Authors: Matthew Desmond
Lamar paused to take in the scene. Just the previous winter, he had climbed into an abandoned house, high on crack. When the high wore off, he found he couldn't climb out; his feet had frozen. Lamar kept partying after returning home from the navy. In the mid-1980s, crack hit the streets of Milwaukee, and Lamar started smoking it. He got hooked. His coworkers at Athea knew it because he wouldn't have cigarette money a couple days after payday. Lamar remembered losing his job and apartment. After that, he took Luke and Eddy to shelters and abandoned houses, tearing up the carpet so they could have a blanket at night. Luke and Eddy's mother was around back then, but her addiction eventually consumed her, and she gave up her boys. Lamar ate snow during the days he was trapped in the abandoned house. His feet swelled purple and black with frostbite until they looked like rotten fruit. He was delirious when, on the eighth day, he jumped out of an upper-floor window. He would say God threw him out. When he woke up in the hospital, his legs were gone. Except for two brief relapses, he had not smoked crack since.
“I'm blessed,” Lamar said, looking at Luke and Eddy. The white paint misting from the rollers freckled their black skin. “My boys okay.”
The following month, Sherrena was driving through heavy rain. Traffic sounded like a thousand mop buckets being tossed out the back door. She was headed to a meeting of the Milwaukee Real Estate Investors Networking Group (RING), at the Best Western Hotel by the airport, on the far South Side of the city. Fifty people showed up, including investors, mold assessors, lawyers, and other players in real estate, but the majority of the people in the room were landlords. Men, mostlyâyoung men in ties, many the sons of landlords but taking notes anyway; foot-tapping middle-aged men in leather jackets and boots; older men in caps and flannel shirts with knuckles like tree knots.
6
Sherrena stood out as a woman, and especially as a black woman. Besides her friend Lora, who had moved from Jamaica thirty years ago, Sherrena was the only black person in the room. Almost everyone else was white, with names like Eric, Mark, or Kathy.
A couple of generations ago, a gathering like this would have been virtually unheard-of. Many landlords were part-timers: machinists or preachers or police officers who came to own property almost by accident (through inheritance, say) and saw real estate as a side gig.
7
But the last forty years had witnessed the professionalization of property management. Since 1970, the number of people primarily employed as property managers had more than quadrupled.
8
As more landlords began buying more property and thinking of themselves primarily as landlords (instead of people who happened to own the unit downstairs), professional associations proliferated, and with them support services, accreditations, training materials, and financial instruments. According to the Library of Congress, only three books offering apartment-management advice were published between 1951 and 1975. Between 1976 and 2014, the number rose to 215.
9
Even if most landlords in a given city did not consider themselves “professionals,” housing had become a business.
The evening's speaker was Ken Shields, from the Self Storage Brokers of America. After selling his insurance company, Shields had begun looking for a way to get into real estate. He started out with rooming houses, which meant he started out renting mainly to poor single men. “Very nice cash flow. But I no longer have them.” The room chuckled. “I made some good money, and I mean, I love to get money, but I'm still just as happy not running around and dealing with some of these dregs of society who live in rooming houses.”
10
Sherrena, who owned a couple of rooming houses, laughed along with the room. Then Shields found self-storage. “It's got the residual incomes of an apartment building, but,” he lowered his voice, squinted, “you don't have
the people
. You just got their stuff!â¦This is the sweetest spot in the whole American economy. A receptacle for an enormous cascade of money.”
The landlords loved Ken Shields, even if he did live in Illinois. When he finished his speech, the room broke into applause. The RING president, a mustached man with a full pouch for a stomach, stood up clapping. When there wasn't a speaker, he often organized round robins. One such evening, a woman from Lead and Asbestos Information Center, Inc., had started off by announcing, “There is money to be made on lead,” to a room of landlords who more often lost money trying to abate it. One landlord asked whether he would have to report the presence of asbestos to the city or the tenants if he tested for it. “No, you don't,” the woman had said.
The conversation moved on and someone else had asked about garnishing wages. A lawyer informed the room that a landlord was allowed to garnish a tenant's bank account and up to 20 percent of his or her income, but the last $1,000 was exempt. And welfare recipients were off-limits.
“How about intercepting their tax refund?” Sherrena had asked.
The lawyer looked a bit stunned. “Noooo, only the governor can do that.”
Sherrena already knew that. She had looked into it before. Her question wasn't a question; it was a message to Eric, Mark, Kathy, and everyone else in the room that she would do almost anything to get the rent. Many white landlords knew money could be made in the inner city, where property was cheap, but the thought of collecting payments on the North Side, let alone passing out eviction notices, made them nervous. Sherrena wanted them to know that she could help. For the right price, she would manage their property or consult with them about where to buy in the ghetto; she would be their broker to black Milwaukee. After that meeting, white landlords had surrounded Sherrena, who had worn a denim jacket with
MILLION DOLLAR BABYÂ $
bedazzled in rhinestones on the back. She poked fun as she collected business cards: “Don't be afraid of the North Side!”
