BHC Annual Report 23/24

TABLE OF CONTENTS

The Black Homeownership Collaborative has worked tirelessly to bridge the gap in homeownership rates, ensuring that more Black families can achieve the dream of owning a home.

FROM THE CO-CHAIRS

Bryan Greene Vice President of Policy Advocacy National Association of REALTORS ®

Courtney Johnson Rose President National Association of Real Estate Brokers

Cy Richardson Senior Vice President for Programs National Urban League

This past year has been a testament to our collective strength and commitment to advancing Black homeownership. The Black Homeownership Collaborative has worked tirelessly to bridge the gap in homeownership rates, ensuring that more families, of all racial backgrounds, can achieve the dream of owning a home. Through our collective efforts, we continue to advocate for more housing supply, and push access to down payment assistance, financial guidance, and support services that empower individuals and families to secure and sustain homeownership.

Our partnerships across the Collaborative have been particularly impactful, providing essential tools and information that have helped countless homebuyers navigate the complexities of pur-chasing a home. Additionally, we emphasize the importance of homeownership preservation and protecting generational wealth, ensuring that the benefits of homeownership extend to future gen-erations.

As we move into an election year, our resolve remains unwavering. We understand that policy de-cisions and leadership choices have profound implications for our mission. We will continue to ad-vocate for fair housing policies, equitable lending practices, and economic opportunities that sup-port Black homeownership and help close all racial homeownership gaps.

We encourage you to stay engaged, informed, and active in your communities. Your involvement is crucial in sustaining the momentum we have built. Let us carry forward knowing that our efforts today lay the foundation for the future of homeownership equity.

URBAN INSTITUTE

In 2019, the 30-point gap between white and Black households’ homeownership rates (72% vs 42%, respectively) was larger than in 1960, when overtly discriminatory practices and policies were allowed in the selling and financing of homes. Urban Institute research projects the gap will grow without concerted action. The Black Homeownership Collaborative was launched in 2020 with the goal of increasing the number of Black homeowning households by 3 million by 2030. This could result in 9.456 million Black homeowners and move the Black homeownership rate above 50% for the first time.

Following the Great Recession, the Black homeownership rate experienced the greatest decline and showed the slowest recovery among all race and ethnic groups. When the pandemic hit, there were increased concerns that the Black-white homeownership gap would further widen. But timely government interventions such as forbearance and faster-than-expected job market recovery help many Black households to sustain and access homeownership. From 2019 to 2022, the Black homeownership rate has increased by 2 percentage points, adding around 466,000 net new Black homeownerships to the market. The Blackwhite homeownership gap slightly narrowed from 29.9 percent to 28.8 percent.

However, if Black homeownership continues to increase at a similar pace as it has between 2019 and 2022, we will not be able to reach the 3 million goal by 2030. At the current rate, the number of Black homeowning households will reach around 8.5 million, 1 million short of the 3 by 30 goal.

The surge in the interest rate is also posing additional challenges for Black renters to access homeownership. In 2022, the home purchase mortgage origination for Black households dropped by 17 percent from a year ago, with a greater decline (22 percent) among lower income (below 80 percent Area Median Income) Black households. Mortgage denial rate of Black borrowers increased from 21.7 percent in 2021 to 24.3 percent in 2022. The overall denial rate increased from 12 to 14 percent during this period.

Debt to income ratio became the dominant reason for mortgage denial for Black applicants. About 34 percent of Black applicants were denied because of the high debtto-income ratio. Denial due to credit history followed (33 percent). The high-interest rate and shortage of housing supply are likely to persist, at least in the near future. A higher share of mortgage applicants are buying homes with more downpayment to alleviate the mortgage cost burdens, which means Black households, who on average have lower wealth and income, would face greater challenges in obtaining homeownership.

Data to guide strategies to close the racial homeownership gap can be found in this dashboard for the Black Homeownership Collaborative’s efforts. For an in-depth discussion of trends and forces shaping Black homeownership, see 2023 State of Housing in Black America by Jim Carr and Michela Zonta, published by the National Association of Real Estate Brokers.

2023–4 Urban Institute Research on Black Homeowners and Solutions to Close the Gap

› Black Homeownership Increased Slightly during the Pandemic, but High Interest Rates Threaten to Further Widen Racial Homeownership. Gaps Even though the Black homeownership rate increased between 2019 and 2022, the gains are too modest to get back to the pre-Great Recession Black homeownership rate. Rising interest rates contributed to fewer mortgage originations to Black households and greater denial rates, and low family and household wealth among Black applicants makes it difficult to compete in today’s market.

