Enhancing the philanthropic capacity of communities of color June 2007

1. Enhancing the philanthropic capacity of communities of color June 2007

2. Pan African Community EndowmentThe Saint Paul Foundation

3. The Pan African Community Endowment Is one of the component endowments of SpectrumTrust of The Saint Paul Foundation. SpectrumTrust includes three other culturally specific endowments and a multicultural endowment: Multicultural Endowment Asian Pacific Endowment El Fundo de Nuestra Comunidad Pan African Community Endowment Two Feathers Endowment

4. The Pan African Community Endowment Mission: Promote philanthropy within the Pan African community and develop philanthropic resources appropriate to Pan African history, culture, and traditions. • The Endowment strives to be equitable, diverse, and accountable to its community. • It seeks to work in collaboration with the community to develop a sense of ownership and self-determination. Photos by Steve Wewerka

5. Pan African Community EndowmentHousing Initiative Committee Raising Issues, Funding Solutions

6. Why a Housing Initiative Committee? Charged with creating a common voice for certain housing issues affecting Minnesota’s Pan African community. Committee work includes: • Convening those working with the Pan African community on housing to discuss and develop strategies to address housing issues. • Publicizing innovative research, organizing, and advocacy activities that support efforts to address housing issues faced by the Pan African community. • Making annual housing grants with a goal of improving public awareness of housing issues that affect Pan African communities and identifying the root causes of inequality in housing as experienced by broad segments of the Pan African community.

7. Photo by Steve Wewerka

8. Past Grants Over 10 years, the Pan African Community Endowment has awarded 126 grants totaling $475,000 to organizations and initiatives.

9. Photo by Steve Wewerka

10. Housing grants • Affordable housing forums and information packets • Affordable housing research (cited in a $325 million nationwide settlement regarding predatory lending) • Financial services collaborations • Financial literacy education - Greater awareness of the effects of sub- prime lending and foreclosures in the Twin Cities • Advocacy/organizing to stop demolition of 900 affordable housing units

11. Photo by Steve Wewerka

12. Critical IssuesHomeownership rates Rejection ratesForeclosure rates Predatory Lending & Credit ScoresHomelessness

13. Homeownership rates

14. The Homeownership Rate for Blacks in Minnesotais Declining

15. Losses Instead of Gains Homeownership rates for blacks in Minnesota slipped from 32% in 2000 to 29% in 2005. "Blacks left out of Minnesota's rush to own homes," Pioneer Press, 10/3/06, St. Paul, MN

16. A Change in National Ranking Minnesota now ranks 45th out of 50 states and the District of Columbia in homeownership rates among black households even though the state continues its rank of #1 for homeownership nationally. "Blacks left out of Minnesota's rush to own homes," Pioneer Press, 10/3/06, St. Paul, MN

17. Rejection rates

18. In the largest metro areas, the average home loan rejection rate for blacks with incomes above 120% of the metro area’s median income was 21%, well above the 8% average for whites. "Poverty & Race Research Action Council" July/August 2004, Washington, D.C.

19. The Charlotte Observer reported in August ‘06 that blacks who borrowed from 25 of the nation's largest lenders were 4 times more likely than whites to pay high rates. • Even blacks with $100,000+ annual incomes were charged higher rates more often than whites with incomes below $40,000. "Loan disparity spurs anger: House Dems tell regulators minorities can't keep paying higher interest on mortgages" Charlotte Observer, 6/14/06, Charlotte, NC

20. Foreclosure rates

21. Foreclosures correspond most closely to census tracts with the highest concentrations of African-Americans, leading many researchers to conclude that African-Americans may be suffering the heaviest impact. Jeff Crump, "Subprime Lending and Foreclosure in Hennepin and Ramsey Counties: An Empirical Analysis" CURA Reporter (Spring 2005), research funded in part by the Pan African Community Endowment of The Saint Paul Foundation

22. Twin Cities Foreclosures Are Increasing There were more than 2,000 home foreclosures in Minneapolis and St. Paul during 2006

23. Forbes magazine has singled out Hennepin County as one of the nation’s eight metropolitan “foreclosure hotspots” "Foreclosure Hot Spots," Forbes, 5/3/06

24. In his 2007 Housing Budget Proposal address, Minneapolis Mayor R. T. Rybak reported that there were 300 more foreclosures in Hennepin County during the first six months of 2006 compared to 2005, an increase of 71%. Minneapolis Mayor R.T. Rybak confirmed the number in his 2007 Housing Budget Proposal

