Watch
Dana Goldman hosts Richard Green and Thomas Mitchell in a conversation about Mitchell’s work on attempting to rectify the many ways that Black and other disadvantaged American families are deprived of their real estate wealth.
Upon the passing of a land-owning family member without a designated will, a great many properties of Black Americans passed property to multiple interest-owning heirs. Often called an “heirs property” or “tenancy in common”, this arrangement makes the estate easy to enter into a forced sale where the property sells for a fraction of its value. Affecting both rural and urban disadvantaged populations, Mitchell’s work has spearheaded both legal and legislative reforms in several states to help alleviate forced sales of a family’s vital source of generational wealth.
From Conversations with Interim Dean Goldman: Featuring Thomas Mitchell and Richard Green
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(upbeat music)
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- My name is Dana Goldman.
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I'm the Interim Dean in the
Price School of public Policy.
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And we tend to have a series,
what we do have a series,
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which are Conversations
With The Interim Dean.
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And as those of you who know
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me, you know that I really like to speak.
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But I also will admit
that there are some areas
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where I think it's better
if other people speak
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and this would be one of those topics.
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I'm very pleased that we
could have our guests,
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Thomas Mitchell, which
Richard Green will introduce
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to talk about some issues related
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to minorities and property rights.
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And Richard, I'm just gonna turn it over
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to you, and I'll be
available to do the Q&A.
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- Dana, thank you very much.
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It's my great, great pleasure
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to be able to spend the next
hour with Thomas Mitchell
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talking about work that he
has been quite passionate
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about and successful with
for going on 20 years now.
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I first got to know Thomas,
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when he was a graduate student
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at the University of
Wisconsin-Madison School of Law.
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From there, he moved on to the faculty,
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where we were colleagues together.
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And one of the things I love
to say about people like Thomas
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is I knew them when and
I could see how smart
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they were before they had
it stamped on their forehead
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as being a really smart person.
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And the stamp that Thomas
got a couple of months ago
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was to be named MacArthur
Fellow for this year.
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And needless to say, it's
always a source of great pride
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when you get to work with someone
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who ultimately gets that designation.
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Thomas wrote me into a
project in about 2002,
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funded by the Ford Foundation,
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looking at Black land loss in the cell.
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And it led us on an adventure
where we visited courthouses
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in Mississippi and Eastern North Carolina,
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to look at how property changed hands,
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in particular between
African-American farmers
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and white farmers over the
course of the previous 100 years,
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and I'm not gonna say much more
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about it, because I don't
wanna steal Thomas's thunder.
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But it led to a series of work
that Thomas has spearheaded
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both academic and legislative,
on the implications
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of black land laws and policies
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to make sure it doesn't happen again.
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I think it's worth underscoring
the following point,
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I think everybody knows
that, black people in the US
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have had much less opportunity
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when it comes to acquiring
property than white people
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going back to the beginning
of this country's history.
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But beyond that, black people
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have actually had their property taken
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from them in much greater
numbers than white people.
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And to give an example,
that somewhat different
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from what Thomas has
worked on, if you look
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at the Homeowners Loan Corporation,
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which was a new deal program,
put in place in order to allow
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people who are behind on their mortgages
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to stay in their homes.
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People who lived in neighborhoods
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that have large minority
populations were not able to take
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advantage of that program,
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and so they tended to lose their houses.
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Whereas people who lived in neighborhoods
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with large white populations
were able to take
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advantage of that program,
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and so we're able to retain their houses.
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And so, part of the reason
we see a gap in wealth
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between black folks and
white folks in the US
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is not just the absence of
opportunity for one group
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relative to another, although certainly
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that's been a very
important part of the story.
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But also because black people
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have had their land actively expropriated
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from them until remarkably quite recently.
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So, I'm gonna now turn it over to Thomas.
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First of all, Thomas,
thank you for being here.
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And tell us a little bit about
the nature of your project.
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What you have found both
in terms of the literature
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that you've contributed to,
and now you've translated
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that into legislative
reforms that have taken place
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around the country and may soon
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be taking place here in California?
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- Yeah, so first of all, thank you so much
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for the opportunity to talk
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to the USC Price School of Public Policy.
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Thank you, Dean Goldman.
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Thank you, Richard.
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It's always a pleasure catching
up with you, even though
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we've been doing it
virtually off late, right?
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It's also I'm actually
a native Californian
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from San Francisco.
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Proud graduate at Lowell
High School in San Francisco.
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And so, let me just kinda
situate some of my work.
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As Richard indicated, as
I was a graduate student
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at the University of Wisconsin,
I was doing some research
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and came across the fact
that it was a surprise
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to me that African-Americans had acquired,
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you know somewhere between
16 and 20 million acres
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of agricultural land by 1910.
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Which was a surprise to me,
given that the narrative
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had been that there had
been this failed effort
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to redistribute land to newly freed slaves
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after the Civil War,
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the failed promise of 40 acres and mule.
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So, I was actually surprised
that African-Americans
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had acquired that much land by 1910.
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But that land base has
shrunk precipitously,
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I think, when I was beginning my studies,
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in Wisconsin in the late 90s,
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that land base was down to, let's say,
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3 million, 4 million acres of land.
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So, I became curious about
what were the drivers
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of that land loss, and you know did
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a fair amount of field research.
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I actually had a different
topic for my thesis
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and I but I happened to
be in North Carolina,
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at a meeting of black farmers
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and somebody identified me as an attorney,
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and these families started coming up
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to me and tell me about
this family ownership
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that they referred to as Heirs' Property,
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which is property that
people typically inherit
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when there hasn't been a will.
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They started telling me a
stories of how that property
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had either already been lost
due to real estate speculators
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preying upon these families,
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sometimes some inter family disputes.
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And they were kind of describing the way
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this area of property
all worked, that bore
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no connection to anything I
had learned in law school.
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And so ultimately, I was very polite,
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then I told these families,
I would do some research.
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And then when I came back
to Madison, from that trip,
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I looked at every first
year property textbook,
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every treatise, nothing
that these families
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told me was validated by
anything in the case books
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or textbooks or treatises.
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And but then I asked
the families, they said,
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well, you say there there was
this these quarter pendants,
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can you send me the transcript
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from these rural county courthouses,
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because they're not
available in the databases,
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I was looking at Westlaw and Lexis.
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And I remember the day the
they arrived in Madison,
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and essentially, everything these families
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had told me was true,
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and so, I think that's
where I started realizing
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that this was a much greater
phenomenon than I had realized.
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And I'll just say a quick thing
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about this form of ownership,
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it's called a tenancy in common.
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It's the form of ownership
you get if you don't make
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a will or estate plan,
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and you leave property
with two or more heirs,
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and it's among Real Estate Attorneys
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or attorneys who do
wills trusts and estates,
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it's widely known as being
the most unstable form
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of what we call common
real property ownership,
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in the United States.
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Were essentially a group of
people on fractional interest
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in property, it could be land,
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it could be a single
family home in Los Angeles.
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And the law permits one person
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in the common ownership structure,
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irrespective of the size of
their fractional interest,
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to go into court file a suit
called a partition action,
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and in that partition
action requests the court
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to order a remedy of a
forced sale of the property,
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even if everybody else in
the ownership structure
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wants to maintain ownership.
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And courts, especially with
disadvantaged families,
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started routinely ordering
the sales of these properties,
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indicating that they were
somehow maximizing wealth,
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because theoretically,
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at least with some of
this agricultural land,
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there were theoretically
economies of scale.
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But in fact, it turns out these sales
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were what we call share
sales or auction sales.
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Essentially, they were fire sales.
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And so the family was not
only losing its property,
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but they were being stripped
of a substantial amount
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of their real estate
wealth in the process.
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And when you're dealing with
African-Americans or Latinos,
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though, it's not good,
their asset portfolios
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are not as well diversified,
as with white Americans.
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They're disproportionately
consistent their real estate
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or their real property.
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So, when these families suffer a fire sale
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of their property, it really
has a devastating impact.
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And so, I started in my research
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in started publishing
articles in the early 2000s.
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And it's kind of addressing a variety
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of manifestations of this problem.
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And I proposed a number of legal reforms
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or policy solutions.
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Now, if you go back to the
early 2000s the proposals,
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my proposals were, I was
considered a wild-eyed optimist,
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I was considered hopelessly naive.
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And there was some
empirical support for that.
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There had been many attempts
in many southern states,
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at least beginning in the 1970s,
to reform this area of law,
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and they pretty much all failed.
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And so people said, what makes you think
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that you would have any
greater success given,
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and they fail for a reason,
they fail because these people
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lack political and economic power,
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no matter how unjust the property law is.
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The lucky break I caught
was in the Associated Press
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got very interested in this phenomenon,
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they did, months long
investigative report,
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traveling throughout
several states in the south.
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So, I kind of overnight
when the AP came out
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with what ended up being
award winning story,
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I went from being,
wild-eyed hopeless optimist,
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to National Expert, Thomas
Mitchell, on this area of law.
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And that motivated the
American Bar Association
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to put together a task force
to see what can be done,
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I was asked to be on task force.
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And the most ambitious
thing that we pushed
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was to see fundamental reform
of this state property law.
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Which involved, is the
organization United States
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that's had the longest history
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of drafting model state statutes
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is called the Uniform Law Commission.
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Most lawyers don't know it.
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Most law professors, their eyes glaze over
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when you mentioned that.
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But when I mentioned at
least the lawyers and said,
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Have you ever heard of the
Uniform Commercial Code,
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the UCC everybody, all
lawyers know what that is?
