State of Nebraska
Analysis of Impediments
to Fair Housing Choice
Prepared in Support of Nebraska’s
Five-Year Consolidated Plan
Plan Year Beginning July 1, 2005
Final Report
Revised May 15, 2005
State of Nebraska
Analysis of Impediments
to Fair Housing Choice
Prepared in Support of Nebraska’s
Five-Year Consolidated Plan
Plan Year Beginning July 1, 2005
FINAL REPORT
Prepared for
Nebraska Department of Economic Development
By
Western Economic Services, LLC
212 S.E. 18th Avenue
Portland, Oregon 97214
(503) 239-9091
FAX: (503) 239-0236
(Revised May 15, 2005)
Nebraska Department of Economic Development
Table of Contents
Page
Executive Summary1
Section I: Introduction3
Overview3
Research Methodology4
Funding of Study4
Section II: Background5
Introduction5
Population and Age Cohorts5
Sex6
Disability Status6
Race and Ethnicity7
Labor Force12
Unemployment12
Personal Income13
Per Capita Income14
Low-Income Concentrations15
Poverty17
Housing Values17
Housing Stock18
Overcrowding18
Summary19
Section III: Federal and State Fair Housing Laws21
Federal Fair Housing Act of 196821
Additional Federal Laws24
Nebraska Fair Housing Act25
Section IV: Public & Private Fair Housing Programs and Activities31
The Department of Housing and Urban Development 31
Fair Housing Assistance Program 31
Nebraska Equal Opportunity Commission 32
City of Lincoln Commission on Human Rights 33
Omaha Human Relations Department 33
Fair Housing Initiative Program 34
Fair Housing Center and Family Housing Advisory Services 34
High Plains Community Development Corporation35
Prospective Changes in Nebraska Fair Housing Law36
Related Studies36
Section V: Evaluation of Enforcement and Lending Practices39
2004 Fair Housing Survey39
HUD Complaint Data47
Suits Filed by the Department of Justice51
Home Mortgage Disclosure Act (HMDA) Data Analysis52
Summary62
Section VI: Summary & Actions to be Implemented65
Summary of Background65
Public and Private Fair Housing Programs and Activities66
Evaluation of Enforcement and Lending Practices66
Impediments to Fair Housing Choice68
Strategies to Address Impediments69
Actions to be Implemented69
References71
Appendix A: HMDA Tables73
Appendix B: Demographic Data81
Nebraska Department of Economic Development1
Executive Summary
Introduction
The Department of Housing and Urban Development (HUD) requires jurisdictions to complete an Analysis of Impediments to Fair Housing Choice in order to receive funds from HUD’s formula grant programs. The Analysis of Impediments serves as the basis for fair housing planning, provides essential information to policy makers, administrative staff, housing providers, lenders, and fair housing advocates, and assists in building public support for fair housing efforts.
The Analysis of Impediments is one of three steps required of the State as part of the Consolidated Plan process and affirmatively furthering fair housing. These are:
- Completing an Analysis of Impediments to Fair Housing Choice;
- Taking actions to overcome the effects of any impediments identified through the analysis; and,
- Maintaining records reflecting the analysis and any actions taken.
In Nebraska, legal protection is afforded when housing choice is restricted on the basis of color, disability, familial status, national origin, race, religion, or sex. This Analysis of Impediments provides a broad analysis that explores and identifies actions, omissions, and conditions in the State that may have the effect of restricting housing choice for people protected by State and federal fair housing laws.
Impediments to Fair Housing Choice
This Analysis of Impediments revealed the following impediments to fair housing choice in the State of Nebraska:
- There is a general lack of understanding of fair housing law;
- Violations of fair housing law do occur, particularly in rental markets;
- Some confusion exists concerning whom to turn to when a violation of fair housing law is alleged to occur, as well as how to access the State’s fair housing complaint system;
- Areas of the State, outside of Lincoln and Omaha, are underserved by the current housing complaint and enforcement system;
- Design and construction standards are not adequately understood or consistently implemented;
- Some minority populations appear to have unusually high home loan denial rates; and,
- Subprime lenders are offering high home improvement loan amounts for extremely low-income homeowners.
