From Redlining to Better Homes: The Better Homes of South Bend Housing Cooperative

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Transcript for From Redlining to Better Homes

[Birds Chirping, Neighborhood Sounds]

Beckley: Dr. Bernard Vagner and his wife Audrey moved to South Bend, Indiana in January, 1949. The young couple had decided to lease some rooms in a house while familiarizing themselves with their new city. But by that summer, it was time to start looking for a place of their own. After being shown several properties that left much to be desired, they decided that perhaps building their own home would be a better option. And they were in luck – there were two lots available on the corner of Campeau Street in a nice neighborhood. According to the Vagner’s attorney, the landowner was very anxious to sell. And she must have been for when the couple arrived to look at the land, she showed up with the deeds in-hand, apparently ready to make a deal that very day.

That is, until she saw the couple. As soon as she laid eyes on the pair, she started making excuses – “the neighbors might not like it.” “My husband wouldn’t approve.” And so on. What she hadn’t realized until that moment was that the Vagner’s were African American. And in the US in 1949, that meant that many neighborhoods were closed to them, whether they had the money to buy a home there or not.

The Vagner’s weren’t able to purchase a home that year. In fact, it took them until June of 1955 to find a house – that’s nearly 6 years of searching…just to find someone willing to sell them property. At this same time, similar experiences drove 22 families also in South Bend, to come together to confront this racist exclusion and build a community for themselves – a community called Better Homes of South Bend. In this episode, we’ll explain and examine the role redlining has played in our state’s history and tell the story of Better Homes of South Bend, which was created for the precise purpose of defeating redlining.

I’m Lindsey Beckley and this is Talking Hoosier History

Newsreel: I was just one of the New Deal’s idealistic programs that changed the face of the nation.

Beckley: On August 1, 1933 seventeen thousand people stood in line in front of the newly opened Home Owners Loan Corporation office in Chicago. The Home Owners Loan Corporation, or HOLC, was a newly formed government-sponsored organization – part the New Deal – formed to address the ongoing foreclosure crisis in America. To do this, HOLC was offering long-term, low interest rate home mortgage loans for both refinancing existing mortgages and financing new home purchases.

Newsreel: Home ownership is the basis of a happy, contented family life. And now, through the use of the national housing act ensured mortgage, it’s brought within the reach of all citizens on a monthly payment plan no greater than rent.

Beckley: This meant that many Americans, for the first time in their lives, had the opportunity to own their own home, rather than renting. Many white Americans, that is.

[Music]

Beckley: In the 3 decades after the establishment of HOLC, just 2 percent of all loans went to non-white families. Various methods were employed to exclude minorities from receiving home loans, but among the most effective and infamous were the Residential Security Maps. These maps, kept secret and only discovered by historians in the 1980s, are considered the basis for the widespread, systematic denial of housing loans for Black Americans, known as redlining, a term referring to officials drawing red lines around specific neighborhoods.

HOLC began research for the maps in the mid-1930s. Working with local realtors and banks, the organization painstakingly divided 239 American cities, including what were then the 7 largest cities in Indiana – Indianapolis, Fort Wayne, Gary, Muncie, Terre Haute, Evansville, and South Bend –  into neighborhoods, assigning each neighborhood a grade of “A” through “D.” “A” being what they considered to be the best, and “D” the worst – kind of like school. Each grade corresponded with a color on the security map – green for “A,” blue for “B,” yellow for “C,” and red for “D.”

Many features of a neighborhood were considered when assigning these grades. Building type and age, proximity to shopping and business districts, sales histories…and “infiltration of inharmonious racial groups.” The Underwriting Manual, which served as a comprehensive guide to those deciding who was to receive HOLC loans stated that:

Voice actor reading from HOLC handbook:  “If a neighborhood is to retain stability it is necessary that properties shall continue to be occupied by the same social and racial classes. A change in social or racial occupancy generally leads to instability and a reduction in [home] values.”

Beckley: If the valuator judged an area to even be in danger of “infiltration,” they were instructed to downgrade the rating of the whole neighborhood. And those ratings were incredibly important. White families seeking a mortgage in a green or blue area were nearly always approved. In yellow areas, the chances of approval dropped dramatically. And if were looking to purchase a property in a red area, their chances were slim to none. For Black families, the possibility of obtaining a mortgage in any area was close to zero.

