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National Fair Housing Alliance, Fair Housing Advocates of Northern California, and 18 other Fair Housing Center Partners Charge Deutsche Bank and its Preservation Maintenance Companies with Housing Discrimination based on Race and National Origin PowerPoint available here. A PDF version of the press release is here. View the amended complaint here. Today, Fair Housing Advocates of Northern California (FHANC) joined the National Fair Housing Alliance (NFHA) and other partners in announcing its collection of new evidence in support of allegations that Deutsche Bank, Ocwen Financial, and Altisource companies continue to discriminate against communities of color in 30 metropolitan areas across the United States. The 20 agencies allege that Deutsche Bank AG, Deutsche Bank National Trust, Deutsche Bank Trust Company Americas, Ocwen Financial Corporation, and Altisource Portfolio Solution, Inc. fail to provide required routine maintenance on bank-owned homes in middle- and working-class African American and Latino neighborhoods, while Deustche/Ocwen/Altisource consistently provide routine maintenance on similar bank-owned homes in white neighborhoods. Poorly maintained bank-owned properties create a harmful and dangerous environment for the local community. They also drive down the property value of homes owned by neighbors – causing the overall community to be economically depressed. The practice of neglecting foreclosed properties in African American and Latino communities increases the economic divide, perpetuates segregation, and denies people within these communities the right to fair and safe housing. The slipshod boarding of a window in an Antioch home; piles of trash at a Richmond home; and boarded window, holes in eaves and bent gutters of a Fairfield home, all in largely non-white neighborhoods, illustrate Deutsche Bank's neglect. In contrast, the pictures below show well-kept neighbors’ homes in non-white neighborhoods which are negatively impacted by the foreclosed properties next door. In predominantly white neighborhoods, on the other hand, Deutsche Bank’s foreclosed properties were better maintained and marketed, as seen in the photos below of homes in Benicia (left) and Brentwood (right). The administrative complaint filed with the Department of Housing and Urban Development (HUD) adds Ocwen and Altisource as respondents because Deutsche Bank uses these companies to provide preservation maintenance and marketing for the overwhelming majority of properties where the Bank is listed as owner of record. FHANC, NFHA, and 18 other fair housing organizations joined together in filing this administrative complaint. The data presented in this complaint includes approximately 30,000 photographs of Deutsch Bank-owned homes in 30 metropolitan areas from communities of color and predominately white neighborhoods from coast-to-coast. The analysis of substantial photographic evidence shows a stark pattern of discriminatory conduct in the maintenance of bank-owned homes in communities of color. “We began investigating Deutsche Bank’s properties in 2014 in Solano and Contra Costa counties and found horribly maintained properties in communities of color,” said Caroline Peattie, Executive Director of Fair Housing Advocates of Northern California. “Despite Deutsche Bank being on notice about the problems with their foreclosed properties, they still had not been addressed when we investigated properties in 2016 and found similar issues. Again and again, in neighborhoods that were predominantly Latino or non-white, we found Deutsche Bank properties covered in dead grass, missing professional ‘for sale’ signs marketing the home, littered with garbage, and marred by broken or boarded windows, damaged fences, and the like. Even a highly scored property in a majority non-white neighborhood in Vallejo, built in 2004 and in good shape, was completely unsecured, inviting vandals to waltz through the door. That is unconscionable.” FHANC investigated a total of 22 Deutsche Bank properties in the Vallejo and Richmond metro areas, 5 of which were located in predominantly Latino communities, 13 REOs in a community with a majority of non-White residents and 4 in predominantly White communities. Photos of the properties in the counties of Solano and Contra Costa can be viewed on FHANC’s PowerPoint here.
NFHA asserts that Deutsche Bank’s properties 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, litter and trash removed, leaves raked, and graffiti erased from the property. “Yet, Deutsche foreclosed homes in predominantly middle-and working-class African American and Latino neighborhoods are more likely to be left neglected with debris and trash on the property, wildly overgrown grass, and invasive plants covering the yards. Windows and doors are often unsecured, left wide open, or boarded, and graffiti as well as dead animals are left on the premises,” said Shanna Smith, President and CEO of NFHA. She added, “Poor maintenance destroys a home’s curb appeal and invites vandalism or squatters because the home appears to be abandoned.” Also, the blight caused by this neglect results in declining home values for African American and Latino families who live nearby, deepening the racial wealth gap and inequality in America. Additionally, poorly maintained bank-owned properties impact the health of the local community. According to a report by Mariana Arcaya, Sc.D., M.C.P for the American Heart Association, living near a foreclosed home can increase a person’s blood pressure “due in part to unhealthy stress from residents’ perception that their own properties are less valuable, their streets less attractive or safe and their neighborhoods less stable.” Windows, doors and holes left open, unsecured, or broken at vacant properties allow for water to accumulate and stagnate. As a result, Deutsche Bank’s poorly maintained homes serve as the perfect environment for mold and discoloration to develop. In fact, a recent study conducted by Midwest Aerobiology Labs found 36 molds specific to foreclosed homes and also concluded that 88 percent of foreclosed homes contained a dangerous mold capable of causing childhood asthma and other diseases in humans. Stagnant water and overgrown grass, commonly documented at homes where Deutsche Bank is owner of record in African American and Latino neighborhoods through this investigation, are also a fertile habitat for mosquitos, rodents, termites, roaches, and other pests. “We found unsecured pools with stagnant water in non-white communities, which is not only a breeding ground for mosquitoes, but also very dangerous for adventurous and curious children,” said Peattie. Below is an example of an unsecured pool with stagnant water in a non-white community in Antioch, CA (left) and a well-maintained pool maintained and secured by a locked gate in a white community in Brentwood, CA (right) In addition, pests often carry diseases such Zika and Hantavirus and present serious health risks to nearby residents. These vermin infestations commonly spread to nearby homes. “To add to these hazards,” Peattie adds, “overgrown dead grass and shrubbery pose a fire hazard for homes in California.”
