California
California’s Housing Divide
The housing disaster in California impacts residents of all races and ethnicities, however the lack of inexpensive housing is especially acute for African Individuals and Latinos. Skyrocketing rents in lots of California metro areas impose rising monetary burdens, limiting alternatives for financial savings. Mixed with rising residence costs and rates of interest, proudly owning a house has grow to be more durable to afford over the previous yr, whilst many noticed progress in wages. Given the disproportionate influence of the COVID-19 pandemic on households of shade, disparities in homeownership are anticipated to widen. To deal with these gaps, coverage actions that concentrate on the causes of those longstanding inequities are needed.
Earlier than the pandemic, the racial homeownership hole in California was massive, however it seemed to be narrowing. In 2019, the Latino homeownership price stood at 44.1%, or 19.2 factors beneath that of white households. The Black homeownership price was much more worrisome at 36.8%, or 26.4 factors beneath the speed for white households. Nonetheless, Latino and Black households additionally noticed massive positive aspects in homeownership between 2014 and 2019 (2.2 and a pair of.3 proportion factors, respectively). In the meantime, homeownership amongst Asians grew essentially the most on this interval (2.5 proportion factors) and, at 59.8%, was solely 3.4 factors beneath the white homeownership price in 2019. As a result of residence fairness makes up the vast majority of wealth for low- and middle-income households, gaps in homeownership charges enlarge wealth inequality.
Most owners begin as renters who then save their method into shopping for a home—however when rents are excessive, possibilities to avoid wasting are low. African American and Latino renters usually tend to pay a large share—30% or extra—of their family earnings on gross lease, making the prospect of saving for homeownership daunting. (Even amongst owners, African Individuals and Latinos usually tend to spend a excessive share of their earnings on mortgages.)
To a big extent, the racial homeownership hole displays persistent earnings inequalities: median earnings for white households in California is 45% increased than for Latino households and 65% increased than for African American households. However different components, corresponding to much less wealth and fewer intergenerational wealth, decrease (or no) credit score scores, and lack of know-how in regards to the home-buying course of, additionally make it tougher for Black and Latino adults to purchase properties. Furthermore, the historic legacy of racially discriminatory practices—in addition to present racial disparities within the credit score indicators that drive lending outcomes—are a key driver of the homeownership hole.
As housing costs proceed to rise rapidly within the aftermath of the pandemic, there’s concern that these inequities could develop, leaving many—particularly youthful, lower-income, and nonwhite Californians—with out the significant alternative to personal a house. Nonetheless, pre-pandemic developments present that narrowing the racial homeownership hole is feasible. Given rising costs and the uneven financial impacts of the pandemic, policymakers ought to take into account expanded efforts to make sure that this progress continues.
Over the brief time period, policymakers ought to goal the structural limitations in housing markets—for instance, by rising help for small-dollar mortgage mortgage applications and revising credit-scoring practices—that create distinctive disadvantages for aspiring Black and Latino owners. Just lately, Fannie Mae determined to permit lenders to contemplate candidates’ rental funds in evaluating credit score threat, a transfer which will present extra profit to debtors of shade with no or restricted credit score histories.
Over the long term, addressing the underlying causes of earnings inequality, corresponding to disparities in instructional attainment and entry to higher jobs, can enhance the percentages of homeownership—and supply a pathway to constructing wealth. Furthermore, after many years of underbuilding, continued efforts to extend the provision of inexpensive housing can even be needed if proudly owning a house is to be an attainable aim for middle-class households.
California
Northern California driver dies after vehicle found in floodwaters, 1 other found dead
SONOMA COUNTY – A man died when he was found in a flooded vehicle after an atmospheric river dumped heavy rain in Northern California, authorities said.
In Sonoma County’s Guerneville, first responders responded to a report around 11:30 a.m. Saturday for a vehicle that was seen in floodwaters near Mays Canyon Road and Highway 116.
The caller believed that at least one person was inside the vehicle.
When crews arrived, they said the vehicle was recovered but a man was pronounced dead at the scene. He has not been identified.
