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24 5 WAYS TO BRIDGE THE RACIAL GAP IN HOMEOWNERSHIP A new report by the Urban Institute has given insights into five common-sense solutions to increase homeownership rates among African- Americans. Emerging from an earlier roundtable discussion at Urban Institute that examined the causes of the racial homeownership gap for this demographic, the report gave insights into each of these five areas for potential solutions and future policy interventions. According to the Urban Institute, progress toward bridging this gap will involve several approaches: ADVANCING POLICY SOLUTIONS AT A LOCAL LEVEL: Initiatives under this guideline included responsibly expanding small-dollar mortgages for purchases and renovations as well as reforming local land use, building codes, zoning laws, and regulations. e report also touched on strengthening access to and capacity of homeownership Community Development Financial Institutions networks and improving and investing in community development corporations' capacity and partnerships at a local level. e report suggested that removing discriminatory terms in homeowners' associations, condominium owners' associations, and planned unit development deeds on single-family residential units and expanding the reach of Housing Finance Agency programs while considering property tax relief for low- and moderate- income taxpayers would go a long way in bridging the gap. TACKLING HOUSING SUPPLY CONSTRAINTS AND AFFORDABILITY: Housing supply and affordability was a key area in need of reform to bridge the racial homeownership gap. Solutions in this area included increasing federal efforts to improve the existing supply of affordable housing and make investments directed toward historically segregated and devalued neighborhoods, as well as expanding production of alternate affordable housing units such as manufactured homes. is solution would also be strengthened through improving home preservation, financing, and credit underwriting, as well as overhauling or improving rehab purchase lending programs. PROMOTING AN EQUITABLE AND ACCESSIBLE HOUSING FINANCE SYSTEM: Increasing visibility, access, and types of down payment assistance program were key to making the housing finance system more accessible to potential African- American homeowners according to the Urban Institute, which also urged policymakers to strengthen the requirements that banks serve all communities in their market and consider expansion of obligation to other parts of the system. Additionally, improving and expanding financial education and homeownership preparation for renters would also help in increasing homeownership rates among African- Americans. OUTREACH AND COUNSELING FOR RENTERS AND MORTGAGE-READY MILLENNIALS: Apart from exploring more options for use of fintech to advance the understanding and access to homeownership for millennials, the report also listed revitalizing and improving tax credit incentives for renters who want to become owners as well as expanding programs that automate saving for down payments/reserves and increased competition in credit evaluation as potential solutions. FOCUS ON SUSTAINABLE HOMEOWNERSHIP AND PRESERVATION: A strong post-purchase counseling framework as well as promoting healthy mortgage servicing relationships and loss mitigation options would aid in creating a sustainable plan to increase homeownership rates among this demographic, the report revealed. It also said that building tools that would help in creating early warning displacement triggers, as well as an increased focus on intergenerational transfers of wealth, estate planning, and undivided property, would help more black Americans take a step towards sustainable homeownership.