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And I said, where do you
think that came from?
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It's like, the Uniform Law Commission.
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So, the Uniform Law Commission accepted
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our proposal in 2007, to
form a drafting committee
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to fundamentally drafted a new law,
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and then I was appointed to
be the principal drafter.
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And then, we finished in 2010,
and we've had since 2011,
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we now we're up to 17 states,
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and the United States Virgin Islands
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that have enacted this into law,
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I think what's most surprising,
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I mean, is most surprising anybody
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that we've had any success
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00:12:22,410 --> 00:12:26,370
because it was viewed as
gonna be a failed effort.
250
00:12:26,370 --> 00:12:28,310
But even for me, it's
been a little surprising
251
00:12:28,310 --> 00:12:33,120
that eight of the 17 states
are located in the south,
252
00:12:33,120 --> 00:12:34,330
we just got in 2020,
253
00:12:34,330 --> 00:12:37,100
we got Florida, Virginia, and Mississippi,
254
00:12:37,100 --> 00:12:41,130
which I had always
conceded, would be something
255
00:12:41,130 --> 00:12:43,873
that would not be possible
for three generations.
256
00:12:44,860 --> 00:12:49,626
So, let me just stop kind
of there just a little bit,
257
00:12:49,626 --> 00:12:51,350
because I want to make sure that Richard,
258
00:12:51,350 --> 00:12:54,670
if you want to prime
the pump, a little bit.
259
00:12:54,670 --> 00:12:55,503
- Sure.
260
00:12:55,503 --> 00:12:58,240
So, and before I start
asking you questions,
261
00:12:58,240 --> 00:12:59,530
I just wanna remind the audience
262
00:12:59,530 --> 00:13:02,880
that the Q&A box is available
for questions to Thomas
263
00:13:02,880 --> 00:13:06,600
and I will try to pass along
to him as many as possible
264
00:13:06,600 --> 00:13:08,733
before we adjourn for the afternoon.
265
00:13:10,410 --> 00:13:14,610
So Thomas, one of the
things about these stories
266
00:13:14,610 --> 00:13:18,623
is there is some color surrounding them.
267
00:13:19,950 --> 00:13:23,180
You described what happened
with partition sales
268
00:13:23,180 --> 00:13:27,040
in a very scholarly and appropriate way.
269
00:13:27,040 --> 00:13:29,930
But if you could regale
us with one or two stories
270
00:13:29,930 --> 00:13:33,670
about how these things went,
and beyond partitions cells,
271
00:13:33,670 --> 00:13:37,650
I find it particularly
interesting how property taxes
272
00:13:37,650 --> 00:13:39,410
were used as a mechanism.
273
00:13:39,410 --> 00:13:40,243
- [Thomas] Sure.
274
00:13:40,243 --> 00:13:41,520
- Appropriate property.
275
00:13:41,520 --> 00:13:42,353
- Yeah.
276
00:13:42,353 --> 00:13:44,970
So, one of the things
is I've had to navigate
277
00:13:44,970 --> 00:13:47,470
being an academic, but
also being very active
278
00:13:47,470 --> 00:13:49,000
in terms of law and policy front
279
00:13:49,000 --> 00:13:51,830
is when you're kinda in
the law and policy circles
280
00:13:51,830 --> 00:13:53,660
and you're talking to elected officials
281
00:13:53,660 --> 00:13:56,260
and other policyholders,
282
00:13:56,260 --> 00:13:58,570
it's different than academic
presentation, right?
283
00:13:58,570 --> 00:14:00,262
You got to tell a story.
284
00:14:00,262 --> 00:14:02,610
And luckily, or maybe not so luckily,
285
00:14:02,610 --> 00:14:04,440
because of the abuse in this area,
286
00:14:04,440 --> 00:14:05,923
I have a number of stories.
287
00:14:06,922 --> 00:14:08,850
So, just one thing kind of beginning
288
00:14:08,850 --> 00:14:13,300
is just that Hilton Head
Island in South Carolina,
289
00:14:13,300 --> 00:14:16,410
up until 1950, the majority
of the property owners
290
00:14:16,410 --> 00:14:19,060
in Hilton Head were African-American.
291
00:14:19,060 --> 00:14:23,360
And so, this property
base that I indicated
292
00:14:23,360 --> 00:14:24,830
that African-Americans acquired up
293
00:14:24,830 --> 00:14:27,790
until about 1910 and 1920.
294
00:14:27,790 --> 00:14:32,020
Is I mean, compared today
was much more substantial,
295
00:14:32,020 --> 00:14:33,720
but the property that African-Americans,
296
00:14:33,720 --> 00:14:36,123
typically acquired was
not prime real estate.
297
00:14:37,190 --> 00:14:38,960
And Hilton Head back
then was not considered
298
00:14:38,960 --> 00:14:43,178
prime real estate because
there was no easy way
299
00:14:43,178 --> 00:14:45,770
from the mainland, in South Carolina
300
00:14:45,770 --> 00:14:48,560
out to Hilton Head, there was no bridge.
301
00:14:48,560 --> 00:14:51,167
And in the early 1950s,
302
00:14:51,167 --> 00:14:53,940
the state of South Carolina built a bridge
303
00:14:53,940 --> 00:14:57,120
and all kinds of real estate
developers had visions
304
00:14:57,120 --> 00:15:00,470
in their mind basically
what Hilton Head has become.
305
00:15:00,470 --> 00:15:02,840
And so, they picked off one family
306
00:15:02,840 --> 00:15:05,800
after another to the point
they, it's like shocking
307
00:15:05,800 --> 00:15:08,120
to hear that in 1950,
308
00:15:08,120 --> 00:15:12,630
this property was majority
kind of black owned.
309
00:15:12,630 --> 00:15:15,750
Right, there's a family I
encountered in my research
310
00:15:15,750 --> 00:15:20,040
of South Carolina that
was part of a community
311
00:15:20,040 --> 00:15:23,060
that actually got land from somebody
312
00:15:23,060 --> 00:15:26,010
who had been a signatory to the
Declaration of Independence.
313
00:15:26,010 --> 00:15:29,173
It's called the Phillips
Community in rural South Carolina.
314
00:15:30,129 --> 00:15:31,460
And about 10 years ago,
315
00:15:31,460 --> 00:15:36,239
you had an outside speculator
who preyed upon this family
316
00:15:36,239 --> 00:15:40,910
this property is that's invested
with real deep historical
317
00:15:40,910 --> 00:15:43,630
and cultural kind of significance,
318
00:15:43,630 --> 00:15:47,470
picked off one family
member who was in Chicago,
319
00:15:47,470 --> 00:15:49,260
or Detroit or LA.
320
00:15:49,260 --> 00:15:51,510
And that's typically what
these speculators have done,
321
00:15:51,510 --> 00:15:53,750
they pick on somebody
who's a distant relative--
322
00:15:53,750 --> 00:15:54,930
- And I'm sorry to interrupt
323
00:15:54,930 --> 00:15:57,210
but they specifically
they use quick claims
324
00:15:57,210 --> 00:15:58,800
in order to do this correct?
325
00:15:58,800 --> 00:16:00,370
- Yeah.
326
00:16:00,370 --> 00:16:02,020
And, sometimes quick claim,
327
00:16:02,020 --> 00:16:04,470
sometimes they buy out
their fractional interest.
328
00:16:05,320 --> 00:16:06,760
And when they usually
do that, they buy out
329
00:16:06,760 --> 00:16:09,690
the fractional interest
for a low-ball price,
330
00:16:09,690 --> 00:16:11,890
because oftentimes,
these distant relatives,
331
00:16:13,030 --> 00:16:15,680
the first time they learned
that they have a 2% interest
332
00:16:15,680 --> 00:16:17,880
in the land is when the
speculator shows up.
333
00:16:18,940 --> 00:16:21,010
And so, this is what this speculator did.
334
00:16:21,010 --> 00:16:25,120
And then within a couple years,
335
00:16:25,120 --> 00:16:28,143
they forced the sale of this property.
336
00:16:29,189 --> 00:16:32,880
He had property that was,
I think the buyout price
337
00:16:32,880 --> 00:16:37,730
was, it was like, $200,000
for a property that ended up
338
00:16:37,730 --> 00:16:40,180
then selling a couple
years later for $2 million.
339
00:16:42,651 --> 00:16:45,810
And so, you've had that,
you've had families I know
340
00:16:45,810 --> 00:16:50,300
where it's the, 85 year old matriarch,
341
00:16:50,300 --> 00:16:53,950
with the third grade
education on their deathbed,
342
00:16:53,950 --> 00:16:55,800
who has been bought out.
343
00:16:55,800 --> 00:16:59,973
So, I've heard that that
kind of story several times.
344
00:17:01,858 --> 00:17:03,640
One of the things that's
interesting, I think,
345
00:17:03,640 --> 00:17:06,840
as I was made the
transformation from just doing
346
00:17:06,840 --> 00:17:11,840
purely academic stuff, and then
also adding this long policy
347
00:17:12,330 --> 00:17:16,140
is to kind of sell our story a little bit.
348
00:17:16,140 --> 00:17:19,920
I realized early on in
actually the drafting process
349
00:17:19,920 --> 00:17:23,190
that I had to generalize
this more than just situating
350
00:17:23,190 --> 00:17:26,390
this as a problem only
impacting African-Americans,
351
00:17:26,390 --> 00:17:28,590
and only in the rural south.
