End Legalized Theft of Black-Owned Land

In America Black people are no strangers to the erosion of property rights or the theft of land. Our experience as property certainly bloodies the water. Even still we have used our agricultural acumen, innovative genius and cooperative practice to become property owners from the antebellum period until today. In fact by 1910 Black Americans had acquired 15 million acres of land much of it in the rural south.

Today, Black America owns roughly two million acres. The land was lost by various means including forced expulsion, abandonment, foreclosure, etc. The impact of these losses was magnified by obstacles to property acquisition such as discriminatory zoning, restrictive covenants, redlining, etc., a dominant practice in the urban north. All along the way property tax disparities have been used to take properties away from Black owners.

The erosion starts with property assessments. For example in Green County, Georgia in the 1930’s it was found that Black landowners were paying “far more” in property taxes than comparable properties owned by whites. In 1the 1972 a HUD study found largely Black East Baltimore (labeled as blighted) had 10 times the property tax burden of largely white Bolton Hill (labeled as upwardly transitional); a reporter for the Afro commented ”

Many a colored buyer has had the sad experience of having tax assessment upped, not lowered, when he moved in.”. This is perplexing considering that the Brookings Institute found that homes in predominantly black neighborhoods are appraised and valued 23% lower than comparable white neighborhoods, despite all else being equal. The compound effects of depressed housing values from historic race-based disinvestment and a disproportionate tax burden continue to plague Baltimore’s Black Butterfly.

Higher assessments result in higher property tax bills. And for a segment of Baltimore’s population that is hovering at the poverty line and on fixed incomes, even a small increase in property taxes can push a household further into financial distress and a neighborhood deeper into erosion. In Baltimore unpaid property taxes (and other municipal debts) are auctioned off annually. The Tax sale earns the city upwards of 20 million dollars each year. For those buying the tax certificate debts the “certificate purchasers” receive the right to collect the debt plus 12-18% interest on the debt, lawyers fees, lien releases, etc. If the property owner isn't able to navigate the unduly complicated process and pay the debt plus accumulated fees and interest, the “certificate purchaser” can file for foreclosure on the owner’s right to redeem the property from 9 months to 2 years after the tax sale. After the filing, if the debt isn't paid the court can issue a judgment which effectively gives title to the certificate holder who can then evict the previous owner, sell the property to another speculative investor, or even rent it back to the previous owner. All while not taking official title to the property or paying property taxes on it.

At this point the erosion of Black property rights is complete, the home’s equity is no longer accessible. It’s maddening to think of the millions of dollars in equity lost to Black homeowners in Baltimore to tax sales. The true number of people impacted by this policy and practice is difficult to calculate. Data from the district court on Tax Sale Foreclosures isn't readily available.

This was officially posted July 25, 2020

Reflections in Black: Equity in Real Property

In America Black people are no strangers to the erosion of property rights or the theft of land. Our experience as property certainly bloodies the water. Even still we have used our agricultural acumen, innovative genius and cooperative practice to become property owners from the antebellum period until today. In fact by 1910 Black Americans had acquired 15 million acres of land much of it in the rural south.

Today, Black America owns roughly two million acres. The land was lost by various means including forced expulsion, abandonment, foreclosure, etc. The impact of these losses was magnified by obstacles to property acquisition such as discriminatory zoning, restrictive covenants, redlining, etc., a dominant practice in the urban north. All along the way property tax disparities have been used to take properties away from Black owners.

The erosion starts with property assessments. For example in Green County, Georgia in the 1930’s it was found that Black landowners were paying “far more” in property taxes than comparable properties owned by whites. In 1the 1972 a HUD study found largely Black East Baltimore (labeled as blighted) had 10 times the property tax burden of largely white Bolton Hill (labeled as upwardly transitional); a reporter for the Afro commented ”

Many a colored buyer has had the sad experience of having tax assessment upped, not lowered, when he moved in.”. This is perplexing considering that the Brookings Institute found that homes in predominantly black neighborhoods are appraised and valued 23% lower than comparable white neighborhoods, despite all else being equal. The compound effects of depressed housing values from historic race-based disinvestment and a disproportionate tax burden continue to plague Baltimore’s Black Butterfly.

Higher assessments result in higher property tax bills. And for a segment of Baltimore’s population that is hovering at the poverty line and on fixed incomes, even a small increase in property taxes can push a household further into financial distress and a neighborhood deeper into erosion. In Baltimore unpaid property taxes (and other municipal debts) are auctioned off annually. The Tax sale earns the city upwards of 20 million dollars each year. For those buying the tax certificate debts the “certificate purchasers” receive the right to collect the debt plus 12-18% interest on the debt, lawyers fees, lien releases, etc. If the property owner isn't able to navigate the unduly complicated process and pay the debt plus accumulated fees and interest, the “certificate purchaser” can file for foreclosure on the owner’s right to redeem the property from 9 months to 2 years after the tax sale. After the filing, if the debt isn't paid the court can issue a judgment which effectively gives title to the certificate holder who can then evict the previous owner, sell the property to another speculative investor, or even rent it back to the previous owner. All while not taking official title to the property or paying property taxes on it.

At this point the erosion of Black property rights is complete, the home’s equity is no longer accessible. It’s maddening to think of the millions of dollars in equity lost to Black homeowners in Baltimore to tax sales. The true number of people impacted by this policy and practice is difficult to calculate. Data from the district court on Tax Sale Foreclosures isn't readily available.

Originally posted February 20, 2021. Written by Nneka N’namdi