Philanthropy’s Role in Dismantling Housing Inequities
When Aisha and Marcus bought their first home, it wasn’t just a milestone—it felt like a victory over generations of barriers. Their grandparents were barred from owning property in many neighborhoods because of redlining. Their parents faced predatory lending that stripped away what little wealth they’d built. And even today, the couple had to navigate rising prices, limited listings, and subtle but persistent discrimination before finally finding a place to call their own.
For millions of Black, Indigenous, and People of Color (BIPOC), the U.S. housing system has been more of a nightmare than a dream—built on a foundation of exclusion and structural racism that stretches back to the nation’s beginnings. Housing justice and racial justice are inseparable because the same inequities that locked families out of safe, stable housing also limited their opportunities to build wealth, access good schools, and live in thriving communities.
Even now, traditional public funding and market-driven solutions have fallen short in addressing these inequities. The result: skyrocketing rents, shrinking housing supply, and entire communities priced out—especially BIPOC families and working-class people like teachers, grocery clerks, and caregivers who form the backbone of our neighborhoods.
It doesn’t have to be this way. Philanthropy has a unique role to play—not as a substitute for public investment, but as a catalyst for innovation, collaboration, and equity-centered change.
1. Providing Strategic Capital
Philanthropy often begins with funding, but the most effective efforts go beyond charity. They act as strategic investments—seeding innovative projects, filling financing gaps, and making developments possible that traditional lenders won’t touch.
Major institutions have committed millions toward housing affordability, helping to launch community-driven projects and tackle housing insecurity in high-cost regions.
In King County, the Evergreen Impact Housing Fund (EIHF) is a prime example. By offering patient, low-interest capital, EIHF:
Ensures financial feasibility for projects that would otherwise be stalled or scaled back.
Corrects market distortions where affordable rents aren’t profitable for conventional developers.
Leverages public programs like the Washington State Housing Finance Commission’s Bond/Tax Credit program, boosting production and freeing up public dollars for deeply affordable housing.
Centers racial equity by encouraging BIPOC developers and community-led projects, building both housing and generational wealth.
2. Forging Public-Private Partnerships
Philanthropic organizations excel at bringing together stakeholders who might not otherwise collaborate—governments, private investors, and nonprofits—by creating public-private partnerships (PPPs) that pool resources and share risk.
The Low-Income Investment Fund (LIIF), for instance, partners with local governments and private investors to build thousands of affordable housing units nationwide. In San Diego, the San Diego Housing Fund unites public, private, and social sectors to increase housing access for middle- and low-income families, creating inclusive neighborhoods that reflect the full diversity of the community.
3. Building Local Capacity
Money alone isn’t enough. Many communities lack the technical expertise to navigate complex housing development processes. Philanthropy can fill this gap by providing training, consulting, and technical support to ensure projects are well-planned, executed, and managed for the long term. Housed at the Greater Tacoma Community Foundation, the Black Homeownership Legacy Fund is designed to be what other similar funds are not. This is accessible to community-based nonprofit organizations (CBOs) and emerging homeownership developers who are Black-owned or led, working with CBOs, and are not yet able to meet the requirements of traditional funds.
4. Driving Policy Change
Philanthropy also has the power to shift systems. By funding research, supporting advocacy organizations, and engaging in policy work, philanthropic institutions can help advance legislation that promotes affordability, protects renters, and dismantles discriminatory housing practices.
Why This Moment Matters
The housing crisis isn’t an inevitable outcome of growth—it’s the result of policy choices and market structures that can be changed. Philanthropy has the flexibility, resources, and convening power to spark those changes, especially when it partners with community voices and public agencies.
Housing justice is racial justice. And if we’re serious about creating neighborhoods where everyone can belong, philanthropy must be part of the solution—investing boldly, partnering broadly, and prioritizing equity in every decision.