Greater Washington Partnership Blueprint Report

Since its invention in the early 20th century, zoning has often been used as a tool to prevent neighborhood change. Existing zoning policies that favor single-family housing can hinder affordable housing development at scale, contributing to the lack of supply amid surging demand. In the District of Columbia, 59% of land zoned for residential use is single-family.¹⁸⁸ This prevents dense multi-family development, which is needed to increase the number of units in the District. Implementing flexible zoning policies that allow more units to be built can expand the housing supply, promote environmental sustainability, and ultimately drive down costs—especially in areas that are close to transit and jobs and are in high-demand. Without an adequate supply of housing, the region’s affordability crisis will only get worse—threatening the economic sustainability and vitality of the region by driving away workers and businesses.

Businesses have an opportunity to support and advocate for policies that help increase the supply of housing, and, in turn, attract and retain workers.

Credit scores are one of the leading factors in mortgage application decisions, creating a barrier for those with limited or no credit history. Nearly 45 million Americans do not have a credit score, cutting them off from accessing many banking products, including mortgages.¹⁹⁰ Racial disparities in credit scores perpetuate the racial homeownership gap—Black mortgage applicants are denied 84% more often than white applicants, an increase of 10 percentage points since 2019. Credit history is the most commonly cited reason that Black applicants are denied a mortgage.¹⁹¹

As of 2019, there was a 25.2% gap in Black-white homeownership in the Capital Region, increasing to 30.9% in Baltimore.¹⁷⁷ Using alternative qualifying data, such as rent or utility payment history, cash flows, and other data not traditionally used in a credit report could help increase access to mortgages, especially for low-income individuals and those with no credit history. Borrower
accessibility is further explored in Pillar 3
in the context of business loans. While the current use of alternative data in mortgage lending is limited, a recent series of federal regulatory changes could pave the way for greater adoption, and early data shows promising results on the accuracy of using alternative factors to predict the risk of default or delinquency.

Evictions are the biggest threat to housing stability for renters, as they can force residents into homelessness and make it more difficult to find future housing. Evictions are a severe challenge across the Capital Region: over 32,000 evictions were filed in D.C. between 2014 and 2018. In Baltimore, evictions of Black renters are three times higher than the number of white renters. And according to data from the Eviction Lab, Richmond has the second highest eviction rate in the country.¹⁹⁹

Once faced with an eviction, individuals are likely to be denied rental housing for years to come, perpetuating a cycle of instability and threatening their health, safety, and well-being. Furthermore, families with children are the most likely to be evicted compared to other types of renters, which hurts academic outcomes and can have long-term impacts on educational attainment and employment outcomes.²⁰⁰ While the federal government and many local jurisdictions implemented an eviction moratorium during the pandemic, it has since been lifted, putting thousands of renters in a precarious position.

Renters facing eviction often have little access to legal representation and resources, exacerbating the harmful impacts of displacement. In eviction lawsuits nationwide, nearly 90% of landlords have legal representation, while only 10% of tenants do.²⁰¹ Employers can support their employees by offering access or connection to subsidized and/or on-site legal education programs and attorney consultations to help employees understand their rights as tenants. By ensuring workers know their housing rights and providing resources to support them through various housing issues like eviction, employers can become part of the support system for residents. Employers can also aim to provide family-sustaining wages, as outlined in Pillar 2, to further support employees’ housing stability.

Homeownership often supports housing stability and has numerous financial and health benefits, yet many individuals struggle to navigate the homebuying process or face difficulties saving enough for a home. In one survey, 68% of renters cited saving for a down payment as an obstacle to home ownership, and 39% of renters believe that more than 20% is needed for a down payment – more than what is actually required.²⁰⁴ Improving access to educational programs on purchasing and maintaining a home can help close the racial homeownership gap and promote housing stability. Studies show that renters are five times more likely to move than homeowners, which can have negative effects on an individual’s health and financial stability, and hinder employers’ ability to retain workers.²⁰⁵

The private sector can partner with the public and nonprofit sectors to provide education and counseling programs to employees who are currently homeowners as well as those interested in buying a home. Supporting homeownership education programs is a great low-cost first step for employers to invest in employee housing. Some employers have started to bring in finance professionals, real estate brokerage representatives, and other speakers to lead workshops on financial wellness, the steps to buying a home, mortgage refinancing, and other relevant topics. The value add for employers is clear: if employees buy a house, they are more likely to stay in the area, and thus more likely to stay at the company.²⁰⁶

To support long-term housing stability, it is essential that housing units are both affordable and safe. Poor-quality housing is associated with a variety of negative health outcomes, including injury, chronic disease, and poor mental health²⁰⁸ which can decrease worker productivity and increase healthcare costs for employers.²⁰⁹

The link between poverty and substandard housing is well-documented, and Black and Hispanic populations are disproportionately more likely to live in poverty. Housing hazards, such as fires, are more likely to occur and cause injury in low-income neighborhoods.²¹⁰ Housing quality issues pose a threat across the Capital Region. As of 2020, there were over 38,000 unresolved housing code violations reported in Washington, D.C..²¹¹ In Richmond, over 3,300 dedicated affordable housing units are over 50 years old and require significant investments to maintain safety,²¹² and in Baltimore, there are over 16,000 vacant properties, which contributes to numerous community health and safety issues.²¹³ Many low-income homeowners cannot afford to make necessary repairs, and many renters watch their maintenance requests go unaddressed, which can lead to preventable health and safety issues.

Businesses can help to address housing quality by supporting targeted investments and advocating for policies that protect tenants facing housing issues. Unsafe and unhealthy housing can cause stress for employees²¹⁴ and increase the chances of housing displacement, which threatens the productivity and retention of workers.²¹⁵

People across the region lose their housing every day due to eviction, unsafe conditions, domestic violence, and other issues. On any given night, in Baltimore 2,¹⁹³ people stay in emergency shelters, transitional housing, or on the streets,²²⁴ while in Washington D.C., 681 individuals experiencing homelessness are unsheltered.²²⁵There are thousands of people across the region who do not have reliable shelter, which negatively impacts public health and community safety, inflicting high social and economic costs across the region.²²⁶ Providing emergency shelter for these situations is critical while actively pursuing the long-term goal of providing access to permanent housing.