Moddie Turay
In recent years, employers and civic leaders have begun in earnest to engage in conversations about the importance of diversity, equity and inclusion – commonly called “DEI” – in their workplaces, industries, and communities. These conversations are a great starting point, but action must follow, especially in the affordable housing and community development sectors.
Business leaders, stakeholders and key decision-makers must continue to focus on communities of color, understanding that ongoing commitment to affordable housing and economic development is vital for equity. In this moment, we have an opportunity to make a measurable impact in communities of color by viewing our investments in affordable housing projects through a racial equity and inclusion, or REI, lens.
Decades of racial and economic segregation nationwide have contributed to deep inequality in access to housing, creating neighborhoods of concentrated poverty which stand in contrast to pockets of wealth and opportunity in largely white, middle-to-upper class neighborhoods. Without effective mitigation strategies, these patterns will be exacerbated by the modern crises of climate change, post-pandemic inflation and ongoing staffing crises.
It is no longer enough just to build affordable housing for families of color to rent. We must implement programs that employ workers of color on these construction projects and help entrepreneurs of color in these communities acquire the real estate where they operate their businesses.
Engage MBEs, Workers of Color
Before families can move in, before we even break ground, we have a significant opportunity – and I would argue a responsibility – to prioritize equity in our process by engaging minority business enterprises (MBEs) and workers of color in every step of the community development process.
Community development financial institutions (CDFIs), as major funders of affordable housing projects, must lead this charge. Established in 1994 to promote community development in low-income areas through investment, the CDFI Fund has provided over 1,000 organizations like banks, credit unions, loan funds, venture capital providers with the means to begin to address inequities and help communities of color build wealth.
Investing in these developments will increase housing choice, affordability, economic opportunities and wealth. It should also demonstrate commitment to a community vision that opens the door for MBEs and workers of color. Engaging with developers who place emphasis on employing workers of color in the construction process will ensure that the people who help build these communities look like the people who will live there.
CDFIs should consider MBEs’ perspective and business realities in every step of the development process. Collaboration and active listening are key, and a CDFI should serve as a partner rather than just deliver funding and step aside. By providing hands-on guidance along the way, they can work together to solve real problems MBEs are facing in real time.
Internal Values Matter, Too
But before CDFIs can drive equity through external partnerships, they must “walk the walk” internally. Across sectors broadly – not just in affordable housing development – REI efforts must begin with the staff we bring to the table, ensuring in all ways that workers of color have input into and benefit financially from these projects.
Especially for organizations like ours, if we’re asking our partners to live up to our REI mission by engaging with workers of color to ultimately drive impact, equity and wealth-building, we must embody it ourselves. We have made progress, but there is much more work to do.
Creating healthy and equitable communities where diverse voices are both represented and invited to the table is the goal of our REI initiatives for affordable housing and community development projects. The authentic values of any CDFI matter because they drive processes of internal decision-making and engagement with partner organizations around shared goals.
This strong foundation, when put into practice externally, pushes partners to drive equity in their own work, ensuring that benefits of their developments and related capital flow directly to local communities of color. This approach to racial equity and inclusion is vital to building world-class neighborhoods in world-class cities and addressing the most significant challenges of our time.
Moddie Turay is the CEO of the Massachusetts Housing Investment Corp., a nonprofit financer of affordable housing developments.
