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Implications of Local Lawsuit Could Exacerbate Racial Homeownership Gap

By Nate Johnson The rate of homeownership in the Black community hovers around 45%, a stark contrast to nearly 75% for White households. There are lawsuits, including a current federal case, that could make this gulf even greater. Strong, dynamic local real estate marketplaces are a cornerstone of community development and economic growth. Local broker marketplaces […]
The post Implications of Local Lawsuit Could Exacerbate Racial Homeownership Gap first appeared on BlackPressUSA.

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By Nate Johnson

The rate of homeownership in the Black community hovers around 45%, a stark contrast to nearly 75% for White households. There are lawsuits, including a current federal case, that could make this gulf even greater. Strong, dynamic local real estate marketplaces are a cornerstone of community development and economic growth. Local broker marketplaces – in which real estate agents share all listings openly and transparently with all other agents – help foster healthy competition.

Meanwhile, compensation rules that allow a home buyer’s real estate agent to be paid out of the proceeds from the home sale – instead of out of the buyer’s pocket upfront – help expand access to homeownership and increase the pool of buyers for sellers’ homes.

However, the pending lawsuits could upend these vital local marketplaces. The suits seek to require buyers to pay for the services of their real estate agent directly, rather than having the buyer’s agent fee paid by the seller’s agent at the time of closing. If successful, such a verdict would significantly increase the transaction costs of buying a home – with major repercussions for local economies. 

When the commission is shared between the seller’s broker and the broker who brings the home buyer, it gives first-time and low-and middle-income buyers a better shot at affording a home. If buyers had to pay the agent themselves, it would make it harder for many, especially first-time, minority and low/middle-income buyers, to afford a home because they would need more money upfront for the down payment, closing costs and agent fees. 

Why it matters 

Today, at a time when current high mortgage rates and increasing home prices are keeping aspiring homebuyers on the sidelines, additional out-of-pocket fees would only push homeownership further out of reach for many. If our commission model were to significantly change and buyers were forced to begin paying their agent out-of-pocket, it would create an additional barrier to homeownership for Black, first-time homebuyers who may already struggle to afford a down payment, ultimately worsening the racial homeownership gap across America. 

Legal implications and the impact on Black, first-time homebuyers  

Black first-time homebuyers have a 50% chance of being a first-time, first-generation homebuyers. This means that they may not have family and friends to rely on for homeownership advice. These buyers critically need a real estate agent to help them navigate the homebuying process since their parents may not be able to offer financial assistance or guidance. Unfortunately, if the lawsuits are successful for the plaintiffs, Black homebuyers will be the people who are most vulnerable to not having representation throughout the homebuying process.   

Requiring buyers to pay their agent out-of-pocket would require an estimated $6,765 in additional assets to purchase a $250,000 home. The burden of this commission payment in addition to a down payment will only push homeownership further out of reach for income-restrained buyers and discourage them from seeking professional representation due to the added cost of working with a real estate agent.  

At the crux of the lawsuit, plaintiffs argue that because listed-for-sale homes are publicly available online, buyers don’t need a real estate agent, which is a shortsighted opinion. Anyone who has purchased a home for the first time knows it often isn’t a straightforward undertaking – things don’t always appear as they seem – and the process can be overwhelming without support.  

There is a lot more that goes into purchasing a home than finding a property you like, and it is one of the most significant – if not the greatest – financial decisions of one’s lifetime. That is why it’s crucial to have professional representation.  

History shows that consumers who do not have professional representation always suffer the most. Looking back at the 2008 recession, people of color were disproportionately affected, in part due to lenders who offered predatory loans. Predatory lenders specifically targeted these communities because they were more likely to not have professional representation.

Many people received predatory loan products that they did not need, which ultimately led to more foreclosures and a decline in homeownership. If history were to repeat itself and more people choose to forgo professional representation due to commission fees, we could be looking at a similar outcome in the future. 

Worst Case Scenario  

So, what’s the worst that could happen? Well, a lot. If the trial verdict results in homebuyers having to pay commissions out-of-pocket, it would significantly increase the transaction costs of buying a home – with major repercussions for local economies: 

  1. Income-restrained buyers will be more likely to forgo professional representation when making the biggest financial decision of their lives, setting them up for failure. 
  2. The rate of homeownership in the Black community will remain stagnant or even worse, it will decline. 
  3. Significantly increasing the up-front transaction costs of buying a home would deter some potential buyers and slow the pace of home sales, at a time when higher interest rates have already chilled the market. 
  4. Fewer home sales, which would hurt demand for local businesses adjacent to home buying: appraisers, lenders, home inspectors, contractors and service providers, home improvement stores, and others. 

The magnitude of this trial and the devastating impact it could have on aspiring homebuyers cannot be understated. If the plaintiffs were to win, the greater economy would be largely impacted and further divide the racial wealth gap in America.