As people started to leave, Sherrena and Lora found a quiet spot in the hallway. “I got drama,” Sherrena began. “Drama for your
momma
! Me and Lamar Richards are going at it againâthe man with no legs. He shorted me on my rent this month.”
“How much?” Lora's voice, with soft traces of the island accent, belonged to a librarian. She was older than Sherrena and that night was elegantly dressed in dark slacks, gold earrings, and a layered red blouse. She folded her fur-lined coat on her lap.
“Thirty dollars.” Sherrena shrugged. “But that's not it. It's the principleâ¦.He already owes me two sixty for that bad job for the painting.”
When Lamar and the boys had finished painting, he called Sherrena, and she came over. She noticed that the boys had not filled in the holes; had dripped white paint on the brown trim; had ignored the pantry. Lamar said Quentin had not dropped off hole-filler or brown paint. “You're supposed to go and ask for it, then,” Sherrena snapped back. She refused to credit Lamar a cent toward his debt.
“And then,” Sherrena continued, “he did his bathroom floor over without my knowledge and deducted thirty dollars out of the rent.” When painting, Lamar had found a box of tile in Patrice's old place and had used it to retile his bathroom floor, securing each piece with leftover paint. “I told him, âDo notâdo not
ever
deduct any more rent from me ever again!' Plus, how can you deduct when you
owe
me?”
Lora recrossed her legs. “He's a player, that's all he is. Time for him to goâ¦.They just try to take, take, take, take, take.”
“The thing is”âSherrena circled back to Lamar's painting jobâ“I would have
never
paid anybody two sixty to do that.”
“I can get painting done in five rooms, thirty bucks a room, a hundred and fifty dollars.”
“No, no, no. Our people do it for twenty dollars a room, twenty-five at the most.”
“Exactly.”
“As far as I'm concerned, he still owes the two sixty. Excuse me, now it's two ninety.”
The old friends laughed. It was just what Sherrena needed.
Lenny Lawson stepped out of his trailer park office to burn a Pall Mall. Smoke drifted up past his mustache and light-blue eyes and disappeared above a baseball cap. He looked out over the rows of mobile homes bunched together on a skinny strip of asphalt. Almost all the trailers were lined up in the same direction and set a couple steps apart. The airport was close, and even longtime residents looked up when planes came in low, exposing their underbellies and rattling the windows. Lenny had spent his entire life in this place, all forty-three years of it, and for the past dozen years he had worked as its manager.
Lenny knew the druggies lived mostly on the north side of the trailer park, and the people working double shifts at restaurants or nursing homes lived mostly on the south side. The metal scrappers and can collectors lived near the entrance, and the people with the best jobsâsandblasters, mechanicsâcongregated on the park's snobby side, behind the office, in mobile homes with freshly swept porches and flowerpots. Those on SSI were sprinkled throughout, as were the older folks who “went to bed with the chickens and woke up with the chickens,” as some park residents liked to say. Lenny tried to house the sex offenders near the druggies, but it didn't always work out. He had had to place one near the double shifters. Thankfully, the man never left his trailer or even opened the blinds. Someone delivered food and other necessities to him every week.
College Mobile Home Park sat on the far South Side of the city, on Sixth Street, off College Avenue.
1
It was bordered on one side by overgrown trees, shrubs, and sandpits and, on the other, by a large truck distribution center. It was a fifteen-minute walk to the nearest gas station or fast-food restaurant. There were other trailer parks nearby, surrounded by streets with modest tawny brick homes and sharply pitched roofs. This was the part of Milwaukee where poor white folks lived.
The Menominee River Valley cuts through the middle of the city and functions like its Mason-Dixon Line, dividing the predominantly black North Side from the predominantly white South Side. Milwaukeeans used to joke that the Sixteenth Street Viaduct, which stretches over the valley, was the longest bridge in the world because it connected Africa to Poland. The biggest effort to change that came in 1967, when two hundred demonstrators, almost all of them black, gathered at the north end of the viaduct and began walking to Poland to protest housing discrimination. As the marchers approached the south side of the bridge, they heard the crowd before they saw it. Chants of “Kill! Kill!” and “We want slaves!” rose up above the rock-and-roll music blasted from loudspeakers. Then the crowd appeared, a deep swell of white faces, upwards of 13,000 by some counts. Onlookers hurled bottles, rocks, piss, and spit down on the marchers. The black demonstrators marched; the white mob pulsed and seethedâand then something released, some invisible barrier fell, and the white onlookers lurched forward, crashing down on the marchers. That's when the police fired the tear gas.
