JPMorgan to invest $9.6 million to address racial wealth gap in real estate

[Pelican Press 0]

JPMorgan to invest $9.6 million to address ******* wealth gap in real estate

A potential buyer walks in to view a home for ***** during an open house in Parkland, Florida, May 25, 2021.

Carline Jean | Tribune News Service | Getty Images

Owning a home can provide a way to build wealth that will transfer from one generation to the next.

But

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in assessed values of U.S. property in 44 states and Washington, D.C., may be affected by issues that can interfere with that wealth transfer, according to estimates.

One such issue, known as heirs’ property, happens when homeowners **** without a will and informally leave property to multiple descendants.

The non-formal ownership may make it difficult to pass on property, access government assistance in the event of a natural disaster and to qualify for property tax relief, according to research from JPMorgan Chase.

Those homeowners may also be vulnerable to foreclosures, tax sales, or investors who try to acquire the homes for below market value.

JPMorgan Chase on Tuesday announced it is providing more than $9.6 million in philanthropic commitments to organizations that help preserve homeownership by addressing heirs’ property issues, appraisal bias and the undervaluation of homes.

Both heirs’ property and appraisal bias disproportionately affect communities of ******.

Estimates have found that as much as

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owned by ****** Americans is owned as heirs’ property, according to the National Consumer Law Center.

“It’s clearly disproportionately a ****** and Brown problem,” said Thomas Mitchell, a professor at Boston College and director of the Initiative on Land, Housing & Property Rights. “But it’s not exclusively, by any stretch, just a ****** and Brown problem.”

Meanwhile, persistent undervaluation of homes in communities of ****** encourages a ******* wealth gap.

Homes in ****** neighborhoods are valued at approximately 21% to 23% less than comparable homes in non-****** majority neighborhoods, according to research from the Brookings Institution.

JPMorgan’s philanthropic commitment will focus on preserving homeownership in targeted locations in Georgia and New York, as well as Jacksonville, Fla., Pittsburgh, and Washington, D.C.

The money will go toward organizations working to combat heirs’ property and appraisal bias issues through estate planning clinics, legal services, research and market innovations.

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That includes:

• $3 million to be granted to Catapult Greater Philadelphia, a community-based nonprofit that is providing a clinic to help people who do not have a legal title to their property in their name;
• $2.3 million to the Brookings Institution and Economic Architecture, two organizations that are partnering to address the devaluation of homes in ****** neighborhoods;
• $2 million to the Initiative on Land, Housing & Property Rights at Boston College to produce research and policy recommendations to improve property rights in underserved communities;
• $889,000 for Center for NYC Neighborhoods, a community-based nonprofit that raises awareness among ****** homeowners and provides free estate planning services;
• $500,000 for LISC Jacksonville, an organization from the Community Development Financial Institutions Fund, to expand heirs’ property and family wealth creation programs;
• $500,000 to Howard University’s legal clinic, which provides estate planning and heirs’ property legal services;
• $300,000 for the Alcorn State University Foundation, which will conduct research and provide recommendations for the ethical use of public heirs property data;
• and $150,000 to the Federation of Southern Cooperatives/Land Assistance Fund to expand legal assistance to rural homeowners in the Southeast U.S.

This is a developing story. Please check back for updates.

 

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Housing vacancies and homeownership,Housing policy,******* profiling,******* discrimination,Racism,Home sales,Personal finance,business news
#JPMorgan #invest #million #address #******* #wealth #gap #real #estate

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