by Jonathan T.M. Reckford

Every day, I see how rising housing costs are making it increasingly difficult for hard-working families to make ends meet. For decades, home prices have been outpacing household incomes, and we are now seeing a whole generation being locked out of the promise of homeownership. Spiraling housing prices have also left millions of families struggling to keep a roof over their heads while affording basic necessities, such as food and medicine.

In the U.S., home costs make up one-third of the consumer price index — the most widely-followed inflation gauge. Before the pandemic even began, 1 in 7 U.S. households were spending half or more of their income on housing. Inflation is eroding families’ ability to save, pushing many homeowners and renters to the brink of eviction and foreclosure — and locking potential new homebuyers out of the market. 

We have been underbuilding for a decade. Estimates are that we are between 3 and 6 million units short of what is needed in this country. The remedy will require us to continue providing subsidies — like down-payment assistance. However, if we do that and don’t address the supply issue, we will make the problem worse.

The situation is similar to what has happened with college tuition. By offering students financial aid without creating more seats in classrooms, we have created fierce competition for few too opportunities. Therefore, students still come out of college with massive debts. 

I recently spoke to a gathering of Habitat for Humanity organizations and pointed out that housing costs in markets that were once considered affordable put home buying out of reach for many. Dallas was one of those markets. The executive director of our affiliate there told me that in just the three weeks following the conference, the situation had gotten dramatically worse. Habitat homes are appraising for 40% more than just two years ago, and incomes have only increased slightly.

Throughout the country, the rising costs of land and labor, COVID supply-chain challenges, and regulatory requirements are making it very expensive to build homes. In addition, private investors purchasing homes for rental have further narrowed supply. And there is no magic bullet.

We can’t rein in housing inflation until we correct the systemic housing shortage, particularly our under-supply of decent and affordable homes. The lack of modest, starter houses is affecting every major region of the country and is having an outsized impact on marginalized communities in particular.

The roots of racial inequity in housing run long and deep, bolstered by a web of government policies and private actions that mutually reinforced the exclusion of people of color from homeownership. In 1910, Baltimore, Maryland, enacted the first formal local ordinances that created all-Black and all-white street blocks in response to the growing Black migration from the South. These ordinances spread across the U.S. until the Supreme Court outlawed the practice in 1917. 

In Euclid v. Ambler in 1926, the U.S. Supreme Court affirmed the practice of exclusionary zoning, which focused on the creation of economic zoning policies. Because many Black families could not afford to buy around the expensive housing restrictions, such “race-neutral” economic zoning policies had a racially discriminatory effect.

Then, in the 1930s, the Federal Housing Administration refused to guarantee mortgages for homes in communities where households of color lived or in those communities redlined in the color-coded maps developed by the federal Home Owners’ Loan Corporation. The maps redlined neighborhoods occupied predominantly by households of color or those situated close to unhealthy environmental hazards (i.e., “smoke, odors, and fog”) and deemed them financially risky for lending. Private lenders followed their lead and refused to extend mortgages to Black potential homebuyers.

On the local level, many homeowners and local communities adopted racially-restrictive covenants that forbade any buyer from reselling a home to Black buyers. Though struck down as illegal in 1948, the policies remained on the books of many communities for decades.

Homeownership is one of the primary ways that families build wealth, but today, we’re still seeing a huge number of families of color being shut out of the chance to become homeowners. Only 44% of Black families own their homes compared to 73.7% of white families. The wealth gap in the U.S. can very often be traced to housing issues.

So, what are followers of Jesus called to do about societal challenges like affordable housing and racial equity?

Seek Wisdom

Let’s start with what Scripture tells us about wisdom. James 3:17-18 says “But the wisdom that comes from heaven is first of all pure; then peace-loving, considerate, submissive, full of mercy and good fruit, impartial and sincere.  Peacemakers who sow in peace reap a harvest of righteousness.”

Nothing about plotting to exclude, working around the law, or demeaning others fits at all with these descriptions. Many reasons exist for why God’s people have allowed housing to become such a divisive tool. 

• It’s hard to fight years of injustice and layers of policy.

• Until the summer of 2020, many people had no idea that practices such as redlining were commonplace in some communities.

• Often people are fearful that in making life better for others, they will lose something they hold dear.

For Christians, providing hospitality and shelter opportunities are at the heart of what it means to love our neighbors. And Jesus was clear that our neighbors are those in need. One of our mission principles at Habitat is that no one lives in dignity until everyone lives in dignity. We believe that is what a just and good society would look like. 