352
00:17:28,590 --> 00:17:30,580
So, I did some research
and ended up finding out
353
00:17:30,580 --> 00:17:33,190
that though it's disproportionately
354
00:17:33,190 --> 00:17:36,470
in African-American problem,
it's not exclusively,
355
00:17:36,470 --> 00:17:39,260
that there are Latinos in the southwest,
356
00:17:39,260 --> 00:17:42,560
there are poor whites in Appalachia,
357
00:17:42,560 --> 00:17:45,870
there are some Native
Americans in some states
358
00:17:45,870 --> 00:17:47,800
where their property law is governed
359
00:17:47,800 --> 00:17:50,290
not by this trust relationship,
or the federal government,
360
00:17:50,290 --> 00:17:52,760
but by the state property law.
361
00:17:52,760 --> 00:17:57,150
And then in Hawaii, so while
we're trying to broaden,
362
00:17:57,150 --> 00:17:59,890
so I'm gonna tell you a
little bit about Hawaii.
363
00:17:59,890 --> 00:18:03,360
We got our act passing by in 2017,
364
00:18:03,360 --> 00:18:07,283
with a effective date of January 1 2018.
365
00:18:08,470 --> 00:18:13,470
On December 31 2017, a
prominent property owner
366
00:18:14,200 --> 00:18:19,200
on the island of Hawaii
had this huge estate.
367
00:18:19,760 --> 00:18:23,230
And as part of his huge estate,
there were eight or nine
368
00:18:23,230 --> 00:18:25,920
properties that were in
the interior boundaries
369
00:18:25,920 --> 00:18:27,540
of the estate that were owned
370
00:18:27,540 --> 00:18:30,080
by these native Hawaiian
families where he had to grant
371
00:18:30,080 --> 00:18:31,970
an easement to the families
372
00:18:31,970 --> 00:18:34,570
to have them access their property.
373
00:18:34,570 --> 00:18:35,920
He didn't wanna do this anymore,
374
00:18:35,920 --> 00:18:37,920
he wanted to acquire those properties.
375
00:18:37,920 --> 00:18:40,520
So, one day before I act became effective,
376
00:18:40,520 --> 00:18:44,810
he filed nine of these lawsuits requesting
377
00:18:44,810 --> 00:18:47,320
a forced sale of the property.
378
00:18:47,320 --> 00:18:49,280
So, if I was his real estate attorney,
379
00:18:49,280 --> 00:18:50,617
and he had come to me and said,
380
00:18:50,617 --> 00:18:53,280
"my goal is to force a
sale these properties,
381
00:18:53,280 --> 00:18:55,767
it's a perfectly legal goal."
382
00:18:56,820 --> 00:18:58,510
I would have told him you will do better
383
00:18:58,510 --> 00:19:00,863
under the old law than this new law.
384
00:19:01,860 --> 00:19:03,530
And I probably would have advised
385
00:19:03,530 --> 00:19:04,990
him, that's a good thing to do.
386
00:19:04,990 --> 00:19:08,140
Now, if I had been his PR
person, I would have said,
387
00:19:08,140 --> 00:19:10,540
listen, we got some other
things to think about.
388
00:19:11,510 --> 00:19:14,500
But either he didn't
consult this PR person
389
00:19:14,500 --> 00:19:16,410
or as PR person gave them some bad advice,
390
00:19:16,410 --> 00:19:21,260
because he did file a suit and
it generated massive amounts
391
00:19:21,260 --> 00:19:23,750
of controversy in Hawaii.
392
00:19:23,750 --> 00:19:26,243
There were headlines literally that said,
393
00:19:27,410 --> 00:19:31,430
this landowner tries to evade
protections of this new law
394
00:19:31,430 --> 00:19:34,283
that will become effective
24 hours from now.
395
00:19:35,300 --> 00:19:37,650
I think you probably have
heard of this property owner.
396
00:19:37,650 --> 00:19:40,570
He's a guy named Mark Zuckerberg,
397
00:19:40,570 --> 00:19:43,150
I'm just thinking that you
might have heard of him.
398
00:19:43,150 --> 00:19:46,630
He got such bad press about this.
399
00:19:46,630 --> 00:19:48,740
It was such a public relations disaster.
400
00:19:48,740 --> 00:19:51,680
He basically dismissed his
lawsuits and made it clear
401
00:19:51,680 --> 00:19:53,530
he had no intention of trying to forcibly
402
00:19:53,530 --> 00:19:55,820
acquire these properties.
403
00:19:55,820 --> 00:19:57,980
The last example I'll kind
of give you, is for years
404
00:19:57,980 --> 00:19:59,300
I've been telling people
405
00:19:59,300 --> 00:20:02,730
that not always is not just
a African-American problem,
406
00:20:02,730 --> 00:20:05,583
it's a problem that has four drivers.
407
00:20:06,460 --> 00:20:10,360
The first driver is a very
low incidence of making wills.
408
00:20:10,360 --> 00:20:12,260
So, there's a variety of regional studies
409
00:20:12,260 --> 00:20:14,090
in the United States,
there's no national study
410
00:20:14,090 --> 00:20:16,860
that looks at will making
or estate planning rates.
411
00:20:16,860 --> 00:20:19,410
And it's kind of impossible
to do a national study
412
00:20:19,410 --> 00:20:20,670
for methodological reasons.
413
00:20:20,670 --> 00:20:23,670
But there's a number of regional studies.
414
00:20:23,670 --> 00:20:26,060
So, these studies typically
show that somewhere
415
00:20:26,060 --> 00:20:29,963
between 50 and 55% of
Americans make a will.
416
00:20:31,030 --> 00:20:36,030
But the will making rates, there
is a huge ratio will making
417
00:20:36,480 --> 00:20:39,650
or a real estate planning
gap in this country, right?
418
00:20:39,650 --> 00:20:41,740
So, I think the average
white family makes wills
419
00:20:41,740 --> 00:20:43,800
at the rate of 55%,
420
00:20:43,800 --> 00:20:47,340
according to one study
from Washington, St. Louis.
421
00:20:47,340 --> 00:20:50,610
And the average and
African-Americans make wills
422
00:20:50,610 --> 00:20:52,017
at the rate of 23%.
423
00:20:52,017 --> 00:20:53,520
And the Latino will making rate
424
00:20:53,520 --> 00:20:56,410
is very much similar to
the African-American.
425
00:20:56,410 --> 00:20:58,660
One of the things I found,
like kind of most disturbing
426
00:20:58,660 --> 00:21:03,095
is that the, in every
racial or ethnic group,
427
00:21:03,095 --> 00:21:06,238
not surprisingly, those who
make wills at the highest rate
428
00:21:06,238 --> 00:21:08,100
of them are the more educated.
429
00:21:08,100 --> 00:21:12,790
So among white Americans,
73% of white Americans
430
00:21:12,790 --> 00:21:14,530
with a college degree make a will.
431
00:21:14,530 --> 00:21:18,990
But at least in the Washington
study, 55% of white Americans
432
00:21:18,990 --> 00:21:21,250
with no high school degree make a will.
433
00:21:21,250 --> 00:21:22,900
And the African-American community,
434
00:21:22,900 --> 00:21:26,400
it is true that African-Americans
with the highest education
435
00:21:26,400 --> 00:21:28,020
with a college degree or college
436
00:21:28,020 --> 00:21:29,880
or graduate or professional degree,
437
00:21:29,880 --> 00:21:31,800
make wills at the highest rate,
438
00:21:31,800 --> 00:21:36,800
but only 33% of that
demographic makes wills.
439
00:21:37,750 --> 00:21:40,900
And so, you have low rates of will making,
440
00:21:40,900 --> 00:21:43,090
you have typically a lack of access
441
00:21:43,090 --> 00:21:44,880
to affordable legal services,
442
00:21:44,880 --> 00:21:48,670
so people can kinda structure
their kind of ownership.
443
00:21:48,670 --> 00:21:50,860
You have families who are
particularly vulnerable,
444
00:21:50,860 --> 00:21:53,480
who are low income or low wealth.
445
00:21:53,480 --> 00:21:55,370
And then the last driver
that really has led
446
00:21:55,370 --> 00:21:57,190
to a lot of these for sales,
447
00:21:57,190 --> 00:22:00,670
is that going back to the
South Carolina example,
448
00:22:00,670 --> 00:22:03,560
the property when it
initially was acquired,
449
00:22:03,560 --> 00:22:06,270
was not considered prime real estate.
450
00:22:06,270 --> 00:22:08,760
But over time, it's now either newly
451
00:22:08,760 --> 00:22:10,620
in the path of development,
452
00:22:10,620 --> 00:22:14,170
like Hilton Head was or in urban sprawl,
453
00:22:14,170 --> 00:22:17,010
or it's an area where there's
been a rapid appreciation
454
00:22:17,010 --> 00:22:18,010
of real estate values,
455
00:22:18,010 --> 00:22:21,693
like gentrification in LA, New York, DC.
456
00:22:22,950 --> 00:22:25,130
And so, I've been making
this point for a long time,
457
00:22:25,130 --> 00:22:26,740
but this is not just a rural problem,
458
00:22:26,740 --> 00:22:28,010
but it's also an urban problem.
459
00:22:28,010 --> 00:22:31,610
But essentially, almost
all the media coverage
460
00:22:31,610 --> 00:22:34,380
was about African-Americans
in the rural south
461
00:22:34,380 --> 00:22:37,860
and I would talk to
reporters, I'd make this point
462
00:22:37,860 --> 00:22:39,250
and then the article would come out
463
00:22:39,250 --> 00:22:41,070
and be about some African-American family
464
00:22:41,070 --> 00:22:42,060
in the rural south.
