Fed Up questioners raised. However they also argued that the Fed’s main goal should be avoiding another recession and promoting maximum employment and price stability.
Vice Chairman Stanley Fischer praised the group for setting up the discussions, but he called on the activists to research the issues that confront the communities involved.
“When you get the facts, when you get the analysis, you can make a difference. When you speak about how bad the problem is it’s a much less effective tool,” the former Massachusetts Institute of Technology professor said.
Write to Harriet Torry at harriet.torry@wsj.com
Corrections & Amplifications:
U.S. Federal Reserve officials argued that the central bank’s main goal should be avoiding another recession and promoting maximum employment and price stability. An earlier version of this article incorrectly said they argued that the goal should include promoting maximum unemployment. [Aug. 26]
By Harriet Torry
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Fed more upbeat on economy, unclear on timing of rate hike
The Federal Reserve offered a slightly more upbeat assessment of the economy but provided little insight into when it...
The Federal Reserve offered a slightly more upbeat assessment of the economy but provided little insight into when it will raise its benchmark interest rate for the first time in nearly a decade.
Fed officials voted unanimously to keep the target rate at zero for now, after wrapping up their regular two-day policy-setting meeting in Washington on Wednesday afternoon. In a carefully worded statement, the central bank noted that the economy has expanded “moderately.” It pointed to solid job gains and lower unemployment as signs that the labor market has improved, adding that underemployment has also diminished.
Perhaps most important, the Fed characterized the risks to its outlook for the economy as “nearly balanced” — the same description it used after its previous meeting. Some analysts believe that the Fed will move once the risks are weighted more evenly.
U.S. stock markets spiked after the release of the Fed statement but quickly settled back down. Both the blue-chip Dow Jones Industrial Average and the broader Standard & Poor's 500 average were up about half a percentage point in mid-afternoon trading.
Fed Chair Janet Yellen has said several times that she expects the central bank will raise its benchmark federal funds rate before the end of the year, a move that would herald the end of the central bank’s unconventional — and controversial — efforts to resuscitate the American economy.
Many investors and economists believe the moment will come during the Fed’s meeting in September, which would be followed by a news conference allowing Yellen to explain the central bank’s decision more fully. But a vocal minority think the Fed will wait to move in December, the next meeting with a scheduled news conference. A few economists — including two officials within the central bank — believe the Fed should hold off until 2016 to be sure the recovery is solid.
Fed officials have debated how strong of a signal to send as the moment of liftoff nears. But the central bank has repeatedly emphasized that its decision will depend on the evolution of economic data — and so investors should look to the numbers for the green light for action.
A key figure will be the government’s estimate of second quarter economic growth slated for release Thursday. Falling oil prices, a strong dollar and a sharp slowdown in the growth of consumer spending helped drive an unexpected contraction in the economy over the winter. Fed officials are hoping that second quarter GDP growth will prove the dip was merely temporary.
A stronger reading would also align with the pickup in hiring over the past two months. Unemployment is nearing its lowest sustainable level, making some officials antsy for the Fed to start tapping the brakes on the economy.
But others have argued that exceptionally low inflation means the Fed has plenty of time to act. Price growth remains well below the central bank’s 2 percent target, and officials have said they want to be “reasonably confident” it is moving up before tightening policy. In June, the central bank had stated that energy prices “appear to have stabilized.” But on Wednesday, it cited further declines in energy prices, along with the falling price of imports, as reasons inflation has remained low.
The Fed slashed its target interest rate to zero when the country was in the grips of the financial crisis in 2008, and it has stayed there ever since. In addition, it pumped trillions of dollars into the economy in an effort to lower longer-term rates and spur borrowing among consumers and investment among businesses. Unwinding those policies will likely take years.
Meanwhile, the Fed is facing renewed scrutiny in Congress. The House Financial Services committee on Wednesday passed a bill that would require the central bank to explain when it deviates from certain monetary policy models, disclose more information on salaries and allow for audits of the Fed's decision-making process. Another bill sponsored by Texas Republican Rep. Kevin Brady would create a commission to examine the Fed, which recently celebrated its centennial.
