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PILLAR 2

HOME OWNERSHIP

SEEKING $4.25 BILLION

This is a good place to have an introduction sentence that speaks directly to why this pillar is important to CRA Baltimore. Mention where the $$ will go, is this a priority to your coalition, how will it affect you as the consumer. 

CITY STATISTICS

  • For the region overall, African American loan applicants were denied mortgage loans twice as often as Non-Hispanic White applicants (36% v. 13%). The denial rate for Hispanic applicants was 19%. Baltimore City has a relatively high rate of denials for African Americans at 33%; Baltimore City also has the highest denial rate for Hispanic applicants.

  • A fall 2018 analysis of lending disparities by the Baltimore Business Journal examined the denial rates of the largest lenders in the Baltimore region. Those financial institutions, with a combined market share of 80 %, denied African American mortgage loans at 1.5 times the rate to Non- Hispanic White applicants.

  • The highest concentration of subprime loans--ranging from 20 to 44 percent of loans--are in Baltimore City and also overlap with African American concentrations.

Source: 2020 Analysis of Impediments to Fair Housing Choice in the Baltimore Region report by Root Policy Research

APPRAISAL BIAS & LENDING DESERTS

  • Homes in $150,000 to $175,000 range are critical for retaining the region's core workforce, and many homes at this price point exist in Baltimore City. Yet buyers have challenges buying the homes due to appraisals, which come in under the sales price due to lack of comparable units and negative adjustments associated with neighborhood conditions. There are non-profits working to create affordable housing options in the City, but these practices undermine their work.

  • The "Lending Desert" areas in Baltimore City should be targeted for valuebuilding (i.e., clustered rehabilitation to normalize appraisals) and black and brown developers should be supported.

CRA CAPITAL & INVESTMENTS
INTO BALTIMORE BLACK & LATINO
HOME OWNERSHIP COMPONENTS

Loans & Equity to B&L Affordable Housing Developers
Loans & Investments into B&L LMI Communities
Community Development Loans & Investments
Direct Loans to B&L Homebuyers by Banks
Loans & Investments into Section 8 Housing Development
Financial Edication & Literacy Grants
Technical Assitance Grants for B&L Non-Profit Organizations

UNDERSTANDING THE PILLARS WE STAND BY
Click the link to the corresponding pillar for details

Seeking $15 Billion for Small Busines

Measuring Access to Capital for Black & Latino Small Businesses

Seeking $4.25 Billion for Home Ownership

Providing Access to Black & Latino families to own a home

Seeking $10 Billion for Housing Development

Increasing Affordable Rental & For-Sale Housing for Black & Latino Developers

Seeking $75 Million for Building Capacity

Providing Grants & Investments to deliver increased community products/services