Strategies: Racial Wealth Building

Evidence-informed strategies to close the racial wealth divide. These solutions account for historical practices that established and maintain the wealth divide– and reduce wealth inequities by increasing income and assets, expanding employment opportunities, removing barriers to quality education, and increasing access to homeownership. 

43 Strategies

Child tax credit expansion

Expand federal or state child tax credits by increasing credit amounts, making credits refundable, decreasing or eliminating the earnings threshold, or creating a fully refundable supplement
Evidence Rating:
Expert Opinion

Community Conditions

  • Income, employment and wealth

Societal Rules

  • Laws and policies

Full child support pass-through and disregard

Adopt policies that allow custodial parents who receive Temporary Assistance for Needy Families (TANF) to collect all child support paid by the non-custodial parent; no portion is retained by the state
Evidence Rating:
Scientifically Supported

Community Conditions

  • Income, employment and wealth

Societal Rules

  • Laws and policies

Unemployment insurance (UI)

Increase compensation provided to unemployed workers looking for jobs by expanding eligibility, amount, or duration of benefits
Evidence Rating:
Some Evidence

Community Conditions

  • Income, employment and wealth

Societal Rules

  • Laws and policies
  • Budgets

Individual Development Accounts (IDAs)

Support subsidized asset accumulation programs in which deposits by participants with low and moderate incomes are matched by program sponsors; withdrawals must be used for qualified expenses to retain matching funds
Evidence Rating:
Some Evidence

Community Conditions

  • Income, employment and wealth

Societal Rules

  • Budgets

Zoning regulation and land use policy reforms

Reform zoning regulations to remove exclusionary zoning codes, address physical environment aesthetics and safety, street continuity and connectivity, residential density, and mixed-use development, etc.
Evidence Rating:
Scientifically Supported

Community Conditions

  • Housing and transportation
  • Diet and exercise
  • Air, water and land
  • Climate

Societal Rules

  • Laws and policies

Land banking

Acquire, hold, manage, and develop properties such as vacant lots, abandoned buildings, or foreclosures, and transition them to productive uses, often affordable housing developments
Evidence Rating:
Some Evidence

Community Conditions

  • Housing and transportation
  • Air, water and land
  • Civic and community resources

Societal Rules

  • Institutional practices

Tax increment financing (TIF) for affordable housing

Create designated tax districts that generate revenue to invest in affordable housing initiatives, blight remediation, and economic development efforts
Evidence Rating:
Expert Opinion

Community Conditions

  • Housing and transportation

Societal Rules

  • Budgets

Community land trusts

Purchase the land a home is on to lease to homeowners with low and middle incomes and require homeowners to sell the home back to the trust or to another resident with low income upon moving
Evidence Rating:
Some Evidence

Community Conditions

  • Housing and transportation
  • Air, water and land
  • Civic and community resources

Societal Rules

  • Institutional practices

Community Development Block Grants (CDBGs)

Provide funding for local community development activities such as affordable housing, anti-poverty programs, and infrastructure development
Evidence Rating:
Some Evidence

Community Conditions

  • Housing and transportation
  • Civic and community resources

Societal Rules

  • Budgets

HOME Investment Partnership Program

Provide grants to states and localities to fund activities that build, buy, or rehabilitate affordable housing for rent or homeownership, or provide direct rental assistance to households with low incomes
Evidence Rating:
Expert Opinion

Community Conditions

  • Housing and transportation

Societal Rules

  • Budgets