Strategies to Address Impediments
The Nebraska Department of Economic Development has neither the authority to act unilaterally nor the resources necessary to overcome these impediments to fair housing choice. However, the DED plans to take action, addressing the State’s impediments to fair housing through three strategies:
- Enhance statewide understanding of fair housing law through outreach and education;
- Enhance consumer understanding of credit markets and the importance of establishing good credit; and,
- Enhance the efficiency and geographic distribution of the fair housing complaint and enforcement system.
Actions to be Implemented
In order to accomplish the three strategies listed above, the DED intends to implement the following actions:
- Increase exposure and awareness statewide of the HUD fair housing discrimination complaint toll-free numbers (800)-669-9777 and for the hearing impaired, TTY (800) 927-9275 1-(800) 927-9275.
- Refer people to HUD with allegations of fair housing violations. Also increase awareness of the Nebraska Equal Opportunity Commission (NEOC), the Lincoln Human Rights Commission for people in Lincoln, and the Fair Housing Center for people in Omaha;
- Endorse complaint-based testing by fair housing education and/or enforcement agencies in non-entitled areas of the State;
- Urge the NEOC to increase enforcement activities in underserved areas of the State, with a focus on areas having the most rapidly growing minority populations, especially Hispanic, Asian, and other new and rising minority populations;
- Enhance education and outreach activities concerning fair housing law, including education about the fair housing complaint system, as well as design and construction standards;
- Endorse systemic testing by fair housing education and/or enforcement agencies of new construction testing for design and construction standards compliance;
- Enhance understanding of credit markets through educational efforts targeted both to housing consumers and providers through partnering organizations including Fannie Mae Nebraska, the NEOC, the Lincoln Human Rights Commission, the Fair Housing Center of Nebraska, the Nebraska Housing Developers Association, the Nebraska Commission on Housing and Homelessness, the State’s Continuums of Care, and other partners who provide educational services in the areas of credit markets to housing consumers and providers; and,
- Enhance understanding of fair housing law by expanding the role of a fair housing education agency, a fair housing enforcement agency and/or a statewide affordable housing education agency as an information clearinghouse on Nebraska law, design and construction standards, and other resources.
Section I. Introduction
Overview
The Fair Housing Act of 1968 made it illegal to discriminate in the area of housing because of a person’s race, color, religion, or national origin. Sex was added as a protected class in the 1970s. In 1988, the Fair Housing Amendments Act added familial status and disability to the list, making a total of seven federally protected classes. Familial status includes parents or legal guardians of minors under the age of 18. Disability covers physical and mental disabilities as well as people with AIDS or alcoholism. Federal housing protection does not cover income or source of income.
Provisions to affirmatively further fair housing are components of HUD’s housing and community development programs. These provisions flow from Section 808(e)(5) of the Fair Housing Act, which requires the Secretary of HUD to administer HUD’s housing and urban development programs in a manner which affirmatively furthers fair housing.
The Department of Housing and Urban Development (HUD) defines impediments to fair housing as:
- Any actions, omissions, or decisions taken because of race, color, religion, sex, disability, familial status, or national origin which restrict housing choices or the availability of housing choice; or
- Any actions, omissions, or decisions which have the effect of restricting housing choices or the availability of housing choice on the basis of race, color, religion, sex, disability, familial status, or national origin.
In 1994, HUD published a rule consolidating a number of programs into what is called the Consolidated Plan for Housing and Community Development. The consolidated programs include the Community Development Block Grant program (CDBG), HOME Investment Partnership Program (HOME) the American Dream Downpayment Initiative (ADDI), Emergency Shelter Grant (ESG), and Housing Opportunities for People with AIDS (HOPWA). All of these formula grant programs currently are funded in Nebraska.
As part of the Consolidated Plan, the State of Nebraska is required to submit to HUD certification of affirmatively furthering fair housing, which requires the State to undertake fair housing planning by:
- Completing an Analysis of Impediments to Fair Housing Choice;
- Taking actions to overcome the effects of any impediments identified through the analysis; and,
- Maintaining records reflecting the analysis and any actions taken.
This Analysis of Impediments to Fair Housing Choice represents one of Nebraska’s efforts to comply with the HUD requirements.
Research Methodology
This Analysis of Impediments represents a comprehensive examination of information. Data from the Bureau of Economic Analysis were collected for the period from 1969 through 2003, including the total number of jobs, average earnings per worker, and per capita income. This information was compared with national statistics. Data from the Bureau of Labor Statistics were collected and analyzed, assessing unemployment rates and the general direction of Nebraska’s economy. The purpose of this data was to ascertain the strength of economic influences in Nebraska’s housing marketplace. The 2000 Census was used to assess a variety of demographic, economic, and housing-related issues, such as race and ethnicity, disability status, low-income concentrations, poverty, housing values, housing conditions, and cost burdens.
