JPMorgan to allocate $9.6 million to tackle racial wealth disparity in real estate sector

At Extreme Investor Network, we understand the importance of owning a home for building wealth that can be passed down from one generation to the next. However, there are significant issues that can affect the transfer of wealth through property ownership, such as heirs’ property and appraisal bias.

Heirs’ property is a common issue that arises when homeowners die without a will, leaving their property informally to multiple descendants. This non-formal ownership can make it challenging to pass on the property, access government assistance in the event of a natural disaster, qualify for property tax relief, and even leave homeowners vulnerable to foreclosures or investors looking to acquire their homes below market value.

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According to estimates, over $32 billion in assessed property values in 44 states and Washington, D.C. may be affected by these issues. To address these challenges, JPMorgan Chase has committed over $9.6 million to organizations that work towards preserving homeownership by tackling heirs’ property issues and appraisal bias.

Research has shown that heirs’ property disproportionately affects communities of color, with as much as half of the property owned by Black Americans falling under heirs’ property. Additionally, homes in Black neighborhoods are undervalued compared to homes in non-Black majority neighborhoods, contributing to a racial wealth gap.

JPMorgan Chase’s philanthropic commitment will focus on targeted locations in Georgia, New York, Jacksonville, Pittsburgh, and Washington, D.C. The funds will support organizations that provide estate planning clinics, legal services, research, and market innovations to combat heirs’ property and appraisal bias issues.

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Some of the organizations that will receive funding include Catapult Greater Philadelphia, the Brookings Institution, Economic Architecture, Boston College’s Initiative on Land, Housing & Property Rights, Center for NYC Neighborhoods, LISC Jacksonville, Howard University’s legal clinic, Alcorn State University Foundation, and the Federation of Southern Cooperatives/Land Assistance Fund.

By addressing these challenges and supporting initiatives to preserve homeownership, JPMorgan Chase is working towards building more equitable and sustainable communities where everyone has the opportunity to benefit from the equity of their property. Stay tuned to Extreme Investor Network for more valuable insights and information on personal finance and wealth-building strategies.

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