1. RESTORING COMMUNITY WEALTH A STRATEGY TO PRESERVE HOMEOWNERSHIP & CREATE AFFORDABLE HOUSING

2. THE HOUSING CRISIS: WEALTH LOSS NATIONALLY Prior to the recession, over 80% of all household wealth in Black and Latino households was comprised of home equity The foreclosures crisis has resulted in the loss of over half the cumulative net worth of all Black and Latino households in the United States.

3. THE HOUSING CRISIS: DISPLACEMENT & THE CHANGING FACE OF OUR CITIES THE OAKLAND & SAN FRANCISCO EXAMPLE The black population of Oakland dropped by 23% from 2000 to 2010 The black population of San Francisco dropped from over 13% to 6% since 1980

4. The Housing Crisis: Dramatic Rise in the Cost of Housing In the United States, the 2014 two-bedroom Housing Wage is $18.92. This national average is more than two-and-a-half times the federal minimum wage, and 52% higher than it was in 2000. In no state can a full-time minimum wage worker afford a one- bedroom or a two-bedroom rental unit at Fair Market Rent. Median rent in Charlotte ($1,235) Los Angeles ($2,460) Denver ($1,827) New York ($2,331) Housing Wage: the hourly wage a full-time worker must earn to afford a two-bedroom rental home at HUD-estimated Fair Market Rent (FMR) while spending no more than 30% of income on housing costs. National Low Income Housing Coalition: “Out of Reach 2014” Source: Zillow Feb 2015

5. In these cities, rent is rising faster than the national average (Source: Zillow) Feb 2015

6. SPECULATION IS A CONTRIBUTING TO DRIVING UP HOUSING COSTS Across the country, private equity firms and hedge funds have been buying up foreclosed properties and delinquent mortgages in bulk Today, the Blackstone Group, one of the world’s largest private equity firms is the largest owner of single-family rental homes in the nation The Wall Street firms are scooping up properties in the hardest-hit areas, promising high returns for the rental revenue streams—up to 10 percent annually —and starting bidding wars that have driven up some prices well above national averages.

7. DELINQUENT MORTGAGES BECOME “HOT MARKET” “ Rises in housing prices have been profitable to private equity firms and institutional investors that bought foreclosed homes to flip them or to rent them out.”private equity Now the recovery in housing is fueling a niche market for newly minted bonds that are backed by the most troubled mortgages of them all: those on homes on the verge of foreclosure. The demand for securitizations of nonperforming loans illustrates Wall Street’s never-ending hunt for higher-yielding investment opportunities.” New York Times - August 13, 2014  Fannie Offers Huge Sale of Distressed Loans Fannie Offers Huge Sale of Distressed Loans Mortgage Daily-Apr 8, 2015  Massive Sale of Distressed Loans by Freddie Massive Sale of Distressed Loans by Freddie Mortgage Daily-Mar 27, 2015

8. Source: SEC filings for all companies except Invitation Homes and Colony American Homes. Information about Invitation Homes compiled from Moody’s and Bloomberg news. Information about Colony American Homes from Moody’s. *Average home and percentage of homes leased is based on Colony’s S-11 filings in May, 2013 when company owned 8,236 homes. Do not have updated info for the full portfolio. Center for American Progress americanprogress.org The Result: Who Owns Our Neighborhoods?

9. Center for American Progress americanprogress.org CLICK TO ADD SUBTITLE CLICK TO ADD TITLE Source: Bloomberg news The Maricopa County, AZ Experience Large Institutional Investors Now Own 10% of the Homes in Some Neighborhoods

10. THE OAKLAND, CA EXPERIENCE WHEN SPECULATORS BUY UP OUR NEIGHBORHOODS

11. BLACKSTONE / INVITATION HOMES IN LOS ANGELES & RIVERSIDE Source: RENTING FROM WALL STREET: Blackstone’s Invitation Homes in Los Angeles and Riverside July 2014 Report by the Homes for All Campaign of Right to the City, together with SAJE 1,402 properties identified as of March 2014

12. AN ALTERNATIVE TO THE SPECULATOR BUY-UP KEEPING MORE PEOPLE IN THEIR HOMES, CREATING AFFORDABLE HOUSING Help non-profits buy-up delinquent mortgages in bulk, instead of Wall Street speculators. Non-profits that will modify delinquent mortgages with principal reduction to save homes. Non-profits that will create affordable housing with vacant properties.

13. A CRAZY PIPE DREAM? Community Control of Our Housing

14. IT’S HAPPENING! BUT OUR HELP IS NEEDED TO GET IT TO SCALE  There are Community Development Financial Institutions (CDFI’s) and nonprofit investment companies that have raised significant capital – funding – and are purchasing and modifying troubled mortgages.  Two national (multi-state) non-profits are: National Community Capital (an affiliate of New Jersey Community Capital) Hogar Hispano / Second Opportunity Program (created by the National Council of La Raza)

15. ELEMENTS OF THIS NEIGHBORHOOD STABILIZATION PROGRAM 1) Raise capital for note acquisition 2) Convince the Big Banks, Fannie/Freddie, HUD to sell pools of delinquent loans to the non-profit 3) Partner with community based housing counseling agencies to help with modification & on-going support 4) Modify/refinance families with better terms and at or about 100% of current market value. 5) When necessary, recapture vacant properties for constructive community use. 6) Partner with state Housing Finance Agencies to utilize TARP “Hardest Hit” funds to support the modification.

16. THE CHALLENGE Wall Street private equity firms & hedge funds are getting to these pools of delinquent mortgages first and/or out- bidding the non-profits

17. THE PLAN City governments step in and urge major investors to sell these troubled mortgages to partner non-profits Community groups and others raise public awareness and put pressure on investors. WE HAVE A CHOICE Our housing is sold-off to Wall Street speculators Our troubled mortgages get into the hands of a non-profit partner OR

18. CITIES & COMMUNITIES ARE UNITING TO MAKE THIS HAPPEN Cities are coming together to negotiate collectively with the big banks, Fannie/Freddie and HUD City Councils are: passing Resolutions stating intent of City to join with other cities to meet with the major financial institutions selling delinquent mortgages to urge them to sell to non-profit “good actors” Mayors are: signing on to a joint letter to the Big Banks, GSE’s and HUD that states the case & asks for meetings co-sponsoring a Resolution to be heard at the U.S. Conference of Mayors, June 19-22 in San Francisco Cities & Community leaders are: planning to hold a Restoring Community Wealth Summit to jumpstart negotiations with the Big Banks, GSE’s & HUD

19. INFORMATION, ASSISTANCE, MATERIALS Email Amy Schur with the Center for Popular Democracy & ACCE at aschur@calorganize.org or call her at (213)804-3161 toaschur@calorganize.org FIND OUT MORE, STRATEGIZE, GET ASSISTANCE! And to get materials:  This powerpoint presentation  Fact Sheet  Sample City Council Resolution  The joint letter being signed by Mayors across the country  The Resolution being brought to the US Conference of Mayors, that Mayors are co-sponsoring

20. 20 It’s time for greater community control of our housing!