NAR data shows that significantly fewer low-income households and households of color own their home and are able to build wealth compared to other income and racial/ethnic groups. There should be no reason why we adopt compensation rules that would further exacerbate this issue. 

The post Implications of Local Lawsuit Could Exacerbate Racial Homeownership Gap appeared first on Chicago Defender.

The post Implications of Local Lawsuit Could Exacerbate Racial Homeownership Gap first appeared on BlackPressUSA.

Chicago Defender Staff

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LIHEAP Funds Released After Weeks of Delay as States and the District Rush to Protect Households from the Cold

BLACKPRESSUSA NEWSWIRE — The federal government has released $3.6 billion in home heating assistance after a delay that left states preparing for the start of winter without the program’s annual funding.

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By Stacy M. Brown
Black Press USA Senior National Correspondent

The federal government has released $3.6 billion in home heating assistance after a delay that left states preparing for the start of winter without the program’s annual funding. The Low-Income Home Energy Assistance Program, known as LIHEAP, helps eligible households pay heating and cooling bills. The release follows a shutdown that stretched 43 days and pushed agencies across the country to warn families of possible disruptions.

State officials in Minnesota, Kansas, New York, and Pennsylvania had already issued alerts that the delay could slow the processing of applications or force families to wait until December for help. In Pennsylvania, more than 300,000 households depend on the program each year. Minnesota officials noted that older adults, young children, and people with disabilities face the highest risk as temperatures fall.

The delay also raised concerns among advocates who track household debt tied to rising utility costs. National Energy Assistance Directors Association Executive Director Mark Wolfe said the funds were “essential and long overdue” and added that high arrearages and increased energy prices have strained families seeking help.

Some states faced additional pressure when other services were affected by the shutdown. According to data reviewed by national energy advocates, roughly 68 percent of LIHEAP households also receive nutrition assistance, and the freeze in multiple programs increased the financial burden on low-income residents. Wolfe said families were placed in “an even more precarious situation than usual” as the shutdown stretched into November.

In Maryland, lawmakers urged the Trump administration to release funds after the state recorded its first cold-related death of the season. The Maryland Department of Health reported that a man in his 30s was found outdoors in Frederick County when temperatures dropped. Last winter, the state documented 75 cold-related deaths, the highest number in five years. Rep Kweisi Mfume joined more than 100 House members calling for immediate federal action and said LIHEAP “is not a luxury” for the 100,000 Maryland households that rely on it. He added that seniors and veterans would be placed at risk if the program remained stalled.

Maryland Gov. Wes Moore used $10.1 million in state funds to keep benefits moving, but noted that states cannot routinely replace federal dollars. His administration said families that rely on medical equipment requiring electricity are particularly vulnerable.

The District of Columbia has already mapped out its FY26 LIHEAP structure in documents filed with the federal government. The District’s plan shows that heating assistance, cooling assistance, weatherization, and year-round crisis assistance operate from October 1 through September 30. The District allocates 50 percent of its LIHEAP funds to heating assistance, 10 percent to cooling, 13 percent to year-round crisis assistance, 15 percent to weatherization, and 10 percent to administrative costs. Two percent is used for services that help residents reduce energy needs, including education on reading utility bills and identifying energy waste.

The District’s plan lists a minimum LIHEAP benefit of $200 and a maximum of $1,800 for both heating and cooling assistance. Crisis benefits are provided separately and may reach up to $500 when needed to resolve an emergency. The plan states that a household is considered in crisis if it has been disconnected from energy service, if heating oil is at 5 percent or less of capacity, or if the household has at least $200 owed after the regular benefit is applied.

The District’s filing notes that LIHEAP staff conduct outreach through community meetings, senior housing sites, Advisory Neighborhood Commissions, social media, posters, and mass mailings. The plan confirms that LIHEAP applicants can apply in person, by mail, by email, or through a mobile-friendly online application and that physically disabled residents may request in-home visits.

As agencies nationwide begin distributing the newly released funds, states continue working through large volumes of applications. Wolfe said LIHEAP administrators “have been notified that the award letters have gone out and the states can begin to draw down the funds.”

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Seven Steps to Help Your Child Build Meaningful Connections

BLACKPRESSUSA NEWSWIRE — Swinging side by side with a friend on the playground. Sharing chalk over bright, colorful sidewalk drawings. Hiding behind a tree during a spirited game of hide-and-seek. These simple moments between children may seem small, but they matter more than we think

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By Niyoka McCoy, Ed.D., Chief Learning Officer, Stride/K12

Swinging side by side with a friend on the playground. Sharing chalk over bright, colorful sidewalk drawings. Hiding behind a tree during a spirited game of hide-and-seek. These simple moments between children may seem small, but they matter more than we think: They lay the foundation for some of life’s most important skills.

