N.O. and B.R. included in discriminatory lawsuit against Bank of America
9th July 2018 · 0 Comments
By Fritz Esker
Contributing Writer
Several fair housing advocates including the Greater New Orleans Fair Housing Action Center (GNOFHAC) have sued Bank of America for alleged housing discrimination.
On June 26, the National Fair Housing Alliance (NFHA), GNOFHAC, 18 fair housing organizations, and two Maryland homeowners filed a federal Fair Housing Act lawsuit against Bank of America and Safeguard Properties Management LLC alleging that the companies failed to provide basic exterior maintenance to Bank of America-owned homes in African-American and Latino neighborhoods in 37 metropolitan areas. Greater New Orleans and Baton Rouge are included in those metro areas. The plaintiffs also argued that similar foreclosed homes in predominantly white neighborhoods were adequately maintained.
“It’s demoralizing (for neighborhood residents) when one of the wealthiest institutions in the world decides that a neighborhood is not worth the minor investment needed to do things like keep rats out of a vacant home or prevent fire hazards in an unused building,” said Cashauna Hill, executive director for GNOFHAC.
The lawsuit includes over 35,000 photos documenting the conditions of more than 1,600 Bank of America-owned homes. Houses in neighborhoods of color featured evidence of poor maintenance including overgrown grass and weeds, unsecured doors and windows, graffiti, dead animals decaying in yards, and other issues.
The plaintiffs investigated 33 Bank of America-owned homes in the Greater New Orleans Area. 59 percent of properties in neighborhoods of color had 10 or more marketing or maintenance deficiencies but none of the properties in majority white neighborhoods had 10 or more marketing/maintenance deficiencies. 77 percent of the homes in neighborhoods of color had substantial amounts of trash or debris, but only 27 percent of the homes in mostly white neighborhoods had the same issue.
The NFHA and GNOFHAC used census data to track neighborhood demographics. Hill cited New Orleans East as a neighborhood of color included in the study and Slidell’s Driftwood Circle as a white neighborhood used as a point of comparison.
The data was similar in Baton Rouge. Fifty percent of Bank of America-owned properties in neighborhoods of color had 10 or more marketing/maintenance deficiencies, but only 13 percent of the properties in majority white neighborhoods had these problems. 61 percent of the homes in neighborhoods of color had substantial amounts of trash and debris, while only 13 percent of the homes in mostly white neighborhoods had the same issue.
The lawsuit is the result of an investigation stretching back almost 10 years by the NFHA, GNOFHAC, and their partners.
In June 2009, the NFHA notified Bank of America and other banks of issues that indicated violations of the Fair Housing Act. The NFHA gave Bank of America recommendations on how to solve these problems, but saw no improvement in these homes in communities of color. This prompted the NFHA to begin a multi-year, multi-city investigation.
Hill said that during an 18-month period in 2009-2010, the NFHA and GNOFHAC met with Bank of America and other financial institutions about these issues. Freddie Mac was the only one to make satisfactory adjustments to the properties. She added complaints have also been filed against Fannie Mae, Deutsche Bank and Wells Fargo.
“The problem is not unique to urban areas or Bank of America,” Hill said.
Tim Rath, director of business development and marketing at Safeguard Properties, vehemently denied the claims in the lawsuit. He said Safeguard has a proven track record of working with communities and civic leaders to combat blight and hosts national conventions to reinforce guidelines that prevent neighborhood deterioration.
“Safeguard neither condones nor tolerates acts of discrimination or business practices that would unfairly target or neglect certain neighborhoods based on location and demographics. Safeguard remains disappointed by the National Fair Housing Alliance’s continued attack on Safeguard with ill-conceived and disingenuous allegations of an extremely serious nature and we will again vigorously defend against any and all of NFHA’s allegations,” Rath said.
Chris Feeney, a spokesperson for Bank of America, was equally adamant in disputing the allegations.
“The allegations are without merit. We apply uniform practices to the management and marketing of vacant bank-owned properties across the U.S. regardless of their location,” Feeney said. “Bank of America is committed to ensuring bank-owned properties are maintained in a quality manner, and to supporting the stabilization and revitalization of our neighborhoods. We monitor and review our vendors’ practices and procedures to ensure they are aligned with the bank’s policies.
Hill said the plaintiffs are ready to go to court if necessary.
“We believe our evidence is strong and we are willing and able to see this through,” Hill said.
This article originally published in the July 9, 2018 print edition of The Louisiana Weekly newspaper.