465
00:22:42,060 --> 00:22:44,950
Until 2019, there was an
investigative reporter
466
00:22:44,950 --> 00:22:49,950
for major television station
in New York City, NY1.
467
00:22:50,430 --> 00:22:52,890
And she did an amazing
investigative report
468
00:22:52,890 --> 00:22:54,450
of how real estate speculators
469
00:22:54,450 --> 00:22:56,410
in almost every borough of New York,
470
00:22:56,410 --> 00:22:59,070
were preying upon African-Americans
471
00:22:59,070 --> 00:23:01,390
who had high equity
properties, oftentimes,
472
00:23:01,390 --> 00:23:04,150
because the families got the
properties when it was redline,
473
00:23:04,150 --> 00:23:05,700
so they needed a lot of cash.
474
00:23:05,700 --> 00:23:08,450
They didn't have financing,
but they were not paid off.
475
00:23:09,362 --> 00:23:14,340
And that article, and it wasn't
an article was televised.
476
00:23:14,340 --> 00:23:16,880
Within a week of that being televised,
477
00:23:16,880 --> 00:23:20,750
there was almost a competition
among legislate tours
478
00:23:20,750 --> 00:23:22,100
in the New York legislature to see
479
00:23:22,100 --> 00:23:24,530
who can introduce our bill at first.
480
00:23:24,530 --> 00:23:26,380
And it was pretty It was
pretty late introduction,
481
00:23:26,380 --> 00:23:28,250
early April, and it rocketed
482
00:23:28,250 --> 00:23:29,520
through the New York legislature.
483
00:23:29,520 --> 00:23:31,700
I mean, some people told me
they had never seen a bill move
484
00:23:31,700 --> 00:23:36,140
that fast and because of
this media story about that.
485
00:23:36,140 --> 00:23:38,390
So, those are some of the,
whether it's the Hilton Head
486
00:23:38,390 --> 00:23:41,404
or the Mark Zuckerberg in
Hawaii, or the New York City,
487
00:23:41,404 --> 00:23:46,310
if you have other flavors, I
got an Iowa farm story for you.
488
00:23:46,310 --> 00:23:47,362
I'm got--
489
00:23:47,362 --> 00:23:49,700
- I'm gonna ask you about one more,
490
00:23:49,700 --> 00:23:50,850
but just a couple of things.
491
00:23:50,850 --> 00:23:54,580
One is that New York one
story really was remarkable.
492
00:23:54,580 --> 00:23:55,970
And I don't know if it's available,
493
00:23:55,970 --> 00:23:57,822
if a link is available to watch it.
494
00:23:57,822 --> 00:23:58,655
- Yeah.
495
00:23:58,655 --> 00:24:00,220
- And ask our team here at Price
496
00:24:00,220 --> 00:24:02,660
to make that link available
if it is because the audience
497
00:24:02,660 --> 00:24:04,300
should see that story.
498
00:24:04,300 --> 00:24:06,720
It was it was very, very well done.
499
00:24:06,720 --> 00:24:08,290
- Yeah, I would say that story.
500
00:24:08,290 --> 00:24:10,390
And I was interviewed for Vice,
501
00:24:10,390 --> 00:24:13,260
which is used to be on
HBO, now on Showtime.
502
00:24:13,260 --> 00:24:14,670
They did this amazing story
503
00:24:14,670 --> 00:24:17,123
of this rural family in Louisiana.
504
00:24:18,010 --> 00:24:21,410
And it's powerful.
505
00:24:21,410 --> 00:24:25,100
So, I like the two of them,
because one's rural, one urban.
506
00:24:25,100 --> 00:24:26,810
- And then the second thing
there's there's a question
507
00:24:26,810 --> 00:24:27,643
from the audience.
508
00:24:27,643 --> 00:24:28,930
And I was to leave this toward later,
509
00:24:28,930 --> 00:24:32,163
but this just dovetails so
well, with what you just said.
510
00:24:34,530 --> 00:24:37,170
There's a debate on reparations
for the injury harm caused
511
00:24:37,170 --> 00:24:39,840
by racist policies before
and after the Civil War.
512
00:24:39,840 --> 00:24:42,400
There are multiple proposals
that, do you see establishing
513
00:24:42,400 --> 00:24:44,120
a state plans and legal protections
514
00:24:44,120 --> 00:24:46,230
for descendants as one remedy?
515
00:24:46,230 --> 00:24:49,210
Could so Could this be part
of a reparations package?
516
00:24:49,210 --> 00:24:51,270
- Yeah, so here's what I
was talking about that.
517
00:24:51,270 --> 00:24:54,920
Is that, I've been very active
518
00:24:54,920 --> 00:24:59,350
in terms of this state law reform effort.
519
00:24:59,350 --> 00:25:03,420
And as you indicated,
we have now every region
520
00:25:03,420 --> 00:25:06,330
of the US from the far
west to the northeast,
521
00:25:06,330 --> 00:25:09,170
to the south to the
Midwest to the southwest.
522
00:25:09,170 --> 00:25:13,070
And just yesterday, I think I told
523
00:25:13,070 --> 00:25:14,790
you this morning, Richard,
524
00:25:14,790 --> 00:25:17,240
the California Association
of Realtors has reached out
525
00:25:17,240 --> 00:25:20,681
to me and they want to
champion my model state statute
526
00:25:20,681 --> 00:25:22,913
in California, which would be great.
527
00:25:24,030 --> 00:25:27,650
But part of the success
I've had at the state level,
528
00:25:27,650 --> 00:25:30,920
I've been able now to
leverage at the federal level,
529
00:25:30,920 --> 00:25:34,400
there was a couple provisions
in the 2018 Farm Bill
530
00:25:35,540 --> 00:25:38,130
that were really important.
531
00:25:38,130 --> 00:25:42,370
And then just in the last, like 10 days,
532
00:25:42,370 --> 00:25:45,430
Senators Cory Booker, Kirsten Gillibrand,
533
00:25:45,430 --> 00:25:48,320
and Elizabeth Warren, introduced a bill
534
00:25:48,320 --> 00:25:50,660
called The Justice for Black Farmers Act.
535
00:25:50,660 --> 00:25:54,220
And in drafting that bill,
they consulted with me.
536
00:25:54,220 --> 00:25:59,220
And, so we had kind of long,
lengthy discussions about it.
537
00:25:59,350 --> 00:26:00,700
And so one of the things I made clear
538
00:26:00,700 --> 00:26:04,104
is my property law reform,
539
00:26:04,104 --> 00:26:08,040
essentially trying to secure
and stabilized property rights
540
00:26:08,040 --> 00:26:10,660
for people who still own their property.
541
00:26:10,660 --> 00:26:12,050
But it does nothing for people
542
00:26:12,050 --> 00:26:13,763
who already lost their property.
543
00:26:14,760 --> 00:26:17,493
And so, if you want a
comprehensive solution,
544
00:26:19,456 --> 00:26:21,170
you would want something
that would provide
545
00:26:21,170 --> 00:26:23,750
some type of redress, or acknowledge
546
00:26:23,750 --> 00:26:25,580
and some type of remedy,
547
00:26:25,580 --> 00:26:28,730
you would wanna kinda stabilize property,
548
00:26:28,730 --> 00:26:32,420
like consistent with like,
the efforts I've undertaken
549
00:26:32,420 --> 00:26:36,010
in terms of my state law reform efforts.
550
00:26:36,010 --> 00:26:38,110
And you would also wanna identify
551
00:26:38,110 --> 00:26:41,240
what are some vulnerabilities
these families face,
552
00:26:41,240 --> 00:26:45,030
that we should put into place resources,
553
00:26:45,030 --> 00:26:45,920
so that this problem
554
00:26:45,920 --> 00:26:50,920
just doesn't keep
occurring into the future?
555
00:26:51,060 --> 00:26:52,970
So, one of the things that justice begun,
556
00:26:52,970 --> 00:26:55,440
it's painfully obvious to me in my work
557
00:26:55,440 --> 00:26:58,600
is that there is just this chronic lack
558
00:26:58,600 --> 00:27:03,600
of affordable legal services
for these property owners.
559
00:27:05,500 --> 00:27:08,650
And, every time I'm in the media,
560
00:27:08,650 --> 00:27:12,600
I get just a flurry of
emails from families
561
00:27:12,600 --> 00:27:16,350
in desperate straits who
can't afford a lawyer.
562
00:27:16,350 --> 00:27:20,040
And so, one of the
things that in this bill
563
00:27:20,040 --> 00:27:24,500
is just that Booker, Gillibrand,
and Warren is introduced,
564
00:27:24,500 --> 00:27:29,250
is in something like $50
million a year for resources
565
00:27:29,250 --> 00:27:33,740
to help these disadvantaged,
property owning families,
566
00:27:33,740 --> 00:27:37,590
and to the legal services really to target
567
00:27:37,590 --> 00:27:39,373
at kind of estate planning.
568
00:27:40,360 --> 00:27:41,500
And then the secondly way to try
569
00:27:41,500 --> 00:27:44,700
to get them to enable them to reorganize
570
00:27:44,700 --> 00:27:48,880
their common ownership out
of this incredibly unstable
571
00:27:48,880 --> 00:27:50,880
form of ownership is tenancy in common,
572
00:27:50,880 --> 00:27:54,400
which many of these families
refer to as Heirs' Property,
573
00:27:54,400 --> 00:27:57,330
because under the intestacy
laws, if you don't make a will
574
00:27:57,330 --> 00:27:59,090
your property goes to your heirs
575
00:27:59,090 --> 00:28:01,910
and is so I've been so
common in these communities
576
00:28:01,910 --> 00:28:04,620
that they have a colloquial expressions
577
00:28:04,620 --> 00:28:06,380
it's called Heirs' Property.
