Kamala Harris Proposes $100 Billion Plan for Black Homeownership

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Photo provided by Kamala Harris Facebook Page

On Saturday, Kamala Harris proposed a $100 billion federal program to help black people purchase homes as part of an effort to close the racial wealth gap if she is elected president.

After announcing the plan Essence’s Global Black Economic Forum where she would help 4 million homebuyers through down payment and closing-cost assistance by granting up to $25,000 from the Department of Housing and Urban Development.

The program would target red-lined communities.

Via her website, here is the outline of her plan:

 

We’ll invest $100 billion to provide down-payment and closing-cost assistance to four million homebuyers who rent or live in historically red-lined communities.

  • Our plan will create a 100-billion-dollar U.S. Housing and Urban Development (HUD)-administered grant to provide up to $25,000 in down payment assistance and closing costs. According to research from the Urban Institute, in early 2018, first-time homebuyers bought houses worth $245,320 with an average down payment of $22,561, and an interest rate of 4.43%.
  • This $100 billion investment will provide at least 4 million families/individuals living in federally-supported or renting housing in these historically red-lined communities with down payment and closing cost assistance.
  • In order to qualify for the program:
  • The grantee must be purchasing a principal residence.
  • The grantee must have lived for at least the preceding 10 years in a historically red-lined community that remains low-to-moderate income.
  • Grantee families cannot have an annual income of over $100,000 or $125,000 in high-cost areas.
  • Grantee individuals cannot make over $50,000 or $75,000 in high-cost areas.
  • The max grant is capped at either $25,000 or 20% of the loan value plus closing costs.
  • The maximum home price to qualify for the grant is $300,000 for consideration of high-cost areas.
  • Consistent with our more inclusive credit-calculation proposals below, an individual or family would need to demonstrate an ability to pay the mortgage with the lender.

We’ll amend the Fair Credit Reporting Act to require the credit scores reported by credit reporting agencies to include payments of rent, phone bills, and utilities.

  • Credit scores are often calculated by taking into account payment history on items such as credit cards, student loans, auto loans, and mortgage payments. However, not all consumers have accumulated these assets.
  • Today in America, 26 million people are “credit invisible” and 19 million people have “unscorable” credit files, including those who are deemed to have insufficient information or a “thin credit file.”
  • Many “credit invisible” consumers pay rent, utilities, and cell phone bills, in full and on time, but this responsible payment history is not positively reflected in their credit score.
  • Expanding the calculation of credit scores to include payments made on rent, phone bills, and other utilities will increase access to credit for those with a limited or “invisible” credit history or poor credit scores.

We’ll require lenders to calculate debt to income on a monthly basis and expand the sources of income for purposes of the calculation.

  • Lenders currently calculate debt to income as total debt against one year of income. The resulting ratio tends to disproportionately negatively impact Black and Latinx
  • We’ll require mortgage underwriters, when using Federal Housing Administration (FHA) loans, to calculate a borrower’s debt-to-income ratio by using monthly expenses against monthly income.
  • Mortgage underwriters will also be required to include in their income calculations non-W2 income like earnings from non-traditional work, and Black and Latinx workers are more likely to participate in the gig economy.
  • This change to a debt-to-income ratio using monthly expenses against monthly income will impact 7.5 million Black households and nearly 5 million Latinx households.

We’ll strengthen anti-discrimination lending laws and implement stricter enforcement.

  • We’ll update the Home Mortgage Disclosure Act (HMDA) to require that each loan receive a unique loan identifier to track the loan. These loan identifiers are intended to protect against redlining and “steering”— a process where listing agents steer consumers into risky and high-cost loans.
  • The HMDA currently requires any bank or credit union that makes more than 25 loans a year to report detailed loan characteristics such as interest rates, points and fees, loan terms as well as borrower characteristics like credit score, age, gender and ethnicity.
  • We’ll expand HUD’s fair housing program to make public housing more inclusive by banning discrimination based on gender identity, marital status, source of income, and sexual identity.
  • We’ll direct HUD, the Federal Reserve, and the Federal Housing Finance Agency to conduct audits and fair housing tests to prevent discrimination at the point of sale.
  • We’ll make sure that the U.S. Department of Justice has the resources it needs to implement Stricter enforcement of housing anti-discrimination laws.
  • And we’ll prohibit regulatory relief for large banks and lenders that have had a history of wrongfully guiding borrowers into predatory loans.

And to ensure these new homebuyers have the necessary financial literacy to stay in their homes, we’ll increase funding for the Housing Education and Counseling (HEC) program.

  • The HEC program is aimed at providing financial literacy for first-time These additional dollars will be used to expand the program to include all low- and middle-income homeowners seeking educational resources.
  • According to one study, participants in the housing education program were one-third less likely to become 90 or more days delinquent during the two years after they obtained their home loans.

