FY23 HUDRD - Closing the Homeownership Gap and Preserving Homeownership During Economic Decline

Description

Through this NOFO, the Department of Housing and Urban Development (HUD) is announcing the availability of $1,000,000 for the research project titled “Closing the Homeownership Gap and Preserving Homeownership During Economic Decline.” HUD may fund more than one award from the funds available under this NOFO. The objective of the NOFO is to fund rigorous evaluations of (a) the factors that contribute to the gaps in homeownership rates among different demographic groups, and the effect of public policies and other initiatives (including private or philanthropic efforts) on addressing these gaps, and (b) how homeownership can be preserved during economic decline including the effects of related public policies and other initiatives (including private or philanthropic efforts on achieving preservation goals). Proposals may address either or both these topics. The research funded under this NOFO will advance scientific knowledge and produce policy-relevant evidence on homeownership gaps and may inform the development of future approaches to help communities of color and other underserved communities achieve more equitable homeownership rates. BackgroundHomeownership is often viewed as the entry to the American dream and the gateway to intergenerational wealth. However, this pathway is often less achievable for underserved groups who post a lower homeownership rate than non-underserved families (Ray, et al. 2021). These homeownership gaps have contributed to lower median family wealth for disadvantaged groups. Because wealth (as measured by the total amount of assets a person owns minus debts) is a critical predictor of education, health, employment, and other quality of life metrics, a strategy to address the homeownership gap can have positive effects beyond just housing itself.This NOFO is focused on providing greater analysis and research on critical aspects of the homeownership gap, including residential patterns of undeserved groups/communities and the causes of ethnic/racial/gender/age/other disparities and obstacles to homeownership among these groups. The neighborhoods where homebuyers purchase their homes contribute to their home’s worth and its chance of appreciation over time, which has important implications for the long-term financial returns associated with homeownership. Despite some progress in achieving integration, weaknesses in fair housing enforcement have undermined the ability of the Fair Housing Act to dismantle segregation and combat discrimination. The forms of discrimination that were common in the past such as segregation by design or edict, including redlining, have shifted over time, and housing discrimination—along with persisting residential segregation—continue to hamper disadvantaged homebuyers’ ability to build equity. Home mortgage borrowers in underserved groups and communities remain concentrated in residentially segregated areas where homes have failed to appreciate at the same pace as those in neighborhoods where non-disadvantaged borrowers predominantly buy their homes.A common measure of the extent to which disadvantaged residents are segregated from other groups in cities is the index of dissimilarity. The dissimilarity index represents the percentage of one of the two groups included in the analysis that would have to move in order to achieve more equitable distribution within smaller geographic units that match the composition of the entire city. Minority residents are extremely segregated from the rest of the population in many major cities, e.g., Detroit, Baltimore, Cleveland, and Atlanta. In Atlanta, the city with the highest levels of segregation, almost 70% of minority residents would have to move to new Census tracts to produce a uniform geographic distribution.Racial economic inequality in the United States is primarily the result of unequal investments among communities. Estimates showing the percentage of unbanked or underbanked populations in the U.S. for different racial and ethnic groups often highlight inequalities in the financial health of their neighborhoods (FDIC, 2021). The percentage of blacks (46%) who are unbanked or underbanked alone is over three times the percentage of whites (14%) who experience the same struggle. Thirty-two percent of Hispanics are also either un- or under- banked.This overview provides a general overall look at the role of segregation, discrimination, and racism in the housing market, as well as the consequences for educational attainment and wealth accumulation for persons of color and others in underserved communities, and points to the need for further research and assessment of potential policy responses. Research Objectives and PrioritiesThe objective of this NOFO is to fund research projects that can assess the extent of the homeownership gaps between minorities and majority homeowners; to evaluate the barriers to homeownership facing minorities; and to assess the threats that economic decline pose for homeownership preservation, including public and private responses to these threats. Research could include renters seeking or considering homeownership, new homebuyers, or existing