The marchers returned the next night, and the night after that. They walked the Sixteenth Street Viaduct for two hundred consecutive nights. The city, then the nation, then the world took notice. Little changed. A 1967
New York Times
editorial declared Milwaukee “America's most segregated city.” A supermajority in both houses had helped President Johnson pass the Civil Rights Act of 1964 and the Voting Rights Act of 1965, but legislators backed by real estate lobbies refused to get behind his open housing law, which would have criminalized housing discrimination. It took Martin Luther King Jr. being murdered on a Memphis balcony, and the riots that ensued, for Congress to include a real open housing measure later that year in the 1968 Civil Rights Act, commonly called the Fair Housing Act.
2
The white, working-class South Side had, since the 1930s, made room for a small number of Hispanic families, whose men had been recruited to work in the tanneries. In the 1970s, the Hispanic population began to grow. Instead of putting up another fight, whites began moving out, pushing farther south and west. Poland became Mexico, a small enclave on the near South Side of the city. The North Side remained black. The East and West Sides of the city, as well as the far South, where Lenny's trailer park sat, belonged to the whites. Open housing law or not, Milwaukee would remain one of the most racially divided cities in the nation.
3
Lenny stamped out his cigarette and ducked back into the office, which was situated in the middle of the trailer park, near its only entrance and exit. It was a cramped and windowless space, paper-cluttered and lit by a naked bulb screwed into the ceiling. The old fax machine, calculator, and computer were covered with grease smudges. In the summer, a wet spot grew on the thin maroon carpet under the leaky air-conditioning unit. In the winter, a space heater buzzed softly on a plastic bucket. Over the years, Lenny had added some flourishes: stag antlers, a Pabst Blue Ribbon plaque, a poster of a flushed pheasant.
“Hey,” Lenny greeted Susie as he took a seat behind his desk.
Susie Dunn was on her feet, as usual, sorting mail into the mailboxes that made up one side of the office. She was not placing letters in their boxes as much as punching them in there, fast and hard. It was her way. When Susie smoked, she sucked the cigarette down, keeping her hand close to her mouth. She couldn't talk without also sweeping or scrubbing or rearranging patio furniture. It was as if she'd fall over, like a toy top, if she stopped spinning. Susie's husband liked to call her the Queen of the Trailer Park. Other people settled for Office Susie, so as not to confuse her with Heroin Susie.
“Here's your unemployment check,” Susie said to a letter. “Now, why don't you pay some rent?â¦If she don't pay her rent, she ain't gonna be living here much longer. She can move back to the South Side or live in the ghetto.”
The office door opened and in walked Mrs. Mytes, barefoot. At seventy-one, she was a taut and un-frail woman with a shock of cotton-white hair, a face crisscrossed with wrinkles, and no teeth.
“Hey, granny,” Lenny said with a smile. He, like everyone else in the park, thought Mrs. Mytes was crazy.
“Guess what I did today? I threw a bill in the garbage can!” Mrs. Mytes looked at him sidelong with her bunched-up face. She had almost yelled the words.
“Hmm. Is that right?” Lenny answered, looking at her.
“I'm no dummy!”
“Hmm, well, I've got some bills for you. You can pay mine.”
“Ha!” Mrs. Mytes said, walking out to start her day pushing a grocery cart and collecting cans. Mrs. Mytes paid the bills with her SSI check. She cashed in the cans to give her mentally challenged adult daughter snack money or, after a nice haul, a trip to Chuck E. Cheese's.
Lenny grinned and went back to his paperwork until the door swung open again. People who got half an ear everywhere else got a full one from Lenny. It was up to him to keep track of rents and maintenance requests, to screen tenants and deliver eviction notices. But it was also up to him to listen to the trailer park, to know itâknow who was current and who was behind, who was pregnant, who was mixing their methadone with Xanax, whose boyfriend had just been released. “Sometimes I'm a shrink,” he liked to say. “Sometimes I'm the village asshole.”
The owner of the trailer park was named Tobin Charney. He lived seventy miles away, in Skokie, Illinois, but visited the trailer park every day except Sunday. He paid Office Susie $5 an hour and reduced her rent to $440. Tobin waived Lenny's rent and paid him a salary of $36,000 a year, in cash. Tobin had a reputation for being flexible and understanding. But no one thought him a pushover. A hard man with squinting eyes and an unsmiling face, he had a gruff, hurried way about him. He was seventy-one, the same age as Mrs. Mytes, and worked out regularly, keeping a gym bag in the trunk of his Cadillac. He was not chummy with his tenants or amused by them; he did not pause to ruffle their children's hair. He did not pretend he was anything he was not. His father had been a landlord and at one point owned almost 600 units. All Tobin desired was one address and 131 trailers.
