A bold new report released this month details the disparity of wealth along racial lines in DC, then plots several ways the city can achieve a more equitable future. Its authors hope it’s just the start of a city-wide movement for building wealth in communities of color.
The report, entitled An Introduction to Asset Building in the District of Columbia, was written by the Coalition for Nonprofit Housing and Economic Development (CNHED) and Capital Area Asset Builders (CAAB), two long-time players in DC’s asset building landscape.
The need is clear. According to the report, 40 percent of DC residents don’t have enough net worth to stay above the poverty line for three months if their income disappeared. One in ten don’t even have a bank account—and among those who do a full quarter of residents are still forced to use predatory institutions like payday loan offices.
It’s a problem that largely falls along racial lines. An analysis of DC post-recession found that the average white household has over 80 times the wealth of the average black household. That’s largely due to a lack of asset ownership, especially homeownership, in black communities.
CNHED and CAAB want to start a new coalition to take this problem on. Because this disparity has been created by several centuries of discriminatory laws and spending, it will take smart new investments by public and private actors to start to shrink this racial wealth gap.
The report outlines four general approaches that an asset building coalition could take, from pressuring the city government to institute new programs for low-income wealth building, to creating and managing new programs through a steering committee made up of members from this future coalition.
Whatever form this coalition takes, DC residents are counting on it to be impactful. Many literally can’t afford failure.
For more info about the Asset Building Policy Project and how to join the coalition, click here!