Making Quality Housing Affordable Again for Latinos in Los Angeles

By Agatha So, Policy Analyst, Economic Policy Project, NCLR

ELACC and partners with tenants’ rights fighters and allies from all over the state of California. Photos: ELACC

Homeownership continues to be essential to the creation of Latino family wealth, yet many Latino families are still trying to recover from the loss of their home to foreclosure during the financial crisis, as well as job loss during the recession that hit Latino communities hard.

For families who live in expensive cities like Los Angeles, homeownership can seem even further out of reach. In L.A., more than half of a family’s earnings goes to rent, and at 38%, Latinos have a lower rate of homeownership compared to other groups in the city. Even as families overall might pay less for a mortgage than on rent, Latino renters have difficulty saving for a down payment, let alone for a mortgage that would require nearly three times their median household earnings. Faced with this problem, community-based affordable housing organizations are finding creative ways of engaging community residents to make housing affordable for all.

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Celebrating Financial Capability Efforts to Support Latino Financial Well-being

By Agatha So, Policy Analyst, Economic Policy Project, NCLR

Financial Capability Counseling gives Latino families the information and tools needed to improve credit, increase savings, and build wealth. Through participation in a financial capability program, Latino families can access a range of resources and learn how to use skill-building tools and financial products that will help them achieve their financial goals, such as homeownership.

For Affiliate partners of the NCLR Homeownership Network (NHN), building families’ financial capability has never been more important. Because of the financial crisis nearly a decade ago, millions of Latino families saw their savings disappear when they lost their homes to foreclosure. At the same time, a rise in unemployment among Latino workers made it harder for families to the get the assistance they needed to save their homes. Today, a generation of Latino families are still recovering and trying to repair the damage to their credit when they lost their homes. Rebuilding by understanding how to budget, save, and improve credit is critical to economic recovery and the ability for Latinos to become homeowners.

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