If you’re Black, you can only live in specific all black neighborhoods. Banks won’t approve mortgages for any homes in that area due to redlining. But you can’t get a loan for a house in other neighborhoods because you’re Black. Ta-Nehisi Coates quotes Melvin Oliver and Thomas Shapiro’s books Black Wealth / White Wealth on this topic:

Voice Actor:  “African Americans who desired and were able to afford home ownership found themselves consigned to central-city communities where their investments were affected by the “self-fulfilling prophecies” of the FHA appraisers: cut off from sources of new investment[,] their homes and communities deteriorated and lost value in comparison to those homes and communities that FHA appraisers deemed desirable.”

Beckley: Making it even more difficult for minority families to purchase property, many neighborhoods had what were called racially restrictive covenants. These covenants were written into the deed for the property, and they could be very specific about who could and could not purchase the home in the future.

Voice Actor: “No person other than one of the Caucasian race shall reside on any of said described premises excepting that a domestic servant in the actual employ of an occupant may reside in the home of his master.”

“Said tract shall not be sold, leased, or rented to any person or persons other than of white race nor shall any person or persons other than of white race use or occupy said tract.”

Beckley:  Both of those are examples of real covenants in deeds from the 1930s and 40s in Seattle, Washington. Similar covenants existed across America.

[Music]

Beckley: Together, redlining and racially restrictive covenants all but excluded minority families from participating in the American dream. The dream owning a home that could be passed down through the generations. This has had long term effects – access to home mortgage loans is an underpinning of wealth building in America, meaning that these practices hindered the upward mobility of all Black Americans. In fact, Mapping Inequality states that:

Voice Actor:  “More than a half-century of research has shown housing to be for the twentieth century what slavery was to the antebellum period, namely the broad foundation of both American prosperity and racial inequality.”

Beckley: In the early 1950s in South Bend, Indiana, 23 families challenged this inequality with bravery and ingenuity.

Most of South Bend’s African American population had arrived during the Great Migration, a period from around 1916 to 1970 when many Black Americans moved from the rural south to northern cities to fill the need for industrial workers during the first and second world wars.

Newsreel: America is many things to many people.

Beckley: Before this time, very few Black families lived in South Bend.

Newsreel: It’s all races, creeds, and religions.

Beckley: Those few families of color who did live in the city lived alongside their white neighbors, without much segregation.

Newsreel: Freedom to own property.

Beckley: As the black population began to rise, though, this changed dramatically.

By the time the families we’ll be following for this episode were living and working in South Bend, Jim Crowism, a term used to describe the racist attitudes, policies and laws from the late 1800s to the 1960s, was a strong force in cities throughout America, including South Bend. In Better Homes of South Bend, author Gabrielle Robinson writes of the Black citizens of her city:

Voice actor reading from Better Homes of South Bend: “They met Jim Crow at every step; whether they were at work… or at home…whether they were shopping and served only after white customers had been helped or could enter city hotels and restaurants only as bellboys and waiters.”

Beckley: Decades of redlining had forced the majority of South Bend’s Black population into rentals in the area surrounding the Studebaker plant, which was also one of the main employers of African Americans in South Bend. In two developments just one block from the immense, smoking factory – Maggie’s Court and Horse’s Alley – 54 families were crowded together in 44 small rental houses.

[Music]

Beckley: Those who didn’t live in that most densely populated areas often rented nearby federal defense homes.

These homes had been built to accommodate the rapidly expanding African American population during World War II and were prefabricated homes supplied, as their name suggests, by the federal government. These were meant to be temporary structures, constructed quickly and to be torn down after the war. That had never happened due to the continued lack of housing for African Americans in South Bend and the refusal of white residents to allow desegregation.

[Music]

Beckley: Even if white residents were willing to sell their homes to a Black family, they would have been hard pressed to find a realtor willing to help navigate the process. Up until 1950, the official code of ethics of the National Association of Real Estate Brokers stated,

Voice actor reading from Code of Ethics: “A realtor should never be instrumental in introducing into a neighborhood a character of property or occupancy, members of any race or nationality, or any individual whose presence would clearly be detrimental to property values in the neighborhood.”

Beckley: After 1950, this portion of the code was amended to remove “race or nationality,” but that didn’t lead to any change in their practices – redlining, racially restrictive covenants, and general racism worked together to keep the Black families of South Bend from owning land in large swaths of the city.

It was in this context that several families gathered after church on Sunday, May 21, 1950 to take matters into their own hands. Their plan was to form a housing cooperative. Through this co-op, which they named Better Homes of South Bend, the families hoped to achieve what few had done before – own their own homes, outside of the industrial slums they had been relegated to for their whole lives. The idea was for them to pool their money and resources to purchase several undeveloped lots. The co-op would obtain a mortgage loan to start the construction and then each individual family would, with the co-ops help, obtain their own mortgage to finish construction.

By and large, the people of Better Homes were just like the vast majority of the Black residents in South Bend. Many had moved to the north seeking employment and better opportunities for their families. Almost all of the men worked at the Studebaker plant in one position or another. And they had all struggled to find adequate housing for their families.

Now, I’m going to get into the actual nuts and bolts of how the Better Homes of South Bend hoped to achieve their goals – bear with me, I promise the payoff is worth it.

[Music]

Beckley: Like any new organization, the members of Better Homes of South Bend started by electing officers, hiring a lawyer, and drawing up incorporation papers. Their lawyer, noted African American civil rights advocate J. Chester Allen, advised the group that forming a corporation gave them the best chance of success. So, that’s what they planned to do. He also estimated that the group would need at least $2,000 for startup money. This money came from the founding families themselves, who would pay an initial amount of $100 to secure their spot and another $300 payment as soon as they were able to. Considering one Studebaker worker reported his income as $72 per week, these sums were nothing to be scoffed at.

After the initial meeting, things moved quickly for a time. Less than a month later, they were able to successfully place an option on 26 undeveloped lots on North Elmer Street. Leroy Cobb, the youngest member of the Better Homes group, recalls the first time he saw the Elmer Street site over 60 years later. He and a friend took a bus to the area and, after getting lost, he finally set eyes on the empty street that would become his neighborhood. Little did he know that acquiring the land would be the easiest part of the process.

Every step after that was slowed by bureaucratic red tape, discriminatory practices, and the normal problems that can creep up when taking on a project of this size.

Since these were totally undeveloped lots, one of the first hurdles was getting the city to install sewage and water lines, a task that took years to complete. The next, more obvious task was to hire a contractor, but the local contracting companies were notorious for using sub-par materials for homes being built for African Americans. When they finally found what they thought was a suitable contractor, he delayed and made excuses and changed prices so often that it was hard to attribute it just to bad business practices. And later, once the families moved in, the discrimination continued. One Better Homes resident recalled that the local little league changed the borders of the district to stop just a few blocks before Elmer Street, apparently to exclude Black children.

However, there were reasons for celebration alongside the frustrations. Milestones that were scattered throughout that same time included divvying up the lots, hiring contractors, and obtaining mortgages. That last one was especially important since local banks were well known for denying black families mortgages, especially in non-black neighborhoods. Leroy Cobb recalled the meeting with the bank executives:

Voice actor: “Here I am, just a bit over twenty years old, sitting in one of those fancy board rooms and facing all these white men in their suits.”

Beckley: DeHart Hubbard was an African American man and the race relations adviser for the Federal Housing Authority. Leroy Cobbs recalled Hubbard helping the group navigate the mortgage process, saying:

“What I was really proud of was that here was a black man standing up to white executives and telling them that Better Homes wants to have a fair shake. That inspired me.”

Beckley: And really, the whole experience must have been inspiring. The process, though long and sometimes demoralizing, was ultimately successful.

[music]

Beckley: All told, 22 homes were built through the Better Homes of South Bend Co-op. The first family was able to move into their home sometime in 1952, but it wasn’t until 1954 that all Better Homes members were listed in their Elmer Street residences in city directories.

[Music. Bird song]

Beckley: Just think about what that meant to those families. They were able to obtain what had seemed unobtainable – a piece of the American dream. The families celebrated their accomplishments with a community picnic in the summer of 1954, and let me tell you, looking at the group photo from that picnic is something special. A group of well dressed, smiling people, kids fidgeting, eyes squinted in the bright light of a beautiful summer afternoon, posing with the roofs of the homes they had worked so long to secure visible in the background. It’s beautiful. And it’s lasting.

That picnic wasn’t the only community celebration in the years to come. Picnics were held every summer. There were neighborhood parades, where a King and Queen were crowned. The children grew up together – they were the only African American students to attend the nearby Marquette Elementary School, just as their families were the only African American families to live in that area of the city. The success of Better Homes went beyond the immediate reality of living in a new neighborhood though.

Home ownership is a foundation of generational wealth and security in America. The Better Homes families built more than just houses in that empty space – they built a community and, even more than that, they built a legacy. When Better Homes of South Bend author Gabrielle Robinson spoke to the children of the members of the organization, she discovered the true importance of the project. Beyond breaking color barriers or defying racism, the members created a safe, happy place for their children to grow up and those children reflected fondly on their childhoods on Elmer Street.

Voice actor: “It was a wonderful neighborhood to grow up in.”

“We had hedges between our homes, and flowers in the yard. On Saturdays you could hear the lawnmowers in the yards.”

“We were proud of where we lived.”

“You couldn’t get away with anything…On Elmer Street, I had many dads.”

Beckley: These children went on to become lawyers, teachers, principals, nurses, and more. At a time when 70-75% of African Americans in the nation graduated high school, 100% of the Better Homes children graduated and 13 went on to graduate from college. And today, some of them can still be found right there on Elmer street, living in the same one story homes with flowers in the yards and hedges on the fence line that their parents built all those years ago.

The Better Homes of South Bend Co-op was a success. It afforded those families the opportunity to live in a nice area. The children of Better Homes members integrated their schools and went on to successful professional careers. And some other families were even able to move into the same area after the Better Homes blazed the path for them. Unfortunately, this success did not spread far from those few blocks on Elmer Street.

Redlining and other exclusionary practices have left a lasting effect on South Bend. Today, 83% of families living in areas that received “D” ratings on the 1937 Security Maps fall in the low to moderate income bracket while 95% of families living in areas that received “A” ratings earn mid to upper incomes. Simply put, neighborhoods that were redlined in 1937 are economically depressed today. The same holds true for the vast majority of cities where Security Maps were developed.

In those instances where a formerly “D” rated area now contains a high number of mid to upper income earners, it is by and large the result of gentrification, which comes with its own set of problems. When an area is gentrified, the people who have lived in the area for generations – often minorities – are forced out by inflated property taxes and higher living costs. This leads to the question posed by National Community Reinvestment Coalition researcher Bruce Mitchell:

Voice actor:  “Is Gentrification promoting sustainable desegregation? Or is it just a movement towards increased segregation in the next census period?”

Beckley: If gentrification is a movement towards increased segregation, it’s likely join the likes of slavery and redlining in history books as the basis for widespread wealth building for white Americans and widespread inequality for Black Americans.

However, redlining is effecting our communities in more direct ways than its relationship with gentrification. In fact, just this year, in June of 2019, First Merchants, an Indiana based bank, settled a redlining lawsuit brought against them by the Department of Justice. Although it settled out of court, the case was strong and made it more evident than ever that redlining is more than just a footnote in history – it’s an ongoing injustice in American cities.

[Theme music]

Beckley: Once again, I’m Lindsey Beckley and this has been Talking Hoosier History. Talking Hoosier History is a product of the Indiana Historical Bureau, a division of the Indiana State Library. My main secondary source for the information on Better Homes of South Bend in this episode came from Gabrielle Robinson’s Better Homes of South Bend: An American Story of Courage. If you would like to see all of my sources, visit blog.history.in.gov and click “Talking Hoosier History” at the top to see a full transcript and show notes. Talking Hoosier History is written by me, Lindsey Beckley. Production and sound engineering by Jill Weiss Simins. We’d like to thank Brenna young, Carrie Reiburg, Alleah Varnett of Shortridge High School, Sam Smith of Butler University, and Justin Clark of the Indiana Historical Bureau for lending their voices to the podcast. Find us on twitter and Facebook as the Indiana Historical Bureau. And please, take a moment to like, rate, and review us wherever you get your podcasts. As always, thanks for listening.

Redlining Show Notes

Jackson, Kenneth, Crabgrass Frontier: The Suburbanization of the United States, New York: Oxford University Press, 1985.

Lipsitz, George, The Possessive Investment in Whiteness: How White People Profit From Identity Politics, Philadelphia: Temple University Press, 2006.

Robinson, Gabrielle, Better Homes of South Bend: An American Story of Courage, Charleson: The History Press, 2015.

Tindall, George and David Shi, America: A Narrative History, New York: W.W. Norton and Company, 2013.

Underwriting Manual: Underwriting and Valuation Procedure Under Title II of the National Housing Act, Washington D.C.: Federal Housing Administration, 1936 accessed Hathai Trust: https://babel.hathitrust.org/cgi/pt?id=mdp.39015018409246&view=1up&seq=5

Newspapers

                “Thousands Ask U.S. Home Loans on First Day,” Chicago Tribune, August 2, 1933, p.9.

Articles

                Mitchell, Bruce and Juan Franco, HOLC “Redlining” Maps: The Persistent Structure of Segregation and Economic Inequality, National Community Reinvestment Coalition, 2018, Accessed: https://ncrc.org/wp-content/uploads/dlm_uploads/2018/02/NCRC-Research-HOLC-10.pdf.

Welsh, Nancy, “Racially Restrictive Covenants in the United States: A Call to Action,” Agora Journal of Urban Planning and Design, 2018, Accessed: https://deepblue.lib.umich.edu/bitstream/handle/2027.42/143831/A_12%20Racially%20Restrictive%20Covenants%20in%20the%20US.pdf?sequence=1&isAllowed=y.

Websites

                Mapping Inequality: Redlining in New Deal America: https://dsl.richmond.edu/panorama/redlining/#loc=5/36.721/-96.943&opacity=0.8&text=intro

                Racial Restrictive Covenants: Neighborhood by Neighborhood Restrictions Across King County, “The Seattle Civil Rights & Labor History Project:” https://depts.washington.edu/civilr/covenants.htm

“T-RACES: a Testbed for the Redlining Archives of California’s Exclusionary Spaces”
R. Marciano, D. Goldberg, C. Hou: http://salt.umd.edu/T-RACES/

https://www.educationnext.org/graduations-on-the-rise/

https://www.indiana-demographics.com/south-bend-demographics

Other

The Indiana Historical Bureau. “Better Homes of South Bend” Historical marker file.

 

“Better Homes wants to have a fair shake:” Fighting Housing Discrimination in Postwar South Bend

Better Homes of South Bend Neighborhood in South Bend, Indiana. Photo by Peter Rigenberg, accessed Better Homes of South Bend by Gabrielle Robinson, 121.

On May 21, 1950, a group of African American Studebaker workers and their wives formed a building cooperative in South Bend, Indiana called “Better Homes of South Bend.” Like other building cooperatives, the group appointed officers and a lawyer, drew up incorporation papers, and set times for regular meetings. Unlike other organizations, members decided their cooperative’s activities had to be kept secret to succeed. The cooperative’s first meeting minutes even stressed “no information is to be given out.”

1928 aerial view of Studebaker plant in South Bend, accessed Michiana Memory.

Better Homes of South Bend members had good reason to be cautious. Discrimination in the local housing market had long limited African Americans to dwellings in the southwest part of South Bend, near the Studebaker Factory. Many members were part of the Great Migration of millions of African Americans from the South to the North for war industry jobs in the 1940s. Many had hoped to escape segregation and Jim Crow policies.

However, those with sufficient finances to make down payments found virtually no homes available to them and no banks willing to loan them money. Many of the city’s landlords would not rent to black residents. Real estate agents refused to show black home buyers houses in all-white neighborhoods and developments. White homeowners who tried to sell to black buyers risked physical threats and vandalism. Historian Emma Lou Thornbrough notes that the housing situation in South Bend was so dire for African Americans in the 1940s that many black families were forced to crowd into one or two bedroom units in substandard buildings.

Transcript from a public hearing in South Bend that exposed examples of discrimination in the local housing market from the late 1940s through the early 1960s. March 19, 1963, accessed Michiana Memory.

Alan Pinado, one of the only black real estate agents in South Bend in the postwar era, noted in an oral history of the Civil Rights Heritage Center that:

There were no first quality homes being built for middle class, middle income blacks in South Bend . . . The federal government was part and parcel of the segregated housing pattern. It was legally mandated that new communities be kept segregated.

Federal housing and real estate policy strengthened prejudice in the housing market, not just in South Bend, but nationwide. The federal government first became heavily involved in the housing market in the 1930s. After the 1929 stock market crash and the ensuing Great Depression, the feds created several new agencies, like the Home Owners Loan Corporation (HOLC), the Federal Home Loan Bank (FHLB), and the Federal Housing Administration (FHA), to try to stem the collapse of regional housing markets and bolster the failing economy.

Federal Housing Administration brochure, ca. 1935, accessed columbia.edu.

Before the federal government stepped in, few became home owners. Banks spread mortgages only over three to five years. These mortgages required large payments that few could afford, especially during the Great Depression. In the 1930s, the government introduced the long-term, low-interest, self-amortizing mortgages most homeowners are familiar with today. Since these mortgages required smaller payments, home ownership became more economically feasible. Additionally, the federal government insured these loans through the FHA, making them an incredibly low risk for banks.

The government developed appraisal schemes to determine eligibility for these new loans. They adopted guidelines real estate associations had developed in the 1910s and 1920s to keep neighborhoods segregated. These associations erroneously decreed that the introduction of a non-white family into an all-white neighborhood would decrease surrounding property values. This policy kept many African Americans in poor neighborhoods, despite their income. For example, HOLC created survey maps of neighborhoods in 239 cities that color coded risk. Neighborhoods were coded into four groups, A-D. Only the best rated neighborhoods, marked A and B, would receive long-term loans. One criteria to receive an A or B rating included that the home in question sat in an all-white neighborhood.

HOLC security map for South Bend, Indiana. Accessed Mapping Inequality.

Similarly, the FHA Underwriting Manual, written in 1936, told appraisers to investigate areas surrounding a house for sale to “determine whether or not incompatible racial and social groups are present” because “if a neighborhood is to retain stability it is necessary that properties shall continue to be occupied by the same social and racial classes.” The manual further encouraged the use of local zoning and deed restrictions, like racially restrictive covenants that prevented potential black buyers from purchasing a home from a white homeowner.

The JD Shelly family fought to live in this house in St. Louis, after a neighbor sued to enforce racially restrictive covenants. The Supreme Court ruled in favor of the Shelly family. Accessed nps.gov.

By the time Better Homes of South Bend was established, the FHA insured 1 in 3 mortgages for new construction. However, the appraisal practices described above became standard practice and permeated the entire housing market. Though the Supreme Court ruled these practices unconstitutional in Shelly v. Kraemer in 1948, FHA did not stop publicly endorsing such actions until 1950 and prejudice in the housing market continued well after. Even in 1961, the United States Commission on Civil Rights admitted that housing still:

seems to be the one commodity in the American market that is not freely available on equal terms to everyone who can afford to pay.

Better Homes of South Bend members formed their building cooperative to combat this prejudiced housing market in 1950. According to scholar Jessica Gordon Nembhard, African Americans have established co-ops since the Civil War help fight economic racism. Cooperatives, or “companies owned by people who use their services,” work by pooling resources to satisfy an economic need created by a marketplace failure.

Advertisement for M.W. Jones’s African American apartment co-op in Indianapolis. Indianapolis Recorder, November 11, 1950, 14, accessed Hoosier State Chronicles.

The first large African American housing co-operatives began in Harlem in the late 1920s. Many early African American co-ops in Indiana were markets or grocery stores, formed in the 1930s or 1940s. Better Homes of South Bend was likely one of the first successful African American building co-ops in the state. Only one other similar co-op, an apartment co-op in Indianapolis started by M.W. Jones in 1950, described in the Indianapolis Recorder as the “first Negro co-op Apartments in the city and the State,” is known to have existed.

Better Homes of South Bend had many of their meetings at the Hering House, an African American civic center in South Bend. Accessed Michiana Memory.

At the first meeting, Better Homes members elected officers to run the group: Lureatha Allen as President, Earl Thompson as Vice President, Louise Taylor as secretary, Ruby Paige as assistant secretary, and Bland Jackson as treasurer. Eventually, twenty-two couples joined the group. Many members were neighbors along Prairie Avenue or Western Avenue. Eighteen of the twenty-two male members worked at Studebaker. Most of the women stayed home to take care of children. Since many of the women had more flexible schedules than their husbands, they often took on leadership roles in the cooperative.

