Famend journalist and HBCU professor Nikole Hannah-Jones took time to share her ideas on the startup enterprise backed by Jay-Z and Will Smith. In line with Hannah-Jones, the rent-to-own housing program is predatory to low-income contributors.
Hannah-Jones tweeted her objections final week about why credit score counseling just isn’t the important thing to serving to low-income households understand homeownership.
Credit score counseling just isn’t what’s going to take low-income renters to owners, wealth will. All this program does is cost struggling folks further charges for being poor, which is what each different predatory lender does. https://t.co/qdo1y9wXVd
— Ida Bae Wells (@nhannahjones) August 1, 2021
“Credit score counseling just isn’t what’s going to take low-income renters to owners, wealth will,” Hannah-Jones wrote. She then linked an article about Landis applied sciences, the startup that Jay-Z and Will Smith have made a monetary funding into.
The best way that the startup works is that Landis buys “dream houses” for contributors who will hire the houses for 2 years. In that two years, it’s anticipated that the renters will save sufficient cash for a down cost. On the finish of the 2 years, they’d then purchase the house from Landis.
“Monetary inclusion is de facto vital to us,” Cyril Berdugo, one of many founders of Landis, stated. “A facet of Landis that we’re very proud to be part of is wealth creation for low-income Individuals.”
The hitch within the plan?
If after two years the renters shouldn’t have the down cost cash, Landis has the choice to supply them extra time or promote the house to another person.
One other caveat is that the renter could not have the ability to safe a mortgage on the finish of the 2 years. Principally, after paying hire and presumably different obligations like upkeep and insurance coverage, the hopeful renters may find yourself constructively evicted.
Nikole Hannah-Jones’ perspective has historic benefit. Not solely has the rent-to-own business been usually predatory to folks of colour, however for the reason that Nineteen Fifties, issues have solely gotten worse.
Source link