Housing discrimination complaint records for Nebraska in federal fiscal years 1993 through 2003, released by HUD, were tabulated and analyzed. Additionally, the Department of Justice Web site was reviewed for recent housing discrimination cases brought to litigation.
Congress enacted the Home Mortgage Disclosure Act (HMDA) in 1975 and amended it from 1988 to 1991. The Act allows the public to view loan data that can be used to determine whether financial institutions are serving the housing credit needs of their communities and to identify possible discriminatory lending patterns. For this Analysis of Impediments, HMDA data from 1993 to 2002 were analyzed. This involved evaluation of nearly a half million loan applications over the 10-year period.
A telephone survey was conducted, along with interviews of representatives from key agencies, including the Assistive Technology Partnership, Chicano Awareness Center, the Fair Housing Center in Omaha, the Lincoln Commission on Human Rights, and the Nebraska Equal Opportunity Commission. Representatives of Nebraska’s Department of Economic Development prepared a list of 150 prospective respondents for the telephone interviews. Participants in the survey were drawn from a broad array of housing-related professions across Nebraska, reflecting an even geographic balance throughout the State and allowing for qualitative analysis of general views and trends experienced across the State.
Funding of Study
This study was funded by the Nebraska Department of Economic Development. The report was prepared by Western Economic Services, LLC, a Portland, Ore., consulting organization that specializes in conducting analysis and research in support of housing and community development planning.
Section II. Background
Introduction
The following narrative provides general background information from the 2000 Decennial Census, the U.S. Bureau of Labor Statistics, and the U.S. Bureau of Economic Analysis. This data provides context to Nebraska’s housing market.
Population and Age Cohorts
Nebraska had a Census 2000 population of 1,711,263 people. The State grew by 132,878 people between the 1990 and 2000 Census, an 8.4 percent increase, as compared to a nationwide increase of 13.1 percent over the same period. As shown in Table II.1, below, 29.5 percent of the State’s population was under the age of 20 in 2000, and 28.6 percent of the population was between the ages of 35 and 54 years.
In the last decade, the 35 to 54 age group experienced the strongest rate of growth, 29.5 percent. The 25 to 34 age group was the only sector that showed a decrease in population, declining 13.2 percent between 1990 and 2000. The State’s over-65 population increased 4.1 percent overall and, at 13.6 percent of the State’s total population, was 1.2 percent larger than the national average for this age group.
TABLE II.1NEBRASKA POPULATION CHARACTERISTICS
1990 AND 2000 CENSUS
Subject / 1990 / 2000 / % Change
Sex
Male / 769,439 / 843,351 / 9.6
Female / 808,946 / 867,912 / 7.3
Age
Under 20 years / 476,250 / 504,336 / 5.9
20 to 24 years / 108,649 / 120,331 / 10.8
25 to 34 years / 257,208 / 223,273 / -13.2
35 to 54 years / 378,201 / 489,588 / 29.5
55 to 64 years / 135,009 / 141,540 / 4.8
65 & over / 223,068 / 232,195 / 4.1
Male / 89,335 / 95,630 / 7.1
Female / 133,733 / 136,565 / 2.1
Total Population / 1,578,385 / 1,711,263 / 8.4
Although Nebraska’s population increased overall between 1990 and 2000, growth varied considerably in different areas of Nebraska. The population increased the most in the eastern portion of the State and declined the most in the north-central area of Nebraska.
Sex
The percentage of males and females in Nebraska was closely balanced in 1990 and again in 2000. In 2000, approximately 50.7 percent of the State’s population was female, and 49.3 percent of the State’s population was male. According to 2000 Census data, a higher percentage, 58.8 percent, of the State’s 65-and-over population was female, although this segment of the population grew by just 2.1 percent between 1990 and 2000. This growth rate was less than a third of the rate seen among males in the 65-and-over age category during the same time period.
Disability Status
The 2000 Census found that 250,534 Nebraska citizens, 14.6 percent of the State’s total population, had a disability.[1]This was a significantly lower percentage of the total population than the average of 19.3 percent disabled found across the entire United States. Over 56 percent of the disabled people in the State were in their prime working years, from 21 to 64 years of age, as seen in Table II.2, below. An additional 80,401 disabled people were 65 years of age or older.
