The lack of affordable housing and access to homeownership remains a key barrier to racial equity. People of color are at the highest risk for eviction, and the impacts of COVID-19 are widening housing instability for these individuals.[1] Additionally, lower income communities of color are less likely to have access to resources (quality local schools, grocery stores, transportation, employment, parks) or a safe environment (e.g., higher proximity to toxic waste, increased pollution and crime). This limits wellbeing, upward mobility and economic opportunity. Homeownership rates are 25 percent lower for Black and Latino families, and as rents continue to rise, Black and Latino households are more likely to be cost burdened than White households. Affordable housing and homeownership are the cornerstone to promoting inclusive, equitable neighborhoods.

While the business community has a role to play in addressing the disparities in affordable housing, the federal government must lead. The federal government is a primary source of funding for housing in the form of mortgage and multifamily finance and subsidy assistance, and it is the primary regulator and enforcer of fair housing and anti-discrimination laws. And while most of the key challenges in housing are local, the federal government has the power, scale and resources to address some of the most significant racial inequities in housing.

To support production and preservation of affordable rental units, including in mixed-income neighborhoods accessible to Black and Latino households, a doubling of federal funding is needed from $14 billion to $28 billion for existing effective affordable housing programs. These programs include the Low-Income Housing Tax Credit, Housing Trust Fund, Emergency Solutions Grants, Community Development Block Grants and HOME for FY21-26 and should add additional incentives in transportation and infrastructure funding for land use and local zoning reform.