Read more at https://kamalaharris.org/homeownership-gap/#rAW0pIjcYG3Qhxcc.99


39 COMMENTS

  1. A known fact is people who sacrifice their happiness for several years saving for that down payment and closing costs are the ones who become successful homeowners. When the money is handed to people, people still haven’t learn how to sacrifice to make that payment on time. I don’t see how her plan helps.

  2. As an African American, this bill is not giving me any hope. Instead, it is making me feel like African American and any ”low income” family/individuals are handicaps who will forever depend on the government. I am proud to work and earn my living. And I am proud of my fellow Africa American, Hispanic, Asian and Caucasians who work hard to earn their living. No thanks, Kamala.
    P.s. It’s funny how she didn’t mention where she’s going to get that kind of money🤔…I guess it will be coming out of my taxes too.

  3. Kamala is for open boarders and providing Illegal Aliens with Sanctuary, free healthcare, free education and free housing. Poor American citizens are offered a ” loan” to get what she wants Illegals to have for Free. $100 Billion for US taxpayers to cover for this while Illegals cost the US tax payer 5 billion a week. Why doesn’t she want to help American citizens first ?

  4. Banks do discriminate against blacks and Latinos. They have lower incomes and poorer credit scores. Not as a rule, but on average. Improve your own communities, and you’ll see a difference in treatment. By banks and society in general. The truth hurts.

    • Nick shows he’s never taken any college courses and stuck in the same ignorance from his high school years. Here’s a start Nick: look up “redlining”. Something you’d learn in an introductory Sociology class in college.

      • Sociology is one of those fake science classes that future social justice warriors take. I guess Larry is one of those people who don’t understand percentages.

    • When Clinton was still in office, some genius decided that low-income minorities and even those on welfare were to be put in positions to purchases houses no matter what their credit status was. Banks were forced to give out loans … no questions asked … or they would be shut down by the government. So, the banks complied and when many of those new homeowners never paid one single month’s mortgage, which resulted in massive foreclosures by the banks country-wide. Some of this led to the “homeless” status of many individuals.

  5. Wow, she’s making it quite clear that she doesn’t want to win because the percentage of people that would want to sacrifice all their free choice for government provided services is not that large. And, it’s shrinking more and more as Trumps economic policies continue to provide way better opportunities and success for all individuals by letting them control their own lives.

  6. This will help one appreciate their home even more now, perfect plan….. I can’t believe one can read this idea and see how it makes ANY sense.

  7. I have worked hard for many years to own my own home. Never had help never expected help and did it as a single mother of 2. She has lost my vote.

  8. Why is KAMALA HARRIS suddenly trying to appease blacks? She doesn’t have one ounce of black DNA in her body. She is the child of 100% East Indian parents. Her paternal grandparents immigrated to the islands (Jamaica, in this instance) to work in the spice trade, like many East Indians and Pakistanis did. Many Indian immigrants “Anglicized” their last names to blend in with the natives. Her father was born in Jamaica of his East Indian parents. Her mother immigrated to the US from India. Harris is a woman of COLOR, but she’s not black in any sense.

    • Lola, she IS black. She was born Oct. 24, 1964 to a black Stanford University professor and a Tamil Indian physician mother. Before you launch into full disclosure, you might want to get your facts straight. Do you really think she’d do this if she wasn’t black? Come on, you’re smarter than that. Her dad is a black Jamaican. Most Jamaicans are black. Take a trip to Jamaica.

      • Wrong Melanie! Kamala is NOT black. Her father is of EAST INDIAN origin along with her grandparents. Her dad was born in Jamaica of Indian parents. So, according to you, if a white person went to Jamaica and became a citizen of Jamaica, they would automatically become BLACK? Nothing black about them or him. Her mother was not a physician! She had advanced degrees and worked as a researcher in the cancer field. Kamala was born in Oakland but lived in Berkeley until she was 12 at which time her mother moved with her to CANADA! Lola is 100% correct. If Kamala claims she’s part “BLACK” then she is LYING!

        • Wrong Kenneth. She was a breast cancer researcher and endocrinologist, a specially trained doctor who has basic training in internal medicine as well. She WAS a physician. An endocrinologist has an MD – medical doctor.

          As far as grandparents, google Jamaica Global (Jan. 13, 2019). A picture of Miss Iris with great-granddaughter Kamala. She’s as black as I am white. Her nose, her lips, etc. 92 percent of Jamaicans are black.

          She is not lying. Her dad is Jamaican American, a black Jamaican. If you had seen her dad back in the day like I did, it would be abundantly clear he’s black. Remember the “one drop rule.”

          You have no idea what you’re talking about.

          • Wrong, Nick! Kamala Harris’ mother was NOT an MD. She earned a PhD and indeed worked exclusively in cancer research. She was not a physician.

            Kamala’s grandparents were not “Jamaicans” and Indians maintained their own identity. They may have become citizens of Jamaica, which is different.

            I have seen her dad and even took classes from him at Stanford.

