Nearly $6M earmarked toward reducing racial home ownership disparities in Minneapolis
MINNEAPOLIS -- Minneapolis Mayor Jacob Frey on Thursday announced an investment of nearly $6 million to address racial disparities in home ownership.
The gap between the number of White and Black homeowners in Minneapolis is one of the highest in the country. In 1968, Black homeownership in Minneapolis was 25%. This year, according to APM research lab, the percentage of Black residents who own their home sits below 20%. To compare, White homeownership in Minneapolis is 77%.
Frey announced the investment as part of a program that helps eliminate disparities so homeownership is a reality for all.
"That $5.8 million is going to 21 vacant lots to make them 40 affordable homes," Frey said.
Lasha Raddatz and her fellow realtors at Signature Real Estate Group are working hard to close the gap that exists between White and Black homeowners.
"It's a huge thing and I'm excited about it, but I do think it's just deeper than the $5.8 million that's available. I'm excited, but we need more," she said.
Raddatz believes redlining and covenants limiting where Blacks could buy a home is just one part of the problem. She says progress begins by looking into the types of loans most eventually qualify for.
"I can't tell you how many clients of ours spend a year getting their credit in order, saving money, we get them ready to go to buy a house, and now their FHA, and now you are one of 40 offers on the house, and FHA gets thrown right out of the pile immediately," Raddatz said. "Not because they didn't have good credit, not because they didn't have savings, but because of the type of loan they are using, they were like, 'Yep, you're out.'"
Far more Black Minnesotans owned a home when it was still legal to operate White-only drinking fountains. Raddatz says lots need to be done before we shrink the gap.
"You just daily continue to do what you do, and our big word for our team is, 'Make an impact,'" she said.
Raddatz says the current disparity widened during the housing crash of 2008. Many Black homeowners lost their property and huge corporations bought and converted them into rentals.
Frey hopes this investment helps make affordable ownership opportunities happen.