› The Special Purpose Credit Program (SPCP) Data Toolkit. This tool offers market-specific data to make the case for SPCPs serving households of color and interactive data to assess place-based versus people-based options that can be useful to program design, targeting, and goal setting. This tool can help lenders write a written plan to justify the need for SPCPs and design a program that can better target the people and the community that they intend to serve.

› First-Generation Homebuyers Face Significant Obstacles to Homeownership. To Help, Programs Can Define What “FirstGeneration” Means. Based on our prior research which finds that targeting down payment assistance towards first-generation homebuyers can reach a greater share of Black homebuyers, this research compares the different definitions of “First-Generation”.

› Improvements in the Loss Mitigation Toolkit Can Allow for Enhanced Access to Credit. This study examines the impact of loss mitigation policies on reducing the number of loans progressing from serious delinquency to

foreclosure and litigation. The paper discusses the potential to expand access to credit, as the loss mitigation programs have been made permanent.

› Harnessing Artificial Intelligence for Equity in Mortgage Finance. The report reviews the legal and regulatory barriers to adopting AI models to promote efficient and equal outcomes and highlights the need to design intentional AI models to promote racial equity in housing.

› Assessing Climate Risk in Marginalized Communities. The researcher illustrates how communities of color are disproportionately affected by riverine flooding events and how the impact can be magnified because of greater vulnerability and weaker resilience among these communities. To support more racially equitable outcomes from climate events, the report recommends including a more forward-looking assessment of the risk and broadening the risk measures by including social vulnerability and community resilience measures.

› Implications of Housing Conditions for Racial Wealth and Health Disparities. This work illustrates how property condition contributes to racial disparities in both home values and in utility cost-burdens, and how each factor into the broader racial wealth and health gaps. The research highlights the importance of policymaking focused on housing preservation and rehabilitation, particularly for Black homeowners who are more likely to face challenges in housing conditions and less likely to have the assets to make improvements without outside capital.

Snapshot: Washington DC

› The 2021 Black homeownership rate in Washington DC is around 52 percent, 8 percentage points higher than the nation. The Black-white homeownership gap in DC is around 21 percentage points, 9 percentage points lower than the nation.

› Despite a higher Black homeownership rate than the nation, Black households own a low share of housing wealth because many homeowners own homes with lower property values. While Black homeowners account for 21 percent of all homeowners in DC, they own less than 14 percent of aggregate housing value.

› Black home purchase applicants in DC have the highest mortgage denial rate among all race and ethnic groups. Between 2018 and 2022, almost 13 percent of Black borrowers were not able to get mortgage approval.

› Black homebuyers in DC pay higher mortgage interest rates and pay more closing costs relative to their mortgage.

See: https://www.urban.org/projects/marketand-disparity-data-analysis-toolkit?msa=dc for more

HOMEOWNERSHIP RATE GAPS PERSIST AND ARE EVEN WIDENING

Homeownership rates, by race or ethnicity, in Washington, DC

Asian Hispanic Black White Households of Color All

Sources: 1960–90 Decennial Censuses and 2000–21 American Community Survey one-year data.

Notes: Homeownership rates are calculated by dividing the total number of homeowners by the total number.of households. Households include both homeowners and renters. N/A values indicate areas with smaller populations with insufficient sample sizes. Not all individual race groups have available data for every MSA because of data limitations.

HOPE

CREDIT UNION, ENTERPRISE CORPORATION, POLICY INSTITUTE

HOPE is a Black- and women-owned Community Development Financial Institution (CDFI) credit union, loan fund, and policy and advocacy organization. Since 1994, HOPE has worked to increase access to financial services, expand community infrastructure, and advocate for vulnerable populations in economically distressed areas throughout the Deep South.

HOPE currently serves five states — Alabama, Arkansas, Louisiana, Mississippi, and Tennessee — a region that is home to over a third of the nation’s persistent poverty counties. Of HOPE’s 40,000 member-owners, 74% have household incomes of $50,000 or below, eight out of 10 members are people of color, and nearly half did not have a bank account upon joining the institution.

EXPANDING BLACK HOMEOWNERSHIP

Over the last 23 years, HOPE has closed over 3,000 mortgages to homebuyers across its five-state region. Importantly, HOPE’s mortgage program has achieved a high level of impact. In 2023, HOPE closed 124 mortgages for a total of $17,074,309, 9 out of 10 mortgage borrowers were people of color. Additionally, HOPE extended homeownership opportunities to mortgage borrowers with credit scores that were well below national levels (Figure 1B) with a charge off rate of less than 0.26%.

To achieve this level of impact, HOPE offers an inhouse mortgage product, the Affordable Housing Program (AHP), designed to address systemic obstacles for potential homebuyers lacking a down payment. Through the AHP, mortgages are manually underwritten, and nontraditional sources of credit are considered in the underwriting process. The product also discounts deferred student debt, does not require

mortgage insurance, and considers credit scores as low as 580. The AHP allows for a loan-to-value (LTV) of 100% — eliminating the need for a down payment. HOPE often pairs the AHP product with various down payment assistance programs to reduce barriers to homeownership. Down payment assistance programs are funded through philanthropy, bank partners and various units of government.

FIGURE 1B

FIGURE 1A

Borrower STORY

At age 62, Nathan Fuller finally achieved his lifelong dream of becoming a homeowner. His journey began in the summer of 2023 when he came to HOPE after receiving multiple rejections from large banks. Although initially turned down, HOPE did not just say no—instead, they offered him a path forward. His loan officer advised him on the monthly income he needed to qualify. For months, Nathan worked diligently to increase his income and by December 2023, Fuller closed on a threebedroom home in Montgomery, Alabama through HOPE’s affordable housing program. Aided by a federal grant for down payment assistance, Fuller’s 30-year mortgage totaled $67,500. Like all of HOPE’s affordable housing program participants, Fuller enrolled in a homebuyer education course to learn about mortgage financing and maintaining his home once purchased. Fuller is thrilled to make his monthly payments and credit HOPE’s personalized and supportive approach for his success, “When it comes to HOPE, they’re going to help you and let you know what the next step is, what you need to do next, and they don’t let you go.”

HOMEOWNERSHIP AND MORTGAGE GAPS IN THE DEEP SOUTH

HOPE’s mortgage program responds to systemic gaps in the Deep South where one out of two Black households own a home in contrast to three out of four white households. Across the region, homeownership gaps by race persist in every state (Table 1). A major factor contributing to the homeownership gap includes inequitable access to mortgage financing. Even controlling for income, black borrowers are more likely to be denied mortgages. In the Deep South, Black borrowers experience higher mortgage denial rates than white borrowers at every income level (Figure 2).

TABLE 1: HOMEOWNERSHIP RATES IN THE DEEP SOUTH BY RACE

Source: U.S. Census Bureau. “Demographic Characteristics for Occupied Housing Units.” American Community Survey, ACS 5-Year Estimates Subject Tables, Table S2502, 2022, https://data.census.gov/table/ACSST5Y2022.S2502?t=Owner/Renter (Householder) Characteristics&g=040XX00US01,05,22,28,47&y=2022&moe=false&tp=true Accessed on May 30, 2024.

FIGURE 2: MORTGAGE DENIAL RATES IN THE DEEP SOUTH BY RACE AND INCOME

Source: Source: Hope Policy Institute Analysis of 2021 Home Mortgage Disclosure Act data.

MORTGAGE BANKERS ASSOCIATION

MBA is committed to providing thought leadership, market-based solutions, advocacy, and strategic partnerships to increase Black homeownership. As we expand efforts such as our CONVERGENCE place-based programs, the Building Generational Wealth through Homeownership initiative, and our Affordable Housing Policy Agenda, MBA will continue to share best practices, information, and resources that will help the real estate finance industry create a pathway for homeownership and the wealth building benefits that come with it.

CONVERGENCE

CONVERGENCE addresses systemic barriers to minority homeownership by creating nationally relevant programs and solutions that are tested through place-based initiatives. CONVERGENCE creates a framework for collective action by bringing together local stakeholders including lenders, real estate professionals, housing counselors, local government, and others, along with national partners to create solutions that can be shared and replicated in a range of markets.

The learnings from the CONVERGENCE cities will inform new business development strategies with evidencebased approaches that are actionable. There are currently three CONVERGENCE place-based locations: Memphis, TN, Columbus, OH, and Philadelphia, PA.

CONVERGENCE Memphis, which launched in March 2020, achieved a significant milestone in the past year by winning a bid to purchase 11 lots in a predominantly Black neighborhood in Memphis. The acquisition is part of a pilot program with CoreLogic that uses an evidencebased design tool to help non-profit developer partners create affordable, entry-level single-family homes for owner occupancy. In addition, CONVERGENCE Memphis was featured in a video produced by the ALTA Good Deeds Foundation that highlights how the initiative provides tools to support the homeownership journey. The video underscores the value of collaboration and captures the spirit of what CONVERGENCE stakeholders in every city are working towards.

CONVERGENCE Columbus, which launched in July 2021, expanded its work to increase homeownership opportunities over the past year. CONVERGENCE

Columbus launched Bloom614.org, a consumer-facing website that provides visitors with information about buying and owning a home. The site includes an interactive homebuyer journey map, a downpayment matching tool, and other resources.

In addition, CONVERGENCE

Columbus launched the Maude Hill Growing Homeownership Fund with $1 million in available funding. The Fund is designed as a special purpose credit program and provides up to $15,000 in homebuyer grants.

CONVERGENCE

Columbus also celebrated the launch of Rise Up, a program funded by $5.5 million from the Federal Home Loan Bank (FHLB) of Cincinnati. The program offers $25,000 grants for down payment, closing costs or principal reduction assistance. CONVERGENCE Columbus, FHLB Cincinnati, and MBA worked closely for over a year to build the infrastructure of the program. This major investment by FHLB Cincinnati underscores how CONVERGENCE is a platform for attracting stakeholder investments and engagement aligned with the initiative’s mission of closing the racial homeownership gap.

CONVERGENCE Philadelphia, which launched in March 2023, celebrated its first year in the CONVERGENCE network. LISC Philadelphia and the Urban Affairs Coalition were selected as the co-host organizations for the initiative. CONVERGENCE Philadelphia launched a series of educational and networking sessions for lenders, housing counselors and real estate professionals. The sessions aim to provide information about affordable housing programs and products and foster collaborative relationships among the participants. CONVERGENCE Philadelphia also established a partnership with a local historically Black university to introduce the school’s students and adult learners to careers in the mortgage and real estate industries.

MBA launched the CONVERGENCE Knowledge Community, which will create a shared vision for establishing, growing, and operating CONVERGENCE in different markets. As part of this initiative, a Resource Library is under development, which will include templates, toolkits, community engagement road maps, and other resources developed from best practices from each city. These resources will serve as a guide for future markets in the CONVERGENCE network and beyond.

BUILDING GENERATIONAL WEALTH

The Building Generational Wealth Through Homeownership initiative strives to implement policy and program adjustments that raise awareness of homeownership opportunities for Black and Hispanic borrowers; secure policy and program changes to expand homeownership readiness to future borrowers; and assist current homeowners with maintaining and maximizing the benefits of homeownership.

AFFORDABLE HOUSING POLICY AGENDA

MBA’s Affordable Housing Policy Agenda identifies policies that can be implemented by regulatory and legislative action at the federal, state, and local levels to help promote housing affordability across a wide range of incomes and across both rental housing and homeownership.

Through our programmatic and advocacy efforts, MBA continues to work diligently to remove systemic barriers to homeownership and expand access to affordable housing options.

NATIONAL ASSOCIATION OF REALTORS ®

The National Association of REALTORS® (NAR) is a proud partner of the Black Homeownership Collaborative’s (BHC) 3by30 Initiative. NAR understands that homeownership is one of the primary ways for families to create wealth and is committed to promoting affordable and sustainable housing for all.

NAR’S IMPACT, ENGAGEMENT, AND INITIATIVES

NAR has educated consumers, real estate professionals, and others on the importance of homeownership and its critical role in generational wealth creation. NAR has highlighted how low inventory, high housing costs, high interest rates, and market uncertainty threaten this progress.

This year’s settlement of the Sitzer/Burnett, et al. commission cases will result in significant practice changes that all parties to real estate transactions must accommodate. NAR is educating consumers, real estate practitioners, policymakers, and stakeholders about these changes, while communicating the importance of preserving affordable representation for consumers, especially first-time homebuyers.

In executing its mission, NAR relies on its state and local associations to conduct buyer education, community outreach, and work with lawmakers to support measures that would incentivize home building; provide fair housing education and testing; and provide topical market research.

NAR prioritizes its work to accomplish BHC’s goal of creating three million new Black homeowners by 2030. NAR engaged in the following work this past year:

EDUCATION AND OUTREACH

› Supported the fair housing work of local and state REALTOR® associations through grants and resources.

