Questions Remain About New Affordable Homeownership Program Run by an Atlanta For-Profit

A building cooperative is changing local zoning laws and building small houses known as accessory dwelling units (ADUs) in the suburbs of Chicago. The efforts support economic equity by increasing the supply of housing in a community where housing and rental prices have been on the rise. ADUs also produce smaller carbon footprints, making them a sustainable housing option.

Housing cooperatives were once a successful strategy for creating affordable housing. The method has been traced back to the 19th century in New York City and is now making a comeback. Limited equity cooperatives are owned by multiple people who make a payment for buy-in and create a board that makes collective decisions about the property and how it’s run. Unlike other coops, residents can’t decide to sell and make a large profit which maintains the affordability over time.

Philadelphia Financial Scholars is bringing financial literacy to students and their families as well. Students are taught about credit scores, bank accounts, and budgets, as well as entrepreneurial skills through an experience that could culminate in a $1,000 prize and help starting a business if it wins. Adults are invited to come in on weekends and weeknights to learn the same curriculum. Local companies have financed the program which strives to take the first steps towards bridging the racial wealth gap.

Black banks have been held up by leaders and celebrities in the community as a way to end Black poverty. Previous efforts have been made in the 1960s when Black banks gave loans to community members after being denied home loans from white banks. But those loans lost money when housing values declined as a result of redlining policies that damaged public schools. Black banking therefore was not the answer to ending Black poverty and bridging the gap between white and black wealth. One law professor believes the answer lies in public banking which is funded by tax revenue and acts as a public utility.

Affordable housing in Singapore has resulted in one of the highest rates of home ownership in the world. In 1964 the government embraced a "Home Ownership for the People Scheme" in which it gave lower and middle-income citizens access to affordable home ownership. Subsidized apartments were sold at low prices and were not to be sold for at least five years after which the real estate value had risen significantly. Apartments sold in 2009, for example, gained almost half a million dollars in value by 2020. New subsidized apartments are under construction and 16,000 have already been sold in the past year.

The long-term results of the Gautreaux program, which was intended to reduce poverty, show upward mobility for children of families that were involved in the initiative. The experiment in desegregating neighborhoods led to the relocation of families from public housing projects to suburban neighborhoods which have vital resources like quality education, proximity to jobs, and public safety. Reducing the concentration of poverty from inner cities led to fewer social problems, with the exception of racism faced by the new Black residents in predominantly white neighborhoods.

A University of Pennsylvania professor's observation of the wealth disparity in West Philadelphia led to the creation of Bridges to Wealth: a program that teaches financial literacy to marginalized communities who have historically been shut out of building wealth. College students in the program teach financial literacy to high school students alongside computer technology and technical skills. Bridges to Wealth has grown to offer personal finance and investing advice to adults as well as young students.

Black families that make less than $140,000 a year can qualify for down payment assistance to purchase a home in Denver. The Deerfield for Black Wealth is attempting to close the racial wealth gap that has remained pervasive due to a lack of generational wealth. Owning real estate creates housing stability as well as an increase in family wealth and opportunity, which leads to economic mobility.

Ontario’s lack of housing supply has inspired the construction of modular housing: repurposed shipping containers that people now call home. Shipping containers can be converted into homes faster than traditional homes can be built. The approach is saving time and is meant to eventually bring down the soaring cost of housing.

Incremental investment is gaining momentum in South Bend as an alternative to big developers. Residents are given the network and knowledge to become micro-developers so that ownership and money stay within the local economy. The project aims to cultivate community and strengthen the local economy.