A 2021 NPR Podcast Segment painted a picture of the American Dream turned nightmare: A Louisiana family faced the loss of their five-generation home that had been owned by the family’s formerly enslaved great-great-grandfather, Jacob Loud.
That segment from four years ago is still relevant. And the Loud family’s story sheds new light on a long-standing problem that has threatened homeownership and generational prosperity for decades, especially for Black Americans: heir property.
When Jacob Loud left no will at his death, the estate was passed down to each of Loud’s five children and successive generations under Louisiana’s standard inheritance rules. However, Loud’s heirs never legally legitimized their inheritance, leaving Jacob Loud’s name on the property’s title deed. The heirs’ ownership interest was not legally documented and they were therefore not informed about their ownership interests and the associated responsibilities. When a family member went to sell a twenty-fifth share of the property, local laws led to the sale of the entire property, displacing ownership of an asset that had been in the family for generations.
The story of the loud heirs can be seen in families across the country. For decades, homeownership has been considered the cornerstone of the American Dream, but for far too many families, especially those in low- and middle-income (LMI) and minority communities, it brings seemingly endless threats. Heirship ownership creates confusion and can result in legitimate homeowners losing their properties and subsequent generational wealth to developers and investors.
Its impact on Black homeowners is particularly profound. According to a 2023 report from our partners at the Urban Institute’s Housing Matters InitiativeAbout a third of all black-owned land in the South is owned by heirs, with institutional buyers able to exploit this loophole and force sales during ownership disputes. A recent survey from the National Association of Real Estate Agents (NAREB) reveals the long-lasting consequences: In 1910, black families owned millions of acres of land. Today, those same families have lost more than 90% of that land due to a combination of exploitative practices and systemic barriers, including lack of access to legal representation, documentation and support. This continued erosion of Black-owned land ownership contributes significantly to the racial wealth gap.
This is an urgent issue, and there are both legislative and programmatic measures that can be taken to mitigate the negative impact of heir property on families facing this problem today.
Significant legislative reforms could make it easier to navigate heirs’ property. New York State, for example, after becoming one of now 26 states to adopt the Uniform Asset Distribution of Heirs Actover last year two new law reforms in the field of heirs’ propertyincluding one that created a new estate planning tool and one that allowed heirs to more easily deter investors from initiating a distribution action, ultimately helping vulnerable families avoid displacement.
Successful programmatic initiatives that provide regional community support can also mitigate the damaging effects of heirs’ assets. NCST this year piloted their Heirs’ Property Partnership (HPP), a national program designed to bridge the gap between the legal sector that has traditionally championed heirs’ property awareness and local community development organizations that need greater capacity to create impactful and locally resonant solutions.
NCST’s HPP program is a year-long, transformative initiative that provides community development professionals with education, financing and strategic guidance to develop meaningful local interventions to address heir property issues. The initiative supports participants through sessions with subject matter expert presentations, lectures and exercises, and opportunities to expand their network of like-minded professionals.
This year’s pilot program has launched in three cities heavily influenced by heirs’ assets: Baltimore, Atlanta and Birmingham. Participants work to launch catalytic projects in their respective communities with funding from the program. The success of this regional engagement has been so comprehensive that the HPP will expand to eight cities by 2026.
Building capacity within community development organizations and equipping leaders with the knowledge and tools they need is critical to ensuring that individual regions are able to drive lasting change that prevents further land loss for families in their housing markets.
While the long history of land loss for Black communities cannot be erased overnight, through tailored legal assistance, policy advocacy, and direct community outreach, we can begin to turn the tide. Now is the time to restore land equity and help preserve the stability, prosperity and potential of the families and communities most at risk.
Christopher J. Tyson is the President of the National Community Stabilization Trust (NCST).
This column does not necessarily reflect the opinion of HousingWire’s editorial staff and its owners. To contact the editor responsible for this piece: [email protected].
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