But in the final week of May 2008, he found himself on the verge of losing them. All five members of Milwaukee's Licenses Committee had refused to renew Tobin's license to operate the trailer park. Alderman Terry Witkowski, a longtime South Sider with a pinkish face and silver hair, was leading the charge. Witkowski pointed to the 70 code violations that Neighborhood Services had documented in the past two years. He brought up the 260 police calls made from the trailer park in the previous year alone. He said the park was a haven for drugs, prostitution, and violence. He observed that an unconnected plumbing system had recently caused raw sewage to bubble up and spread under ten mobile homes. The Licenses Committee now considered the trailer park “an environmental biohazard.”
On June 10, the city council, called the “Common Council” in Milwaukee, would vote. If the Licenses Committee's decision stood, Tobin would be out of a job and his tenants would be out of a home. That's when the newspeople showed up with gelled hair and shoulder-mounted cameras that looked like weapons. They interviewed residents, including some outspoken critics of Tobin.
“The media paints us as ignorant half-breeds,” Mary was saying to Tina outside her trailer.
“They said this was the âshame of the South Side,'â” Tina replied.
Both women had been in the park for years, and both had strong, windblown faces. “My son hasn't slept because of this,” Mary went on. “Neither have I or my husbandâ¦.You know, I work two jobs. I work hard. I mean, I can't afford to go anywhere else.”
Mrs. Mytes walked up and put her face right up next to Tina's. Tina took a step back. “That son of a bitch!” Mrs. Mytes began. “I'm gonna call the alderman, and I'm gonna give him a piece of my mind! That sonâ”
“See, but that won't help,” Tina cut in.
“I'm gonna go, and I'm gonna give that alderman a piece of my mind,” Mrs. Mytes replied. “That little son of a bitch!”
Tina and Mary shook their heads as Mrs. Mytes stomped off. Then Mary turned serious. “And to be told to move to the North Side is not funny,” she said. “It's not funny.” She shook a little and broke eye contact to keep from crying.
That was the heart of it, what trailer park residents feared the most. When Mary and Tina and Mrs. Mytes and the whole trailer park talked about having to leave, what they were talking about was the possibility of having to move into the black ghetto. Office Susie was one of several residents who had previously lived on the North Side, where her adult son had had a gun stuck in his face. “The alderman said this is a ghetto slum,” she vented. “I'll show you a ghetto!” The situation twisted Susie's stomach so much that her son hid her pain pills, fearing she'd swallow a handful.
The trailer park had ten days before the final vote. So tenants hosted a barbecue for the media, began calling local representatives, and started to recite what they would say to the Common Council. Rufus the junk collector, with his trim red beard and distant blue eyes, wrote up his comments and practiced. “And then I'll say, âWho has been behind on their rent, five hundred dollars?' And the hands will go up. And I could keep going: âSeven hundred? A thousand?' And all the hands would go up.” Rufus planned to end his speech by saying, “This is no slumlord. This is not a bad man.”
If his speech didn't work and the trailer park was closed, Rufus was planning to put a reciprocating saw to the trailers and sell the aluminum.
Tobin worked with his tenants. He let them pay here and there. When tenants lost their jobs, he let some of them work off the rent. He would sometimes tell Lenny, “They may be slow paying, but they're good people.” He lent a woman money to attend her mother's funeral. When the police picked up the drunks responsible for cutting grass and collecting litter in the trailer park, Tobin bailed them out of jail.
Tobin's negotiations with tenants were rarely committed to writing, and sometimes tenants remembered things differently from the way Tobin did. A tenant would say she owed $150 and Tobin would say it was $250 or $600. Tobin once forgot that a tenant paid a year's worth of rent in advance after winning a workers' compensation claim. Trailer park residents had a word for this: being “Tobined.” Most chalked this up to old age or forgetfulness, though Tobin was only forgetful in one direction.
It took a certain skill to make a living off the city's poorest trailer park, a certain kind of initiative. Tobin's strategy was simple. He would walk right up to a drug addict or a metal scrapper or a disabled grandmother and say, “I want my money.” He would pound on the door until a tenant answered. It was almost impossible to hide the fact that you were home. It was hard to hide much of anything. Office Susie knew when your check arrived; she put it in your mailbox. And Lenny could plainly see if you had enough money to buy cigarettes or beer or a new bike for your kid but not enough to pay the rent. When a tenant opened the door, Tobin would thrust out his hand and say, “You got something for me?” Sometimes he knocked for several minutes. Sometimes he walked around the trailer, slapping the aluminum siding. Sometimes he asked Lenny or another tenant to rap on the back door while he assailed the front. He called tenants at work, even talking to their supervisors. When caseworkers or ministers would call and say “Please” or “Wait just a minute,” Tobin would reply, “Pay me the rent.”
Tobin was not going to forgive and forget losing hundreds or thousands of dollars or settle for half of what he was owed or price a trailer below market value. When tenants fell behind, he had three options. He could let it slide and watch his income fall, he could begin eviction proceedings, or he could start a conversation.