Through everyday play, young children begin learning essential social and emotional skills like sharing, resolving conflicts, showing empathy, and managing their emotions. These social skills help shape emotional growth and set kids up for long-term success. Socialization in early childhood isn’t just a “nice-to-have”—it’s essential for development.

Yet today, many young children who haven’t yet started school aren’t getting enough consistent, meaningful interaction with peers. Research shows that there’s a decline in active free play and peer socialization when compared to previous generations.

There are many reasons for this. Children who are home with a parent during the day may spend most of their time with adults, limiting opportunities for peer play. Those in daycare or preschool may have restricted free play, and large classrooms can reduce supervision and social coaching. Some children live in rural areas, are homebound due to illness, have full schedules, or rely on screens to fill their playtime. And for some families, finding other families with young children to connect with isn’t easy.

While these challenges can feel significant, opportunities for connection still exist in every community. Families can take simple steps to help children build friendships, create a sense of belonging, and strengthen social skills. Here are some ideas to get started:

  • Storytime sessions at libraries or local bookstores
  • Community offerings such as parent-child workshops, art, music, gymnastics, swimming, or sports programs
  • Weekly events at children’s museums, which may include art projects, music workshops, or science experiments
  • Outdoor exploration, where kids can play with peers
  • Local parenting groups that organize playdates and group activities
  • Volunteer opportunities where children can participate, such as pet adoption events or packing meals at a food bank
  • Classes for kids at local businesses, including hardware, grocery, or craft stores

Some of these community activities are free or low-cost and give kids the chance to build friendships and practice social skills. Parents can also model positive social behavior by interacting with other parents and encouraging their children to play with their peers.

These may seem like small moments of connection, but they can have a powerful impact. Every time your child shares a toy, plays make-believe with peers, or races a friend down the slide, they’re not just playing—they’re learning the skills that build confidence, empathy, and lasting friendships. And it’s good for you, too. Creating intentional opportunities for play also helps you strengthen your own network of parents who can support one another as your children grow together.

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#NNPA BlackPress

Seven Steps to Help Your Child Build Meaningful Connections

BLACKPRESSUSA NEWSWIRE — Swinging side by side with a friend on the playground. Sharing chalk over bright, colorful sidewalk drawings. Hiding behind a tree during a spirited game of hide-and-seek. These simple moments between children may seem small, but they matter more than we think

Published

on

By Niyoka McCoy, Ed.D., Chief Learning Officer, Stride/K12

Swinging side by side with a friend on the playground. Sharing chalk over bright, colorful sidewalk drawings. Hiding behind a tree during a spirited game of hide-and-seek. These simple moments between children may seem small, but they matter more than we think: They lay the foundation for some of life’s most important skills.

Through everyday play, young children begin learning essential social and emotional skills like sharing, resolving conflicts, showing empathy, and managing their emotions. These social skills help shape emotional growth and set kids up for long-term success. Socialization in early childhood isn’t just a “nice-to-have”—it’s essential for development.

Yet today, many young children who haven’t yet started school aren’t getting enough consistent, meaningful interaction with peers. Research shows that there’s a decline in active free play and peer socialization when compared to previous generations.

There are many reasons for this. Children who are home with a parent during the day may spend most of their time with adults, limiting opportunities for peer play. Those in daycare or preschool may have restricted free play, and large classrooms can reduce supervision and social coaching. Some children live in rural areas, are homebound due to illness, have full schedules, or rely on screens to fill their playtime. And for some families, finding other families with young children to connect with isn’t easy.

While these challenges can feel significant, opportunities for connection still exist in every community. Families can take simple steps to help children build friendships, create a sense of belonging, and strengthen social skills. Here are some ideas to get started:

  • Storytime sessions at libraries or local bookstores
  • Community offerings such as parent-child workshops, art, music, gymnastics, swimming, or sports programs
  • Weekly events at children’s museums, which may include art projects, music workshops, or science experiments
  • Outdoor exploration, where kids can play with peers
  • Local parenting groups that organize playdates and group activities
  • Volunteer opportunities where children can participate, such as pet adoption events or packing meals at a food bank
  • Classes for kids at local businesses, including hardware, grocery, or craft stores

Some of these community activities are free or low-cost and give kids the chance to build friendships and practice social skills. Parents can also model positive social behavior by interacting with other parents and encouraging their children to play with their peers.

These may seem like small moments of connection, but they can have a powerful impact. Every time your child shares a toy, plays make-believe with peers, or races a friend down the slide, they’re not just playing—they’re learning the skills that build confidence, empathy, and lasting friendships. And it’s good for you, too. Creating intentional opportunities for play also helps you strengthen your own network of parents who can support one another as your children grow together.

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