To the entire Bargaining Unit : January 22, 2008
As President of AFGE Local 476, I have always emphasized that we must not only improve the working conditions of HUD employees but further the mission of HUD. I have always emphasized that we must further the mission of HUD. Today we have that opportunity in a rally that begins at noon in front of the HUD building from 12 to 2.
A few months ago, I called Rainbow Push, Reverend Jesse Jackson’s organization, and recommended that Reverend Jackson come to HUD and talk about the housing crisis. Reverend Jackson had already planned to go to Wall Street; shouldn’t he take his struggle to HUD? I even thought that Secretary Jackson could introduce him. At least we know that the rally is taking place.
I invite HUD employees to participate, either using your lunch hour or annual leave. HUD needs to take the lead to address this crisis, not simply be at the table with the Treasury secretary or talk to the Federal Reserve Board Chair. After all, “HUD mission is to increase homeownership, support community development and increase access to affordable housing free from discrimination.”
As to HUD Security’s closing doors, I think this policy is wrong. We should be open to the public. We have as security at HQ that costs the taxpayers $6 million a year, money that I think could be better spent helping, not keeping out, those we serve.
Secretary Jackson, should press for a moratorium on home foreclosures, and comprehensive federal intervention to restructure loans, and not foreclose and repossess homes. We proudly celebrated the 40th anniversary of the passage of the Fair Housing Act yet we know that we need stronger legislation to confront discriminatory, predatory lenders at the federal, state and local levels.
Dr. King called for civil equality – or in today’s language, Equanomics – measurable, quantifiable racial and economic equality to confront institutional discrimination and structural inequality. We demand justice for the victims of this massive financial scam. We must bailout the individuals and homeowners who were exploited, not just the corporate giants who did the exploiting.
In 2005 and 2006, over 50% of all loans made to African-Americans and over 40% to Latinos were subprime compared to only 19% for white borrowers. African-American and Latino borrowers were victims of steering. A Wall Street Journal analysis says that 55% of subprime loans went to borrowers with good credit, and data from a study by First American Loan Performance, a San Francisco research firm, says the proportion rose even higher by the end of 2006, to 61%.
The effects are devastating. Secretary Jackson was proud of the increase in home ownership among African Americans. Well now, the homeownership rate for African-Americans is dropping. Foreclosures will increase by at least 1.4 million in 2008; these homes represent a market value of $316 billion.
What is HUD’s response? The FHASecure plan through which “an estimated 240,000 families can avoid foreclosure by refinancing their mortgages.” Foreclosures will increase by at least 1.4 million in 2008 and HUD is offering assistance to 240,000 homeowners. This is an unacceptable response.
Past presidents have used agencies like the Reconstruction Finance Corporation and the Reconstruction Trust Corporation to deal with massive economic issues facing the country. Mortgages were underwritten, infrastructure financed, loans made, farmers aided--we even bailed out the S&L’s. Now it’s time to provide a lifeline to American’s homeowners and working families. Predatory lending stymies families’ attempts at wealth building, ruins people’s lives and, given the disproportionate number of minority homeowners who are targeted by predatory lenders, decimates whole communities.
The protest today is pro HUD. HUD is in a position to facilitate a plan. HUD must take leadership in putting forward a plan that will allow the restructuring of mortgages for all borrowers who are at risk of foreclosure. Not just some, all. And HUD must also address the plight of those who have already been forced into foreclosure.
See you at the rally.
While members receive frequent e mails, this is going to the entire bargaining unit:
Establishment of Office of Receivership Oversight within PIH- We negotiated this week the establishment of this office. While we think that such an office, which would deal with PA's in receivership such as Detroit and New Orleans, should exist, we rejected the form as presented. Specifically, there would be eight employees, two of whom would be Schedule C politicos, one deputy director, an administrative assistant who would have no career advancement opportunity and four workers. We thought that OMB wanted a 1:8 ratio of administrators to workers, not 1:1. As to the politicization of this office, it is the worst since HUD 2020.We refused to sign the agreement and will complain to Congress concerning what PIH plans to do.PIH refused to mediate and said it will implement anyway.
Transit subsidy- As you know, we negotiated transit subsidy before an Executive Order made it mandatory in DC (at HUD it is throughout the country). We recently negotiated the implementation of the Smart Card Program, which would still include metrochek exceptions for numerous people. As of yesterday 300 employees in HQ will lose their benefits as of July 1 because they are required to but have not enrolled in the Smart Card Program. Since negotiating this supplement, we became aware of a small group of employees who buy weekly passes because they are cheaper than paying for daily trips. This affects those with long commutes. One can only buy them with metrocheks. If you follow this practice, please contact me, and I will attempt to get an exception for you.
In solidarity, Eddie