Back in 2008, UHAB first identified the growing trend of Predatory Equity, the unnerving process by which real-estate speculators over-leverage buildings with the intention of forcing tenants out. The cycle of predatory equity begins with over-leveraging buildings, and when a building owner discovers the rent from the building cannot support the mortgage, begins harassing tenants to force them out. With no money coming out of the building, the owner focuses on paying the mortgage, and there is a mass deterioration of building conditions. Buildings then fall into foreclosure, further forcing tenants to live in deplorable conditions. It is worth noting that the locations where Predatory Equity is occurring is none other than in historically disenfranchised neighborhoods, disproportionately affected low-income communities of color.
UHAB organizers have recently noticed a second round in this cycle. After dumping the debt to new speculators willing to pay astronomic prices for severely-distressed buildings, the buildings enter a new round of Predatory Equity. Without further ado, we’re excited to present our new report: