Creating more pathways to inclusive affordable housing and closing the racial wealth gap should prioritize removing systemic barriers. For this to happen, it must be approached from multiple angles and be anchored through collaboration between business, government and community leaders.
Buy-in from community leaders and the public sector is the first step. Heads of government will need to consider policy reforms that increase funding for rent assistance and housing vouchers. The Federal Housing Administration will need to modernize its rules for granting and servicing home loans.
Currently, no state in the United States has an adequate supply of affordable housing. To address this shortage, the private sector should invest more in affordable housing and community development projects and financial institutions should support these efforts by committing to lending to housing and improving access to sustainable mortgages for black and Latin borrowers.
“It has to be a collaborative effort. Government investments and public policies stimulate the development of affordable housing, but businesses play an important role in providing conventional business tools to complement development finance, ”said Alice Carr, manager of community development banking services at JPMorgan Chase. “It’s good business to invest in the health of the communities and the people you serve,” Carr said.