Personal Geographies of a Local Yokel

I just looked at a map of my hometown for possibly the first time. And realized that streets I’ve walked, biked, and driven for the last 25 years have names I’ve never known.

This time last year a man passing in a van asked me how to get to Lila Ave. from the back side of the hill where I was walking the dog. Perplexed, I gave him landmark-based directions to get to the one street I suspected started with an L.

According to this map, we were both already on Lila at the time. Or wait, what I *thought* the map said was Lila at first look. On second look, what I always considered the same street growing up is actually two different ones, with two different names, becoming Lila later on. I didn't even construct the streets that way in my head - I understood the continuity, direction, and relative distances of different paths through my town in a completely different way.

Apparently, I am purty ignorant.

Not to mention all the paths I took regularly, that would constitute main thoroughfares in my understanding of my hometown, but which do not constitute roads in an official map-making sense.

This probably means something profound about maps, place, and individual perception. Oh the tyranny of technology over personal histories of lived space! The arbitrary basis for scientific understandings of distance and time!

But my analytical powers are sapped at the moment. So pretend I wrote something profound about it, instead of what I am writing, which is

Hot damn son, that's some crazy shit!

Financial Katrina: The Mortgage and Foreclosure Crisis as a Flashpoint for our Urban Future

About 9 months ago I gave my first conference "presentation" - well a cross between an academic talk and activist workshop. The audio file is up on the website for WCRS Columbus. It was fun - I got to mash up work by David Harvey, the Kirwan Institute, and my own investigations into Ohio's foreclosure crisis, and get people pumped to fight gentrification in Columbus.

It's the 3rd file down, jump to the 4:20 mark to start - everything before that is folks introducing themselves, and the audio quality is bad.

Title: A Financial Katrina: The Mortgage & Foreclosure Crisis as a Flashpoint for our Urban Future

Conference: Confronting Racism: Building United Movements

Held on the Campus of The Ohio State University, May 16th 2009

And by way of teaser, here is an into to the talk...

We all know about the devastation wrought by Hurricane Katrina in New Orleans back in 2005. Many also know that the hurricane caused a disproportionate gutting of poor black neighborhoods, and that these neighborhoods lag behind in bouncing back compared to other areas of the city. Those involved recognize that the city’s response to this situation has the capacity to change the face of New Orleans as we know it, and so fierce political battles rage over how to rebuild, what, and where.

What few people realize is that what happened in New Orleans is happening now in cities all across the country as a result of the mortgage and foreclosure crisis. Lower income communities of color are gutted, houses and apartment complexes sit vacant and deteriorating, and whole swaths of the city are suddenly “up for grabs.” I argue that an appreciation of what is at stake, a “Financial Katrina” in Ohio’s cities, demands a more alarmed response from anyone concerned about urban social justice.

Deutsche Bank's bad behavior

I first got a bad taste in my mouth for Deutsche Bank, a German-based global investment bank, back in São Paulo as the funder behind the Urban Age São Paulo conference. Upon further investigation it turns out they have an unlikely link to my home community in Ohio. Putting the two together reveals a delicious little hypocrisy that I will unfold for you here...

First to the Brazilian side: Urban Age, funded by Deutsche Bank, is a six-year series of conferences in cities across the globe designed to unite top minds around questions of our global urban future. The 2008 conference was held in and themed around São Paulo, where it faced criticism in the activist community for its elitism. The conference was invitation only, locking out civil society groups and community members who didn't have the "right credentials" even though they requested to attend. And like other swank international conferences on São Paulo urban issues, it included in-depth discussions about squatter settlements, slums, poverty and exclusion, while being both (1) entirely inaccessible to anyone living these realities, and (2) spending enough money on horsdeourves and fancy venues to lift many families out of poverty many times over.

Even the high powered Brazilian architects and urbanists who were invited to participate did so begrudgingly. While they complained in semi-private circles about the academic imperialism of the European organizers, they ultimately played ball for a chance to win the big checks Deutsche Bank hands out for research and projects.

The 2009 conference will be in Istanbul, and I just received an e-mailed "call for entries" for the 2009 Urban Age Award: a "$100,000 USD award for an outstanding project or initiative which improves the physical conditions of a community and the lives of residents in Istanbul."