TABLE II.2DISABILITY STATUS BY AGE
CENSUS 2000
Age / Nebraska
5 to 15 years / 13,832
16 to 20 years / 13,654
21 to 64 years / 142,647
65 years and over / 80,401
Total disabled / 250,534
Race and Ethnicity
The State of Nebraska became significantly more diverse between 1990 and 2000. While the white population increased 3.6 percent over the decade, whites now compose just 89.6 percent of the total population, down from 93.8 percent in 1990.
Meanwhile, the State’s racial and ethnic minority populations increased significantly. The Hispanic population increased 155.4 percent over the decade, the American Indian or Alaskan Native (hereafter termed “Native American”) population increased 20.0 percent, and the black population rose 19.4 percent. The number of people who labeled themselves as “some other race” increased dramatically, 206.9 percent, between 1990 and 2000, while the new Census category of “two or more” races included 23,953 people.[2] These data are presented in Table II.3, on the following page.
TABLE II.3NEBRASKA MINORITY POPULATION
1990 AND 2000 CENSUS
Race/Ethnicity / 1990 Population / 2000 Population / % Change
White / 1,480,558 / 1,533,261 / 3.6
Black / 57,404 / 68,541 / 19.4
Native American / 12,410 / 14,896 / 20.0
Asian / 12,422 / 21,931 / 76.6
Nat. Hawaiian/Pacific Islander (1) / . / 836 / .
Some other Race / 15,591 / 47,845 / 206.9
Two or More Races / . / 23,953 / .
Hispanic / 36,969 / 94,425 / 155.4
Total population / 1,578,385 / 1,711,263 / 8.4
(1) 1990: Pacific Islander: Polynesian, Micronesian, Melanesian, Pacific Islander, not specified.
2000: NH & OPI: Native Hawaiian and Other Pacific Islander
Although Nebraska remained substantially less diverse than the nation as a whole, the State’s racial and ethnic diversity increased substantially from 1990 to 2000. With 5.5 percent of the total population, Hispanics formed the State’s largest minority group in 2000, replacing blacks, who formed the largest minority population in 1990 and composed 4.0 percent of the State’s total population in 2000. Across the United States in 2000, Hispanics formed 12.5 percent and blacks composed 12.3 percent of the total population.
The State’s 2000 total minority racial concentration by county, as well as the black and Hispanic concentrations, by county, are presented graphically in Diagrams II.1, II.2, and II.3.
As shown in Diagram II.1, the State’s minority populations were most highly concentrated in several counties in the eastern portion of the State, including Colfax, Dakota, Douglas, and Thurston counties, with 18.3, 21.2, 19.0, and 54.2 percent, respectively. However, counties in other areas of the State also had relatively high minority concentrations, including Dawson and Hall Counties in the central part of the State, with 17.7 and 11.3 percent respectively, and Scotts Bluff, Sheridan and Box Butte Counties in the western part of the State, with 12.4, 11.9, and 9.2 percent respectively.
HUD states that an area’s minority concentration is disproportionately high if it is more than 10 percentage points higher than the jurisdiction’s average minority concentration. Using that threshold, Colfax, Douglas, Dakota, and Thurston had disproportionately high minority concentrations. Thurston’s high minority concentration – Native Americans compose 52 percent of the county’s population – is due largely to the Omaha and Winnebago Indian Reservations.
Diagram II.2 shows that Douglas County, with an 11.5 percent concentration of blacks, was the State’s only county with a large share of the black population.
Diagram II.3 presents the Hispanic ethnic concentration by county. Here, Colfax, Dakota, and Dawson County had disproportionately high shares of the Hispanic population, with 26.2, 22.6, and 25.4 percent, respectively. These statistics indicate that high concentrations of minority racial and ethnic populations exist in many of the more rural areas of the State. The incidence of fair housing impediments in these areas is, even if not reported, likely to be higher as a result, as new residents to many of these areas are racial and ethnic minorities.
Nebraska Department of Economic Development1
DIAGRAM II.1
NEBRASKA MINORITY CONCENTRATION BY COUNTY
2000 Census
Nebraska Department of Economic Development1
DIAGRAM II.2
NEBRASKA BLACK CONCENTRATION BY COUNTY
2000 Census