Black Homeownership Crisis
According to the Urban Institute, the homeownership gap between Black and White families in the U.S. is greater today than it was when it was legal to refuse to sell someone a home because of the color of their skin. In 1960, there was a 27-point gap between Black homeownership (38%) and White homeownership (65%). Today, the gap is even wider. The gains made in the three decades after the 1968 Fair Housing Act were erased after 2000, as forces within and beyond the housing market aligned to reduce the Black homeownership rate.
Quest Black Homeownership Initiative Overview
The “Quest Black” Homeownership Initiative is one of the first ever Black wealth Initiatives in the country, helping to build and grow a proven pathway for wealth creation and economic mobility in the Black community that could serve as a national model for addressing the racial wealth gap. Quest CDC in partnership with Quest Ventures introduces the “Quest Black” Homeownership Fund - pioneering an innovative trifecta of land-trust, life insurance and down-payment product that removes the capital barriers faced by Black and African American families in buying their first home, which puts them on a promising path toward financial well-being and wealth creation.
Quest Black Homeownership Fund
The Quest Black Homeownership Fund offers Black and African American first-time home-buyers access to no-interest down-payment funds that can be used toward the purchase of a new home. Upon selling or refinancing, homebuyers then return their down-payment plus 5% of the home’s appreciation value to support the next homebuyer on their journey to wealth and ensure the Homeownership Fund can continue to operate.
Who is Eligible?
To be eligible for the Quest Black Homeownership Fund, Black and African American first-time home-buyers must attend a first-time home-buyer program and use their home as their primary residence; have a family income of $150,000 or less per year; and receive a conventional mortgage loan through participating lenders In addition the borrower would be required to have at least 3 months mortgage payment saving, the Homeownership Fund provides up to $100,000 in down-payment assistance;
• First-time Black or African American Homebuyer
• Income less than 140% of their area median income or combine house hold income $150,000 or less.
• Have completed a first-time homebuyer course through a participating lender.
• The home is your primary residence.
• Have saved at least 3 months of mortgage payments in the form of shared equity.
Quest Westside Pilot Project
This pilot project will be the Westside’s first permanently affordable housing option demonstration. Quest has acquired land on the Westside through a contract with Atlanta’s Housing to develop 12 newly constructed modular homes for residents at 80% AMI and above. In partnership with Impact Housing, we will use modular housing methods to decrease the environmental impact on the neighborhood and increase construction efficiency. Modular housing is a relatively new product and contributes roughly 10% less costly due to savings from bulk purchasing, labor costs, building materials and time savings.
“For decades Homeownership has been marketed as one of the single most important assets to build wealth, but with staggering barriers to access - one must ask, how do we change access points and provide new strategies that support the home covenant structures dictating the reproduction for each homeowner understanding this type of asset as a long-term investment and wealth building tool?” - Leonard L. Adams Jr., President and CEO
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