› Advanced Artificial Intelligence (AI) policy to support equitable and accountable technology within the real estate industry.

› Expanded its offering of the Bias Override: Overcoming Barriers to Fair Housing on implicit bias, and teaches professionals how to avoid pitfalls and provide equal professional service through Fairhaven: A Fair Housing Simulation.

› Mandated that new and existing NAR members complete two hours of fair housing training every three years.

› Honored members who are advocates and advancing fair housing. NAR honored the 2024 NAR Fair Housing Champions at its annual legislative meetings in Washington.

› Updated the Accredited Buyer Representative (ABR) course for REALTORS® to hone and master skills for working with first-time homebuyers.

RESEARCH

› Released the “Home Sellers and Buyers Generational Trends” report, and the Wealth Gains by Income and Racial/Ethnic Group report, explaining the long-term benefits of homeownership.

› Released the “Snapshot of Race and Homebuying in America” report, which provides detailed information on homeownership trends, housing affordability, and more. This year’s report showed that over the last year, 51% of Black/African American buyers were first-time homebuyers. The Black homeownership rate increased 1.6 percentage points over the past year, resulting in nearly 950,000 more Black Americans transitioning to homeownership.

ADVOCACY

› Supported the Equitable Housing Finance Plans that the Federal Housing Finance Agency (FHFA) has required from the GSEs. These plans continue to help with down-payment assistance and support for Special Purpose Credit Programs (SPCPs), which are critical for Black homebuyers.

› Supported new credit scoring models and modernization that better serve traditionally underserved and marginalized communities.

› Supported the Loan Level Price Adjustments (LLPAs) for low-down payment borrowers.

› Supported the Appraisal Diversity Initiative and the Appraisal Foundation mandating fair housing requirements as part of its qualification standards.

› Advocated in getting the Veterans Administration (VA) to recently announce in temporary policy change, whereby veterans using VA loan products may pay reasonable and customary fees for buyer representation.

› Engaged with the newly formed Bipartisan Congressional Real Estate Caucus regarding housing supply and affordability matters.

HONORS & AWARDS

› NAR’s Bias Override Series won an Anthem Award.

› NAR won an Azbee National Gold Award for the REALTOR® Magazine 2023 Issue: “Not Enough Housing,” articles that offer housing solutions.

NATIONAL ASSOCIATION OF REAL ESTATE BROKERS

The National Association of Real Estate Brokers (NAREB) launched initiatives helping African Americans purchase homes, gain and retain wealth, and learn to be developers in their communities. Our programs are developed and implemented based on data from NAREB’s State of Housing in Black America (SHIBA) reports, groundbreaking, industry-leading research on Blacks and homeownership. SHIBA is fueling renewed advocacy to close the wealth gap after an astounding finding that the 400 wealthiest Americans control the same wealth as all 48 million Blacks living in the U.S.

Firmly established as a leader in identifying Black homeownership trends and forging actionable strategies to address barriers restricting growth, NAREB enlisted new partners and brainstormed fresh ideas to create innovative ways to expand Black homeownership and educate the Black community on how to gain wealth. We are committed to achieving tangible and meaningful impact in reducing barriers to homeownership and promoting economic equity. In fall, 2023, NAREB launched its Building Black Wealth Tour, a series of community events in cities from coast to coast.

The Tour’s objective is to help African Americans learn to purchase homes, increase financial literacy, improve their credit, and be on a path toward family economic security.

The Black Wealth Tour makes a difference by arming families with the information they need to make wealthbuilding decisions. NAREB empowers Black communities to travel paths that will better secure their future. We are inspiring families to become homeowners and build wealth.

Working with the African American Mayors Association, National Bar Association, Church Of God In Christ, Inc., Delta Sigma Theta Sorority, Alpha Phi Alpha Fraternity, and Phi Beta Sigma Fraternity, NAREB held tour events in Birmingham (11/11/23), Charlotte (3/2/24), and Mt. Vernon (4/13/24). Others are scheduled in New Orleans (8/3/24), Atlanta (11/9/24), Miramar (3/25), St. Louis, MO (6/25), and Los Angeles (8/25).