“The Fed is trying to do too much,” Brady said in an interview. “It can be the right tool, but not for everything and everybody.”
The central bank is also facing pressure from the other end of the political spectrum. A coalition of community activists and labor groups is urging the Fed to leave its target rate unchanged amid elevated unemployment rates among minorities.
“Until we reach genuine full employment, there is no reason for the Fed to contemplate putting people out of work and slowing down our economy via interest rate hikes,” the Fed Up campaign said in a statement.
Source: The Washington Post
Ulster County Legislator Calls for Equity and Accountability in School Funding
Mid-Hudson News - December 29, 2014 - It took a 2007 Federal lawsuit to ensure equity in New York State school aid...
Mid-Hudson News - December 29, 2014 - It took a 2007 Federal lawsuit to ensure equity in New York State school aid funding to local districts. Over the course of the past six years, Ulster County school districts received close to $26 million or at least they would have, had the State actually implemented the promised foundation aid. Instead, the foundation aid was frozen as part of the State's budget process.
"Ulster County tax payers have been paying more and more to ensure education for all," said County Legislator David Donaldson (D, Kingston). "Yet, the State has balanced its budget without paying its promised share. The State leadership has to stop talking about supporting the future of our State and actually pay for what they promised."
Over a billion dollars are being given to serve the 3% of student population that attend Charter Schools in New York State for 2014. $54 million is estimated by a Center for Popular Democracy's report to be lost because of charter school fraud and abuse in 2014 alone. Only eighteen of the sixtytwo counties in New York State have a charter school. Ulster County has no charter schools.
"I am all for helping parents to ensure their children receive the quality education they deserve," said Donaldson. 'That quality education starts with the public education system that serves 85% of New York State's children. Until the State leaders provide the funding that will address the educational gaps in public education and ensure the oversight and accountability of private charter school education, no taxpayer dollars - whether State or local taxes - should be spent on privately run schools that are not held to the same standards or expectations as the public school system."
Donaldson wants the County Legislature to consider the measure at their January 9 session.
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Taxing the rich: how Seattle leads a ‘go-local’ trend in liberal politics
Taxing the rich: how Seattle leads a ‘go-local’ trend in liberal politics
Seattle is trying to tackle income inequality one local move at a time – and becoming a case study in how cities are...
Seattle is trying to tackle income inequality one local move at a time – and becoming a case study in how cities are testing liberal policies that lack traction at the state or federal level.
Read the full article here.
JPMorgan Chase Is Funding and Profiting From Private Immigration Prisons
JPMorgan Chase Is Funding and Profiting From Private Immigration Prisons
One of America's largest banks, JPMorgan Chase, is quietly financing the immigration detention centers that have...
One of America's largest banks, JPMorgan Chase, is quietly financing the immigration detention centers that have detained an average of 26,240 people per day through July 2017, according to a new report by the Center for Popular Democracy and Make the Road New York. Through over $100 million loans, lines of credit and bonds, Wall Street has been financially propping up CoreCivic and GeoCorp, America's two largest private immigration detention centers.
Read the full article here.
Report Shows Unemployment Rate in Twin Cities 4x Higher for Blacks than Whites
InsightNews - March 18, 2015 - At a press conference and rally last week, NOC released a report as part of a national...
InsightNews - March 18, 2015 - At a press conference and rally last week, NOC released a report as part of a national day of action, showing that the unemployment rate for Blacks in the Twin Cities is four times higher than for whites, calling on the Federal Reserve to prioritize full employment in all communities. "Minnesota is a great place to live, if you're white," said NOC executive director Anthony Newby. "The unemployment rate is 2.8%. But for black folks, unemployment is over ten percent--crisis levels. The Federal Reserve is considering raising interest rates because Wall Street thinks the economy has recovered. But that would only increase unemployment, especially in communities of color."