578
00:28:06,380 --> 00:28:08,520
And so, to have them
transfer that property
579
00:28:08,520 --> 00:28:13,250
or transform it from this
worst form of ownership,
580
00:28:13,250 --> 00:28:14,360
common ownership to something
581
00:28:14,360 --> 00:28:17,382
like a limited liability company.
582
00:28:17,382 --> 00:28:19,560
Or you could have tenancy
in common ownership
583
00:28:19,560 --> 00:28:22,300
where you are contracting
around the worst features
584
00:28:22,300 --> 00:28:23,570
of the default rules.
585
00:28:23,570 --> 00:28:25,390
So, I think legal services
586
00:28:26,290 --> 00:28:30,172
is just incredibly kind of important.
587
00:28:30,172 --> 00:28:33,960
There's another aspect of this
Justice for Black Farmers Act
588
00:28:33,960 --> 00:28:38,960
where there will actually be
grants of land up to 160 acres
589
00:28:40,252 --> 00:28:42,350
for families with a provision
590
00:28:42,350 --> 00:28:46,780
of additional technical assistance,
to enable these families
591
00:28:46,780 --> 00:28:51,400
to participate in various
federal government programs
592
00:28:51,400 --> 00:28:52,340
in a way that would make
593
00:28:52,340 --> 00:28:55,130
their property ownership kind of viable.
594
00:28:55,130 --> 00:28:59,130
And so, that kind of addresses
folks who, either families
595
00:28:59,130 --> 00:29:01,350
who lost property or
people who wanna newly get
596
00:29:01,350 --> 00:29:03,880
into farming, for example,
597
00:29:03,880 --> 00:29:06,380
and then there's like an
apprenticeship program,
598
00:29:06,380 --> 00:29:08,130
where people would serve as an apprentice
599
00:29:08,130 --> 00:29:10,700
for a successful farm operation
for three or four years
600
00:29:10,700 --> 00:29:12,470
with some government resources
601
00:29:12,470 --> 00:29:14,770
in terms of technical
systems and training,
602
00:29:14,770 --> 00:29:16,250
so that they would then emerge
603
00:29:16,250 --> 00:29:19,640
from the apprenticeship
program ready to actually start
604
00:29:19,640 --> 00:29:21,530
a farm of their own if
they can get the resources
605
00:29:21,530 --> 00:29:26,300
to acquire that or to rent
land to be a successful farmer.
606
00:29:26,300 --> 00:29:29,660
So, there's a range of kind of solutions,
607
00:29:29,660 --> 00:29:32,190
some of these whether it's legal services
608
00:29:32,190 --> 00:29:34,050
that could be the federal
government has a role,
609
00:29:34,050 --> 00:29:37,470
state governments have a
role, foundations have a role.
610
00:29:37,470 --> 00:29:39,250
Law firms in terms of expanding
611
00:29:39,250 --> 00:29:41,010
the type of pro bono work they do,
612
00:29:41,010 --> 00:29:44,320
which typically is litigation,
not what we call transaction,
613
00:29:44,320 --> 00:29:47,120
not real estate or tax
or wills, trust estate.
614
00:29:47,120 --> 00:29:49,080
So, there's that the
problem is very large,
615
00:29:49,080 --> 00:29:51,560
and there's a role for many stakeholders.
616
00:29:51,560 --> 00:29:53,440
- I wanna ask you two more questions,
617
00:29:53,440 --> 00:29:54,930
and I'm going to turn
it over to the audience.
618
00:29:54,930 --> 00:29:58,550
So again, please feel
free to use the Q&A box.
619
00:29:58,550 --> 00:30:02,780
First, I just wanna return to
how property taxes were used
620
00:30:02,780 --> 00:30:04,430
as a method for expropriation.
621
00:30:04,430 --> 00:30:07,300
Because for some reason,
as outrageous as everything
622
00:30:07,300 --> 00:30:09,230
was when we traveled together
623
00:30:09,230 --> 00:30:13,110
that for some reason, really hit me.
624
00:30:13,110 --> 00:30:15,960
But tell us a little bit
about how that worked,
625
00:30:15,960 --> 00:30:18,740
and how we might make sure
that doesn't happen again?
626
00:30:18,740 --> 00:30:22,030
- Yeah, so in terms of the property taxes,
627
00:30:22,030 --> 00:30:25,690
there's a range of problems
with these property taxes.
628
00:30:25,690 --> 00:30:28,680
So oftentimes, what we
have is you have properties
629
00:30:28,680 --> 00:30:31,910
that are owned by people of color,
630
00:30:31,910 --> 00:30:35,610
and that their property taxes
tend to be overly assessed
631
00:30:35,610 --> 00:30:40,610
and properties among, white
Americans have some means
632
00:30:42,320 --> 00:30:43,720
tends to be under assessed.
633
00:30:43,720 --> 00:30:46,310
So, you have that kind
of structural problem
634
00:30:46,310 --> 00:30:49,180
at the beginning, in terms
of just the carrying charges
635
00:30:49,180 --> 00:30:51,680
and maintaining ownership of the property.
636
00:30:51,680 --> 00:30:54,703
But then you have, you have examples.
637
00:30:55,960 --> 00:30:59,183
There's a huge problem in
Detroit now with property taxes.
638
00:30:59,183 --> 00:31:01,790
And that's not even like
really a racial issue.
639
00:31:01,790 --> 00:31:03,410
It's because Detroit
640
00:31:03,410 --> 00:31:06,560
is a been a struggling city financially,
641
00:31:06,560 --> 00:31:08,160
that when the great recession hit
642
00:31:08,160 --> 00:31:11,000
and property values depreciated,
643
00:31:11,000 --> 00:31:14,150
the city of Detroit still
assess the properties
644
00:31:14,150 --> 00:31:15,137
as if they were at the high point
645
00:31:15,137 --> 00:31:17,943
of the real estate market,
because they needed money.
646
00:31:18,922 --> 00:31:22,610
And even though by the
Michigan constitution,
647
00:31:22,610 --> 00:31:24,950
they weren't supposed to
do that, they did that.
648
00:31:24,950 --> 00:31:27,510
These families often
didn't have legal resources
649
00:31:27,510 --> 00:31:31,170
to challenge these property assessments
650
00:31:31,170 --> 00:31:33,750
that were grossly inflated.
651
00:31:33,750 --> 00:31:35,010
And then you've had some problems
652
00:31:35,010 --> 00:31:39,900
with families historically,
that became like
653
00:31:39,900 --> 00:31:42,500
during the Civil Rights
Movement in Mississippi,
654
00:31:42,500 --> 00:31:45,970
where families became active
in the Civil Rights movement.
655
00:31:45,970 --> 00:31:48,320
And then they got targeted
656
00:31:48,320 --> 00:31:51,990
for discriminatory kind of assessments.
657
00:31:51,990 --> 00:31:56,000
The issue though, Richard,
one of the things that Richard
658
00:31:56,000 --> 00:31:59,750
is referring to is, we were
looking for a field site
659
00:31:59,750 --> 00:32:02,070
for this Ford Foundation
Grant, and so we went
660
00:32:02,070 --> 00:32:04,690
to three or four counties
in rural Mississippi,
661
00:32:04,690 --> 00:32:09,410
and then three or four in
rural Eastern North Carolina.
662
00:32:09,410 --> 00:32:13,540
So I walk into this county courthouse
663
00:32:13,540 --> 00:32:15,753
with Richard and Steve Malpezzi,
664
00:32:15,753 --> 00:32:17,890
has he one of his colleagues at Wisconsin.
665
00:32:17,890 --> 00:32:18,723
And we basically present
666
00:32:18,723 --> 00:32:22,068
ourselves with this kind of
academic team from Wisconsin
667
00:32:22,068 --> 00:32:26,770
we wanna study the economic ramifications
668
00:32:26,770 --> 00:32:29,450
of a variety of forced sales.
669
00:32:29,450 --> 00:32:32,470
I think we kind of left it
at we try to be generic,
670
00:32:32,470 --> 00:32:34,810
very much sounding like academics.
671
00:32:34,810 --> 00:32:38,270
And I say, whether we're
talking about partition sales
672
00:32:38,270 --> 00:32:41,440
or foreclosure or tax sales,
673
00:32:41,440 --> 00:32:44,150
and there was the County Register of Deeds
674
00:32:44,150 --> 00:32:46,170
was this woman in her mid 60s,
675
00:32:46,170 --> 00:32:48,460
who had worked in that
role for a few decades.
676
00:32:48,460 --> 00:32:49,660
However, I forget her last name,
677
00:32:49,660 --> 00:32:51,897
her first name was BJ or her initials.
678
00:32:51,897 --> 00:32:52,730
- BJ, yeah, that's right.
679
00:32:52,730 --> 00:32:55,060
- Yeah BJ, and BJ said, unfortunately,
680
00:32:55,060 --> 00:32:58,230
I'm sorry that you all
traveled from so far away,
681
00:32:58,230 --> 00:33:01,070
because there's no problems in our county
682
00:33:01,070 --> 00:33:03,250
with any of these for sales.
683
00:33:03,250 --> 00:33:06,430
And then, but we let her
she's kind of talkative.
