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Title: PowerPoint Presentation - Pan African Community Endowment


1
Enhancing the philanthropic capacity of
communities of color June 2007
2
Pan African Community EndowmentThe Saint Paul
Foundation
3
The Pan African Community Endowment
  • Is one of the component endowments of
    SpectrumTrust of
  • The Saint Paul Foundation. SpectrumTrust
    includes three other culturally specific
    endowments and a multicultural endowment
  • Multicultural Endowment
  • Asian Pacific Endowment
  • El Fundo de Nuestra Comunidad
  • Pan African Community Endowment
  • Two Feathers Endowment

4
The Pan African Community Endowment
  • Mission Promote philanthropy within the
    Pan African community and develop philanthropic
    resources appropriate to Pan African history,
    culture, and traditions.
  • The Endowment strives to be equitable, diverse,
    and accountable to its community.
  • It seeks to work in collaboration with the
    community to develop a sense of ownership and
    self-determination.

5
Pan African Community Endowment Housing
Initiative Committee
  • Raising Issues,
  • Funding Solutions

6
Why a Housing Initiative Committee?
  • Charged with creating a common voice for certain
    housing issues affecting Minnesotas
  • Pan African community.
  • Committee work includes
  • Convening those working with the Pan African
    community on housing to discuss and develop
    strategies to address housing issues.
  • Publicizing innovative research, organizing, and
    advocacy activities that support efforts to
    address housing issues faced by the Pan African
    community.
  • Making annual housing grants with a goal of
    improving public awareness of housing issues that
    affect Pan African communities and identifying
    the root causes of inequality in housing as
    experienced by broad segments of the Pan African
    community.

7
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8
Past Grants
  • Over 10 years, the Pan African Community
    Endowment has awarded 126 grants totaling
    475,000 to organizations
  • and initiatives.

9
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10
Housing grants
  • Affordable housing forums and information packets
  • Affordable housing research (cited in a 325
    million nationwide settlement regarding predatory
    lending)
  • Financial services collaborations
  • Financial literacy education
  • - Greater awareness of the effects of sub-
    prime lending and foreclosures in the Twin
    Cities
  • Advocacy/organizing to stop demolition of 900
    affordable housing units

11
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12
Critical Issues ??Homeownership
rates? Rejection rates??Foreclosure rates?
Predatory Lending Credit Scores??Homelessness
13
Homeownership rates
14
The Homeownership Rate for Blacks in Minnesota
is Declining
15
Losses Instead of Gains
  • Homeownership rates for blacks in Minnesota
    slipped from 32 in 2000 to 29 in 2005.

16
A Change in National Ranking
  • Minnesota now ranks 45th out of 50 states and
    the District of Columbia in homeownership rates
    among black households even though the state
    continues its rank of 1 for homeownership
    nationally.

17
Rejection rates
18
  • In the largest metro areas, the average home
    loan rejection rate for blacks with incomes above
    120 of the metro areas median income was 21,
    well above the 8 average for whites.

19
  • The Charlotte Observer reported in August 06
    that blacks who borrowed from 25 of the nation's
    largest lenders were 4 times more likely than
    whites to pay high rates.
  • Even blacks with 100,000 annual incomes were
    charged higher rates more often than whites with
    incomes below 40,000.

20
Foreclosure rates
21
  • Foreclosures correspond most closely to
    census tracts with the highest concentrations of
    African-Americans, leading many researchers to
    conclude that African-Americans may be suffering
    the heaviest impact.

22
Twin Cities Foreclosures Are Increasing
  • There were more than 2,000 home foreclosures in
    Minneapolis and St. Paul during 2006

23
  • Forbes magazine has singled out Hennepin
    County as one of the nations eight metropolitan
    foreclosure hotspots

24
  • In his 2007 Housing Budget Proposal address,
    Minneapolis Mayor R. T. Rybak reported that there
    were 300 more foreclosures in Hennepin County
    during the first six months of 2006 compared to
    2005,
  • an increase of 71.

