The Black Lives Next Door

A new generation of activists is trying to figure out where to concentrate its 
efforts. Residential desegregation is the final frontier.

By Richard Rothstein, Aug. 14, 2020

https://www.nytimes.com/2020/08/14/opinion/sunday/blm-residential-segregation.html?action=click&module=Opinion&pgtype=Homepage
 
<https://www.nytimes.com/2020/08/14/opinion/sunday/blm-residential-segregation.html?action=click&module=Opinion&pgtype=Homepage>
 

Last year in San Mateo, Calif., a history teacher at Hillsdale High School 
conducted a mock hearing of South Africa’s Truth and Reconciliation Commission. 
Sophia Heath, then a freshman, played an anti-apartheid lawyer. She recalls 
that she “was really excited and that was the beginning of where my activism 
started.” On the web, she found Coalition Z, a youth group that registers 
voters and presses officials to combat climate change, provide more equitable 
school funding and enact gun control. Ms. Heath started a local chapter.

 

Its first activity, after the killing of George Floyd in Minneapolis, was a 
Black Lives Matter demonstration on June 3 at San Mateo City Hall. Ms. Heath 
and her Coalition Z chapter members used Instagram to recruit young 
participants and Nextdoor to recruit adults. Speakers included the mayor, the 
local congresswoman, a school board member and an N.A.A.C.P. official. The 
police estimated a crowd of over 2,000. Signs and chants called for an end to 
systemic racism, including police militarization and brutality. Protesters also 
called for reparations to compensate African-Americans for centuries of 
enslavement and oppression.

 

Nationwide, something like 20 million Americans participated in similar 
demonstrations. Some won commitments for police reform, and others continue to 
wage campaigns to achieve it.

 

Black Lives Matter protests have laid a foundation for real change. But in 
their aftermath, activists in San Mateo and similar communities mostly lack a 
continuing program to tackle the comprehensive racial inequality that allows 
abusive police practices to flourish. Ms. Heath and her recruits, young and 
grown-up, have untapped opportunities to take action in their own town, 
contributing to a new civil rights movement for racial progress.

 

San Mateo is a segregated Silicon Valley city. Ms. Heath observes that there 
are no Black families in her Hillsdale neighborhood. San Mateo’s few remaining 
African-Americans mostly live in another neighborhood, where they have long 
been concentrated. One percent of Hillsdale High School students are Black.

 

Ms. Heath says she would like to live in a more diverse neighborhood. The way 
to do that, she says, is to insist that the City Council provide more 
affordable housing — subsidized units for low-income families — in her 
neighborhood. That would be a step forward, but most African-Americans are not 
poor; working- and middle-class Black families whose incomes are too high to 
qualify for existing subsidies were also excluded from neighborhoods like 
Hillside because of their race.

 

Effective strategies to redress segregation in all its forms would become 
clearer if activists in San Mateo and elsewhere did deep research into how 
their communities’ racial boundaries were established.

 

In San Mateo, they would learn that builders constructed the residential 
Hillsdale neighborhood for whites only in the mid-20th century. Public records 
reveal that the 1941 deed to Sophia Heath’s family home says, “No persons other 
than members of the Caucasian or White race shall be permitted to occupy any 
portion of said property, other than as domestics in the employ of the 
occupants of the premises.”

 

The racial restriction was signed by officers of the American Trust Company, 
which financed its construction. David D. Bohannon, a developer who built the 
largest share of homes in Hillsdale, signed similar deed requirements for 
racial exclusion. Although the whites-only clauses are no longer enforceable, 
they remain in the deeds of Hillsdale homeowners.

 

Mr. Bohannon became one of the biggest developers of whites-only housing 
throughout the San Francisco Bay Area in the mid-20th century, with significant 
responsibility for the segregated landscape that persists. Although many Black 
Americans flocked to the Bay Area to take jobs in war production during World 
War II, Mr. Bohannon barred nonwhites from his projects. Several Bohannon 
neighborhoods for workers in shipyards and supporting factories during the war 
were financed with loans guaranteed by the federal government from financial 
institutions like Bank of America and the American Trust Company, which didn’t 
resist the government’s policy of racial exclusion.

 

In 1955, when a developer attempted to create a racially integrated 
neighborhood in Milpitas, not far from San Mateo, Mr. Bohannon’s company sued 
and successfully lobbied the Milpitas City Council to raise sewer connection 
fees to an exorbitant level that made the project unfeasible, delaying it for 
years.

 

David Bohannon’s race policy did not make him a pariah in the home-building 
industry. Quite the contrary. In 1942, as he was creating Hillsdale, Mr. 
Bohannon served as president of what is now called the National Association of 
Home Builders. His contribution to racial segregation went unmentioned in 1958 
when he was elected national president of the influential research group for 
planners, the Urban Land Institute, which praised him as “one of the West 
Coast’s most successful land developers and community builders.” In 1986, Mr. 
Bohannon was added to the California Homebuilding Foundation’s Hall of Fame for 
having “enriched the homebuilding industry through innovation, public service, 
and philanthropy,” which apparently did not extend to remedying the segregation 
he had enforced.

 

The Bohannon company continues to operate. Adjacent to its San Mateo 
development, it created the Hillsdale mall (open for business again after 
pandemic-induced closures), anchored by Macy’s and Nordstrom, and filled with 
upscale shops. While malls nationwide have been struggling, the Bohannon firm 
recently invested several hundred million dollars in the Hillsdale mall’s 
renovation and in the development of a nearby office park.

 

A real estate firm, Fox & Carskadon, marketed the Hillsdale homes in 1940 with 
newspaper ads boasting of the deed clauses that enforced the neighborhood’s 
racial exclusivity: “Let us tell you of the protective covenants that guarantee 
Hillsdale’s enduring character for all time to come.”