"Just imagine the health impact the families in communities of color experience living next door or nearby those poorly maintained Deutsche Bank homes," said Smith. “By neglecting their properties, Deutsche Bank, Ocwen and Altisource are putting the health of African American and Latino residents living near these properties at risk.” “This isn’t a new problem for Deutsche Bank. In June 2013, Deutsche Bank settled a lawsuit with the City of Los Angeles for $10 million after they were accused of allowing hundreds of bank-owned properties to fall into slum conditions, leading to the destabilization of communities,” said Smith. “It’s my understanding that Deutsche Bank required its preservation maintenance companies to pay most of the $10 million to resolve that case, so you would expect Deutsche/Ocwen/Altisource to monitor maintenance to ensure these shameful, discriminatory practices of neglecting routine maintenance in middle/working class communities of color ended. Unfortunately, we still find these horrid conditions at too many bank-owned in communities of color,” said Smith. View map of affected communities: http://nationalfairhousing.org/community-map/ and view photos of the properties at http://nationalfairhousing.org/deutsche-property-photos/. Below is a list of the 30 metro areas involved in the investigation: Baltimore, MD Baton Rouge, LA Chicago, IL Cleveland, OH Columbus, OH Dallas, TX Dayton, OH Denver, CO Detroit, MI (suburban communities) Gary, IN Grand Rapids, MI Greater Palm Beaches, FL Hampton Roads, VA Hartford, CT Indianapolis, IN Kansas City, MO Memphis, TN Miami, FL Milwaukee, WI Minneapolis, MN Muskegon, MI New Orleans, LA Orlando, FL Philadelphia, PA Prince George’s County, MD/Washington, DC Providence, RI Richmond, VA Tampa, FL Toledo, OH Richmond/Vallejo, CA The fair housing organizations joining NFHA in filing the complaint include: Fair Housing Advocates of Northern California 1314 Lincoln Avenue, Suite A San Rafael, CA 94901 HOPE Fair Housing Center 202 W. Willow Ave, Suite 203 Wheaton IL 60185 Open Communities 614 Lincoln Avenue Winnetka, IL 60093 South Suburban Housing Center 18220 Harwood Avenue Homewood, IL 60430 Housing Opportunities Made Equal of Virginia 626 East Broad Street #400 Richmond, VA 23219 Toledo Fair Housing Center 432 North Superior Street Toledo, OH 43604 Fair Housing Continuum 4760 N US Highway 1, Suite 203 Melbourne, FL 32935 Greater New Orleans Fair Housing Action Center 404 S Jefferson Davis Pkwy New Orleans, LA 70119 Denver Metro Fair Housing Center 3280 Downing Street, Suite B Denver CO 80205 Metropolitan Milwaukee Fair Housing Council 759 N Milwaukee Street, Suite 500 Milwaukee, WI 53202 Fair Housing Center of West Michigan 20 Hall Street SE Grand Rapids, MI 49507 The Miami Valley Fair Housing Center 505 Riverside Drive Dayton, OH 45405 Housing and Research & Advocacy Center 2728 Euclid Avenue, Suite 200 Cleveland, OH 44115 Fair Housing Center of the Greater Palm Beaches 1300 W Lantana Road, Suite 200 Lantana, FL 33462 Fair Housing Center of Central Indiana 445 N. Pennsylvania Street, Suite 811 Indianapolis, IN 46204 Central Ohio Fair Housing Association 175 South 3rd Street, Suite 580 Columbus, OH 43215 Housing Opportunities Project for Excellence, Inc. 11501 NW 2nd Avenue Miami, FL 33168 Connecticut Fair Housing Center 221 Main Street, 4th Floor Hartford, CT 06106 North Texas Fair Housing Center 8625 King George Drive, Suite 130 Dallas TX 75235 NFHA and its member agencies are represented by Relman, Dane & Colfax PLLC and Soule, Bradtke & Lambert. Detailed statistics and photos are available at www.nationalfairhousing.org. 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. Fair Housing Advocates of Northern California is a non-profit organization serving several Bay Area counties that provides free counseling, enforcement, mediation, and legal or administrative referrals to persons experiencing housing discrimination. Fair Housing Advocates of Northern California also offers foreclosure prevention services advice, seminars to help housing providers fully understand fair housing law and education programs for tenants and the community at large. Fair Housing Advocates of Northern California is a HUD-Certified Housing Counseling Agency. The mission of Fair Housing Advocates of Northern California is to ensure equal housing opportunity and to educate the community on the value of diversity in our neighborhoods. The National Fair Housing Alliance Founded in 1988, the National Fair Housing Alliance is a consortium of more than 220 private, nonprofit fair housing organizations, state and local civil rights agencies, and individuals from throughout the United States. Headquartered in Washington, D.C., the National Fair Housing Alliance, through comprehensive education, advocacy, and enforcement programs, provides equal access to apartments, houses, mortgage loans, and insurance policies for all residents in the nation. The work that provided the basis for this investigation was supported in part by funding under a grant from the U.S. Department of Housing and Urban Development. The substance and findings of the work are dedicated to the public. The author and publisher are solely responsible for the accuracy of the statements and interpretations contained in this release. Such interpretations do not necessarily reflect the views of the Federal Government. ###
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