Napoleon D. Hardy presented his civic honors portfolio defense on August 30th, 2011. The portfolio examined barriers to homeownership in the United States, including a history of discriminatory housing policies. The summary analyzed the role of government programs in both promoting and restricting access to housing. While programs increased homeownership for some, implicit bias and lack of education still pose challenges. Hardy believes in empowering others with knowledge and hopes to increase affordable housing access through advocacy, education, and community involvement.

1. “Living the American Dream”
Overcoming the Barriers to Home
Ownership
Housing Policy and Education
University of Wisconsin Parkside Civic Honors Portfolio
Defense
Napoleon D. Hardy Presented:
Sociology Major August 30th 2011

2. Introduction
•Name:
Napoleon D. Hardy
•Hometown: Dayton Ohio
•Currently: Racine WI
•Experiences:
U.S.A.F. (Desert Storm Vet)
COO Rhino Logistics LLC
UWP Non-Trad. Student

3. What is Civic Honors
• Civic Honors allows students to tailor their
educational experiences around civic issues of
their choice, focus on a specific topic, and design
research and other creative projects related to
the civic issue they have chosen
• The Civic Honors track provides a mechanism to
support and sustain student involvement in a
particular public issue that extends beyond the
16-week semester and encourages students to
examine and respond to public issues

4. Civic Honors is Empowering!
• “WHATEVER MAY BE THE LIMITATIONS WHICH
TRAMMEL INQUIRY ELSEWHERE, WE BELIEVE
THAT THE GREAT STATE UNIVERSITY OF
WISCONSIN SHOULD EVER ENCOURAGE THAT
CONTINUAL AND FEARLESS SIFTING AND
WINNOWING BY WHICH ALONE THE TRUTH
CAN BE FOUND.” (UW Board of Regents 1894)

5. Housing from a global perspective
• Importance of housing and shelter
• Access to shelter and land versus ownership
Agricultural and Pastoral societies

6. The American Dream

7. The reality!

8. Why does this happen?
• Systemic problems in our society
• Role of government in helping and hurting
• Class and economics
…the strong do what they can and the weak
suffer what they must.
Thucydides 460 B.C – 400 B.C.

9. Homeownership…
was not always the American Dream
• History of home ownership in the U.S.
Society of renters prior to 1934
Mortgage terms 5 years
National Housing Act of 1934
Federal Housing Administration established in 1934
Job creation
FDR’s response to The Great Depression

10. The major players
• The Federal Housing Administration (FHA)
Department of Housing and Urban
Development (HUD) 1965
• Department of Veteran Affairs
• Department of Agriculture

11. FHA Becomes a Household Word
• 11 million homeowners between 1934 and
1974
• Guaranteed loans
• 30 year mortgages

12. Department of Veteran Affairs
• Programs for returning War Veterans
• The Servicemen’s Readjustment Act of 1944
• Guaranteed loans
• 30 Year mortgages
• Currently covers all veterans with honorable
service

13. U.S. Department of Agriculture
• Farm Loans
• Rural housing development
• Rural homes non-farm loans
• 30 year mortgages

14. Housing Boom for some…
challenges for others
• FHA rules and red lining
“…hereafter no part of said property or any portion
thereof shall be…occupied by ay person not of the
Caucasian race, it being intended hereby to restrict
the use of said property…against occupancy as
owners or tenants of any portion of said property for
resident or other purposes by people of the Negro or
Mongolian race.” FHA Underwriting Manual 1934
• Redlining and Residential Security Maps

15. Housing Boom for some…
challenges for others cont
FHA also explicitly practiced a policy of
“redlining” when determining which
neighborhoods to approve mortgages in

16. Housing Boom cont.

17. From Explicit to Implicit
• 1939 FHA Underwriting Manual sections 932
and 935 explicitly prohibited underwriting
loans that would comingle the races
• 1948 Supreme Court Case Shelley vs. Kramer
outlawed racial covenants in real estate
transactions
• 1950 FHA removes any explicit references to
redlining and racial covenants

