Lawsuit: Bank of America neglects homes in black, Latino neighborhoods
Bank of America allegedly is neglecting basic upkeep of foreclosed homes in black and Latino neighborhoods in 37 cities across the country, according to a lawsuit filed by the National Fair Housing Alliance, 19 fair housing groups and two Maryland homeowners.
The federal Fair Housing Act lawsuit claims Bank of America-owned properties in working- and middle-class minority neighborhoods were routinely neglected, suffering from overgrown weeds, graffiti, trash and dead animals left in yards. Homes owned by the bank in white neighborhoods were more likely to have mowed lawns, clean yards and to have graffiti erased, the groups allege. It also names Safeguard Properties Management as a plaintiff.
The two homeowners joining the lawsuit live adjacent to properties owned by Bank of America, and claim Bank of America's alleged neglect led to rat infestations, squatters and property damage, among other problems.
"No one should have to live like this due to Bank of America's failure to maintain its own properties," Lisa Rice, president and chief executive of NFHA, said in a statement. "NFHA and the co-plaintiffs filed this lawsuit to make sure that these discriminatory practices come to an end and that perpetrators like Bank of America are held responsible for their unjust policies and practices."
Bank of America said the allegations are "without merit."
"We apply uniform practices to the management and marketing of vacant bank-owned properties across the U.S., regardless of their location," the bank said in a statement.
The lawsuit is based on a survey of 1,600 homes owned by Bank of America in both white and minority neighborhoods in cities such as Detroit, Philadelphia and Miami. Bank of America is responsible for exterior maintenance on the homes, the groups say.
The lawsuit alleges the neglected appearance of Bank of America-owned homes destroys home values for the minority neighborhoods.
"The purposeful neglect of bank-owned homes in communities of color devalues the properties and the lives of the families in the neighborhoods around them," Rice said. "The health and safety hazards created by these blighted bank-owned homes negatively affect the residents, especially the children, living nearby."
The lawsuit alleges that:
- More than 4 out of 10 Bank of America homes in minority neighborhoods had at least 10 maintenance or marketing problems, compared with 1 out of 10 of its homes in white neighborhoods.
- Six out of 10 of the bank's properties in minority neighborhoods had trash or debris on the property, double the rate of those in white areas.
- Almost 4 out of 10 bank-owned properties in minority areas had unsecured or broken doors, compared with less than 2 out of 10 of its homes in white areas.