Other verbage from the e-mail:

The award celebrates the Urban Age mission to connect quality of life to the quality of the urban environment. "Governing a city means managing contradictions. The Deutsche Bank Urban Age Award and the Urban Age conference aim to encourage people to overcome contradictions and work together to take responsibility for their cities." – Wolfgang Nowak, Managing Director, Alfred Herrhausen Society.

and

The Deutsche Bank Urban Age award was created to encourage people to take responsibility for their cities and form new alliances.

So the themes are: innovative project, improved quality of urban life, and taking responsibility for our cities.

Wouldn't it be great if the same themes guiding Deutche Bank's Urban Age awards guided its own business practices?

Now we come to Ohio. Here the Deutsche Bank has been one of several large out-of-town banks wreaking havoc on our communities: foreclosing on properties willy-nilly and then re-purchasing them at sheriff sales, yet refusing responsibility for keeping the vacant buildings up to code so they are not a danger to neighbors. From a November 25, 2007 article in the Cincinnati Enquirer:

About one of every eight properties bought in Hamilton County this year was purchased at a sheriff's sale, the Enquirer analysis shows. Since 2003, the number of properties purchased by a bank or investor at a sheriff's sale and not yet resold has almost doubled - to 2,695 as of August.

Deutsche Bank National Trust purchased the most properties - 265 - this year through Oct. 31.

The German banking giant didn't own a single parcel in Hamilton County in 2004, but now is the second-largest owner of single-family homes in the county, after the federal government. The bank owned 188 properties last week, and is taking on an average of nine or 10 newly foreclosed properties each week, according to the Hamilton County Auditor's records.

And yet Deutsche Bank denies owning any houses here.

John T. Gallagher, a bank spokesman in New York City, would not comment on the bank's ownership or maintenance of properties. Instead, he issued a written statement that said the bank acts only as trustee for securitization trusts - investment pools that buy up risky subprime mortgages in bulk on Wall Street.

That position - while helping Deutsche Bank evade responsibility for maintaining properties - could put a halt to its foreclosures across Ohio.

Last month, a federal judge in Cleveland ruled that Deutsche Bank can't have it both ways: Either it owns a property, in which case it must maintain it; or it doesn't, in which case it shouldn't be foreclosing on it.

U.S. District Judge Christopher A. Boyko sharply criticized financial institutions for their handling of foreclosures. He said the banks "rush to foreclose" and then "sit on the deed, avoiding responsibility for maintaining the property while reaping the financial benefits of interest running on a judgment."

When the Deutsche bank plays absentee trustee, the financial price for maintaining the property (in some instances, ultimately demolishing it) falls on our already cash strapped local governments. Neighbors or the city end up cutting the grass, boarding the windows, sealing the doors, maintaining the facade, and clearing scrap. This same Enquirer article found the collective bill owed to the city by absentee banks for foreclosed properties totaled $201,237 at the time. Today it is surely much higher. Add this to the value lost in neighbors' homes because of vacant houses down the street, and to rising homelessness as a result of foreclosures on properties, and the damage to our communities go through the roof.

Such crimes by Deutsche Bank are found all over Ohio, not just in Cincinnati. The company owns around 970 foreclosed properties in Cuyahoga County, most of which sit vacant. And in 2007, Deutsche Bank had 14 of its foreclosures thrown out of court for failure to show it even owned the mortgage when it filed foreclosure against the homeowners. This is foreclosure fraud, plain and simple.

One community in Cincinnati is fighting back. In 2007, Price Hill saw 300 of its homes foreclosed upon. Many of those homes, and those already sitting vacant, were owned by Deutsche Bank, which subsequently refused to address the code violations that began to rack up on the vacant properties. So Price Hill Will, a local group that works to revitalize the neighborhood, is suing for damages incurred by the city and neighborhood residents. The outcome of the lawsuit is still pending.

What if the Deutsche Bank lived up to the same criteria it sets for Urban Age grant hopefuls? The bank could start an urban homesteading program for its vacant properties: if a family agreed to get the house up to code within one year, it could have the property turned over to them for a small fee (say, $100). The city could pitch in and waive the code violation fees for all properties that were granted to homesteaders.

I think I've got a proposal for their 2009 Urban Age Award here - anyone want to help me write it?

