'Eminent Domain for the People' Leaves Wall Street Furious
'Eminent Domain for the People' Leaves Wall Street Furious
By Sarah Lazare / commondreams.org

Housing justice advocates hopeful about innovative Richmond plan to use public seizure laws to save underwater homes from foreclosure

Using the authority of state government to actually help people has Wall Street bankers in a panic, spurring threats of aggressive legal retaliation against the town of Richmond, California simply for trying to help some of its struggling homeowners.

'Eminent domain' has long been a dirty term for housing justice advocates who have seen municipalities invoke public seizure laws to displace residents and communities to make way for highways, shopping malls, and other big dollar projects.

But in Richmond, city officials are using eminent domain to force big banks to stop foreclosing on people's homes in an innovative new strategy known as 'Principle Reduction' aimed at addressing California's burgeoning housing crisis.

Richmond became the first California city last week to move forward on a plan that has been floated by other California municipalities to ask big bank lenders to sell underwater mortgage loans at a discount to the city (if the owner consents), and seize those homes through eminent domain if the banks refuse. The city has committed to refinancing these homes for owners at their current value, not what is owed.

City officials launched this process by sending letters in late July to 32 banks and other mortgage owners offering to buy 624 underwater mortgages at the price the homes are worth, not what the owners owe.

"After years of waiting on the banks to offer up a more comprehensive fix or the federal government, we're stepping into the void to make it happen ourselves," Mayor Gayle McLaughlin said in late July.

Wall Street is furious at the plan and has vowed to sue the municipality, a threat that did not stop Richmond but did slow other California cities in adopting the strategy.

Big banks have been slammed for their damaging mortgage loan policies that target poor and working class people and communities of color with high risk loans, policies that have had a profound impact on Richmond, which has large latino, African American, and low-income communities.

Eminent domain laws also have a painful history in Richmond, but housing justice advocates are hopeful about this new twist on the seizure law.

"For years we have seen cases where eminent domain was used in a harmful way, and it really hurts low-income communities of color," David Sharples, local director for Contra Costa Alliance of Californians for Community Empowerment, told Common Dreams. "People here in Richmond talk about when they built the big 580 Freeway, and people had their houses taken and were displaced."

"But we see this as a way eminent domain is finally being used to help keep families in their homes," he added. "It is finally a way for it to be used in a good way."

_____________________

3.5 ·
1
What's Next
Trending Today
90 Inspiring and Visionary Films That Will Change How You See the World in Profound Ways
Tim Hjersted · 4,853 views today · The world today is in crisis. Everybody knows that. But what is driving this crisis? It's a story, a story that is destroying the world. It's a story about our relationship to...
Why Are Media Outlets Still Citing Discredited 'Fake News' Blacklist?
Adam Johnson · 4,659 views today · The Washington Post (11/24/16) last week published a front-page blockbuster that quickly went viral: Russia-promoted “fake news” had infiltrated the newsfeeds of 213 million...
93 Documentaries to Expand Your Consciousness
Films For Action · 4,231 views today · There are over 800 documentaries now cataloged in our library of social change films. That's probably way too many for any mortal to ever watch in a lifetime, let alone a few...
The Orwellian War on Skepticism
Robert Parry · 2,394 views today · Official Washington’s rush into an Orwellian future is well underway as political and media bigwigs move to silence Internet voices of independence and dissent, reports Robert...
Projext X: Using Leaked Documents to Reveal the NSA's New York Spy Hub, Hidden in Plain Sight
10 min · 2,272 views today · A top-secret handbook takes viewers on an undercover journey to Titanpointe, the site of a hidden partnership. Narrated by Rami Malek and Michelle Williams, and based on...
Where Do You Draw the Line? (2016)
60 min · 1,899 views today · Why is the Ecuadorian government proposing to extract oil in an area frequently classified by ecologists as one of the most bio-diverse rainforest regions left intact on earth?...
Today I Rise: This Beautiful Short Film Is Like a Love Poem For Your Heart and Soul
4 min · 1,788 views today · "The world is missing what I am ready to give: My Wisdom, My Sweetness, My Love and My hunger for Peace." "Where are you? Where are you, little girl with broken wings but full...
Twelve Things To Remember After The US Election, From Front Line Organizers
Bill Quigley · 1,783 views today · When you find yourself in a suddenly darkened room, what do you do?   Some rush blindly to where they think the door might be.  Others stand still, let their eyes get...
Law Professor's Epic Response to Black Lives Matter Shirt Complaint
Social Design Notes · 1,068 views today · A first year law school student wrote a complaint about her professor having worn a Black Lives Matter T-shirt during class. The professor’s response is priceless. Scans of...
John Lennon's "Imagine," Made Into a Comic Strip
John Lennon. Art by Pablo Stanley · 993 views today · This is easily the best comic strip ever made.  Pabl
Social Media Echo Chambers: Here's How Most of Us are Living in One
2 min · 840 views today · Americans are blocking out the friends and news sites that won't confirm their views.
The Fight for Clean Water (#NoDAPL)
2 min · 782 views today · Clean water or Corporate profits? What’s more important? #NoDAPL Energy Transfer Partners: (214) 981-0700 U.S. Army Corps Of Engineers: (202) 761-0010; (202)...
Dakota Access Pipeline Permit Denied
Nika Knight · 725 views today · 'For the first time in Native American history, they heard our voices.'
How Mindfulness Empowers Us
2 min · 694 views today · Many traditions speak of the opposing forces within us, vying for our attention. Native American stories speak of two wolves, the angry wolf and the loving wolf, who both live...
What Makes Call-Out Culture So Toxic
Asam Ahmad · 617 views today · Call-out culture refers to the tendency among progressives, radicals, activists, and community organizers to publicly name instances or patterns of oppressive behaviour and...
This Short Film Plays Out Like an Epic Movie That Will Shake Your Soul - But the Movie Is Real, and We are The Actors
6 min · 544 views today · For next year, we need a resolution capable of confronting the crisis we face, and making a future worth fighting for. This short film looks back on the crisis and confusion...
Dreaming Beyond Capitalism: a Culture Without Fear
Martin Winiecki · 416 views today · In the 1990s an unusual encounter took place in the Ecuadorian Amazon. In plant rituals, shamans of the Achuar, a tribe living in pristine forest that had never been in touch...
The White Man in That Photo
Riccardo Gazzaniga · 384 views today · Sometimes photographs deceive. Take this one, for example. It represents John Carlos and Tommie Smith’s rebellious gesture the day they won medals for the 200 meters at the...
How a Land High in the Western Himalayas Can Help Us Understand The Crisis of The Modern World
9 min · 361 views today · This is a clip from The Economics of Happiness. Watch it here. It's a brilliant film that was easy to put at the top of our list of the top 100 documentaries we can use to...
The 6 Grand Illusions That Keep Us Enslaved
Sigmund Fraud · 341 views today · For a magician to fool his audience his deceit must go unseen, and to this end he crafts an illusion to avert attention from reality. While the audience is entranced, the...
Load More
Like us on Facebook?
'Eminent Domain for the People' Leaves Wall Street Furious