Charlene Crowell

In 2020, much of the hard-won rights championed by Dr. Martin Luther King Jr. are under attack by the very governments charged to enforce both laws and regulations. Especially for Black America, rollbacks of much-needed programs jeopardize access to basic life needs such as nutrition, safe water, legal justice, and housing itself.  

The irony is that the enactment of the historic 1968 Fair Housing Act followed less than a week after Dr. King’s assassination in Memphis. Hence, as we honor Dr. King, we are also called to continue progressive efforts to better include all of the Americans who historically have been locked out or left out when it comes to housing: people of color, women, families, people with physical challenges. 

As homeless Americans now number more than 560,000, Congresswoman Maxine Waters, chair of the U.S. House Financial Services Committee (HFSC), has added homelessness and homeless prevention to her committee’s 2020 priorities.  

“When I speak to families in my district who are dealing with homelessness, I see the toll this housing insecurity is taking on them, including their children, who can’t concentrate in school because they’re sleeping in a car at night,” Waters said.

“We need to do more if we are going to address the rental housing and homelessness crisis: we need to preserve the affordable housing that we have, and we need to increase investments in programs that develop new housing or provide rental aid.”      

While lawmakers debate the appropriate federal commitment to affordable housing, consumers are increasingly financially challenged to keep a roof over their heads.  

For the past 30 years, the National Low Income Housing Coalition has annually published “Out of Reach,” which tracks the cost of rental housing across the nation. According to its 2019 report, the average monthly fair market rent for a two-bedroom or one-bedroom rental home is $1,194 and $970 for a one-bedroom unit. An average renter must work 52 hours per week to afford a modest two-bedroom apartment. 

Consumers seeking to transition from renters to homeowners face another daunting challenge. According to the National Association of Realtors, the median existing-home price for all housing types in October was $271,300, up 5.4 percent ($257,400) from November 2018, as prices rose in all regions. That means a 10 percent down payment for a median-priced home would require $27,130. Moreover, a 20 percent down payment, which would remove the added cost of private mortgage insurance would be double in cost – $54,260.   

According to calculations by the Center for Responsible Lending (CRL), nationwide it would take 14 years for a prospective homebuyer earning the national median income to save a 10 percent down payment for a median-priced home. But for black and Latino households earning the median income, the number of saving years expands to 21 and 17 years respectively to amass a 10 percent down payment on that same-priced home. 

“When the president asks, what do African Americans and minorities have to lose? How about affordable, quality housing and a shot at the American dream?” U.S. Rep. Emanuel Cleaver said in a January 9 Politico article.   

A new report released days before the 2020 King holiday, “States with the Most Racial Progress” by WalletHub.com names and ranks states with the best and worst disparities in housing segregation, as well as wealth and employment. This research found that D.C. (District of Columbia), Illinois, Louisiana, Michigan, Ohio, Pennsylvania, and Wisconsin were each among the 10 states with the worst housing segregation. When wealth and employment were ranked by state, these same states along with Minnesota were also among the worst-ranked of the nation.  

“Volumes of research have shown that when people from diverse backgrounds are together in school, neighborhoods, or workplaces everybody wins,” said Meera E. Deo, a law professor with Thomas Jefferson School of Law and one of the report’s authors.

“Thanks to this opportunity to get to know people who are unlike us, research has shown reduced prejudice, stereotypes, or negative attitudes across people of different ethnic or cultural background,” said co-author Kelln Li, assistant professor of sociology at California State University’s Dominguez Hills campus. 

Comments by the St. Louis Fed Center for Household Financial Stability would appear to have reached similar conclusions through its independent findings as well.  

“We find that families who are thriving tend to be white, college-educated and/or older,” reported the St. Louis Fed. “We find that families who are struggling tend to have one or more of these characteristics: black or Hispanic; no four-year college degree; and/or younger.”  

For these reasons and others, it does not make sense for the Trump Administration to suspend rules and data mapping tools that alert communities to potential fair housing violations. Yet on January 6, HUD proposed suspending its Affirmatively Furthering Fair Housing (AFFH) rule that provides HUD program participants with a planning framework and data tools to enable them to take meaningful actions to overcome historic patterns of segregation and foster inclusive communities free from discrimination.  

“Low-income communities and communities of color now more than ever need the government to provide them with critical tools to combat discrimination in housing and the insidious harms that result,” said Nikitra Bailey, an EVP with the Center for Responsible Lending. “Instead we have seen HUD, under the current administration, do the opposite.” 

Charlene Crowell is the Center for Responsible Lending’s communications deputy director. She can be reached at charlene.crowell@responsiblelending.org.     

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