URBAN INSTITUTE The Foreclosure Crisis in Three Cities: Children, Schools, and Neighborhoods Cross-site Findings Kathryn Pettit Baltimore Housing and Schools Roundtable January 17, 2012

Baltimore New York CityWashington, DC Foreclosure starts/1,000 units (2009) Pct. single-family (2008)66%16%39% Homeownership Rate (2008)51%34%43% Median own-occ. home value (2007) $ 145,000 $ 459,926$476,037 Student population 83,754 1,132,28470,136 % African-American88%32%82% % Hispanic3%39%11% Sources: American Community Survey, local administrative records Range of Housing & School Contexts

Range of Housing & School Policies BaltimoreNYCDC Foreclosure processQuasi-judicial jurisdiction Judicial jurisdiction Non-judicial jurisdiction Eviction protections for renters in good standing before 2009 No Yes School choiceGrowing charter and open enrollment schools Predominantly neighborhood enrollments Large charter and open enrollment

Rising Share of Students Affected by Foreclosure in All Three Cities

Most Children Affected are African-American, Disproportionate Impact in NYC

Share of Renter Students in Foreclosure Households Is Increasing

URBAN INSTITUTE Residential Mobility: Descriptive Statistics Exit School System as a Percent of All Students Move Homes within City As a Percent of Those Staying in the System Grade PS /08 – 2008/09 Students in ForeclosureAll Students Students in ForeclosureAll Students Baltimore 16%11%21%14% Washington, D.C. 26%20%29%17%

URBAN INSTITUTE Neighborhood Characteristics In District of Columbia Students affected by foreclosure started in neighborhoods that were more distressed than those of all students. A move associated with foreclosure (vs. other reasons) did not significantly effect the quality difference between the old and new neighborhoods. In Baltimore Opposite findings about origin area– students in foreclosed homes live in less distressed neighborhoods than all students. Destination neighborhoods for students in foreclosure were similar on 4 measures, but had higher juvenile arrest rates.

URBAN INSTITUTE School Switching: Descriptive Statistics

URBAN INSTITUTE Change in School Test Scores: Regressions Changes in Average Test Scores of Schools Baltimore and NYC: Living in a property with foreclosed filing had no significant effect on change in average school test scores for switchers. NYC: Students in a 2-4 unit property that went to foreclosure auction slightly more likely to move to a school with lower average test scores. DC: Some evidence that children living in a property with foreclosed filing switched to schools with lower average test scores.

URBAN INSTITUTE Change in Student Test Scores: Regressions Baltimore: Living in property with foreclosed filing had no significant effect on change in individual students’ test scores.

URBAN INSTITUTE Implications for Program and Policy Foreclosure harms public school children by increasing chance of school and housing instability. Neighborhood changes similar to those of other movers. Switched to schools with lower test scores in DC Foreclosure should be viewed in context of all residential & school instability – small piece of the whole picture. Policy opportunity to break down program silos and help this subset of at-risk children.

URBAN INSTITUTE Results of the Foreclosure Crisis Neighborhoods and Schools Matthew Kachura Baltimore Housing and Schools Roundtable January 17, 2012

URBAN INSTITUTE City - 2.7% of public school children Belair-Edison – 5.1% Cedonia/Frankford – 4.3% Patterson Park – 3.4% Pimlico – 3.3%

URBAN INSTITUTE 14% of public school students moved from 2007/08 to 2008/09

URBAN INSTITUTE 21% of public school students affected by foreclosure moved from 2007/08 to 2008/09

URBAN INSTITUTE Average Neighborhood Characteristics of Originating and Destination Neighborhoods for Students Changing Residences Originating Neighborhoods Destination Neighborhoods In Properties All Studentsin Foreclosure All Studentsin Foreclosure Part 1 Crime Rate Juvenile Arrest Rate Percent Vacant and Abandoned Properties12.0%10.0% 11.0% Percent FARMS67.0%66.0% 59.0%60.0% Median Home Sales Price$124,743$125,258 $125,756$123,055

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25% of public school students switched schools from 2007/08 to 2008/09

URBAN INSTITUTE 27% of public school students affected by foreclosure switched schools from 2007/08 to 2008/09

URBAN INSTITUTE Change in Schools Results Changes in Average Test Scores of Schools : Living in a property with foreclosed filing had no significant effect on change in average school test scores for switchers. Change in School: Destination schools for students that switch schools and students affected by foreclosure that switch schools are very similar. Change in Student Performance: Students affected by foreclosure were more likely to be.. Chronically absent in following year Suspended or expelled in following year Less likely to progress to next grade level in following year Less likely to test as advanced/proficient (in math or reading) in following year

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Foreclosures Still Persist Baltimore – Towson MSA Foreclosure rate as of June 2011 = 4.2% Ranked 206 out of 366 Metro areas Prime foreclosure rate = 2.8% Subprime foreclosure rate = 16.9%

URBAN INSTITUTE Behind the Foreclosures Baltimore – Towson MSA 90+ days delinquent as of June 2011 = 4.4% 521,344 units with mortgages (ACS 2010) 23,000 housing units Serious delinquency rate as of June 2011 = 8.5% Ranked 134 out of 366 Metro areas

URBAN INSTITUTE New York University Vicki Been Ingrid Gould Ellen Amy Schwartz Leanna Stiefel Urban Institute Jennifer Comey Kathy Pettit BNIA-Jacob France Institute Matthew Kachura Contacts