Wednesday, on the one year anniversary of their initial complaint with the U.S. Department of Housing and Urban Development (HUD), the National Fair Housing Alliance (NFHA) and four of its member organizations announced that they have amended their federal housing complaint, alleging that Bank of America continues to maintain and market foreclosed homes in White neighborhoods in a much better manner than in African-American and Latino neighborhoods. Failing to maintain and market homes because of the racial or ethnic composition of the neighborhood can violate the federal Fair Housing Act.
The new cities added to the complaint are Memphis, Denver, Las Vegas, Tucson, and Philadelphia. The organizations have also provided HUD with new evidence in Atlanta, Dayton, Miami, and Prince George's County in the Washington, D.C. area supporting their allegations of a continuing violation by Bank of America.
The complaint now brings the total to 18 metropolitan areas covering more than 30 municipalities where Bank of America is alleged to have discriminated in its maintenance and marketing of its bank-owned homes, also known as Real Estate Owned (REO) properties. The complaint, which now includes 621 properties, was filed with the U.S. Department of Housing and Urban Development.
The five fair housing organizations evaluated the maintenance and marketing of REO properties for 39 different types of maintenance or marketing deficiencies, including broken windows and doors, water damage, overgrown lawns, no "for sale" sign, trash on the property, and other problems.
Shanna L. Smith, President and CEO of the National Fair Housing Alliance said, "Bank of America is the second largest commercial bank in the United States and it has been on notice of these problems since 2009. And yet, Bank of America chooses to ignore its responsibility to maintain and market foreclosures regardless of the racial or ethnic makeup of the community."
The complaint alleges that in the 18 metropolitan areas where NFHA and its partners investigated Bank of America REOs:
• REO properties in communities of color were 2 times more likely than REO properties in White communities to have more than 10 maintenance or marketing problems;
• REO properties in communities of color were 4.5 times more likely than REO properties in White communities to have more than 15 maintenance or marketing problems; and
• REO properties in White communities were 3 times more likely than REO properties in communities of color to have fewer than 5 maintenance or marketing problems.
It is common practice when selling a home to place a "For Sale" sign in the front yard. Without a sign on a property, potential homebuyers do not even know the property is available. Also, without a sign, neighbors would not know whom to call to report unauthorized occupants or storm damage. In Memphis, all (100%) of Bank of America REO properties in communities of color were missing a "for sale" sign, as were 93% in Tucson, and 78% in Philadelphia.
The Fair Housing Act makes it illegal to discriminate based on race, color, national origin, religion, sex, disability or familial status, as well as the race or national origin of residents of a neighborhood. This law applies to housing and housing-related activities, which include the maintenance, appraisal, listing, marketing and selling of homes.
DENVER, CO
100% of Bank of America-owned homes in Denver communities of color had more than five maintenance or marketing problems, and 41% had more than 10 maintenance or marketing problems.
LAS VEGAS, NV
88% of Bank of America-owned homes in Las Vegas communities of color had more than five maintenance or marketing problems.
MEMPHIS, TN
100% Bank of America-owned homes in Memphis communities of color had more than five maintenance or marketing deficiencies, and 40% had more than 10 maintenance or marketing deficiencies.
PHILADELPHIA, PA
94% of Bank of America-owned homes in Philadelphia communities of color had more than five maintenance or marketing deficiencies, and 28% had more than 10 maintenance or marketing deficiencies.
TUCSON, AZ
73% of Bank of America-owned homes in Tucson communities of color had more than five maintenance or marketing problems.
Additional detailed statistics and photos are available at www.nationalfairhousing.org.