Eliminating the racial homeownership gap is among the big goals of the Department of Housing and Urban Development (HUD) in its first Equity Action Plan.

In the second quarter of 2019, the homeownership rates for white, Black, and Latino households were 73.1%, 40.6%, and 46.6%, respectively—the largest differentials In 50 years, says the report.

“Equity is central to HUD’s founding principles and the daily work we do as a department,” said HUD secretary Marcia L. Fudge in a statement. “We are excited to take this opportunity to join the rest of the federal government in emphasizing our commitment to making equity a leading compass within this administration.”

HUD’s Equity Action Plan is part of the of administration’s whole-of-government equity agenda.

To address the homeownership gap, the department said it is:

  • Enhancing Federal Housing Administration (FHA) activities to maximize homeownership for creditworthy first-time home buyers and preserve homeownership for existing homeowners. This includes improving the efficiency of the FHA program by leveraging technology and removing any perceived bias of the program;
  • Increasing engagement with nontraditional lenders, including community-based institutions to better reach underserved communities through community development and planning grant programs like HOME;
  • Increasing residential mortgage lending on tribal trust lands, including increased lender outreach and information modernization;
  • Ensuring manufactured housing is a thriving source of affordable, quality, durable, and safe housing for Americans; and
  • Proposing a 40-Year Term for Loan Modifications Rule, currently under Office of Management and Budget review, which will allow mortgagees to provide borrowers in default with a loan modification for up to 480 months to help borrowers reduce monthly mortgage payments and retain their homes.

The department is also focusing on advancing equity in its delivery of homelessness assistance programs.

The report notes that in the “2020 Annual Homeless Assessment Report,” people identifying as Black or African-American accounted for 39% of all people experiencing homelessness but are 12% of the U.S. population. More than one-half of transgender people experiencing homelessness are unsheltered, and individuals with disabilities experiencing chronic homelessness compose nearly 25% of all individuals experiencing homelessness.

Action includes having a second cohort of Continuums of Care work together in the Coordinated Entry Equity Demonstration to design more equitable processes on assessment and prioritization to significantly improve the experience and housing stability outcomes for all people of color. Best practices from the demonstration will be shared with the larger homeless assistance community.

HUD will also support the U.S. Interagency Council on Homelessness in implementing the federal strategic plan to prevent and end homelessness.