Better Homes of South Bend lawyer J. Chester Allen, accessed Indiana Legal Archive

After incorporating, Better Homes members had to find land to build their homes. Their lawyer, J. Chester Allen, secured twenty-six lots on the northwest edge of the city on the 1700 and 1800 blocks of North Elmer Street from his acquaintance, George Sands, a prominent white lawyer in South Bend. Only a few families, all white, lived in this relatively undeveloped area. US Census and Housing Data, which divides South Bend into six wards containing roughly five to six thousand households. The data indicates that only seven “non-white” households lived in the ward containing 1700-1800 North Elmer Street in 1950. In contrast, all Better Homes of South Bend members lived in Ward 2 or Ward 6 at the time, both of which contained 530 and 835 non-white households, respectively.

DeHart Hubbard, accessed University of Michigan.

At a general meeting in September 1950, members enjoyed divvying up the lots and receiving their house numbers. The next steps involved getting loans to finance construction and a contractor to build homes on the lots. Better Homes enlisted the help of DeHart Hubbard, who worked as a race relations advisor at the FHA office in Cleveland. The FHA had finally started cracking down on racially restrictive covenants in their mortgages, after years of pressure from civil rights groups.

Through Hubbard, Better Homes got the FHA to handle their permanent mortgages and found four local banks to handle financing. Many members worried about meeting with local bank executives because they had heard bankers often denied home loans to African Americans, especially those who wanted to build outside black neighborhoods. Hubbard accompanied members to meetings with banking executives to remind the bankers that the federal government was insuring Better Homes’ loans and that members had good credit, therefore there was no reason to deny financing. In Better Homes of South Bend, member Leroy Cobb told author Gabrielle Robinson:

What I was really proud of was that here was a black man standing up to white executives and telling them that Better Homes wants to have a fair shake. It inspired me.

Leroy Cobb, a few years before joining Better Homes of South Bend, 1946, accessed Michiana Memory.

Better Homes also had to find a competent contractor. Member Margaret Cobb noted in an oral history for the Civil Rights Heritage Center at Indiana University South Bend, that contractors they met with “wanted to give us substandard materials,” to build their homes because members were black. Construction companies at the time often employed a double standard in building, using higher quality materials on homes for white homeowners and cheaper stock for similar African American homes. Leroy Cobb remembered in Better Homes of South Bend that one prospective contractor refused to put doors on closets in their homes. After two years, Better Homes finally found two contractors that supplied good plans at reasonable prices. All the houses were to be one-story frame construction on a concrete slab. Most floor plans contained five rooms and one bathroom.

Before construction could start, the city had to install sewer and water lines. Though the postwar building boom strained the city’s resources, negotiations between the city and Better Homes attorney J. Chester Allen stretched over years. Members suspect that the process might have taken so long because of an unwillingness for the Better Homes families to move to North Elmer Street.  After two years of letters and petitions, the group finally got sewers installed and construction began.

1700 block of North Elmer Street in 2015, the former homes of members Earl and Viro Thompson, Gus and Josie Watkins, and Bland and Rosa Jackson. Photo by Peter Rigenberg, accessed Better Homes of South Bend by Gabrielle Robinson, 86.

In the late fall of 1952, the first family, Bland and Rosa Jackson, moved into their home at 1706 North Elmer Street. By the mid-1950s, all twenty-two families had moved in between 1700 and 1841 North Elmer Street. Leroy and Margaret Cobb moved in on November 1, 1953 to 1702 North Elmer Street. Leroy Cobb told Gabrielle Robinson that on move-in day, “I was elated.” Finally, he and Margaret had enough space for their family.

Baton twirlers in the annual Elmer Street Parade, August 1962. Photo courtesy Vicki Belcher and Brenda Wright, accessed Better Homes of South Bend, 97.

In August 1954, the group celebrated their new neighborhood with a picnic featuring cakes, pies, potato salad and barbecued chicken and ribs. Over the years, Better Homes members grew a vibrant community, filled with family cookouts and outdoor activities like baseball, kickball, and building snowmen. There was even an annual Elmer Street Parade.

The Indiana Historical Bureau will honor Better Homes of South Bend with a new state historical marker.  The marker will be revealed at a ceremony open to the public July 1, 2017 at 1702 North Elmer Street in South Bend. Check on our Facebook page and website for upcoming details.

Better Homes of South Bend members at their celebratory picnic in August 1954. Photo courtesy Leroy Cobb, accessed Better Homes of South Bend, 91.