That’s the average wealth of a black family compared to a white family in America. It’s the result of centuries of racist policy in education, employment, and especially homeownership.
MANNA’s Housing Advocacy Team has long had an explicit focus on closing the racial wealth gap in our communities, and along with our partners at the Coalition for Nonprofit Housing and Economic Development and the Latino Economic Development Center, this past Saturday we hosted a Homeownership Town Hall aimed at connecting low-income families, especially families of color, to homeownership opportunities.
HAT and our partners are proud of the work we do, and we can see the impact that it has in DC. At the same time, however, we realize that there needs to be national progress in order to achieve justice in our country. The Trump Administration, on the other hand, is looking for a massive transfer of wealth from the bottom to the top; one that’s sure to widen America’s racial wealth divide.
The Town Hall
Close to 200 people came on Saturday for a series of workshops, vendor tables, and presenters covering every step of the affordable homebuying and ownership process. Participants learned about how to improve their credit scores, how to connect with organizations like MANNA that can help them find a home, and the wide variety of city programs that can help make affordable homeownership possible.
Current homeowners were able to learn about city property tax laws and legal estate planning, helping to ensure that their homes will be passed on to their children.
MANNA’s Director of Homebuyer Education, TC Caviness, started off the strong lineup of speakers by articulating the extent to which a gap in homeownership holds back wealth building for black families. Even other areas that are typically thought of as wealth builders, like education level, pale in comparison to the impact that homeownership has.
Despite having worked around housing for years, said TC, “I was shocked when I saw these charts.”
A college education, while important for many, many reasons beyond money, does almost nothing to close the racial wealth gap, explained TC. Homeownership, on the other hand, shrinks that gap by more than a third.
Polly Donaldson, Director of the DC Department of Housing and Community Development, and Councilmember Anita Bonds, Chair of the Council’s housing committee, both spoke about the importance of affordable homeownership for building a city where all residents can thrive.
Councilmember Bonds, reflecting on the positive impact of recent increases to DC’s Home Purchase Assistance Program for first time low- and moderate-income homebuyers, told the crowd, “Next year, I want to increase it again!”
Trump Administration’s Reverse Robin Hood
That was in stark contrast to the ideas that are coming out of the White House. The Trump Administration has released a series of tax cuts for the wealthy that would collectively cost around $6.2 trillion over the next decade.
To pay for them, the President has introduced a budget plan that would drastically cut many programs targeting poor families, among which families of color are disproportionately represented.
Here are a few of his proposed tax and budget cuts, juxtaposed for context.
- $192 billion cut to food stamps pays for $174 billion giveaway by abolishing the Estate Tax
- $143 billion in cuts to student loans helps pay for $158 billion lost by repealing a tax on the unearned income of the wealthy (interest, dividends, capital gains, etc.)
- $40 billion in cuts to EITC and the child tax credit vs. $400 billion lost by abolishing the Alternative Minimum Tax (AMT is often the only tax paid by billionaires)
(from Americans for Tax Fairness)
While HAT and others are prepared to continue our push for fair funding in the District, we need help from our national partners and from people all around the country to stop the Trump Administration’s disastrous and immoral plan to take from the poor and give to the rich. We know that the impact of this theft will disproportionately fall on communities of color, causing the racial wealth gap to grow wider and wider.
Looking at our country’s history, it’s certainly not unprecedented. But as MANNA’s work in DC has proven, it’s not inevitable, either.