684
00:33:06,430 --> 00:33:09,170
And then she went on, she
said, I think one of us said,
685
00:33:09,170 --> 00:33:11,860
well, can you tell us
how the tax sales work?
686
00:33:11,860 --> 00:33:16,860
And she said, oh, and
in every state statute
687
00:33:18,010 --> 00:33:21,558
with a tax sales, there's got
to be noticed to the public,
688
00:33:21,558 --> 00:33:24,130
well in advance of the tax sale,
689
00:33:24,130 --> 00:33:27,900
there's rules for governing the bidding.
690
00:33:27,900 --> 00:33:30,530
And so we said, for example,
like what are the rules
691
00:33:30,530 --> 00:33:33,450
about notice in this part of Mississippi,
692
00:33:33,450 --> 00:33:37,720
or the state of Mississippi,
to the public for the sales,
693
00:33:37,720 --> 00:33:40,420
and BJ, and I can't replicate her draw,
694
00:33:40,420 --> 00:33:42,370
because I don't have a southern accent.
695
00:33:44,731 --> 00:33:48,930
But BJ said, oh, no, no,
no problems with tax sales.
696
00:33:48,930 --> 00:33:53,310
And we're too civilized
to go through this process
697
00:33:53,310 --> 00:33:57,230
of providing the public because
that would be a free for all
698
00:33:57,230 --> 00:33:58,740
of people showing up.
699
00:33:58,740 --> 00:34:01,343
What we do is keep a log
700
00:34:03,131 --> 00:34:06,630
of these three different
real estate companies.
701
00:34:06,630 --> 00:34:09,963
And they take turns having exclusive bids,
702
00:34:10,820 --> 00:34:12,980
on the properties that
come up for a tax sale,
703
00:34:12,980 --> 00:34:15,780
and that's obviously civilized
than having a bunch of people
704
00:34:15,780 --> 00:34:20,577
in the room, raising
their hands and (mumbling)
705
00:34:20,577 --> 00:34:22,460
I mean, it was just amazing
because what she was telling
706
00:34:22,460 --> 00:34:26,420
us was totally and utterly illegal.
707
00:34:26,420 --> 00:34:28,840
But it had become such the norm
708
00:34:28,840 --> 00:34:32,040
there that she didn't have any more to say
709
00:34:32,040 --> 00:34:35,135
I shouldn't reveal that
we are systematically
710
00:34:35,135 --> 00:34:39,440
(mumbling) County, Mississippi.
711
00:34:39,440 --> 00:34:43,080
But you have a window in there is a gap
712
00:34:43,080 --> 00:34:45,910
between what the formal law requires
713
00:34:45,910 --> 00:34:48,060
and then what actually sometimes we talk
714
00:34:48,060 --> 00:34:51,140
about the law in action
or the law on the ground.
715
00:34:51,140 --> 00:34:53,380
And that was quite revealing.
716
00:34:53,380 --> 00:34:56,150
I mean, I don't wanna
just pick on the south.
717
00:34:56,150 --> 00:34:57,930
I mean, I was a story in Detroit,
718
00:34:57,930 --> 00:35:02,930
where the folks run right or
systematically breaking the law
719
00:35:04,130 --> 00:35:06,030
in terms of overly assessing problems.
720
00:35:06,030 --> 00:35:08,690
Now, you might think that's
a more sympathetic case,
721
00:35:08,690 --> 00:35:11,340
in terms of their being
stretched for resources
722
00:35:11,340 --> 00:35:12,990
and feeling like they were constrained.
723
00:35:12,990 --> 00:35:16,040
And we can be able to have,
we can have that debate
724
00:35:16,040 --> 00:35:18,760
or discussion or better
understanding about the dynamics
725
00:35:18,760 --> 00:35:20,410
that led to Detroit doing
726
00:35:20,410 --> 00:35:23,320
that, but they were violating the law.
727
00:35:23,320 --> 00:35:27,530
So I think that's, so
that's been a problem,
728
00:35:27,530 --> 00:35:29,410
kind of with with tax sales.
729
00:35:29,410 --> 00:35:31,690
I mean, obviously, with
tax sales, too, I mean,
730
00:35:31,690 --> 00:35:35,020
what I'm describing is
some range of illegality.
731
00:35:35,020 --> 00:35:36,530
But then you have in these places
732
00:35:36,530 --> 00:35:40,080
where there are obviously
gentrifying what a huge driver
733
00:35:40,080 --> 00:35:43,560
of kind of, whether in urban or rural
734
00:35:43,560 --> 00:35:46,377
has been just the property
tax assessments going up
735
00:35:46,377 --> 00:35:49,660
and these families fundamentally
not having the income
736
00:35:49,660 --> 00:35:52,653
to maintain or to be able to pay
737
00:35:52,653 --> 00:35:55,120
the property taxes as they go up.
738
00:35:55,120 --> 00:35:58,350
- So, I have an interesting question here
739
00:35:58,350 --> 00:36:01,730
about which was a little off topic.
740
00:36:01,730 --> 00:36:04,120
But I think it's worth
exploring a little bit
741
00:36:04,120 --> 00:36:07,693
about HOAs as and asking, are
they the new property tax,
742
00:36:08,820 --> 00:36:11,480
specifically subdivisions
designed for uniformity
743
00:36:11,480 --> 00:36:13,803
but restrictive in terms of affordability?
744
00:36:15,120 --> 00:36:17,270
- Yeah, so I think that's at least
745
00:36:17,270 --> 00:36:19,570
in terms of the among property professors,
746
00:36:19,570 --> 00:36:21,740
that's something that profit
professor has been talking
747
00:36:21,740 --> 00:36:26,120
about for a few decades,
is should we just allow
748
00:36:26,120 --> 00:36:28,640
that and accept that that's
just the private market?
749
00:36:28,640 --> 00:36:33,640
And it should be lightly
regulated by the state?
750
00:36:34,380 --> 00:36:36,490
Or does it have spillover effects
751
00:36:36,490 --> 00:36:39,440
in terms of increasing
the cost of housing,
752
00:36:39,440 --> 00:36:43,220
outside those communities as
common interest communities
753
00:36:43,220 --> 00:36:45,733
become much more kind of prevalent?
754
00:36:47,436 --> 00:36:49,019
So, it's one thing,
755
00:36:52,780 --> 00:36:55,679
if we're dealing common
interest communities,
756
00:36:55,679 --> 00:36:58,660
and HOAs that are very
discreet and small part
757
00:36:58,660 --> 00:37:02,690
the overall housing market,
but that's, obviously,
758
00:37:02,690 --> 00:37:04,339
over the last decades,
759
00:37:04,339 --> 00:37:08,300
they become occupying a
much more prominent part
760
00:37:08,300 --> 00:37:11,930
of the of the real estate housing market,
761
00:37:11,930 --> 00:37:14,360
which then does make their types
762
00:37:14,360 --> 00:37:16,583
of kind of private regulation.
763
00:37:18,150 --> 00:37:20,160
That it it kind of begs the question,
764
00:37:20,160 --> 00:37:23,860
should there be more kind
of governmental regulation,
765
00:37:23,860 --> 00:37:26,213
if it has these kind of externalities?
766
00:37:27,666 --> 00:37:32,666
So, I haven't looked at
the data, enough to know,
767
00:37:34,000 --> 00:37:35,330
is there like some tipping point
768
00:37:35,330 --> 00:37:38,730
where there should be at
least a more robust discussion
769
00:37:38,730 --> 00:37:43,730
about having significantly
or some significant more
770
00:37:44,110 --> 00:37:47,020
kind of regulation of these or not?
771
00:37:47,020 --> 00:37:48,650
So.
772
00:37:48,650 --> 00:37:50,650
- So there are a number
of questions that relate
773
00:37:50,650 --> 00:37:55,650
to how do we deal retroactively
with these injustices?
774
00:37:56,250 --> 00:38:00,880
So, your legislation is
an enormous step forward,
775
00:38:00,880 --> 00:38:02,960
but it basically prevents bad stuff
776
00:38:02,960 --> 00:38:04,590
from happening going forward.
777
00:38:04,590 --> 00:38:07,090
And I think this one particular question
778
00:38:07,090 --> 00:38:10,860
from anonymous attendee
puts it pretty, quite well.
779
00:38:10,860 --> 00:38:13,130
You mentioned the potential
of rural land transfers
780
00:38:13,130 --> 00:38:15,400
to African-Americans,
where do you see potential
781
00:38:15,400 --> 00:38:18,130
of restorative justice
for city based folks
782
00:38:18,130 --> 00:38:19,580
where land as much scarcer?
783
00:38:19,580 --> 00:38:21,970
- Yeah, so I think it's interesting
784
00:38:21,970 --> 00:38:25,400
because that, even though my initially
785
00:38:25,400 --> 00:38:27,370
it was predominantly in the south,
786
00:38:27,370 --> 00:38:31,210
although I broadened it
for academic reasons,
787
00:38:31,210 --> 00:38:32,820
but also for my long policy,
788
00:38:32,820 --> 00:38:34,320
as I was trying to build a bigger movement
789
00:38:34,320 --> 00:38:36,033
across the country for my statue.
790
00:38:36,950 --> 00:38:40,280
But initially, it kind of
started, I'm from San Francisco,
791
00:38:40,280 --> 00:38:44,620
and '55, when I was, in 1970,
792
00:38:44,620 --> 00:38:47,740
was the high watermark
draft in San Francisco,
793
00:38:47,740 --> 00:38:51,250
13.5% consideration, was African-American.
