WE’RE WORKING TO END HOUSING DISCRIMINATION
Those of us working in the affordable housing industry are faced every day with the harsh reality that our society has not historically provided an even playing field to all who wish to dwell in it. Undoubtedly, there are many heroes throughout history who struggled to attain more equitable laws and policies, yet several unjust vestiges remain. Racial inequity in housing is one of those points.
Great Depression and World War II-era policies blocked Black Americans and other people of color from accessing the financing and programs that made homeownership possible for so many White families after World War II.
When Congress and President Franklin D. Roosevelt created the Federal Housing Administration in 1934, guidelines explicitly discouraged racial integration in neighborhoods. An FHA underwriting manual from 1935 states, “A change in social or racial occupancy generally contributes to instability and a decline in values.” In fact, only 2 percent of all FHA loans given between 1934 and 1962 were to non-White people.
Some World War II veterans benefited from the G.I. Bill, which helped them readjust to civilian life through low-interest housing and educational loans. However, more than a million Black veterans were denied assistance due to the program’s inherently racist policies. This left them out of the post-war housing boom that became a foundation for intergenerational wealth for many White American families.
Homeownership is proven to create economic stability and many other benefits such as improved educational and health outcomes.
Our society would be a stronger, more thriving place if we could find a way to promote homeownership for all of our neighbors. But addressing this issue requires a comprehensive approach that involves partnerships between multiple stakeholders, including governments, nonprofit and community organizations, and private sector actors.
Solving racial housing inequity is a complex and multifaceted problem — far too much for any one organization or entity to solve on its own. Governments may have the power to create and enforce fair housing laws, but they can lack the resources, knowledge or community connections to effectively implement them. Nonprofit and community organizations may have valuable expertise and connections in local communities, but they also may not have the funding or political power to enact systemic change. By working together, all of us can leverage strengths and resources to achieve more significant and sustainable results.
In 2021, LISC San Diego joined Urban League of San Diego County and San Diego Foundation to launch the San Diego Black Homebuyers program with a goal of reducing the racial wealth gap in San Diego by investing in generational wealthbuilding opportunities through homeownership by Black families and other families of color. The program provides mortgage financing and at least $49,000 in grants for qualifying homebuyers, including $40,000 provided by San Diego Foundation and $9,000 from the participating lender, which can be leveraged for matching grants through other sources.
The program was funded through an initial pledge of $1 million by the San Diego Foundation’s Black Community Investment Fund, a program directed by Pamela Gray Payton, vice president and chief impact and partnerships officer at San Diego Foundation. Under her leadership, the San Diego Foundation’s Black Community Investment
Solving racial housing inequity is a multifaceted problem.
Fund — which is the first program of its kind in California — has funded more than $4 million in grants to support initiatives in education, employment, entrepreneurship and homeownership.
LISC San Diego is the administrator of the funds, and provided an additional $250,000 contribution.
The Urban League of San Diego County provides its Department of Housing and Urban Development certified homeownership counseling services for homebuyers before and after the purchase, and leads outreach efforts.
San Diego Habitat for Humanity is one of the partner recipients of the San Diego Black Homebuyers program, assisting one Black family and four other families of color in 2022 in collaboration with the program partners. In its two years of existence, the San Diego Black Homebuyers program has helped make homeownership a reality for 40 homebuyers in San Diego County.
Partnerships are essential in solving racial housing inequity because they bring together the varied strengths, resources and expertise of multiple stakeholders to create comprehensive solutions that address the underlying systemic issues.
By working together, organizations can achieve more significant and sustainable results than they could on their own and create real change in the lives of those affected by racial housing discrimination, as evidenced by the partnerships we have forged with San Diego Foundation.
Reed is president and CEO of San Diego Habitat for Humanity and lives in Oak Park. Flores is the executive director of Local Initiatives Support Corporation and lives in Kensington.
Abdallah is president and CEO of the Urban League of San Diego County and lives in Chula Vista.