JPMorgan Chase Expands Homeownership and Wealth Building Opportunities to Tackle Heirs Property and Appraisal Reform Across the Country
18 Junio 2024 - 9:00AM
Business Wire
More than $9.6M in funding will
support free legal assistance, appraisal reform and estate planning
services in underserved communities
JPMorgan Chase is expanding its commitment to tackle heirs
property challenges across the country through a combined expansion
of philanthropic capital, business investments and policy
recommendations. At a convening in Atlanta with leading policy
experts and community partners in the housing space, the firm
announced more than $9.6M in philanthropic commitments to
eight organizations across the United States working to preserve
homeownership opportunities in Georgia, New York, Jacksonville,
FL, Pittsburgh, PA and Washington, D.C. This effort is part of
the firm’s ongoing commitment to preserve generational wealth
building opportunities through homeownership for underserved
communities nationwide.
The grantees, a combination of community-based organizations,
legal service providers and universities, as well as Community
Development Financial Institutions (CDFIs), will focus on tackling
heirs property and appraisal bias issues. Both are major
contributors to the loss of wealth in underserved communities and
disproportionately impact Black, Latino, Hispanic, low-income and
low-wealth families in both rural and urban communities.
In addition to philanthropic capital, Chase Home Lending
continues to deliver progress on bringing more diversity to the
field of residential property appraisers. The firm committed $3M to
the Appraisal Diversity Initiative, a nationwide effort to attract
diverse new entrants into the residential appraisal field through
education, training and resource support. Since the program’s
inception, Chase has supported more than 700 scholarships with 66
scholars now working as appraisers across the country. In Atlanta,
18 scholars are in the program and six graduates are currently
working as appraisers.
The Economic Consequences of Heirs Property and Appraisal
Bias
Heirs property, also known as a “tangled title,” occurs when a
homeowner dies without a will and their property is informally
inherited by multiple descendants, regardless of whether they live
on the property or have paid taxes. According to national
estimates, the total assessed value of properties impacted by heirs
issues is estimated to be over $32 billion across 44 states
and Washington, D.C. In Georgia, over $400 million in
assessed property values are impacted due to heirs issues.
Left unaddressed, heirs property creates unstable homeownership,
making it difficult for residents to pass on property to the next
generation, access disaster assistance programs that help pay for
home repairs or property tax relief. The situation leaves people
vulnerable to a range of potential repercussions, including
foreclosure, tax sales and being the target of investors attempting
to buy a home below market value.
"Safe, affordable homeownership opportunities are foundational
for creating thriving and healthy communities," said Abigail
Suarez, Head of Neighborhood Development, Corporate Responsibility,
JPMorgan Chase. "We need to be intentional about scaling
solutions that address heirs' property issues and empowering people
to maintain homeownership from one generation to the next. Today’s
commitments are part of the firm’s holistic approach to mobilizing
resources and expertise to address this issue in Atlanta and
communities across the country.”
“We’re proud to see progress with our appraisal reform efforts,
recognizing this is just the beginning of effecting change within
the industry,” said Sean Grzebin, Head of Consumer Originations
and Transformation, Chase Home Lending. “We’re also committed
to helping more homebuyers, in Atlanta and across the country, to
avoid the negative consequences of heirs property and preserve
their generational wealth by identifying innovative business
solutions.”
An Expanded Philanthropic Approach
JPMorgan Chase has committed over $9.6 million in
philanthropic capital to the following organizations to tackle
heirs property challenges and appraisal bias through research,
legal services and estate planning clinics and market-based
innovations. Grantees include:
- Initiative on Land, Housing, & Property Rights at Boston
College ($2M): The Initiative at Boston College, founded and
led by national heirs property expert Professor Thomas W.
Mitchell, will produce research and policy recommendations to
preserve and expand property rights for underserved communities.
The Initiative will also engage in community outreach and train law
students, which will enhance national awareness about heirs
property challenges and solutions.
- Alcorn State University Foundation ($300K): The SDFR
Policy Center located at Alcorn State University will lead a team
to conduct research and outline recommendations for the ethical use
of public heirs property data in order to protect vulnerable heirs
property owners from being exploited by those seeking to acquire
properties at below market value.
- Federation of Southern Cooperatives Land Assistance Fund
($150K): The Federation, a regional cooperative and rural
economic development organization, will expand their legal
assistance with rural landowners in seven Southeastern U.S.
states—including Georgia—and uses these types of insights to
bolster its research and educational efforts that support impacted
individuals and communities.