25
  • There were 1,531 foreclosures in Ramsey County in
    2006.
  • As of May 31, 2007 there have been another 928.

26
Predatory Lending Credit Scores
27
The Disparate Impact of Predatory Lending
  • In Minneapolis, lower income neighborhoods with
    large populations of people of color have the
    highest concentrations of subprime lending.

28
Subprime in 4 out of 11 Neighborhoods
  • Subprime lenders accounted for more than 15 of
    the refinance loans in 4 out of 11 Minneapolis
    neighborhoods including Near North (35) Camden
    (21) Phillips/Whittier (18) and Powderhorn
    (15).

29
  • Minneapolis neighborhoods that had the lowest
    rate of subprime lending include Downtown (8)
    Southwest (7) and Calhoun-Isles (8).

30
  • Near North homeowners who refinanced were 11.6
    times more likely than Calhoun-Isles homeowners
    to receive a subprime loan.

31
  • Homeowners in Twin Cities neighborhoods of color
    were 6.2 times more likely than homeowners in
    predominantly white neighborhoods to receive a
  • subprime loan when refinancing.

32
  • Blacks were more likely to receive higher-rate
    home purchase and refinance loans than similarly
    situated white borrowers, particularly for loans
    with prepayment penalties.

33
  • The U of Ms Jeffrey Crump's analysis of the
    federal data from 1997 to 2002 found that Twin
    Cities blacks had a 34 chance of getting a
    subprime mortgage, compared with 10 for whites
    and 8
  • for Asians.
  • Native Americans and Hispanics had a respective
    22 and 13 chance.

34
  • An analysis of the credit bureau scores and
    Freddie Mac mortgage purchases confirmed that
    African American borrowers. . . were about three
    times as likely to have high-risk credit bureau
    scores (defined as FICO scores below 620) as were
    white borrowers.

35
  • Such differences in FICO scores lead directly
    to a higher proportion of rejections and higher
    interest rates.

36
  • One of the most revealing statistics on the
    true nature of subprime borrowing comes from the
    Federal Reserve it noted that 50 of the subprime
    borrowers had credit scores above 620 the
    threshold to qualify for a prime loan.

37
Homelessness
38
Homelessness in Our Community
39
Homeless Adults
40
  • African Americans are particularly
  • over-represented among Minnesotas homeless
    adults. Wilder Foundations 2006 survey findings
    indicate that 41 of all homeless adults were
    black, as
  • compared with just 3 of all Minnesota adults.

41
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42
  • In 2006,
  • nearly half of all homeless persons in the Twin
    Cities metro area were
  • African American

43
Homeless Youth
44
  • Racial disparities are also present among
    unaccompanied homeless youth. While only 5 of
    the general youth population in Minnesota is
    African American, nearly 33 of homeless youth on
    their own are African American.

45
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46
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47
  • 53 of all homeless youth in Minnesota had lived
    in foster homes.
  • There is a large (18) over-representation of
    African American youth in foster care compared
    to the general population
  • (5)

48
An Example of the type of work supported by the
Pan African Housing Committee
49
The African Development CentersHomeownershipEdu
cation
50
400 in Two Years
  • The African Development Center provided
    various home ownership services to approximately
    400 clients from 2004-2006.

51
40 (159) of ADCs Clients Participated in the
Homestretch Program
  • During 2004-06
  • 29 (46) of ADCs Homestretch clients
    purchased homes

52
The ADC has Found That New and Established
African Immigrants are Making Progress
53
Few Delinquent Loans
  • All but one of the 46 homeowners have never been
    delinquent with their mortgage payments.
  • All but one never defaulted on a home loan since
    participating in the program.