 

The Bohannon company, Fox & Carskadon and the American Trust Company could not 
have segregated Hillsdale without the support of government agencies. In fact, 
in some cases, federal agencies required builders like Mr. Bohannon to insert 
the racial clause in deeds. In our own time, the City of San Mateo continues to 
perpetuate the segregation of many of its white neighborhoods by prohibiting 
construction of anything but single-family homes — no townhouses, duplexes or 
apartments affordable to teachers, firefighters, nurses, hotel and restaurant 
workers, and others who serve the community but cannot afford to live in it.

 

The American Trust Company and Wells Fargo merged in 1960. Coldwell Banker 
acquired Fox & Carskadon in 1995. Perhaps Sophia Heath’s fellow young activists 
and their adult compatriots might embark on a campaign to persuade the Bohannon 
company, Coldwell Banker and Wells Fargo to face up to their considerable 
responsibility for the racial segregation and lack of opportunity for Black 
families that characterize San Mateo.

 

A local civil rights movement can insist that these businesses make substantial 
contributions to a fund that subsidizes African-Americans to purchase Hillsdale 
homes that would have been affordable when these institutions excluded Black 
home buyers but no longer are.

 

Token contributions will do little. The fund will have to be substantial. Fox & 
Carskadon advertised its Hillside houses for $5,450, about $100,000 in current 
dollars. But today those homes sell for about $1.5 million, sometimes more. 
Shouldn’t Bohannon, Coldwell Banker and Wells Fargo find the funds to enable 
African-Americans who qualify for a mortgage on a $100,000 property to purchase 
Hillsdale houses worth $1.5 million? That’s the kind of commitment that 
reparations-like private initiatives require, while federal reparations remain 
far-off, hard to define and without effective political support.

 

When Wells Fargo and the American Trust Company merged and when Coldwell Banker 
absorbed Fox & Carskadon, the acquiring firms assumed their predecessors’ 
assets and liabilities. San Mateo activists can justifiably claim that this 
includes moral liabilities as well. Although the statute of limitations has 
expired, the discriminatory development and marketing of Hillsdale houses 
violated a 19th-century Civil Rights Act that prohibited racial discrimination 
in housing but whose validity the U.S. Supreme Court recognized only a century 
later.

 

Coldwell Banker’s website celebrates the company’s “more than 100 years of 
excellence” and boasts of its early adherence to a National Association of 
Realtors’ Code of Ethics adopted in 1913. The website doesn’t mention that in 
1924, the code added a warning that “a realtor should never be instrumental in 
introducing into a neighborhood … members of any race or nationality, or any 
individuals whose presence will clearly be detrimental to property values in 
that neighborhood.” This “ethics” requirement was still in force when Fox & 
Carskadon handled sales of Hillsdale homes for the Bohannon firm.

 

Bohannon’s website has proclaimed: “One of the Bohannon Companies’ hallmarks is 
our commitment to community. We look for opportunities to serve organizations 
and help causes that benefit the communities where we develop properties.”

 

Wells Fargo has a foundation that, it has said, “is committed to addressing the 
full spectrum of housing issues.” One of its programs provides down-payment 
assistance to low- and moderate-income home buyers. In the San Francisco 
region, its most recent grants, in 2017, provided about $30,000 to families 
whose incomes were at or below the area median. Even when households could add 
some savings, down payments of that size permitted home purchases only in a few 
low-income neighborhoods that had not yet gentrified in Oakland and nearby. No 
grants have yet been made for home purchases in cities like San Mateo, and it 
is unlikely that the program could ever be adequate to give Black families 
access to neighborhoods that the American Trust Company helped create as 
white-only. Facing up to this is what addressing the full spectrum of housing 
issues involves.

 

To persuade Coldwell Banker, Bohannon and Wells Fargo to deliver meaningfully 
on their pledges, a campaign by local activists should be carefully planned and 
disciplined. It will require a well-researched proposal for which community 
education has built public support that is then presented respectfully to 
executives, board members and perhaps the stockholders of the companies from 
which remedial contributions are expected. Nonviolent public and perhaps 
disruptive tactics can be employed if quieter efforts at persuasion fail.

 

In the 1960s, racial justice victories were won only after marches, 
demonstrations and civil disobedience convinced elected officials that reform 
was necessary. Activists today have an advantage; there is much greater public 
understanding of the legacies of slavery and Jim Crow. But still, civil rights 
victories will almost certainly require more than rallies, demonstrations and 
discussions on social media.

 

Students typically learn that in 1955, Rosa Parks, a seamstress in a 
Montgomery, Ala., department store, was too tired at the end of her workday to 
give up a bus seat to a white passenger, as the law required. Most students 
don’t learn that she had spent more than a decade in her local N.A.A.C.P. 
chapter and had attended — four months before she inspired a bus boycott — the 
Highlander Folk School in Tennessee, where she received training in nonviolent 
civil disobedience. In these trainings, the institute prepared other civil 
rights activists as well, including the Rev. Martin Luther King Jr. and John 
Lewis.

 

Black Lives Matter supporters in places like San Mateo will need similar 
training to acquire the skill to persuade powerful institutions to turn vague 
pledges of good intentions into actual reform.

 

Cities and towns in metropolitan areas across this country have a history 
analogous to San Mateo’s. Uncovering it is hard work. Undoing it will be even 
harder. Winning the civil rights victories of the past required unusual 
dedication and persistence — extraordinary, really — and it will take more of 
the same to make Black lives matter in every neighborhood.

Richard Rothstein is a distinguished fellow at the Economic Policy Institute 
and the author of “The Color of Law: A Forgotten History of How Our Government 
Segregated America.”

 
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