Atlanta Neighborhood Development Partnership, Inc. ANDP Impact Study and the Homeownership Gap in Metro Atlanta September 2019
510+ Homes Renovated Since 2009
Previous Research: Impact of our Renovations For every $1 spent on rehab of distressed homes in… Douglas County DeKalb County Values of neighboring Values of neighboring homes were lifted by homes were lifted by $6 for a $14.6 million $16 for a $141 million impact impact
Creating Homeownership & Economic Opportunity Study o of H Homeowner er S Sav avings, Ret Reten ention & & Weal ealth Cr Creat eation
Purchased for $95K, now worth $168K
Key Takeaways Hom omeowners rship bu build ilds WEALTH a and d ST STABILITY • Enhances family & neighborhood outcomes • Lowers student transience • Increased stake in the neighborhood & community engagement • Greater protection against gentrification • Helps restore lost African American wealth and allow for upward mobility • Importance to Metro Atlanta: • High segregation, gentrification and racial disparities • #1 in income inequality, 2 nd to last for upward mobility
Homeownership, Race, and Wealth Divides in Metro Atlanta Wealth % Owner-occupied % Black Source: ARC, 2018
Metro Atlanta: Homeownership Gap: Nationally
Median Family Wealth by Race/Ethnicity, 1963-2016 (Source: Urban Institute, 2017) Closing the homeownership gap is key to closing the wealth gap By as much as 31%, according to Demos and the Institute for Assets and Social Policy (2016)
Closing the Homeownership Gap in Metro ATL & Beyond th at ANDP NDP-led S d Summit, mmit, A August 2 t 28 th at the e Car Carter Cen Center er • > 300 attendees • 22 local and national speakers • 1) Historical Context • 2) Research Presentations www.andpi dpi.or org/c g/cth thg • 3) Barriers Impacting Housing Demand • 4) Addressing the Tight Housing Supply • 5) Policy Response Needed to Increase Black Homeownership
Potential Strategies DEMAND SIDE POLICY INTERVENTIONS • • Engage faith-based institutions and HBCUs Combat discriminatory policies & lending • Empower more blacks to become homeowners practices • • Financial literacy, credit repair, homebuyer counseling Modernize the FHA loan process & credit scoring • Develop new mortgage products to meet the needs of system • millennials saddled with student debt Establish an accountability structure for non- • Expand & educate residents about DPA programs bank financial institutions (i.e. Quicken Loans) • Address potential bias in the appraisal market (where 90% of appraisers are white) SUPPLY SIDE • Protect the Fair Housing Act’s Disparate Impact • Address shortage of construction workers doctrine (currently under threat) • Zoning and regulatory changes • defendcivilrights.org • More affordable & middle missing development • Secure available land/properties, capital, and subsidies HOMEOWNER RETENTION • NMTC, CDFIs, housing finance agencies, community banks, • Post-purchase counseling Funders Collective/HouseATL, etc. • Foreclosure prevention • Investor nonprofit ownership; lease-purchase, land bank, • Legal assistance in heirs property transfers land trust, & other strategies • Anti-displacement measures i.e. property tax relief • Create a single-family equivalent to LIHTC
Thank you! Mandy Eidson ANDP Loan Fund Manager meidson@andpi.org
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