Moreover, on Saturday, April 13, 2024 more than 25,000 people flocked to events nationwide, marking the NAREB’s inaugural National Building Black Wealth Day. In over 100 cities across the country,

seminars and one-on-one sessions delved into a wide range of topics, from homeownership and property investment to business startups, heirs’ property, and other wealth-building opportunities. National Building Black Wealth Day was a tremendous success. Sessions included ‘What to Do with Big Momma’s House,’ ‘ABCs of Homebuying,’ and ‘Downpayment Assistance.’ From March through May, more than 31,000 viewers went to NAREB’s Building Black Wealth Tour website at www. narebblackwealthtour. com.

in the important role NAREB has played in uplifting communities across the country. I have never been more optimistic about our Nation’s future than I am today, in part because of organizations like NAREB promoting fairness and equity for all. As you look to the incredible opportunities head, I wish you continued success for years to come.”

NAREB is also engaged in other ways:

› Launched the Black Developer Academy, a transformative initiative to address the pressing need for increased diversity and representation in the real estate development industry. The program fosters economic equity, increased homeownership rates, and revitalization of underserved communities.

› Issued the NAREB’S 2023 Women Investing in Real Estate (W.I.R.E) report determining that between 1990 and 2019, Black women increased homeownership by 5.6%. Moreover, Black women ages 45-54 and over 75 had a 2.9% increase during the pandemic, the largest among Black homeowners.

Impressed by the success of the initiative, President Joe Biden wrote NAREB a letter proclaiming: “Your work has the power to transform lives and support future generations. As you celebrate this wonderful occasion, I hope you take well-deserved pride

NATIONAL FAIR HOUSING ALLIANCE

NFHA leads the fair housing movement and works to ensure equitable housing opportunities for all people and communities through its education and outreach, member services, public policy, advocacy, housing, and community development, tech equity, enforcement, and consulting and compliance programs. Our priority is to advance equity by developing and promoting strategies for not only eliminating bias in our society, but increasing equity and creating healthy, vibrant well-resourced neighborhoods where people can thrive.

ELEVATING FAIR HOUSING AS A CORE COMPONENT OF RACIAL JUSTICE

Throughout the year, NFHA led advocacy on initiatives to support the expansion of affordable, quality credit and fair homeownership opportunities. NFHA submitted 13 comments and supported 17 additional comments on federal housing and lending policies and provided testimony on appraisal bias reform at the Appraisal Subcommittee hearing held at the Federal Housing Finance Agency. Furthermore, NFHA was invited by Senate Majority Leader Chuck Schumer to provide testimony during a Senate Artificial Intelligence Insight Forum.

We also shared remarks on Special Purpose Credit Programs (SPCPs) at an Interagency Roundtable

hosted by HUD, FHFA, OCC, and CFPB on ways to stop discriminatory practices, foster a fair housing and lending marketplace, and create well-resourced, resilient communities where everyone can thrive. NFHA continues to engage policymakers to advocate for expansion and sustainability for SPCPs, appraisal justice, disparate impact, Affirmatively Furthering Fair Housing, loan level pricing adjustments, language access, and strengthening the FHFA system.

PROVIDING SUPPORT AND TOOLS TO STRENGTHEN HOMEOWNERSHIP

In 2022, NFHA, in partnership with the Mortgage Bankers Association, created the website spcptoolkit. com to provide comprehensive information on SPCPs and provide lenders step-by-step instructions on how to design and launch their own program. In early 2024, we partnered with the Urban Institute to add a data toolkit to the website as a free resource for lenders to use to help create their foundational SPCP written plan. This year alone, approximately 18,000 users visited the site.

As the appetite for SPCPs continues to grow, NHFA supported the creation of several new programs in Atlanta, Baltimore, Columbus, Las Vegas, and Providence through deployment of legal settlement dollars and the Inclusive Communities Fund. Another exciting partnership stems from the State of Washington’s April 2023 legislation that addresses the need to implement solutions to rectify damage done to communities through practices like racially restrictive covenants and redlining. This first-of-its-kind state-funded program will establish a customized, race conscious SPCP that will provide

between $75 million and $100 million each year for down payment assistance and will launch in July 2024.

NFHA’s Responsible AI Lab continues to work to eliminate bias from data-driven, algorithmic-based, and tech services used in housing and financial services and harness new data-driven services to identify and address housing discrimination. The team collaborated on innovations in training large language models, financial underwriting and pricing models, and research on algorithmic fairness optimization techniques. NFHA’s inaugural Responsible AI Symposium hosted in DC this January was incredibly well received and featured an impressive lineup of speakers and federal policymakers.

