Lawsuit
Accuses Bank of America of Neglecting Foreclosed Homes in
Toledo and 36 Other Cities Across the U.S.
The Fair Housing Center Joins the National Fair Housing
Alliance and 18 Other Fair Housing Organizations to File a
National Housing Discrimination Lawsuit Against Bank of
America
Today, The Fair Housing Center joined the National Fair
Housing Alliance (NFHA), 18 other fair housing
organizations, and two homeowners in Maryland to file a
federal lawsuit against Bank of America, N.A., Bank of
America Corp., and Safeguard Properties Management, LLC
(“Bank of America/Safeguard”). The lawsuit alleges
Defendants intentionally failed to provide routine exterior
maintenance and marketing at Bank of America-owned homes in
working- and middle-class African-American and Latino
neighborhoods in 37 metropolitan areas, while they
consistently maintained similar bank-owned homes in
comparable white neighborhoods. More than 1,600 homes were
investigated, including 44 homes in the Toledo area.
“This is not an isolated problem,” stated Michael Marsh,
President and CEO of The Fair Housing Center. “This is the
same discriminatory conduct we have seen with other national
banks, impacting neighborhoods across the country. Owning a
home is the foundation of both personal wealth and
neighborhood stability. Neglect and blight of foreclosed
homes only adds to the disinvestment that has been
devastating communities of color for decades. It is
impossible to address the need without acknowledging the
cause—and holding those entities accountable.”
The data presented in the federal lawsuit, which is
supported by 35,000 photographs, shows a glaring pattern of
discriminatory conduct by Bank of America/Safeguard. In
neighborhoods of color, Plaintiffs found evidence of poor
maintenance such as wildly overgrown grass and weeds,
unsecured doors and windows, damaged steps and handrails,
accumulated trash and debris, unsecured pools, graffiti, and
even dead animals decaying in yards. The lawsuit alleges
that Bank of America-owned homes in predominantly white
working- and middle-class neighborhoods are far more likely
to have the lawns mowed and edged regularly, invasive weeds
and vines removed, windows and doors secured or repaired,
debris and trash removed, leaves raked, and graffiti erased
from the property.
This lawsuit is the result of a multi-year investigation
undertaken by NFHA and its fair housing agency partners.
Beginning in June 2009, NFHA met with Bank of America
officials for more than a year and offered recommendations
to ensure proper treatment of its homes in communities of
color. However, after seeing absolutely no improvement in
routine exterior maintenance of Bank of America-owned homes
in communities of color, NFHA began a multi-year, multi-city
systemic investigation. Bank of America was put on notice
multiple times since 2009, including the filing of a HUD
housing discrimination complaint.
“Bank of America and Safeguard’s deplorable and intentional
inaction left innocent homeowners exposed to numerous health
hazards and personal risks. No one should have to live like
this due to Bank of America’s refusal to maintain its own
properties,” said Lisa Rice, President and CEO of NFHA.
“NFHA and the co-plaintiffs filed this lawsuit to make sure
that these discriminatory practices come to an end and that
perpetrators like Bank of America are held responsible for
their unjust policies and practices,” Rice continued.
The poor appearance of Bank of America-owned homes in
middle- and working-class neighborhoods of color destroys
the homes’ curb appeal for prospective owner-occupant buyers
and invites vandalism because the homes appear to be
abandoned. Additionally, the blight created by Bank of
American/Safeguard results in a decline in home values for
African-American and Latino families who live next door or
nearby, deepening the racial wealth gap and inequality in
America.
Highlights of Significant Racial Disparities in Toledo
Between 2012 and 2017, The Fair Housing Center investigated
44 Bank of America foreclosures in African American, White,
and predominantly non-white neighborhoods in Toledo.
·
28.6% of the REO properties in predominantly white
neighborhoods had fewer than 5 maintenance or marketing
deficiencies, while only 6.3% of the REO properties in
neighborhoods of color had fewer than 5 maintenance or
marketing deficiencies.
·
93.8% of REO properties in neighborhoods of color had 5 or
more marketing or maintenance deficiencies,
while only 71.4% of the REO properties in white
neighborhoods had 5 or more marketing or maintenance
deficiencies.
·
50.0% of REO properties in neighborhoods of color had 10 or
more marketing or maintenance deficiencies,
while only 7.1% of the REO properties in white neighborhoods
had 10 or more marketing or maintenance deficiencies.
·
6.3% of REO properties in neighborhoods of color had 15 or
more marketing or maintenance deficiencies,
while none of the REO properties in white neighborhoods had
15 or more marketing or maintenance deficiencies.
The plaintiffs are represented by Brown, Goldstein & Levy,
LLP.
Below is a list of the fair housing organizations and
individual plaintiffs involved in the investigation:
NATIONAL FAIR HOUSING ALLIANCE
HOUSING OPPORTUNITIES PROJECT FOR EXCELLENCE, INC.,
METRO FAIR HOUSING SERVICES, INC.
NORTH TEXAS FAIR HOUSING CENTER
FAIR HOUSING CENTER OF WEST MICHIGAN
FAIR HOUSING CONTINUUM, INC.
SOUTH SUBURBAN HOUSING CENTER
HOPE FAIR HOUSING CENTER
METROPOLITAN MILWAUKEE FAIR HOUSING COUNCIL
FAIR HOUSING CENTER OF CENTRAL INDIANA
DENVER METRO FAIR HOUSING CENTER
FAIR HOUSING OPPORTUNITIES OF NORTHWEST OHIO, INC. D/B/A
TOLEDO FAIR HOUSING CENTER
GREATER NEW ORLEANS FAIR HOUSING ACTION CENTER
FAIR HOUSING ADVOCATES OF NORTHERN CALIFORNIA
FAIR HOUSING CENTER FOR RIGHTS & RESEARCH
FAIR HOUSING CENTER OF NORTHERN ALABAMA
MIAMI VALLEY FAIR HOUSING CENTER
CONNECTICUT FAIR HOUSING CENTER
FAIR HOUSING COUNCIL OF GREATER SAN ANTONIO
FAIR HOUSING CENTER OF THE GREATER PALM BEACHES
WANDA ONAFUWA
CHEVELLE BUSHNELL
JALEN BUSHNELL
|