homeowners. Barriers can include mortgage lending discrimination by lenders, disparate outcomes from lending to different applicant demographic groups as well as credit history and collateral requirements that can disadvantage nonwhite applicants. Furthermore, many minority renters could be homeowners if they were not facing financial and discriminatory barriers to acquiring a home. Closing the homeownership gaps requires identifying the factors that prevent renters of color and others in underserved groups from becoming homeowners.The study may be longitudinal or a cross-sectional at borrower level. It could also focus on specific areas or cities where the problem is especially acute or localities that have taken steps toward ameliorating the homeownership gap. Evaluating the effect of various policies and programs, local or national, public or private in addressing the issue is an important topic for this NOFO.The emphasis would be on a quantitative study, but a qualitative approach could be a useful supplement. Data could be loan- or home-level as well as locality-level. Multiple sources of data could be employed. Additional Research ConsiderationsHUD intends to fund proposals that use rigorous methods to measure the extent, causes, and impact of homeownership gaps and explore the effect of economic decline on homeownership preservation. The proposal should discuss how the applicants plan to control other factors that affect homeownership rates, such as federal and local regulations, access to financing and policies, and familiarity of customers with mortgage shopping and other aspects of home acquisition. The proposal may need to identify a plan to control applicant bias (self-selection), regional housing costs, and household demographics. Proposals can be limited to a set of jurisdictions, but the applicant must demonstrate that the proposed jurisdictions are sufficient for a robust analysis, with sufficient data points to allow for robust statistical power, and for the establishment of a counterfactual. The study should describe the method and design specification for estimating the relevant counterfactual outcomes. Applicants are expected to demonstrate that they have or will likely have access to homeownership rates data and other relevant data points included in the study. Applicants should discuss their experience using the proposed data and matching it to other data sources. Applicants should discuss any additional data sources that will be included in the study and the feasibility of obtaining the data. Applicants shall identify major methodological issues and data limitations and ways the study will address them.HUD will not prescribe specific information collection approaches, protocols, or instruments. Any information collection efforts conducted by a grantee to address the NOFO objectives will not be subject to the Paperwork Reduction Act.Eligible ActivitiesEligible activities include all research and project management activities that contribute to meeting the NOFO objectives and research needs at a high-quality level, and specifically to complete the funded research. Eligible activities include, but are not necessarily limited to the following:Defining the research steps from the articulation of research questions (including literature review) through the development of research design, data collection and analysis plans, to the analysis of data, and finally including the writing of publication-quality research reports and formal presentations and briefings on findings.Regular communication with HUD staff on all project deliverables, as required by HUD’s substantial involvement under the cooperative agreement.Consulting with experts on any aspect of the research as needed to bring expertise to enhance the research team’s knowledge in critical areas.Project management activities, including required project management tools (Opening Meeting, Management and Work Plan and Budget, Quality Control Plan, and Quarterly Progress Reports) and regular communication with HUD staff for monitoring purposes.Data acquisition costs.Dissemination of research findings through seminars, presentations, worships, etc.Project DeliverablesHUD’s Cooperative Agreements require certain deliverables as part of the project management system, including the following: (1) an Opening meeting with HUD; (2) a Management and Work Plan providing a detailed outline of specific tasks, a project timeline, staffing and management responsibilities, and the allocation of resources; (3) a Quality Control Plan that documents all necessary measures taken by the Awardee to assure that the quality of end products of service shall meet the requirements outlined in the Cooperative Agreement; and (4) Quarterly Progress Rep

Eligibility

Grants.gov lists this opportunity under eligibility category codes 06, 11, 12, 13, 20, 22. These codes correspond to applicant types (state/local government, tribal organization, nonprofit, educational institution, individual, small business, etc.) defined in Grants.gov's own eligibility reference. See the current Grants.gov eligibility categories or check the official listing below for this opportunity's exact eligibility statement.

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