The affordable housing industry recognizes the historical lack of an even playing field in housing, particularly when it comes to racial equity. Racial inequities in housing have deep-rooted historical origins.

During the Great Depression and World War II era, policies excluded Black Americans and people of color from accessing housing financing and programs that facilitated homeownership for White families. The Federal Housing Administration (FHA), established in 1934, explicitly discouraged racial integration in neighborhoods. Only 2 percent of FHA loans between 1934 and 1962 went to non-White individuals. Even the G.I. Bill, designed to assist World War II veterans, denied more than a million Black veterans assistance due to racist policies, excluding them from the post-war housing boom that fueled intergenerational wealth for many White families.

Homeownership has been shown to create economic stability and various other benefits, including improved education and health outcomes. Promoting homeownership for all is essential, but solving racial housing inequity requires a comprehensive approach involving partnerships among governments, nonprofit and community organizations, and private sector entities.

Governments can create and enforce fair housing laws, but they may lack resources, expertise, or community connections to implement them effectively. Nonprofit and community organizations, while having valuable local expertise, may face funding and political limitations. Collaborative efforts allow stakeholders to leverage their strengths and resources to achieve more substantial and sustainable results.

In 2021, LISC San Diego, the Urban League of San Diego County, and the San Diego Foundation launched the San Diego Black Homebuyers program, aiming to reduce the racial wealth gap by facilitating generational wealth-building through homeownership for Black and other families of color. The program offers mortgage financing and grants totaling at least $49,000 for eligible homebuyers, with contributions from the San Diego Foundation and a participating lender. The San Diego Foundation’s Black Community Investment Fund, directed by Pamela Gray Payton, has funded several million dollars in grants for initiatives supporting education, employment, entrepreneurship, and homeownership.

Partnerships are vital in addressing racial housing inequity because they combine the strengths, resources, and expertise of various stakeholders to create comprehensive solutions that tackle systemic issues. Collaborative efforts have proven effective, as seen in partnerships like the one with the San Diego Foundation, which has helped numerous families achieve homeownership and combat racial housing discrimination.

‍