The Russian River, which flows through Guerneville, reached the flood stage on Friday evening and exceeded what was forecasted.
This area went into a flood warning around 2 p.m. Friday and was still in place as of Saturday afternoon.
Guerneville is about 75 miles north of San Francisco.
Around 8:45 a.m. Saturday in Santa Rosa, a man was found dead in Piner Creek just south of Guerneville Road, the police department said. His death is being investigated.
California
Laura Richardson completes a political comeback, winning tight race to represent South L.A. in the California Capitol
Laura Richardson emerged the victor of the competitive, costly and feisty election to win a South Los Angeles seat in the state Senate — completing her political comeback more than 10 years after a tumultuous tenure in the House of Representatives.
Richardson narrowly won the race against Michelle Chambers, a community justice advocate who faced accusations of misconduct in prior public office. The Associated Press called the race Friday after weeks of ballot counting.
The contest between two Democrats with similar social policies but differing views on crime and business attracted huge spending by special interests.
Independent expenditure committees poured more than $7.6 million into the race, making it the most expensive election for state Legislature this year, according to California Target Book, a political database. Negative campaigning dominated the race as business interests and labor unions battled for their favored candidate.
Richardson, a moderate Democrat, will join a Democratic supermajority in the Legislature. But Republicans are on track to flip three legislative seats this year, one in the Senate and two in the Assembly.
Richardson’s biggest supporters were businesses, including PACs funded by oil companies, and law enforcement associations that said they advocated for candidates who shared their beliefs on free enterprise and public safety. Meanwhile, Chambers’ biggest portion of support came from healthcare workers and teachers unions, who spent millions of dollars backing her.
Chambers wrote in a statement she was “proud of the campaign we ran,” thanking supporters who canvassed, phone-banked or cast votes for her “vision of better jobs, better wages and a California that works for everybody, not just the wealthy and well-connected.”
“This was the closest state senate race in the state, but unfortunately it appears that we will fall just short of victory,” she added. “Our people-powered efforts were not quite enough to overcome millions of dollars in outside spending on lies from the oil and tobacco industry and their allies.“
Richardson will succeed Sen. Steven Bradford (D-Gardena) in the 35th District, which encompasses the cities of Carson, Compton and stretches down to the harbor. Bradford, who had endorsed Chambers, said he believed both candidates were “qualified to do the job.”
Bradford, who championed reparations legislation during his tenure, hoped the future senator would be “willing to meet with all factions of the community, because it’s a great diverse need in this district.”
“I’m also deeply sad to see how negative this campaign was, probably one of the most negative campaigns I’ve experienced in my 30-plus years of being involved with elections,” he said. “I just hope that we can come together after such a negative campaign, regardless of who the victor is, and understand that we have to work together.”
Richardson and Chambers took aim at each other’s past controversies. For Chambers, who had picked up the endorsement of various state and local elected officials, opposition groups seized on a criminal misdemeanor charge from 30 years ago. She was also accused of bullying and intimidation from her time as a Compton City Council member, allegations that she has repeatedly denied.
Richardson faced criticism over her tenure in Congress, where a House Ethics Committee investigation found her guilty in 2012 of compelling congressional staff to work on her campaign. The committee report also accused Richardson of obstructing the committee investigation “through the alteration or destruction of evidence” and “the deliberate failure to produce documents.”
Richardson admitted to wrongdoing, according to the report, and accepted a reprimand and $10,000 fine for the violations. She previously said that during her time in Congress, Republicans frequently targeted members of the Black Caucus. After she lost her reelection bid for a fourth term, Richardson said she worked at an employment firm to improve her managerial skills and has recognized previous mistakes.
“It’s been said voters are very forgiving, and if you stand up and you accept responsibility and you improve in the work that you do — we need people who’ve been through things, who understand what it’s like to have had difficulties,” she previously told The Times. “And so that’s exactly what I did. I didn’t shy away from it.”
California
72-hour rain totals across Northern California
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