54
  • 94 of the clients served by ADC work
    full-time and earn less than 30,000 a year

55
  • So far, NONE of the ADC clients have become
    victims of predatory subprime lending

56
The Pan African Community Endowment Has Joined
With ADC, NRRC and Other Organizations to
Address These Housing Issues in the Pan African
Community
57
Join Us in Making a Difference
58
Committee Members
  • Michelle Rooks, Committee Chair, Wells Fargo Home
    Mortgage Emerging Markets
  • Janayah Bagurusi, Twin Cities LISC
  • Stephanie Battle, YWCA St. Paul
  • Phillip L. Buchanan, Richard Allen Community
    Services, Inc.
  • Herman Milligan,Wells Fargo Home Mortgage
    Marketing
  • Hussein Samatar, African Development Center
  • Sheri Pugh Sullivan, NRRC
  • Stephen Wreh-Wilson, African Development Center
  • The Pan African Community Endowment Housing
    Initiative is staffed
  • by Karen Gray and Nora Hall, Ph.D., GrayHall LLP

59
Housing Committees Accomplishments
  • Worked with Harvest Consulting Groups, Dr. Wayne
    L. Thornhill to develop and implement a strategic
    plan for the Housing Initiative.
  • Funded and distributed a study of Sub-Prime
    Lending and Foreclosure in the Twin Cities. The
    research was conducted by Dr. Jeff Crump,
    Professor of Housing Studies at the University of
    Minnesota which provides empirical analysis of
    homeownership in underserved populations.
  • Met with the sponsors of the Dont Borrow
    Trouble Campaign to share Dr. Crumps research
    and discuss ways to broaden the campaigns
    connections with the Twin Cities Pan African
    community.

60
  • Provided grants to organizations for financial
    literacy services to African and African American
    residents, including a seed grant to the African
    Development Center (a housing and economic
    development organization that primarily serves
    Twin Cities African immigrants). The grant from
    the Pan African Endowment was the African
    Development Center's first grant. It now has a
    budget over 450,000. The Selby Area Community
    Development Corporation and the Northside
    Residents Redevelopment Council also received
    grants.
  • Developed a template for a housing Community
    Organizer position that could work in Twin Cities
    Pan African communities. Shared funding of the
    position was discussed.
  • Provided emergency funding to an alliance of
    housing advocates for a direct mail community
    education campaign to stop the demolition of 900
    units of affordable housing in Brooklyn Park. The
    demolition of the targeted affordable housing
    would have disproportionately affected Brooklyn
    Park Pan African residents. The 35 million bond
    referendum supporting the demolition of
    affordable units failed to pass.

61
  • Developed a multi-sector list of Pan African
    stakeholders in the Twin Cities area that are
    interested in housing research, trends, public
    policy, and system-change activities.
  • Developed a multi-sector list of partner
    stakeholders who have an interest in supporting
    Pan African housing issues.
  • Partnered with Fannie Mae and the Governors
    Emerging Homeownership Marketing Task Force to
    present a financial literacy dialogue with Vada
    Hill, Senior Vice President and Senior Marketing
    Officer, Fannie Mae. Approximately 50 people
    attended the event.
  • Wrote and distributed summaries of the dialogue
    with Vada Hill and financial literacy workshop
    series.

62
  • Became a founding funder of the local chapter of
    the Urban Financial Services Coalition which
    provides access to industry people nationally,
    offers scholarships and financial literacy
    partnerships to people of color.
  • Established a faith-based financial literacy
    initiative involving local churches and the
    Minnesota branch of World Vision, an
    internationally based faith organization.
  • Partnered with the Urban Financial Services
    Coalition, Wells Fargo, US Bank, RBC Dain
    Rauscher, and the Federal Reserve Bank of
    Minneapolis to support a five-workshop financial
    literacy series. Topics included Wealth Building,
    Demystifying Your Credit Understanding Your
    Credit Score and Its Impact on Your Financial
    Future What You Need To Know Before You Buy A
    Home Financing Your Small Business and
    Enhancing A Career in the Financial Services
    Industry.
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