By Kwofi Reed and Louie Nguyen
PUBLISHED: August 6, 2024 at 4:31 PM PDT
For those of us most impacted and deeply involved in this work, the issue of affordable housing remains ever-present. Housing affordability is at its lowest since 2007, with just 11 percent of households in San Diego County able to afford a median-priced home. This stark reality highlights the persistent disparities in our communities and underscores the urgent need for action to address the growing housing crisis.
Legacies of discriminatory practices like redlining, segregation, wage gaps, etc., keep many from homeownership. That’s the bad news. The good news is these practices are human-made, as are ways to address them.
If you own a home, you probably know that homeownership isn’t just about having a roof over your head; homeownership can foster economic stability and opportunity.
Just ask Leticia Ortiz. Thanks to the opportunity to purchase a home from the San Diego Habitat for Humanity, according to Ortiz, she can now establish a college fund for her young son, not to mention enjoy a space they can call their own. For her, homeownership is opening doors to building generational wealth. She believes in this model so much that she has even since joined the board of San Diego Habitat for Humanity.
Affordable homeownership is about ensuring that every person, regardless of background or socioeconomic status, has the chance to achieve the American dream of homeownership.
Why is affordable and attainable housing important for everyone? When middle- and lower-income workers like hospitality workers, nurses, firefighters, artists, musicians and younger professionals don’t have to leave city centers to own homes, our communities are safer and more vibrant, not to mention employers have easier and better access to talent.
Affordable housing and homeownership can lead to better education and health outcomes — including mental health — and even improve civic engagement and reduce public spending on health care and social services.
The National Low Income Housing Coalition states, “increasing access to affordable housing bolsters economic growth.”
Building affordable housing can’t happen without major support from capital partners, however. By leveraging philanthropic investments and innovative financing solutions — like the GoATL Affordable Housing Fund in Atlanta or LA4LA in Los Angeles — we can break down barriers to homeownership and create pathways to economic empowerment.
In this spirit, nonprofit San Diego Habitat for Humanity and private impact asset management firm Mission Driven Finance announced the launch of a second Homebuilding Investment Fund. This initiative, bolstered by philanthropic investments and a loan guarantee from the California Infrastructure and Economic Development Bank (IBank), is designed to accelerate the construction of affordable homes in our region over the next five years — with homeownership in mind.
The first fund, a $2 million pilot launched in 2018, supported the construction of 27 homes across four developments, providing tangible pathways to homeownership for San Diegans. These homes represent more than just shelter; they embody hope, stability and the promise of a brighter future for new homeowners like Leticia and so many other families.
Throughout the year, as we engage in this important work, let’s harness the momentum of our shared dedication to addressing housing inequality. We have the opportunity to redouble our efforts to address the root causes of the housing crisis, amplify the call for housing justice and advocate for policies that make homeownership achievable. We want all San Diegans to afford to call San Diego home.
Government, nonprofits, businesses and philanthropy must continue to collaborate in pursuit of shared goals. By taking action together, we can build a future where equitable housing transcends legislation on paper and becomes a tangible reality — a future where every individual has the opportunity to thrive and succeed.
Reed is president and chief executive officer of San Diego Habitat for Humanity and lives in Oak Park. Nguyen is the chief investment officer at Mission Driven Finance, an impact asset management firm founded in San Diego that works with partners across the U.S. He lives in Carmel Valley.
Originally published by San Diego Union Tribune. Shared for informational purposes only. All rights and credit belong to the original publisher. If you are the rights holder and would like this content modified or removed, please contact us.