25. There were 1,531 foreclosures in Ramsey County in 2006. As of May 31, 2007 there have been another 928. Ramsey County Sheriff's Office, 5/31/07

26. Predatory Lending & Credit Scores

27. The Disparate Impact of Predatory Lending In Minneapolis, lower income neighborhoods with large populations of people of color have the highest concentrations of subprime lending. "Drained Wealth, Withered Dreams II: Disparate Impact of Predatory Lending in the Twin Cities," 2004

28. Subprime in 4 out of 11 Neighborhoods Subprime lenders accounted for more than 15% of the refinance loans in 4 out of 11 Minneapolis neighborhoods including Near North (35%); Camden (21%); Phillips/Whittier (18%) and Powderhorn (15%). "Drained Wealth, Withered Dreams II: Disparate Impact of Predatory Lending in the Twin Cities," 2004

29. Minneapolis neighborhoods that had the lowest rate of subprime lending include Downtown (8%); Southwest (7%); and Calhoun-Isles (8%). "Drained Wealth, Withered Dreams II: Disparate Impact of Predatory Lending in the Twin Cities," 2004

30. Near North homeowners who refinanced were 11.6 times more likely than Calhoun-Isles homeowners to receive a subprime loan. "Drained Wealth, Withered Dreams II: Disparate Impact of Predatory Lending in the Twin Cities," 2004

31. Homeowners in Twin Cities neighborhoods of color were 6.2 times more likely than homeowners in predominantly white neighborhoods to receive a subprime loan when refinancing. "Drained Wealth, Withered Dreams II: Disparate Impact of Predatory Lending in the Twin Cities," 2004

32. Blacks were more likely to receive higher-rate home purchase and refinance loans than similarly situated white borrowers, particularly for loans with prepayment penalties. Center for Responsible Lending, May 2006

33. The U of M’s Jeffrey Crump's analysis of the federal data from 1997 to 2002 found that Twin Cities blacks had a 34% chance of getting a subprime mortgage, compared with 10% for whites and 8% for Asians. Native Americans and Hispanics had a respective 22% and 13% chance. Jeff Crump, "Subprime Lending and Foreclosure in Hennepin and Ramsey Counties: An Empirical Analysis," CURA, 2005

34. An analysis of the credit bureau scores and Freddie Mac mortgage purchases confirmed that “African American borrowers. . . were about three times as likely to have high-risk credit bureau scores (defined as FICO scores below 620) as were white borrowers.” "Economic and Housing Research," www.freddiemac.com

35. Such differences in FICO scores lead directly to a higher proportion of rejections and higher interest rates. "Economic and Housing Research," www.freddiemac.com

36. One of the most revealing statistics on the true nature of subprime borrowing comes from the Federal Reserve it noted that 50% of the subprime borrowers had credit scores above 620 – the threshold to qualify for a prime loan. www.federalreserve.gov, 2004

37. Homelessness

38. Homelessness in Our Community

39. Homeless Adults Photo by Steve Wewerka

40. African Americans are particularly over-represented among Minnesota’s homeless adults. Wilder Foundation’s 2006 survey findings indicate that 41% of all homeless adults were black, as compared with just 3% of all Minnesota adults. "2006 survey of homeless in Minnesota," Wilder Research Center, St. Paul, MN

41. Photo by Steve Wewerka

42. In 2006, nearly half of all homeless persons in the Twin Cities metro area were African American "2006 survey of homeless in Minnesota," Wilder Research Center, St. Paul, MN

43. Homeless Youth

44. Racial disparities are also present among unaccompanied homeless youth. While only 5% of the general youth population in Minnesota is African American, nearly 33% of homeless youth on their own are African American. "2006 survey of homeless in Minnesota," Wilder Research Center, St. Paul, MN

45. Photo by Steve Wewerka

46. Photo by Steve Wewerka

47. 53 % of all homeless youth in Minnesota had lived in foster homes. • There is a large (18%) over-representation of African American youth in foster carecompared to the general population (5%) "2006 survey of homeless in Minnesota," Wilder Research Center, St. Paul, MN

48. An Example of the type of work supported by the Pan African Housing Committee

49. The African Development Center’sHomeownershipEducation

50. 400 in Two Years The African Development Center provided various home ownership services to approximately 400 clients from 2004-2006. "An Evaluation: African Development Center," Rainbow Research, Inc., November 2006