Millions of Americans struggle with high housing costs, in many cases risking the loss of their homes. Even before the coronavirus, nearly a third of U.S. households spent more than 30% of their income on housing — the widely accepted gauge of affordability — with low-income households and renters the most likely to face high expenses, according to the Aspen Institute.footnote1 Post-pandemic, the problem has become even more acute; since 2020, U.S. housing prices have appreciated by roughly 40%, according to the investment management firm Pimco.footnote2
Why affordable housing is more crucial than ever
With many Americans struggling to afford a home, these nonprofits are working to provide housing in their communities.
In addition, nearly half of Black and Hispanic-Latino households were cost-burdened, compared with about a third of White households,footnote3 with the economic fallout from the recent health and humanitarian crisis leading many to fall behind on rent or mortgage payments.
A number of organizations around the country have stepped in to help families in need of assistance. Below, three nonprofits share how they are working to help local residents find safe and affordable housing:
Foundation Communities
Like many American cities, Austin, Texas, has seen rapidly rising home prices and soaring rents in recent years. “It’s very hard to live and work in Austin and not know somebody who needs an affordable place to live,” says Walter Moreau, executive director of Foundation Communities, a local nonprofit housing agency. According to Harvard’s Joint Center for Housing Studies, 46% of Austin area renters spend more than 30% of their income on housing; more than one in five spend at least half.footnote3
In the video below, Moreau discusses how Foundation Communities is working to help by providing housing and supportive services, including education, health and financial programs. The agency operates 26 affordable housing communities with about 7,000 residents, many of whom earn $15,000 or $20,000 a year and can’t find affordable rentals in town.
“People sometimes ask me, ‘Who lives at Foundation Communities?,’ and I describe them as people that you know,” says Moreau. “It may be somebody from church or school, somebody who you know from work.” Many are exiting homelessness or have physical or mental disabilities. Today a home is more essential than ever, Moreau adds. “This year has brought home, literally, the need for a great place to live that is stable.”
United Way of Greenville County
Greenville County, South Carolina is home to the city of Greenville, once a major textile center and now a park-filled urban area that shows up on lists of the best places to live. Still, poverty is prevalent. “Time and again, the data show that people of color and other marginalized populations fare worse across almost all measures,” says Meghan Barp, president and CEO of United Way of Greenville County, which for more than 100 years has partnered with local nonprofits and community leaders to support the area’s most vulnerable residents.
In the wake of the coronavirus, the challenge of providing affordable housing in Greenville became more acute. A portion of the United Way’s COVID-19 Community Response Fund, which received a $70,000 grant from Bank of America, part of its $100 million commitment to local communities in need, was earmarked to help those struggling with housing. Nearly nine out of 10 of those who received emergency housing funds were minorities. Through the United Way of Greenville’s efforts, 450 households — including Evora Bentley and her daughters, pictured here — received assistance with rent, utilities, mortgage payments and temporary hotel stays.
Hartford Interval House
As the pandemic lockdown led to social isolation, job losses, school closures, travel restrictions and other financial stressors, homes became dangerous traps for some. “The pandemic wreaked havoc on victims of domestic violence,” says Mary-Jane Foster, president and CEO of Hartford Interval House, Connecticut’s largest agency dedicated to ending domestic violence. Demand for its free services, from counseling to emergency shelter, hit record highs during the pandemic. By early 2021, its 20-bed safe house was operating at nearly 250% of capacity, leading the agency to pay for hotel rooms for the overflow. But no one was turned away.
What’s more, Interval House saw more requests for help with food, utilities and other household expenses from current and former clients. “ Private support like a $30,000 grant from Bank of America enabled the organization to respond to these kinds of client needs — and look ahead. “This allowed us to get beyond the basics and set our sights on the future,” Foster says.
As nonprofits adjust to addressing increased needs in their local communities, Bank of America is committed to supporting them. Learn more about the bank’s efforts to help local communities address critical needs their residents are facing, from career development to supporting small businesses to advancing racial equality and economic opportunity.
See more on:
The Aspen Institute, “Strong Foundations: Financial Security Starts with Affordable, Stable Housing,” 2020.
Harvard Joint Center for Housing Studies, “The State of the Nation’s Housing 2021.”
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