Walking alongside the poor is the central economic concept in the Bible; therefore, followers of Jesus are called to share their resources, to be good stewards, and to trust in God’s provision.

Be Bold

People of faith have a responsibility both to provide hope and to take action on behalf of those who struggle in desperate circumstances. And the Church can act on many levels.

The first concerns local influence. We must lead the way to battle NIMBY attitudes (not in my backyard) or BANANA proclamations (build absolutely nothing anywhere near anything). Walls go up really fast in communities of opportunity when we talk about building more affordable housing. But if we have done the work to build relationships, to foster trust, and to promote attitudes of authentic community, it becomes much easier to convince people to move to “yes in my backyard.” 

The best model in which all of us can flourish is to create mixed-income, mixed-use communities where people can live close to the places they work. It’s better for the environment, and it’s better for social mobility and opportunity. But, in the last 50 or 60 years, we’ve moved in the opposite direction in the way we have organized our cities. There’s an urgency to figure this out.

Zoning continues to be a barrier for creating more housing opportunities. Churches and other community groups can advocate for land-use policies that increase affordable homeownership development opportunities.

One of the things that first attracted me to Habitat was the fact that we are not against things; we are for opportunities to help all people build a better life. The way we do our work is as important as what we do. Our mission is housing, and joining together to raise the walls of a home builds bridges and creates community.

“As the physical walls of the home go up, the invisible walls that separate us as people come tumbling down, and new hope is built in the heart of the community.”

–Archbishop Desmond Tutu

Be Generous

One of the giant impediments to building more housing is finding land to build on, so there’s a possibility of actually creating social enterprise and helping create housing opportunities. Many churches have land that could be dedicated to creating sites for housing.

For example, after years of discernment, in 2018, the affordable housing task force at Longview Presbyterian Church in Longview, Washington, connected with the local housing organization and began working on a plan for developing two acres of land adjacent to the church property. With unanimous approval from the Olympia Presbytery, the congregation decided to provide space for 48 affordable housing units, about half of which would be reserved for people transitioning from homelessness.

Across the country near Washington, D.C., the congregation of Arlington Presbyterian Church had dwindled from 1,000 members strong in the 1950s to only about 60 parishioners in recent years. After talking with neighbors about what they needed most, church members decided to tear down their building and sell the land to make way for 173 units of low-income housing and ground-floor retail space.

Local congregations can also be conveners, bringing together community residents, business and government leaders, and nonprofit groups to design plans for thriving communities that are welcoming for all.

Earlier, I mentioned the power of the Church to influence local opinions about issues such as zoning. Churches also have a powerful voice that can help raise awareness on a wider level concerning the need for adequate and affordable housing. By formally recognizing housing as a human right, the Church, as a credible institution, can marshal others to action. Clear appeals from the faith sector can influence policy changes that would help low-income families access housing and the financing for housing.  Churches can also hold their parishioners, their communities, and their lawmakers at every level accountable for offering compassionate support to those struggling in unthinkable living conditions.

Solutions won’t be easy, but the timing is perfect. The COVID-19 crisis has revealed and exacerbated the suffering of many who were already living in desperate situations. Recently, Habitat organized our advocacy conference during which we met with more than 400 members of Congress. I was really struck that the urgency of the housing crisis finally was starting to resonate. Habitat, as housing practitioners, and we, as the Church, have the attention of the nation. We cannot afford to be complacent.

Pray

We ask God for open minds and open hearts. We pray for the desire to serve our neighbors in the ways that best meet their needs and for strength to stand up for the things we know are right. Keeping our thoughts fixed on God’s purposes enables us to be creative and to be committed. So, we will ask for wisdom, boldness, and generous hearts as we seek to be faithful followers of Jesus.

Article originally hosted and shared with permission by The Christian Economic Forum, a global network of leaders who join together to collaborate and introduce strategic ideas for the spread of God’s economic principles and the goodness of Jesus Christ. This article was from a collection of White Papers compiled for attendees of the CEF’s Global Event.

by Ambassadors Impact Network

At Ambassadors Impact Network (AIN), we are inspired by entrepreneurs whose desire is to show and share Jesus through their business. These individuals’ unique ability to integrate the demands of operating a company while winsomely advancing the gospel is instructive to our personal and professional lives, and we hope it might be for you as well. That is the motivation for this Spiritual Impact Practices  Report. 

