Empowering Housing Developers of Color: Addressing Inequities in the Housing Industry

Over the last 90 years, the US government played a significant role in creating urban decay through deliberate policies and practices that perpetuated racial segregation. One of the primary ways the government contributed to urban decay was through redlining. Redlining was a discriminatory practice by which federal agencies and banks marketed certain neighborhoods, usually populated by people of color, as “risky” for mortgage lending and investment. This led to disinvestment, preventing these neighborhoods from thriving economically. This pervasive government involvement in segregation shaped the landscape of American cities and continues to impact housing and racial equity today. Beginning in the Civil Rights Era the federal government legislated legal and policy reforms, but despite these reforms challenges persist. Tackling urban renewal through housing development has produced some success however, it requires diversity and inclusion to create thriving neighborhoods.

Many have realized that Developers of Color (DOCs) need to be at the forefront of the revitalization of the communities impacted by urban decay. Often-times DOCs grew up in impacted communities and tend to view projects through a more people centered lens. Because DOCs understand the communities’ needs and have a vested interest in addressing them, they are likely to find innovative ways for their project to benefit existing residents. However, Developers of Color face a lot of the same historical inequities resulting in a range of challenges that can hinder their success and full participation in the housing industry.

Addressing these challenges requires a comprehensive approach which involves fostering collaboration between DOCs and financial institutions and creating public policy to encourage community investment. Supporting and increasing their numbers can lead to stronger, more vibrant communities while fostering economic growth and reducing disparities. By repairing historical inequities and embracing diversity, the housing industry can make a positive and lasting impact on the lives of individuals and communities.

Empowering Housing Developers of Color: Addressing Inequities in the Housing Industry

Jason Grant, Program Officer

Please take a moment to read this great report!