18. Civil Right Act of 1964 Title VII
Prohibits discrimination
based on: race, color,
religion, sex and
national origin
The Commerce Clause of the U.S. Constitution was
instrumental in passage and future objections to the Civil
Rights Act

19. Urban Renewals Mixed Message
• Planes, Trains, and Automobiles
 Urban Renewal in low income neighborhoods
Federal Highway Act of 1956 et al.
Gentrification

20. Today’s Barriers to Home Ownership
• History shows the systemic problems
• No mechanism to pass on wealth by those less
fortunate financially
• Slow homeownership progress for minorities,
veterans, and the working class
• Government red tape and bureaucracy make
utilizing programs nearly impossible

21. Today’s Barriers to Home Ownership
cont.
• Secondary education systems fail to address
the buying process
• Creative financing options and markets not
designed with the best interest of the
consumer at heart

22. Home purchasing today
• Best time to purchase a home.
• Home loans and tax credits for all
• Market flooded with foreclosures
• Neighborhood Stabilization Program

23. Housing and Economic Recovery Act of 2008
American Recovery and Reinvestment Act of
2009
• $300 billion nation wide in FHA guaranteed
home loans from Housing & Economic
Recovery
• $14.7 billion nation wide in housing assistance
from American Recovery & Reinvestment

24. It’s not as easy as you think
• Neighborhood Stabilization Program (NSP) a
product of The Recovery Act’s of 08-09
• Wisconsin Housing and Economic
Development Authority

25. NSP funds in Racine
• No local lenders willing to participate in
program
• Process is cumbersome and difficult to
navigate
• As of July 2011 one home was purchased by
prospective homeowner with NSP funds in the
city of Racine

26. “On behalf of a grateful nation”
• U.S. Department of Veteran Affairs Programs
• Understanding the regulations: May, Shall, Must,
and Will
• “Section 7.04”
• VA may guarantee a loan for alteration and repair of a
residence already owned by the veteran and occupied as a
home, or made in conjunction with a purchase loan on the
property The alterations and repairs must be those
ordinarily found on similar property of comparable
value in the community.

27. “On behalf of a grateful nation” cont
“Catch 22”
• Since there has been an increased interest in the
purchase of foreclosed properties, VA believes it is
important to reaffirm its policies regarding MPRs.
As outlined in the VA Lender’s Handbook (VA
Pamphlet 26-7) Chapter 12, VA requires that all
properties, including foreclosed properties, be in a
condition that meets our MPRs or that there is a
reasonable likelihood the property can be
repaired to meet the MPRs prior to loan closing.
VA Circular 26-09-5

28. Rural options
• USDA programs offer direct loans
• Require one year of “Good” credit history
• Work history accepts farming income
• Different standards from other federal
programs designed for city dwellers

29. Current Experts on the process
• Home buyer education counselors
• Real Estate Agents
• Loan Officers
Education beyond the experts is necessary!

30. My Beliefs & Philosophy
• Agent of Change
• Education is power
• Educate others and share the wealth of your
experience

31. Learning Informing and Making
Changes
• WHEDA lenders meeting.
• Home buying education courses.
• Albert House Apts.
Worked on issues with Senior Citizens and
transitioning from homeowner to resident
• Correspondence with legislators State /
Federal.

32. What was the result
• WHEDA Lenders Manual changes
Kim Plache- Community Development Officer
Add Cover page to track changes and as of dates
Establish a Best Practices page to help other lenders
Provide consistent timelines across all counties
Explain Scope of repairs allowed with NSP funds
Clarify Inspection requirements
• WHEDA updates
Have sequential update numbers and as of dates
Purchased home with NSP funds

33. Future Plans
Where do we go from here?
• Share knowledge
• Provide education
• Volunteer
• Gainful employment

34. Questions?

35. Thank You!