794
00:38:51,250 --> 00:38:54,900
Today San Francisco, has an
African-American population
795
00:38:54,900 --> 00:38:57,723
of 3% and that's
disproportionately homeless.
796
00:38:58,667 --> 00:39:01,430
And so, and I kind of witnessed
797
00:39:01,430 --> 00:39:03,920
when I was there, a lot
of African-Americans
798
00:39:03,920 --> 00:39:07,080
kind of being pushed out
whether they're business owners,
799
00:39:07,080 --> 00:39:09,103
some homeowners and some renters.
800
00:39:10,010 --> 00:39:14,130
So, I think that when we're
talking about addressing
801
00:39:14,130 --> 00:39:18,623
kind of historical redress,
that's tricky, right?
802
00:39:18,623 --> 00:39:20,750
Because we're dealing with, especially
803
00:39:20,750 --> 00:39:22,810
where there's been gentrification,
804
00:39:22,810 --> 00:39:27,810
the property values now are so
they've appreciated so much.
805
00:39:29,200 --> 00:39:32,260
It's a very expensive proposition,
806
00:39:32,260 --> 00:39:36,120
if you're talking about
kinda historical redress.
807
00:39:36,120 --> 00:39:39,000
And for that reason, I haven't
heard a lot of discussion
808
00:39:39,000 --> 00:39:41,300
about historical redress,
809
00:39:41,300 --> 00:39:44,120
at least in highly appreciating cities,
810
00:39:44,120 --> 00:39:48,680
whether it's LA, San Francisco,
DC, New York, what have you.
811
00:39:48,680 --> 00:39:50,600
I have more heard of about folks talking
812
00:39:50,600 --> 00:39:54,630
about in terms of thinking
about different types
813
00:39:54,630 --> 00:39:59,630
of ownership structures that
would kind of be buffering
814
00:40:00,450 --> 00:40:03,020
against gentrification forces.
815
00:40:03,020 --> 00:40:05,710
So for example, community land,
816
00:40:05,710 --> 00:40:10,200
where these could be either
sponsored by a non-profit,
817
00:40:10,200 --> 00:40:12,380
or in some cities like Chicago,
818
00:40:12,380 --> 00:40:17,180
they have municipal sponsored
community land trust.
819
00:40:17,180 --> 00:40:18,750
So, the idea of community land trust
820
00:40:18,750 --> 00:40:23,750
is that on the front
end is more affordable,
821
00:40:24,090 --> 00:40:26,580
because you have kind of a ground lease,
822
00:40:26,580 --> 00:40:31,503
and the ground lease is
separated from the structure.
823
00:40:32,742 --> 00:40:37,116
And the ground lease gives the association
824
00:40:37,116 --> 00:40:39,830
the ability to put some
controls on the property.
825
00:40:39,830 --> 00:40:44,200
And the chief control is,
they cap how much appreciation
826
00:40:44,200 --> 00:40:45,960
you can get when you sell the property.
827
00:40:45,960 --> 00:40:47,870
So, you can't capture
the full market value,
828
00:40:47,870 --> 00:40:50,680
you can capture some of the
appreciation, but not all.
829
00:40:50,680 --> 00:40:55,680
So, it makes that unit
more accessible over time.
830
00:40:57,170 --> 00:41:00,266
I think when I began this
work in the early 2000s,
831
00:41:00,266 --> 00:41:03,230
foundations like the Ford Foundation,
832
00:41:03,230 --> 00:41:05,650
that were not very supportive
of community land trust,
833
00:41:05,650 --> 00:41:07,840
because they thought
it was not a good tool
834
00:41:07,840 --> 00:41:09,540
in terms of generating wealth,
835
00:41:09,540 --> 00:41:12,320
because they saw that
it artificially capped.
836
00:41:12,320 --> 00:41:14,940
But I've talked to some
people I've been working
837
00:41:14,940 --> 00:41:17,500
with grantees of the Ford
Foundation, the last few years
838
00:41:17,500 --> 00:41:20,677
and Ford Foundation, just
doesn't wanna work in land trust,
839
00:41:20,677 --> 00:41:22,530
it seems to have changed a little bit
840
00:41:22,530 --> 00:41:26,783
of its opinion on the merits
of a community land trust.
841
00:41:27,690 --> 00:41:32,690
So, I don't have any, if
we're talking about places
842
00:41:32,730 --> 00:41:35,210
where folks were displaced,
usually that was displaced,
843
00:41:35,210 --> 00:41:38,876
because the property
values just skyrocketed.
844
00:41:38,876 --> 00:41:43,876
And I'm not saying that
there aren't proposals,
845
00:41:45,370 --> 00:41:47,890
I'm just not familiar with any proposals,
846
00:41:47,890 --> 00:41:51,810
that in any significant way
talks about trying to provide
847
00:41:51,810 --> 00:41:56,810
redress for families who, were
pushed out either illegally,
848
00:41:59,010 --> 00:42:02,680
or just because of gentrification,
849
00:42:02,680 --> 00:42:05,010
in terms of the just the rapidly
850
00:42:05,010 --> 00:42:07,573
appreciating real estate prices.
851
00:42:08,830 --> 00:42:10,220
- So we have a few minutes left
852
00:42:10,220 --> 00:42:13,300
and I'd kind of like to
finish on a happy note,
853
00:42:13,300 --> 00:42:16,710
given that these are not
particularly happy times.
854
00:42:16,710 --> 00:42:19,920
I just want you to take
us back to your experience
855
00:42:19,920 --> 00:42:21,980
getting legislation done in Mississippi,
856
00:42:21,980 --> 00:42:24,650
and I know that that really pleased you.
857
00:42:24,650 --> 00:42:25,483
- Yeah.
858
00:42:25,483 --> 00:42:27,330
- When it happened,
this is a policy school
859
00:42:27,330 --> 00:42:29,730
people care about how policy is made.
860
00:42:29,730 --> 00:42:33,305
Take us a little bit through
how that actually happened.
861
00:42:33,305 --> 00:42:34,138
- Yeah.
862
00:42:34,138 --> 00:42:35,820
So, I think when I started
off in my research,
863
00:42:35,820 --> 00:42:40,480
it was very much, I
think property scholars,
864
00:42:40,480 --> 00:42:42,460
getting very much value my
research because they thought
865
00:42:42,460 --> 00:42:46,320
it was an incredibly
thoughtful detail, subtle,
866
00:42:46,320 --> 00:42:49,450
but it was definitely,
there was an overarching
867
00:42:49,450 --> 00:42:51,960
kind of racial justice theme to it.
868
00:42:51,960 --> 00:42:56,817
And it was really in the
drafting of this Uniform Act.
869
00:42:58,280 --> 00:43:00,120
And I realized that politically,
870
00:43:00,120 --> 00:43:01,870
I was gonna run into some problems.
871
00:43:03,282 --> 00:43:07,840
And the problem just even in
the drafting was that I heard
872
00:43:07,840 --> 00:43:10,680
from so these, when I say the
uniform law commissioners,
873
00:43:10,680 --> 00:43:12,580
there's 350 people in the country
874
00:43:12,580 --> 00:43:14,780
called uniform law commissioners.
875
00:43:14,780 --> 00:43:17,460
They're all appointed by governors.
876
00:43:17,460 --> 00:43:20,017
So, they politically connected people.
877
00:43:20,017 --> 00:43:21,320
And I had a couple,
878
00:43:21,320 --> 00:43:22,930
about halfway through
the drafting process,
879
00:43:22,930 --> 00:43:24,080
was a three year process,
880
00:43:24,080 --> 00:43:26,450
somebody pulled me aside
at one of the meetings
881
00:43:26,450 --> 00:43:28,750
and said, "listen, there's
a problem with your act."
882
00:43:28,750 --> 00:43:32,130
And people are saying it's the black act
883
00:43:32,130 --> 00:43:34,480
by the black drafter.
884
00:43:34,480 --> 00:43:37,760
And I'm, in the 128 years
of uniform law commission,
885
00:43:37,760 --> 00:43:39,290
I'm just the second African-American
886
00:43:39,290 --> 00:43:42,395
ever to have served as
a principal drafter.
887
00:43:42,395 --> 00:43:44,850
And the message was, your
act is getting marginalized,
888
00:43:44,850 --> 00:43:48,080
and it might actually
get killed in committee.
889
00:43:48,080 --> 00:43:49,740
So, that's where I realized,
890
00:43:49,740 --> 00:43:51,460
I've got to be able to reframe
891
00:43:51,460 --> 00:43:54,210
this as not purely an African-American,
892
00:43:54,210 --> 00:43:57,910
but a story that impacts
a number of families,
893
00:43:57,910 --> 00:44:01,870
going back to my data
about will making rates,
894
00:44:01,870 --> 00:44:04,833
but maybe disproportionately
African-Americans and Latinos.
895
00:44:06,240 --> 00:44:07,960
And I really learned that lesson
896
00:44:07,960 --> 00:44:10,650
when it came to trying
to go state to state
897
00:44:10,650 --> 00:44:12,840
to get this enacted into law.
898
00:44:12,840 --> 00:44:14,440
So, what I learned
especially in the south,
899
00:44:14,440 --> 00:44:15,860
but not exclusively in the south,
900
00:44:15,860 --> 00:44:19,830
was that when I had to
testify before legislature,
901
00:44:19,830 --> 00:44:22,930
my story had to be that this
is a problem that impacts
902
00:44:22,930 --> 00:44:27,930
all kinds of communities,
racially and ethnically,
903
00:44:28,280 --> 00:44:32,720
whether it's rural or urban
properties, kind of implicated.