"Historically, the African-American community has been cut out of opportunities the government was supposedly providing to everyone--for example, homeownership programs that African-Americans could not participate in, public education programs that African-Americans were either cut out of or cut short, livable wage jobs that African-Americans would not be considered for," said Pastor Paul Slack, pastor of New Creation Church in Minneapolis and President of ISAIAH. "It's time for the Federal Reserve to act specifically in the interest of the African-American community and other low-income communities, by keeping interest rates low so that we can rebuild the wealth that was stolen from us through this recent economic crisis."Joe Elliott worked at the Target Center for five years until he was unexpectedly laid off. "I liked the job--I met a lot of great people, and went to concerts and games. But I didn't like the money. I deserve more than $8.40/hour. It wasn't supporting my daily living--bills, kids, transportation. But it's hard looking for a job as an African-American male.""The Minneapolis Fed President, Narayana Kocherlakota, has expressed support for keeping interest rates low," said Anthony Newby. "That's great. But he's also retiring in a year. We need an open and transparent process for community input on the next Minneapolis Fed president."The Federal Reserve has a key policymaking meeting coming up in mid-March.
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Report: Charter schools have lost $30 million since 1997
Times Online - October 2, 2014, by JD Prose - A day after Pennsylvania Cyber Charter School founder Nick Trombetta was...
Times Online - October 2, 2014, by JD Prose - A day after Pennsylvania Cyber Charter School founder Nick Trombetta was in a federal courtroom as part of his ongoing criminal case, a new report cited him as an example of $30 million in fraud and financial mismanagement among Pennsylvania charter schools since 1997.
The report, “Fraud and Financial Mismanagement in Pennsylvania’s Charter Schools,” was done by three organizations, the Center for Popular Democracy, Integrity in Education and Action United.
It piggybacks on a national report on charter schools in May by the Center for Popular Democracy and Integrity in Education that claimed more than $136 million has been lost to waste, fraud and abuse by charter schools.
The Pennsylvania Coalition of Public Schools issued a statement saying allegations of fraud must be investigated.
“However,” the statement continued, “the report draws sweeping conclusions about the entire charter sector based on only 11 cited incidents in the course of almost 20 years, while ignoring numerous alleged and actual fraud and fiscal mismanagement in the districts over the same time period, which dwarf the charter school allegations in terms of alleged misuse of taxpayer dollars.”
To stem the loss of tax dollars by charter schools, the three nonprofit organizations make several recommendations, including annual fraud risk assessments, trained forensic auditors doing reviews, charter school authorizers doing comprehensive reviews every three years instead of every five years, and charter schools posting findings of internal assessments.
City and county controllers should also be authorized to perform fraud risk assessments and fraud audits on charter schools, the groups recommended.
They also suggested that the state attorney general’s office review all charter schools in Pennsylvania, that the Legislature pass a law to protect and encourage charter school whistle-blowers, and that the state declare a moratorium on new charter schools until reforms are implemented.
Trombetta, who faces 11 federal charges, including mail fraud and filing false tax returns, is cited as one example in the report. On Tuesday, he was in court trying to get recordings tossed in the case, in which he is accused of using various offshoots of PA Cyber to siphon away millions of taxpayer dollars.
The coalition said the report’s recommendations should be applied to traditional school districts as well as charter schools “in the name of intellectual integrity.” If not, it would just be an example of pursuing a political agenda, the coalition said.
Not surprisingly, the president of the National Education Association issued a statement trumpeting the report’s findings and blasting charter school supporters, especially Gov. Tom Corbett. “It’s time for lawmakers to stop providing charter industry players a blank check with little oversight and no accountability,” said Lily Eskelsen Garcia.
“Pennsylvania Gov. Tom Corbett and other politicians in the state continue to push for privatization, despite compelling evidence of fraud and abuse of taxpayer funds in the charter school industry,” Garcia said.
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A New Divestment Movement Against Trump Gears Up
A New Divestment Movement Against Trump Gears Up
New York City has pledged to divest its pension holdings from companies involved in the private prison industry. But...
New York City has pledged to divest its pension holdings from companies involved in the private prison industry. But the ultimate goal is to help build a mass movement against the White House.
Read the full article here.
5 days ago
5 days ago