Since 2018, AIN has sought to fund and encourage founders and management teams who demonstrate and proclaim the gospel of Jesus Christ. Recognizing their varied spiritual giftings, passions, and contexts, we do not mandate an approach for gospel advancement. Instead, we ask entrepreneurs to share how they seek to make Jesus known across three areas of their business: their codified values, their business activities, and their products and/or services. 

After reviewing nearly 400 requests for funding and investing $7 million across 19  different companies and funds, we began to see patterns emerge as to how God was working through these businesses. We also received requests from entrepreneurs for best practices and ideas on how to invite others to know Jesus through enterprise. So we asked each of our portfolio companies to answer the following  questions about their organization’s values, activities, and products or services: 

1. How do you incorporate biblical truth into the values of your company?

2. What activities do you undertake, internally or externally, that enable you to demonstrate or proclaim the gospel? 

3. In what ways does your product or service demonstrate or proclaim the gospel,  make disciples, or otherwise expand the kingdom of God? 

What follows are the answers to these questions, lightly sanitized to protect the identity of the companies and entrepreneurs. Within each of the three areas noted above, we have further broken down the responses into eight topical categories to make them easier to digest and better enable you to find the practices that fit your context and passion. Our invitation is for you to explore and discern if God might be inviting you to implement some of these practices in your personal or professional life. 

[ Photo by Toa Heftiba on Unsplash ]

by Dr. K. Shelette Stewart

Corporate social responsibility (CSR) is generally defined as the integration of business operations and values in such a way that the interests of all of a company’s stakeholders (e.g., investors, customers, employees, and the community) are reflected in the company’s policies and practices. Most of us are familiar with two common initiatives within CSR plans: corporate philanthropy and cause-related marketing (CRM), or cause marketing. 

Corporate philanthropy refers to charitable initiatives that help a company increase visibility, attract loyal customers, and offer employees the opportunity to band together in support of major social and civic concerns. A number of companies oversee corporate philanthropy vis-a-vis their corporate foundation, public relations, or external affairs department. 

Many studies from Harvard Business School, and other prominent researchers, have found that leading companies have discovered that there is a strong business case for corporate philanthropy and community involvement. Empirical research studies have shown that people looking to work for a particular company have actually admitted that they factor in whether or not they view the company as a good corporate citizen. Studies have also shown that employees feel good in knowing that their company is engaged in giving back to the community. 

In recent years, cause marketing has become more prevalent in business. Cause marketing is defined as a commercial activity by which businesses and charities form partnerships with each other to market an image, product, or service for mutual benefit. It’s an initiative for addressing social causes and issues by providing resources and funding while simultaneously addressing business objectives.

How do we, as God’s ambassadors in the marketplace, take corporate philanthropy to a Higher level?  How do we align our wealth with our values to the extent that we advance from building up our company to building up the kingdom of God?  How do we pursue kingdom philanthropy? 

Given rampant cases of terrorism, starvation, domestic violence, and health-related pandemics, there is certainly no scarcity of viable civic and social causes for any company interested in philanthropy. While many of these epidemics are at national and global levels, when it comes to addressing victims at the local grassroots community level, it’s usually up to the neighborhood churches and other civic organizations to support individual victims and their families.  Following are a few practical insights and pragmatic ways for aligning wealth and values

• When we as Christian business leaders began to include formal support of God’s churches and Christian organizations within the context of our marketing plans and philanthropic outreach efforts, we will have begun the process of bringing corporate philanthropy and charitable giving to a Higher level. 

• When you use your wealth and marketing influence to help advance worthy causes, the Lord will reward you (Matthew 19:17; Galatians 6:9).  Have the courage and fortitude to support churches and civic organizations in ways that are important and necessary, even if they are not always high profile and publicity generating. 

• By pursuing kingdom philanthropy, your company will serve as a model corporate citizen for others in the community and a catalyst for drawing more attention to, and support for, important charitable initiatives. And for this, you and your organization will also be tremendously blessed by God. 

By aligning our wealth with our values and incorporating God’s kingdom principles, we become the magnificent trendsetters and market innovators God created us to be. Remember, God says we are the head and not the tail (Deuteronomy 28: 13). We should not be following the world; the world should be following us.

This article was originally published here by The CEF Podcast.

Few people have been a consistent voice of wisdom than the Christian Economic Forum, and Chuck Bentley especially. If you’ve been following the website for a while, you’ve certainly seen multiple CEF whitepapers, which are a collection of innovative ideas from some of the world’s leading faith driven entrepreneurs and investors.