- The Brookings Institution and Economic Architecture
($2.3M): Economic Architecture and the Brookings Institution
have partnered to launch the second iteration of the Valuing Homes
in Black Communities challenge, which will identify the most
promising market- and policy-based structural innovations to
address the devaluation of homes in Black neighborhoods.
- LISC Jacksonville ($500K): LISC Jacksonville, a
Community Development Financial Institution (CDFI), is expanding
their Heirs Property and Family Wealth Creation programs, a
comprehensive model that preserves homeownership and increases home
equity by addressing heirs property through free estate planning
assistance and legal services for local families.
- Howard University Legal Clinic ($500K): Howard
University has established an estate planning and heirs property
legal clinic that trains future attorneys and provides free legal
services to Washington, D.C. and Maryland residents. Since
launching in 2023, the clinic has supported over 75 clients and
trained 20 students.
- Center for NYC Neighborhoods ($889K): The Center, a
community-based non-profit organization, is working to build
capacity to deliver free estate planning and raise awareness about
its importance among Black homeowners in Brooklyn and the
Bronx.
- Catapult Greater Pittsburgh ($3M): Catapult, a
community-based nonprofit organization, is expanding their Clinic
for Legal Equity and Repair (CLEAR), which supports people living
in Allegheny County who do not have a legal title to the property
in their name. CLEAR participants are eligible for home repairs,
title clearance, and estate planning to ensure they can grow their
wealth and transfer assets across generations. Catapult will also
acquire and rehab vacant or abandoned properties in the community
in an effort to stabilize neighborhoods.
Advancing Policy Solutions to Preserve Generational Wealth
through Homeownership
JPMorgan Chase is also advancing homeownership and wealth
preservation through data-driven policy solutions and research.
Last year, the JPMorgan Chase PolicyCenter released two briefs
outlining recommendations to prevent and resolve heirs property
cases and solutions to advance affordable, sustainable
homeownership. To build on these initial recommendations, the
PolicyCenter released two new briefs spotlighting best practices
and policy reform opportunities that reduce barriers to
generational wealth building.
- The Supporting Heirs Property Owners Through National
Disaster and Resiliency Programs brief explores policy
interventions to protect heirs property owners before and after
natural disasters. Many heirs property owners have been unable
to access disaster assistance due to ownership requirements. As
natural disasters increase in frequency and intensity – creating
challenges for homeowners and communities nationwide – JPMorgan
Chase supports federal, state and local policy interventions to
help homeowners repair their homes, stabilize neighborhoods, and
build community resilience.
- The Solutions to Build Household Wealth by Addressing the
Undervaluation of Property brief features JPMorgan Chase’s
leading role to reduce bias in home valuations. This includes
business practices, philanthropic partnerships, and policy
recommendations that focus on: modernizing appraisal processes,
enhancing valuation methods, increasing training and diversity,
addressing industry standards, and building consumer
awareness.
Quotes from Our Partners
Public private partnerships are key to driving impact at scale.
Below are quotes from a few partners JPMorgan Chase is working
with:
Professor Thomas Mitchell, Director of the Initiative on
Land, Housing & Property Rights at Boston College
- "The substantial grant JPMorgan Chase has made to help
dramatically increase the research and policy development capacity
of our Initiative on Land, Housing, & Property Rights will
significantly increase our ability to make a greater impact on
addressing a range of housing and property matters disadvantaged
communities experience, including a number of vexing heirs'
property matters. We truly appreciate JPMorgan Chase's support and
hope this grant represents the cornerstone of a lasting
partnership."
Ruth Gao, Associate General Counsel, the Robert Wood Johnson
Foundation
- “Helping people stay in their homes by addressing heirs’
property issues is crucial for preserving intergenerational
wealth—and, by extension, families’ health and wellbeing.
Cross-sector collaboration is critical to continuing this work and
effecting change, and we are proud to work with organizations like
JPMorgan Chase to drive momentum to preserve homeownership across
communities.”
Reggie O’Shields, Chief Legal and Compliance Officer for the
Federal Home Loan Bank of Atlanta
- “The Federal Home Loan Bank of Atlanta is pleased to partner
with organizations like JPMorgan Chase to address the pervasive
issue of heirs property. We will continue to support initiatives to
resolve tangled titles, execute wills, and provide property
financial literacy training, all of which contribute to
generational wealth building and strengthen communities.”
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Gabriela Alba gabriela.alba@jpmchase.com 862-347-1709
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