Mayor Ras Baraka Headlines 14th Annual NJCA Financial Justice Summit 

State and federal experts joined elected officials to weigh in on New Jersey’s affordable housing 

and debt crises, as well as the need for robust community reinvestment  

Newark, NJ – Oct 4, 2023—Newark Mayor Ras J. Baraka today joined stakeholders and experts from around the country for New Jersey Citizen Action’s (NJCA) 14^th Annual Financial Justice Summit, where they explored solutions to New Jersey’s most pressing socio-economic crises, particularly fair and affordable housing, and debt traps. 

Baraka, who engaged in a fireside chat with Tenisha Malcolm, Director of the Urban Mayors Policy Center, shared details about an amendment to the Newark Inclusionary Zoning Ordinance (IZO) that will permit the City to exclusively market new affordable units to Newark residents during a 90-day period. He also emphasized the need for economic development and community reinvestment, particularly in communities of color long victimized by redlining practices. 

“There is no time for delay, or limit for sound innovation in our efforts to establish affordable housing for our residents,” said Mayor Baraka. “It is an essential, preliminary step toward economic justice in Newark and in cities throughout our state and country where people have been purposefully robbed of their ability to own, insure and maintain homes as the foundation of financial health and generational wealth. Because the inequity has compounded decade after decade, we must be fierce advocates for individuals and families finding themselves squeezed out of the housing market through no fault of their own. My administration is committed to protecting Newarkers from predatory real estate investors and developers, and to devising inventive approaches to creating housing and making ownership obtainable.” 

Mayor Baraka’s administration is battling a practice in which about half of Newark real estate sales are made to institutional buyers, many of whom are anonymous investors. This severely depletes the affordable housing stock for low- and middle-income residents. The journalist Aaron Glance, co-author and Pulitzer Prize Finalist for the exposé on modern day redlining, “Kept Out,” was also on hand to discuss current discriminatory practices in housing in New Jersey. 

“The National Low Income Housing Coalition classifies 26% of renter households in New Jersey as ‘extremely low-income,’” said Leila Amirhamzeh, NJCA Director of Community Reinvestment. “New Jersey is short 224,531 rental homes that are affordable and available for extremely low-income renters.” 

The Summit also tackled the increasing crisis posed to New Jersey families by debt traps. Following a keynote address in which Dr. Frederick Wherry, Professor of Sociology at Princeton University and Director of the Dignity and Debt Network addressed the social impact of a debt-based economy, participants heard from Seth Frotman, General Counsel for the federal Consumer Financial Protection Bureau (CFPB). 

Frotman outlined why the CFPB has committed to rulemaking that will remove medical bills from credit reports. These bills provide little predictive value in credit decisions, yet tens of millions of American households are dealing with medical debt on their credit reports. Frotman’s appearance occurs at a time when the CFPB’s very existence in under threat, with the U.S. Supreme Court hearing a case on October 3 that could defund it and other federal agencies such as the Federal Reserve. 

“The CFPB announcement to take up medical debt credit reporting for rulemaking is a reminder of its commitment to protecting American consumers from financial harm caused by unfair, deceptive, and abusive practices in the marketplace,” said Beverly Brown Ruggia, Financial Justice Program Director for NJCA. “Since opening its doors, the CFPB has returned close to $17 billion to consumers harmed by bad actors in the banking and finance industries and despite relentless attempts to gut the Bureau, like the meritless case before the court yesterday, it looks like it will continue to forge full steam ahead.” 

“Today’s speakers have given us extraordinary insights into how access to affordable housing and consumer finance protection impact the financial our wellbeing,” said Amirhamzeh, “The Summit will continue to provide a forum for New Jerseyans to understand these issues and the policies needed to address them.” 

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New Jersey Citizen Action is a statewide advocacy and empowerment organization that advances social, racial and economic justice for all, while also meeting the pressing needs of low- and moderate-income New Jerseyans through education and direct services.