Leveraging NFHA’s ongoing work on supporting First Generation down payment assistance programs, we played a key role in the adoption of a program in North Carolina–the Homeownership Assistance Program (HAP) – that provided $20,000 for first-time buyers and up to $30,000 for first-generation buyers to maximize impact for households buying in an expensive and supplyconstrained market. Additionally, we released First Generation Foundations: A Guide to Advancing Equity with First Generation Homeownership Programs report to support organizations desirous of creating programs to advance financial security and intergenerational wealth.

NATIONAL HOUSING CONFERENCE

The National Housing Conference (NHC) is focused on advancing policies to address the nation’s most urgent housing priorities. NHC remains committed to promoting policies to increase Black homeownership, addressing systemic barriers, and fostering sustainable, equitable housing solutions to close the homeownership gap.

ADVOCACY: BASEL III

The National Housing Conference (NHC) played a pivotal role in responding to the Basel III endgame proposed rule, engaging a collaboration of diverse stakeholders to address concerns regarding amendments applicable to large banking institutions. This rule would adjust capital requirements of banks in the wake of longstanding efforts to enhance financial regulations following the 2008 financial crisis.

NHC was joined by civil rights groups and housing advocates to voice concerns of the potential disparate impact and adverse effects on Black and Latino borrowers, first-time, and first-generation homebuyers. Advocates stressed that the proposed adjustments, particularly targeting mortgages with down payments below 20%, could exacerbate existing disparities in homeownership rates and wealth accumulation among communities experiencing persistent disenfranchisement.

A group letter organized by NHC to the Federal Reserve Board of Governors, the Office of the Comptroller of the Currency, and the Federal Deposit Insurance Corporation emphasized the need for evidence-based decision-

making and urged regulators to maintain international Basel III standards rather than implementing stricter policies that could hinder the stability and accessibility of the U.S. mortgage industry. The letter underscored the need to ensure equitable access to homeownership opportunities for all and aligning policy with broader initiatives to address systemic housing challenges and promote economic equity.

COMMUNITY REINVESTMENT ACT

NHC endorsed the final ruling modernizing the Community Reinvestment Act (CRA), highlighting its strides in advancing racial equity and addressing disparities faced by Black homebuyers.

NHC emphasized the importance of the final rule’s responsiveness to concerns raised by the community and banking sectors, particularly regarding community development activities and the Low-Income Housing Tax Credit. Notably, the rule allows banks to earn CRA credit for Special Purpose Credit Programs (SPCPs) and recognizes Internet banking for CRA compliance. This brings the rule in closer alignment with NHC’s call for explicit consideration of race in regulatory frameworks, reflecting a forward-looking approach to meet evolving needs.

The modernization of CRA represents a culmination of years of collaborative effort between regulatory bodies, community groups, and the banking sector. As the final CRA rule faces potential threats, NHC remains steadfast in its commitment to championing homeownership equity and CRA modernization.

PAYCHECK TO PAYCHECK

The “Paycheck to Paycheck” database offers crucial insights into the affordability challenges faced by workers in various occupations throughout 390 metropolitan areas. This interactive database offers a detailed examination of the disparity between wages and housing costs, illustrating how many fulltime workers struggle to afford rent or mortgage

payments despite steady employment. Rising housing costs and supply shortages are highlighted as key factors exacerbating the affordability crisis, putting stable affordable housing out of reach for many Americans. This tool serves an invaluable resource for policymakers, advocates, and researchers aiming to address housing affordability and support equitable economic development.

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Rental Market Affordability:

Paramedics

NATIONAL URBAN LEAGUE

INITIATIVES, IMPACTS & RESPONSES

The National Urban League (NUL) is a historic civil rights and urban advocacy organization. Driven to secure economic self-reliance, parity, power and justice for our nation’s marginalized populations, the National Urban League works toward economic empowerment and the elevation of the standard of living in historically underserved urban communities. NUL has over 20 years of experience operating as a

The Division of Housing & Community Development

Comprehensive Housing Counseling Program

Through its renowned Comprehensive Housing Counseling program, NUL has consistently demonstrated success in enhancing housing accessibility and sustainability for the Urban League clients. By providing

The National Urban League’s evidence-based and scalable signature programs are professionally implemented by local Urban League affiliates to enhance the economic and educational status of our constituents.

homelessness, NUL has established a strong reputation. Drawing on a wealth of diverse expertise and extensive experience, NUL collaborates with its network to tailor

Comprehensive Housing Counseling

community served. These services encompass a wide range of areas, such as budget and credit counseling, preand post-purchase assistance, foreclosure prevention, rental support, homeless outreach, combating predatory

Our Approach.