904
00:44:32,720 --> 00:44:37,720
And then I had to frame,
well, what is this about?
905
00:44:37,910 --> 00:44:40,803
And I fundamentally
realized when I testified
906
00:44:41,932 --> 00:44:46,240
in some of these legislators
that my story needs
907
00:44:46,240 --> 00:44:47,640
to be that this is fundamentally
908
00:44:47,640 --> 00:44:51,250
about enhancing property
rights for these families,
909
00:44:51,250 --> 00:44:53,810
and protecting their real estate wealth.
910
00:44:53,810 --> 00:44:56,583
And that just became my kinda mantra.
911
00:44:57,910 --> 00:44:59,520
And I think there was
there's a couple of states
912
00:44:59,520 --> 00:45:01,793
where that was the game plan.
913
00:45:03,090 --> 00:45:06,500
And, I was in Texas a few years ago
914
00:45:06,500 --> 00:45:10,470
when I was testifying to the Texas House.
915
00:45:10,470 --> 00:45:14,040
And I saw that as the
House Judiciary Committee,
916
00:45:14,040 --> 00:45:17,520
there was a consumer protection
bill up before my bill,
917
00:45:17,520 --> 00:45:20,660
and really smart public interest attorney.
918
00:45:20,660 --> 00:45:25,340
And a third of the members of
the House just savaged her.
919
00:45:25,340 --> 00:45:27,700
They went after her mercilessly.
920
00:45:27,700 --> 00:45:30,770
And I remember saying, I just
got to stick to my story.
921
00:45:30,770 --> 00:45:31,960
But I need to prepare
922
00:45:31,960 --> 00:45:34,470
myself that I might have
these three or four guys
923
00:45:34,470 --> 00:45:37,710
just brutally come after me.
924
00:45:37,710 --> 00:45:39,530
But I'll say, we'll see how it goes.
925
00:45:39,530 --> 00:45:42,260
And, but a minute into my presentation,
926
00:45:42,260 --> 00:45:44,650
I said, those three
things I just told you,
927
00:45:44,650 --> 00:45:47,650
and all of those guys were nodding,
928
00:45:47,650 --> 00:45:51,210
like, in agreement, uniform passage.
929
00:45:51,210 --> 00:45:53,010
Let me just tell you the
story about, I'm gonna move
930
00:45:53,010 --> 00:45:55,160
you from Mississippi to South Carolina.
931
00:45:55,160 --> 00:45:59,161
South Carolina in about
2016, we introduced our bill,
932
00:45:59,161 --> 00:46:01,760
I testified in the South Carolina House,
933
00:46:01,760 --> 00:46:03,560
it seemed everything was good.
934
00:46:03,560 --> 00:46:06,430
We got a unanimous vote
out of the subcommittee
935
00:46:06,430 --> 00:46:08,660
of the House Judiciary Committee there.
936
00:46:08,660 --> 00:46:11,183
And folks told me as I
was leaving Columbia,
937
00:46:13,863 --> 00:46:15,730
with that kind of vote and subcommittee
938
00:46:15,730 --> 00:46:17,130
we were it was going to sail through.
939
00:46:17,130 --> 00:46:18,520
Well, about a week later,
940
00:46:18,520 --> 00:46:20,320
I was at a conference at
University of Georgia,
941
00:46:20,320 --> 00:46:23,030
I got an email that
said your bill is dead.
942
00:46:23,030 --> 00:46:25,380
And a real estate developer
apparently had gotten
943
00:46:25,380 --> 00:46:27,500
to the chair of the House
Judiciary Committee,
944
00:46:27,500 --> 00:46:29,160
and he was putting a hold on it.
945
00:46:29,160 --> 00:46:34,010
We overcame that through some
Hail Mary passes I threw.
946
00:46:34,010 --> 00:46:35,830
And that paid off,
947
00:46:35,830 --> 00:46:38,510
but then it went to the
South Carolina Senate.
948
00:46:38,510 --> 00:46:40,700
Once again, as the people I was working
949
00:46:40,700 --> 00:46:43,850
with in South Carolina said
everything's going well,
950
00:46:43,850 --> 00:46:46,235
until it wasn't and I
got a email that said,
951
00:46:46,235 --> 00:46:50,150
or phone call, it said
there's two state senators
952
00:46:50,150 --> 00:46:54,440
that have severe problems with your bill.
953
00:46:54,440 --> 00:46:57,690
So our game plan was to have
them, they were gonna identify
954
00:46:57,690 --> 00:46:58,780
the issues that came up
955
00:46:58,780 --> 00:47:01,040
in that colloquy with those senators,
956
00:47:01,040 --> 00:47:04,270
I would write a memo
addressing those concerns.
957
00:47:04,270 --> 00:47:05,880
It would be distributed to every member
958
00:47:05,880 --> 00:47:09,260
of the Senate Judiciary
Committee in South Carolina.
959
00:47:09,260 --> 00:47:11,470
And as a result of my memo
and basically convinced
960
00:47:11,470 --> 00:47:15,530
one of the two and so he
was then gonna support it.
961
00:47:15,530 --> 00:47:20,530
But the last one was a state
senator named Paul Thurmond.
962
00:47:21,250 --> 00:47:24,720
His dad was some guy named Strom Thurmond,
963
00:47:24,720 --> 00:47:26,770
and he was hell bent on killing our bill.
964
00:47:28,140 --> 00:47:32,240
And this would be a
little more story I tell.
965
00:47:32,240 --> 00:47:36,290
So, this goes back to I think
it was it was in 2016 or '17,
966
00:47:36,290 --> 00:47:37,960
where there was that massacre
967
00:47:37,960 --> 00:47:42,843
at that Charleston African, AMA church.
968
00:47:44,500 --> 00:47:48,130
The pastor who was
murdered in that massacre
969
00:47:48,130 --> 00:47:49,990
also was a state senator,
970
00:47:49,990 --> 00:47:54,990
and he was a state senator
known for being most concerned
971
00:47:55,040 --> 00:47:57,500
about improving property
rights protections
972
00:47:57,500 --> 00:48:01,143
for disadvantaged South
Carolina property owners,
973
00:48:02,020 --> 00:48:03,540
who were disproportionately
974
00:48:03,540 --> 00:48:05,590
but not exclusive African-American.
975
00:48:05,590 --> 00:48:08,500
His name was Clementa Pinckney.
976
00:48:08,500 --> 00:48:12,560
So, at the last minute, because
Paul Thurman was hell bent
977
00:48:12,560 --> 00:48:15,150
on doing everything he
could to kill our bill,
978
00:48:15,150 --> 00:48:17,990
the sponsors in the South
Carolina senate renamed
979
00:48:17,990 --> 00:48:22,990
it the Clementa Pinckney
uniform partition act
980
00:48:23,780 --> 00:48:26,370
is the only bill that the
South Carolina legislature
981
00:48:26,370 --> 00:48:28,648
has ever named after Clementa Pinckney.
982
00:48:28,648 --> 00:48:31,430
And essentially there were
a number of state senators
983
00:48:31,430 --> 00:48:33,000
who were on the fence,
984
00:48:33,000 --> 00:48:34,800
but they decided they were not gonna vote
985
00:48:34,800 --> 00:48:38,090
against the only bill
honoring Clementa Pinckney.
986
00:48:38,090 --> 00:48:41,290
And so as a result,
the only person to vote
987
00:48:41,290 --> 00:48:44,560
against it in the South Carolina
Senate was Paul Thurmond.
988
00:48:44,560 --> 00:48:46,760
It kind of sailed through as a result
989
00:48:46,760 --> 00:48:49,223
of it being named in honor
of Clementa Pinckney.
990
00:48:50,210 --> 00:48:53,760
Then Governor Nikki Haley invited
me to a ceremonial signing
991
00:48:53,760 --> 00:48:56,433
in her office with two other people.
992
00:49:00,230 --> 00:49:04,000
It's kind of it's obviously
a sad story what happened
993
00:49:04,000 --> 00:49:06,410
at that Charleston church,
but part of me is happy
994
00:49:06,410 --> 00:49:09,460
that at least we have honored the heritage
995
00:49:09,460 --> 00:49:14,460
of Clementa Pinckney by using his name
996
00:49:14,460 --> 00:49:16,903
to help get our bill over the line.
997
00:49:17,910 --> 00:49:20,340
- So Thomas Mitchell, thank you very much
998
00:49:20,340 --> 00:49:23,100
for spending some time
with us this afternoon.
999
00:49:23,100 --> 00:49:26,930
Really interesting and inspiring stuff.
1000
00:49:26,930 --> 00:49:30,290
Let's make things even
better going forward.
1001
00:49:30,290 --> 00:49:34,900
I wanna thank Dean Dana
Goldman for arranging this.
1002
00:49:34,900 --> 00:49:37,660
I also wanna thank the Price School,
1003
00:49:37,660 --> 00:49:40,560
Office of External Affairs
for doing the wonderful job
1004
00:49:40,560 --> 00:49:43,130
they always do to organize this.
1005
00:49:43,130 --> 00:49:46,260
And Dana, you want a last word?
1006
00:49:46,260 --> 00:49:48,860
- No, just thank you
fascinating discussion.
1007
00:49:48,860 --> 00:49:49,930
Thank you both.
1008
00:49:49,930 --> 00:49:51,390
Really appreciate it.
1009
00:49:51,390 --> 00:49:53,290
- Thank you, everyone, for joining us.