Short Takes

Cyber-Redlining

Wells Fargo & Co. has overhauled its online "Community Calculator" program after the nonprofit activist group ACORN filed a federal lawsuit alleging that it contained racial descriptions that violated the Fair Housing Act. The referral service, provided with support from Homefair.com and CACI marketing systems, had previously offered prospective homebuyers tidbits on the character of various communities. For instance, low-income neighborhoods are populated by black people who "tend to purchase takeout food from chicken restaurants." Despite the removal of the offensive content, activists point out that the program still promotes racial segregation by offering only minority-dominated neighborhoods to buyers who currently have zip codes in such neighborhoods. www.wellsfargo.com, www.homefair.com.

A few months after a tenant march paraded through the neighborhood (see Shelterforce  #111), the landlords of the 28-unit apartment building at 1418 W St., Kenneth and Patrick Welch, were ordered by the District to sell the building to the tenant association for one dollar. They will also pay $275,000 toward repairs, $30,000 for tenant relocation during repairs, and $275,000 in tenant legal fees. In exchange, the father and son, who were accused of over 200 housing code violations, will face reduced criminal charges, which originally could have resulted in up to 48 years in prison. The Welches, who currently own or hold interest in 11 properties, will no longer be able to hold interest in residential rental property in the District. The tenant association will run 1418 W St. as a co-operative. (The Washington Post 6/12/00)

No Rest for the Weary?

After failing to pass a measure creating "safe sleeping zones" for homeless people over nearly three months of meetings, the Santa Cruz City Council refused to put it on the November ballot. The city's ban on sleeping in public had made it nearly impossible for the homeless to find a safe place to sleep in a city sorely lacking shelter beds. An original proposal would have made Santa Cruz the first city to create zones where the homeless could sleep for up to three nights in a row. Opponents argued that the zones will encourage the homeless to stay on the street. (The Santa Cruz Sentinel 7/26/00)

For the Discriminating Landlord

HUD has filed discrimination charges against Florida landlord Thomas Nail. Nail is accused of intimidating his tenant and her companion because of their interracial relationship. Nail repeatedly referred to the tenant's companion with racial slurs, and at least once entered the house uninvited. This is the first time HUD has brought Fair Housing charges on behalf of a person who was not a tenant or a homebuyer. Nail could face a civil penalty of up to $50,000, punitive damages, and compensation payments. Meanwhile, California landlord Kamal Lal, accused of offering homeless women reduced rent in exchange for sexual favors, has agreed to pay $195,000 to settle the lawsuit.

DHCR's Sneak Attack on Tenant Protection

On April 5th, the Department of Housing and Community Renewal quietly announced that it would be "adjusting" New York's Rent Stabilization Code. Although another announcement had come several months earlier, the DHCR never let on that there would be 150 pages of major changes. The proposed changes loosen various restrictions, including regulations on utilities surcharges and personal use evictions. Suspiciously, the only groups that had ample notice of the public hearing, which was slipped in between Tenant Lobby Day and the Rent Guidelines Board hearing, were landlord advocates. Tenant advocates' protests forced the DHCR to extend the public comment period to July 12. MetCouncil, 212-693-0553 x6.

HUD's New Policy May Hurt Tenants

According to the Council of Large Public Housing Authorities (CLPHA), HUD's deconcentration policy, intended to eliminate race and income segregation within public housing, will work against the Quality Housing and Work Responsibility Act, because eliminating site-based waiting lists will restrict families' housing choices. Also, the policy's extensive admissions requirements may scare away outside investors, making the creation of mixed-income communities all the more difficult. CLPHA also claims that HUD's method for determining income disparities among various projects is flawed, and that there is a much lower level of income concentration than HUD claims. CLPHA, 212-638-1300.

Child Care Centers Still Too Few

A study by the National Center for Children in Poverty shows that regulated child care grew just six percent per 1,000 children in Illinois and Maryland between 1996 and 1998. With a strong economy and welfare reform drawing more parents into the workforce, demand is far outpacing supply, and more centers are closing than opening. Low-income communities, where the need is highest, are seeing even less growth than average. 212-304-7100, www.nccp.org

Walking the Talk at TIAA-CREF?

The $4 billion Social Choice Account of the Teachers Insurance and Annuity Association-College Retirement Equities Fund (TIAA-CREF), screens out tobacco, weapons, and other "sin" industries, and companies that discriminate or pollute. But 80 percent of the account's participants are arguing that negative screens aren't enough. They want the group to practice "positive investing," reserving 5-10 percent of assets for investment in areas like affordable housing. TIAA-CREF, the largest private pension system in the country, has been resisting the campaign. Neil Wollman, Social Choice for Social Change: Campaign for a New TIAA-CREF, 219-982-5346/5009; NJWollman@Manchester.edu.

Copyright 2000

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