According to a recent report based on an investigation by the National Fair Housing Alliance and three of its members, including the Connecticut Fair Housing Center, financial institutions often maintain repossessed homes in predominantly white and some racially integrated neighborhoods better than properties in predominantly African-American or Latino neighborhoods. The report is based on examining 624 bank-owned properties in four urban areas, including Hartford and New Haven counties.
Researchers visited 100 bank-owned Connecticut homes in white, African-American, and Latino neighborhoods with comparative income levels. The properties’ exterior condition was evaluated on a 100-point scale, subtracting points for poor maintenance or curb appeal. Foreclosed properties in white neighborhoods scored 89 points, properties in African-American neighborhoods scored 78 points, and properties in Latino neighborhoods scored 66 points.
The report contends that banks that fail to maintain the homes they own in African-American and Latino neighborhoods risk violating the federal Fair Housing Act because they must maintain and sell these homes without regard to the race or national origin of residents living in the area where the property is located. The report also provides recommendations to decrease racial disparity in and obtain equal opportunity for neighborhood recovery.