Comprehensive Housing Counseling makes housing options more accessible and sustainable by levelinghe economic playing field for African American and other minority renters, homeowners, and the homeless.

63% of participants had incomes less than half the median income

259,400 participants have been helped since 2008

1-in-3

participants received education and/or counseling on homeownership

Since 2008, the National Urban League has served 259,400 individuals and families through this signature program, of which:

Services.

lending, navigating reverse mortgages, promoting fair housing practices, and delivering educational resources and counseling.

Counseling services are tailored to meet the needs of each individual or family and can address these types of issues:

Preparation for buying a home

Default and foreclosure prevention counseling

In 2023, approximately 21,000 participants enrolled in comprehensive housing counseling services, out of which:

Average Yearly Profile service-type addressed since 2008

Budget and credit counseling

Home maintenance

Tenant and landlord rights

Homelessness

› Approximately 10,000 participants engaged in PrePurchase Counseling and Education services

Approximately 3,000 participants engaged in Foreclosure Counseling and Education services

Approximately 3,000 participants engaged in Rental Counseling and Education services

Approximately 5,000 participants engaged in Financial Literacy Coaching and Education services

Diverse Appraiser Initiative

Participants.

Since 63% of Urban League participants’ yearly earnings reflect less than half the median income level in their area, a key purpose of the National Urban League Comprehensive Housing Counseling Program is empowering these individuals and families to break down barriers and obtain economic equality through education, self-reliance, and a greater understanding of financial tools and services.

The NUL’s Comprehensive Housing Counseling Program provides participants with a free, private consultation with a housing counselor who procures a thorough assessment to determine their individual needs. The counselor then provides participants with custom action plans.

Individuals and families receive information and advice on the various programs and options available to help them acquire and maintain affordable housing.

Participants are offered group workshops, further counseling as needed, and necessary referrals.

Follow up services are provided to each individual and family to insure their needs have been adequately addressed.

Success Story.

The Urban Development Accelerator (UDA) is a strategic initiative designed to empower National Urban League affiliates through real estate development, enhancing their sustainability and community impact. UDA engages a peer network of affiliates with existing development experience or assets, engaging them in experiential and peer learning activities to explore diverse development strategies and opportunities. By fostering partnerships with experienced developers and focusing on a range of projects including housing, office construction, and community centers, the initiative aims to strengthen affiliates’ institutional stability, asset and revenue generation, donor engagement, and community presence. This accelerator will provide affiliates with the tools and knowledge to effectively leverage real estate development, driving generational wealth and economic development within their communities.

Urban Developer Initiative

AFTER YEARS OF RENTING, MS. JOHNETTA ROBINSON decided that she was ready to consider homeownership. She attended a Homebuyer Education Workshop at the Urban League of Greater Atlanta (ULGA) and took advantage of its counseling services. In addition to comprehensive housing counseling, ULGA helped Ms. Robinson secure down payment assistance.

RESULT: Johnetta purchased a beautiful 3,000-square-foot home at a sustainable interest rate of 2.875% with her total monthly payments landing at an affordable $537.03.

Through the Urban Appraisers Initiative (UAI), the National Urban League is building a pipeline of diverse appraisers and empowering Black business owners, homeowners, and communities. Over 5 years, UDA aims increase the number of Black appraisers fostering positive implications for the housing sector and increasing entrepreneurship opportunities for trainees to open their own appraisal businesses.

IN HER OWN WORDS... “The training taught me how to calculate my mortgage so that I could be comfortable with my monthly payments. It taught me about home repairs, inspections and utilities, what to look for when buying a home, and what to avoid. As a single mother of three, education was critical. During the closing process, I stayed in contact with the counselors and reached out to them whenever I had questions about paperwork I did not understand. This Program is vital to the African American community because it teaches us how to live better by making informed decisions—it also helps us to achieve dreams of homeownership.”

Participating National Urban League affiliates will provide coaching, and education focused on capacity building, supplemented by specialized training in the appraisal field. This approach will accelerate the placement of Black trainees in appraisal jobs. Additionally, the affiliates will support candidates as they complete their appraisal certification through apprenticeships with certified appraisers. They will also provide business management skills training to help participants start, grow, and scale their appraisal businesses.

Made possible with the generous support of