Recently, Chuck and his team at CEF had Henry Kaestner on their podcast to talk COVID-19, generosity in the midst of crisis, and alternative recovery scenarios.

Listen in to hear Henry share:

• How his near-death experience last year has impacted his perspective on COVID-19

• The 3-part strategy he recommends to entrepreneurs about running their businesses in this environment

• Observations from Silicon Valley during the crisis

• His response to 4 possible economic recovery scenarios

• And stories of faith, hope, and love in the midst of hardship

FOR MORE INFORMATION ON COVID-19, PLEASE SEE OUR PAGE HIGHLIGHTING SOME OF THE BEST RESOURCES OUT THERE FOR FAITH DRIVEN INVESTORS & ENTREPRENEURS IN THIS SEASON.

Article originally posted here by Access Ventures

by Bryce Butler

2020 will be a year to remember…or at least it should be. As many of us want to move past the moments of 2020, history and the circumstances of 2020, should stick with us and move us towards a better future in the most ideal of circumstances.

A global pandemic; economic justice, and Black Lives Matter protests; record swings in the stock market propped up by record-low interest rates; and, all amid the insanity of the election cycle still not fully realized until our new President is sworn in. Moreover, entire economic lockdowns and frighteningly high unemployment and business closures will have a lasting impact long after the pandemic is passed.

Related to the economy, we saw a recovery in the third quarter of 2020, expanding by 33.1%, although not enough to offset earlier losses from the initial closures, including the 5% decline in real GDP at an annual rate in the first quarter.

The March recession ended 128 months of expansion, the longest in U.S. history, and quarterly GDP had never experienced a drop greater than 10% since record-keeping began in 1947. And in April, the unemployment rate skyrocketed to 14.7% as companies furloughed workers. It remained in the double digits until August when it steadily declined. In the week ending December 12, though, claims rose sharply to 853,000, marking the largest increase in claims filed since mid-September.

With all of this in 2020, it’s hard to escape the simple fact that the economy is a significant factor in daily life. Millions of Americans have continued to struggle and are unable to fully participate in the various opportunities many of their fellow citizens have access to every day. And if we are being honest, many are fearful and have lost both trust in the system and hope for a better tomorrow for themselves and their families. For an economy to function at its best, it needs to be equitable, dynamic, and resilient. It is not just creating stability for some people but creating stability so that every person is free from worry about financial roadblocks or unforeseen issues. Therefore, for an economy to be a thriving economy, it must be an inclusive economy and when a system prioritizes people it will be more inclusive and creative.

We are facing a moral crisis in our economy with greater isolation and accelerating inequality. Poverty persists and economic mobility remains limited for many people. All, while there is increased sentiment that more and more people do not have a fair chance to succeed and that vulnerable groups, are excluded from the jobs, schools, and opportunities they need to move up – leaving them stuck in poverty for years or even for generations.

However, I doubt many of us want our communities to function in this way. We generally do not imagine communities deficient in opportunity. Instead, we desire to live in a society in which we care for one another. A society that fosters a sense of trust, belonging, and safety. A society where we have an individual and a collective sense that we can, as part of that community, influence our surroundings and our very future. Moreover, we do not simply imagine a community with just the basics present but a community that allows us to thrive. In this community, there is an investment in human knowledge and learning; where social trust, empathy, and solidarity are present; where beauty and creativity define a place and inspires us; where there is both natural and physical health; and where the economy is thriving through growth and innovation.

An equitable economy means there are more opportunities available to enable upward mobility for more people. All segments of society, especially the poor or socially disadvantaged groups, are able to take advantage of these opportunities. Inequality is declining, rather than increasing. And people have equal access to a more solid economic foundation.

Too many people have virtually no access to the economy. Of those who do have access, many face limitations on their ability to participate fully (they lack the economic autonomy to make decisions for themselves and freely move within the system). “This is more than economic inequality—it’s economic exclusion.” It is time we focus on expanding opportunities and limiting exploitation so that everyone wins, together.

That is why in our work at Access Ventures, whether it’s our direct initiatives, investments, or broader managed assets, we pursue people, companies, and funds aligned with this mission to improve equality and increase economic prosperity (agency). We look closely at things like geographic, gender, and racial equity in our managers and investments (i.e. things that support ownership) as well as things like income mobility and the creation and increase of wealth for under-represented people. Next week, I’ll explore a bit more at what a more dynamic economy looks like as we seek to further define our collective efforts at Access Ventures.