February 18, 2017


Before Trump Was a Racist Commander-in-Chief, He Was a Racist Real Estate Executive : Newly released files from the FBI's investigation into Trump's company document pervasive discrimination against people of color. (RACHEL JOHNSON, 2/18/17, In These Times)

This week the FBI released to the public nearly 400 pages of documents associated with the bureau's 1970s investigation of racial discrimination in the Trump family's real estate company, Trump Management, Incorporated. Donald Trump was at the time the president of the company, while his father Fred Trump was chairman. [...]

The Trump files are illuminating in their ability to reveal what Sugrue describes as the "furtive tactics" real estate agents used after the Fair Housing Act to maintain segregation. The FBI documents reveal systemic discrimination against potential black renters--including allegations of fabricating rental leases, lying about the cost of rent and rejecting financially qualified black applicants.

Trump employees, according to the files, were instructed to write codes, including the letter "C" for "colored," on the rental applications of blacks and Puerto Ricans. Trump's coding system recalls the real estate codes used by the federal government's Home Owners Loan Corporation during the New Deal. In "residential security maps" based on common practices in state and local ordinances as well as the real estate industry, the government color-coded areas with high populations of people of color as "red"--high-risk. This practice, known as redlining, denied mortgage capital to neighborhoods with high populations of non-whites--shutting out African Americans from homeownership and the accompanying wealth creation.

Many of the FBI documents reference "phony leases" that Trump employees allegedly showed to black applicants to convince them that an apartment had already been rented. In an interview with federal investigators, one employee stated that he believed phony leases were a "common practice" at the company and had heard about their use from at least two building superintendents. Another employee detailed how he was instructed by management to lie about the cost of rent to deter black applicants. A doorman who had worked at 2650 Ocean Parkway in Brooklyn submitted a handwritten statement alleging that his supervisor instructed him to tell African Americans "the rent was twice as much as it really was." 

Subtler forms of discrimination mentioned in the files included requiring that applicants' income be more than four times the monthly rent, which made even cheap apartments out of reach for many low-income black renters.

Even if black applicants could afford the rent, they were routinely turned away. A former rental supervisor at Tysens Park apartments in Staten Island--a complex that was overwhelmingly white--told the FBI that he had been instructed by a superior not to rent to African Americans or people on welfare. After a financially qualified black couple submitted an application, the supervisor recounted that he was told, "they're black and that's that." Moreover, the man alleged that Fred Trump told him to "get rid" of the black residents in the complex by offering to pay their $500 down payment for cheap housing elsewhere.

Similarly, a former building superintendent at Lawrence Towers Apartments in Brooklyn says he "received instructions from the Trump Management Office concerning special handling of applications from Black families." This two-track system meant that financially qualified white applicants were automatically approved, while black applicants were sent directly to the Trump office.

While the files do not clarify what happened to black applicants once they arrived at the Trump office, evidence suggests they were directed to apartment complexes with majority nonwhite residents. This practice, known as steering, involves directing white renters and buyers to majority-white neighborhoods, and black buyers and renters to majority-black neighborhoods. It was common within the real estate industry after the passage of the Fair Housing Act in 1968. The Washington Post reports allegations that Trump and his associates frequently steered minorities to one Brooklyn complex, Patio Gardens, that was 40 percent black. Other Trump-owned locations, including Ocean Terrace and Lincoln Shore apartments, had almost no black residents.

Ultimately, the DOJ suit resulted in a federal court order--called a "consent decree"--in which the Trumps and government officials came to an agreement on a proposed remedy. The Trumps were ordered to "thoroughly acquaint themselves" with the Fair Housing Act and place ads informing people of color that their properties were open for all.

Donald Trump, for his part, continues to deny any wrongdoing, consistent with his position at the time. He filed a $100 million countersuit for defamation against the government in 1973 (the countersuit was dismissed). The language of the consent decree itself states that the settlement was "in no way an admission" of guilt.

The Justice Department felt differently. As the Washington Post has reported, DOJ lawyers regarded the settlement as a victory for the enforcement of the Fair Housing Act, "one of the most far reaching [settlements] ever negotiated."

Posted by at February 18, 2017 8:20 AM