The Racial Wealth Gap

Impacting
Florida's Economic
Future

The wealth gap between whites and minorities has doubled in the past 8 years. The poverty rate of minority women is twice that of white women. The economic distress of minority communities is one of the most pressing issues facing Florida and other states such as California. The lack of businesses and jobs fuels not only a crushing cycle of increasing poverty but also crippling social problems, increasing high school drop-out rates, drug abuse, and crime in our minority communities. The establishment of a sustainable economic base as well as increased access to affordable housing, employment opportunities, wealth creation, role models, and improved local infrastructure is critical to the future well-being of minority communities in the State of Florida and throughout the United States. Recent studies show that minority women have twice the rate of poverty as whites. To further emphasize this discrepancy, whites have 20 times the amount of wealth than minorities. Minorities also have marginal access to non subprime capital for both housing and small businesses. Across the United States, poverty and loss of hope and faith is on the rise among minority families. This will have a serious impact upon the economic future of the United States when you consider that minorities will represent over 50% of the population of all urban cities in 20 years.

The racial wealth gap in Florida has widened to an historic level primarily driven by the impact of over 42% of minorities losing their homes to foreclosure. This is critical when you consider Home Equity is by far the largest component to household wealth. Yet in 2012 minorities account for less than 7% of all FHA-Conventional home loans in Florida by the largest five banks. Minorities account for over 73% of poverty in Florida with over 70% of African American children living at below the 200% poverty level. Over 80% of all African American Children (4th & 8th Graders) in Florida have below average reading and math proficiencies.

Currently minorities account for an average of 43% of the population of every major city, but contribute less than 5% of the GDP for those cities. This trend has serious economic implications for every citizen in Florida. This crippling economic tide that is engulfing our families is a result of the lack of home ownership, access to capital, access to financial opportunities, access to educational resources, and a lack of financial upward mobility. Banks have the ability to lead in changing this negative course in Florida for minorities. This will not be possible without race based programs and funding that includes the development and capacity building (including both intellectual and capital) of minority led nonprofits that focus on minority communities or businesses.

Recent News:

FMCRC Press Release: Tampa Targets Low Income Home Owners For Racial Gentrification in areas near downtown Tampa. FMCRC seeks Legal and political remedy to protect these targeted minority families

Click here for press release

FMCRC Assets & Hope Host Baltimore Summit on Addressing Baltimore African American housing blight and rising racial wealth gap in Baltimore. Federal banking and housing regulators, faith based and nonprofit leaders and African American community activists pack the Baltimore African American Museum to have their voices heard

Click here for a recap and photos

President Trump and Republicans Attack Mexican Americans & Mexicans With Building The Wall of Shame. The Wall Will Become A Symbol of Racism. FMCRC Chair Al Pina States “Mexican Am I” I Stand With Mexico and All South Americans

Click Here For Mexican Am I Statement

FMCRC Assets & Hope Chair Al Pina work with Baltimore African American leaders to address rising racial wealth gap in Baltimore due to lack of African American home ownership & home equity. They announce the “Baltimore African American Home Ownership & Home Equity Symposium” on February 10th in Baltimore. (Click Here For Event Flyer)

Tampa Mayor Bob Buckhorn Targets Black Neighborhoods (near downtown) For Racial Gentrification. All White Tampa

Historic Board Create Historic Overlay Districts With Costly Housing Rehab Expense That Force Sales By Minorities

Click Here For FMCRC Letter To Mayor Buckhorn

2015 Federal Home Lending Data By Florida Banks Released. Top Banks fuel widening Racial wealth gap. Bank of American Discriminates Against African American home buyers Click here for copy of breakdown of 2015 Racial Home Lending Report

Washington DC Housing officials (FHFA, FannieMae, FreddieMac & NCST) Tour FMCRCTampa Housing Projects that Focuses on Raising Home Values in Minority Communities To Address The Rising Wealth Gap. To Date, FMCRC Has Been Successful in Raising Minority Home Values By Over $220 million dollars.

(click on this for attachment with photos and tour highlights)

Federal Reserve Board (Washington DC) Meets with FMCRC & Florida Minority Leaders in Miami to Discuss Rising Racial Wealth Gap and Racial Economic Exclusion By Banks. Meeting was result of FMCRC letter sent to Federal Reserve Board Chair Janet Yellen

Click Here For Meeting Recap and Photos

FMCRC Chair Al Pina Demands National Minority CRA Summit in DC; Official Letter to Federal Reserve Board Chair Janet Yellen (Proposed Hunger Strike) Click Here For Copy of Letter

FMCRC Goes After Bank of America CEO Brian Moynihan for Racial Economic Racism Bank of America Small Business and Home Loans to Minorities under 6% of all major U.S. Cities:

Click Here For BofA 2014 Home Lending To Minorities: Economic Racism

Click Here For FMCRC Cartoon of Moynihan Economic Racism

2014-2015 FMCRC-SDMCRC Annual Report: Click Here For Copy of Report

FMCRC-CCB Request Congressional Investigation of Bank of America on Predatory Lending To Latinos and Blacks as part of City of Miami Federal Lawsuit Against BofA. Click Here For Copy of Congressional Letter

FMCRC Creates and Leads Launch of Florida First Race Based Race Focused Community Development Fund to Fight Poverty With New Market Driven Non Profits. FMCRC Calls on Wells Fargo and Bank of America to Conduct National Racial Audit of Community Funds they Invest into Click Here For Copy of Press Release

Florida Racial Wealth Gap Report: Rebuilding Minority Communities: Click here for copy of report

Federal Reserve Chair Janet Yellen states rising income inequality harmful to United States. Federal Reserve Study (Income Inequality/Racial Income Inequality):

2010-2013: White Median Net Worth +2% ($142,000) San Diego +4% ($168,200) Florida +3 ($157,330)
2010-2014 Minority Net Worth -17% ($18,100) San Diego -27 (12,300)
Florida -21 ($16,600)

For link to Federal Reserve Study and Rising Racial Wealth Gap: click here

Federal study shows racial wealth gap grows under minority President. Click here for recap of report

Florida Racial Wealth Gap Summit Coming to Tampa in September. Will address economic impact on Florida future economy. Click here for save the date flyer

University of Berkley study (HAAS Institute) show Florida #2 with homes underwater with minorities leading the way. Click here for study of report

Harvard study finds minority home purchases & ownership down significantly in 2012. Click here for copy of study