            Kamala is not black! Her parents are both INDIAN! You’ve been misinformed. A lot of Indians migrated to the islands and were part of a close-knit community, like my parents were, and still are.

          • I didn’t attend Stanford like Nick or Sharad, but I have an advanced degree (UCLA), not that it matters.

            I googled her mother, and Nick is correct. I thought it was cancer research only, but when I googled her, she was an endocrinologist. The academic requirements – 4 years of college, 4 years of med school, 3 years of residency, and 2 years of fellowship.

            I also googled Jamaica Global and saw the picture Nick is referring to. A very old, skinny black woman. There is black in her family on her dads side. Google it and find out yourself.

            I’m a Republican, and I think Nick is too. Trump is stirring it up, and they did the same thing with Obama. It’s stupid. If I ran for office, some idiot would do the same to me.

            In the words of my friend Denise, “nobody cares about the black community except black people.” Denise is black, and sadly, it’s probably true.

      • Kamala Harris is not black and her late mother was not a physician. Kamala wants the black vote and that’s why she’s saying she is part black. But she’s not nor were her parents.

        • You’re right, Tammy! There is a difference in earning an MD (four-year medical degree) and a PhD (various time frames) which is basically a research degree, consisting of ORIGINAL work in a very narrow specialty to make advancements in a particular field.

        • SHE’S BLACK

          “But at the same time, she admits that she and her sister were raised as black girls. My mother understood very well that she was raising two black daughters. She knew that her adopted homeland would see Maya and me as black girls, and she was determined to make sure we would grow into confident, proud black women.

          Interestingly, the only mention of Harris’ religion or faith comes early on, where she describes growing up in Oakland, before they moved to Montreal. On Sundays, our mother would send us off to 23rd Avenue Church of God, piled in the back of the station wagon.

          We listened to Thelonious Monk, John Coltraine or Miles Davis.”

          Sounds like a black upbringing to me. With a black dad.

          • How could two EAST INDIAN daughters suddenly turn BLACK? They may be people of COLOR, like East Indians are, but they are never BLACK.

            Kamala Harris, seeing that she will have a very hard time trying to get ahead in the upcoming election, lies like crazy. Now, she thinks she can get more votes if she makes herself to be “black.” We got your number, Kamala girl! You can fool some people, but not all the people!

            Their dad is NOT black. He has the darker complexion of the Indian ethnicity, but he certainly is not black. Far from it.

      • Hey Melanie! I have a brother who lives in Jamaica and does business on most of the Caribbean islands. Our family is WHITE! Did my brother suddenly turn black because he lives in Jamaica? Think about!

        • Melanie is correct. Her mother – Dr. Shyamala Gopalan Harris – breast cancer researcher. She’s a doctor. Her dad – Donald Harris is black. Not African American, but Jamaican American. She said “MOST” Jamaicans are black, not all. It’s true.

          I’ve met Professor Donald Harris, and he’s black. I have not met Kamala Harris, nor do I like her politics.

          Kamala Harris lived in predominately black neighborhoods in Oakland. She attended black churches, and attended Howard University – a black university.

          She’s a bi-racial black woman. Black and Indian.

        • Nancy Pelosi attends a black church in Union Square since she was kicked out of the Catholic Church. Does that mean Pelosi is BLACK?

  9. Lots of luck, Kammie-girl! I’m sure people will just lay back and let you earmark their tax dollars to pay for all this. Why don’t you ask Jay-Z and Beyoncé, Al Sharpton, Tyler Perry, Stephen Curry, Colin Kaeperdick and other black millionaires to cough up that money which is pocket change for them.

  10. That’s what the democrats do: They promise free stuff for everybody to get the votes. Then they won’t keep any promise because they don’t get the money approved.

  11. In thinking that she could actually get this project in motion, Kamala Harris would be violating Title VI and Title IX of the CIVIL RIGHTS ACT, which plainly states that one cannot use RACE in such a distribution.

    I think she is doing this because she knows that if she uses the word “REPARATIONS” it will be dead-in-the-water. So, she’s trying to get in the “back door” with this promise of financial help for black to buy houses, but the specific qualifications she lists will be very difficult to meet. Harris is just BSing, if you ask me.

  12. She has no chance whatsoever. Even Willie “DUH MAYOR” Brown said that none of the Dem contenders could beat Trump and that includes Kamala, who had a long-standing affair with Willie and he helped her go up the political ladder.

    Her popularity has been dropping. She should take an example from Eric Swalwell and just drop out. Her job is to act as a senator, at which job she is failing badly.

  13. Kamala is flat out a racist. Her entire campaign is focused on one race and not all the citizens of this country. She will promise to executive order all free stuff for a specific race. That is racists in any term. She has no clue how to pay for her free stuff too. She is not a leader but a shit disturber at best. Ask Willie he will tell you. No support for Harris. She is bad for America.

  14. I took classes from Professor Harris (his family Anglicized their name) and he is not black at all. He has the complexion of those who come from southern India with fine facial features to match.

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