The U.S. squatting movement grows

Squatting in vacant buildings, subsequently known as cortiços in Brazil, is a both a common solution for needy families and a political strategy to press for larger policy changes on housing rights. In recent history, this was largely unheard of in the U.S., which traditionally has stronger laws against such activity and a smaller low income housing deficit than exist in Brazilian cities. But the housing crisis is pushing the needy and their activists into a similar strategy state-side. First in Miami, now Minneapolis, and soon in up to 24 more cities.

The first I heard of this was from a Miami, Florida group called Take Back the Land. They link the housing crisis with the historic struggle of African Americans to access land and property rights:

People of African descent have been systematically denied control of land in their communities- from slavery to sharecropping to segregation to the current gentrification and displacement of our communities…. We assert our right to the land in our community and to use public space for the public good- specifically, to house, feed and provide community space for the poor, particularly in low income black communities. As such, we are Taking Back the Land and empowering the black community, not the politicians, to determine how to use land for the benefit of the community.

- from the TBTL mission statement

Though their philosophy is unique, they share a strategy with the rest of the groups in this post: moving poor families into government- and bank-owned properties. Here is founder Max Rameau on CNN. He makes some excellent points, noting that letting houses sit vacant is not only bad for their now homeless former occupants, but harms the bank's investment (via looting, use as a refuge by drug addicts, and weather damage) as well as the quality of life for surrounding residents:



Just yesterday poverty activists Cheri Honkala and formerly homeless Dwayne Cunningham appeared on Democracy Now! Detailing similar efforts in Minneapolis. There, the Poor People’s Economic Human Rights Campaign recently helped move homeless individuals and families into 13 foreclosed and vacant homes. They are calling for a moratorium on foreclosures, evictions, and short sales in the city. Watch the full story here.

We’re about the business of bringing the neighbors back into the neighborhood, as opposed to throwing them out onto the streets…. We teach people how to reclaim housing as a human right. We’ll teach you how to move into an abandoned government-owned property, to house families. We’ll teach you how to hold a sit-in, to hold a house that’s in the process of foreclosure.

– Cheri Honkala, PPEHRC

In raw numbers, the actions of these two groups only amount to less than 30 occupied homes. But it serves as a significant model that could expand as the crisis deepens, as well as a strong political statement that could ferment action on the part of policymakers to take stronger steps and protect homeowners and homeless families.

Finally, ACORN is now advocating homesteading for foreclosed families – simply refusing to leave your house. They are also recruiting volunteers to join their Home Defenders network. Home Defenders will be trained and then called upon on short notice to help peacefully defend ACORN homesteaders in their city. You can sign up to be on a Home Defender team - cities organizing include Cincinnati and Cleveland, OH. Do it!

A squatter's movement in Ohio?

Toledo Congresswoman Marcy Kaptur is telling residents to squat in their own homes and get legal representation if they are being foreclosed upon. The strategy:

(1) Stay in your home. Possession is 9/10ths of the law. And if you live in Wayne County Detroit or Cook County Chicago, the police department will refuse to enforce the foreclosure sale.
(2) Get quality legal representation - Legal Aid and many non-profits offer this at free or reduced charges.
(3) Tell your bank to "Produce the Note." With the rush of sub-prime lending loans and the following rash of bank bailouts and mergers, it's very possible that the party claiming to own your mortgage has no idea where the paperwork is. If they can't prove they hold the deed and show the paper trail, they can't back such a claim in a court of law. At the very least, requiring them to produce the paperwork will slow foreclosure proceedings.

Obama-Biden Urban Policy Agenda

This just showed up on Change.gov, the online office of the president elect. (Since when do you get an online office before being inaugurated? Eh, anyhow, the info is extensive). It's the Obama-Biden urban policy agenda.

I am wrapping up my time here in São Paulo and getting ready to continue work on housing and urban social justice in the States. This means learning as much about urban politics and housing policy back home as I did down here. I'll be studying this with interest in the days to come.

Dangerous inequality in U.S. Cities

A new United Nations Report "State of the World's Cities 2008/2009" finds economic inequality in American cities to to be above an internationally recognized "alert level" used to warn governments of possible negative social, political, and economic consequences. Race was seen as a central factor in the economic divide.

Unfortunately the report itself is not up for free download, but media stories on it give the general idea.

This comes on the heels of the last State of the World's Cities report from 2006-2007 which found evidence that slum dwellers in urban areas are worse off than poor rural populations.