Hey there! If you stopped to read this, wow, you're awesome! And since you're that awesome, maybe you'd be willing to check out this super sweet, not-so-top-secret campaign to take Films For Action to the next level of awesome in our quest to change the world. All the details here. Cheers!
'Eminent Domain for the People' Leaves Wall Street Furious
'Eminent Domain for the People' Leaves Wall Street Furious
By Sarah Lazare / commondreams.org
Aug 8, 2013

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
Featured Films
Plutocracy: Political Repression In The U.S.A. (2018)
440 min Plutocracy is the first documentary to comprehensively examine early American history through the lens of class. A multi-part series by filmmaker Scott Noble, Part I focuses on the the ways in which the American people have historically been divided on the basis of race...
Fall and Winter (2013)
102 min This stunning film takes you on a hypnotic journey, reaching to the past to understand the origins of the catastrophic environmental transitions we now face. Over two years, director Matt Anderson traveled 16,000 miles to document firsthand our modern industrial world and the...
War Made Easy (2007)
70 min War Made Easy reaches into the Orwellian memory hole to expose a 50-year pattern of government deception and media spin that has dragged the United States into one war after another from Vietnam to Iraq. Narrated by actor and activist Sean Penn, the film exhumes remarkable...
Trending Today


Love Films For Action? Become a Patron.

The goal is to go 100% ad-free by next year and become 100% member supported. Would you be willing to make a monthly pledge? A few dollars per month times the power of a few thousand awesome people will get us to where we need to be. Click here to join.

If you'd prefer to make a one-time donation, you can do that here. Many thanks!

Join us on Facebook
'Eminent Domain for the People' Leaves Wall Street Furious