Global Citizenship Report 2017

Affordable Housing and Homeownership Nominal prices for U.S. homes have surpassed their pre-recession peak, 6 while wages have largely remained flat, leaving home- ownership out of reach for many. This has in turn increased demand for rental units. The share of U.S. households renting homes is now at a 50-year high of 37 percent, and some 11 million households pay more than half of their income toward rent , 7 well above the 30 percent threshold that is considered a “cost burden.” Communities of color and low-income fami- lies have been disproportionately impacted by these trends, contributing to growing inequality. Citi is working to help solve the affordable housing crisis by financing projects in low-income urban areas and developing new models to strengthen affordable housing markets overall. This work aligns with SDG target 11.2 , which includes providing access for all to adequate, safe and affordable housing and basic services . Financing Affordable Housing Citi Community Capital (CCC) offers a range of housing financing solutions — including municipal bonds, tax credits and subsidies — to affordable housing developers. We focus on projects that serve low-income and special needs populations, including seniors, those with disabilities and the homeless. CCC’s work goes beyond just housing — we also finance other projects critical to strong and vibrant communities such as schools, healthcare facilities and businesses that contribute to community revitalization. In 2017, the affordable housing market in the U.S. was chal- lenged by uncertainties around tax reform, as well as labor and materials shortages, which were further exacerbated in some areas by natural disasters. At Citi, we continue to work with our clients to structure financing that is responsible, even amidst these challenges. Last year, we provided over $4.7 billion in loans for affordable housing projects in the U.S., covering 28,700 units in 129 cities, serving as the leading financer of affordable housing in the U.S. for the eighth consecutive year. Citi has also pursued solutions that boost and preserve afford- ability. For example, Citi Community Development (CCD) acted as a lead investor in an innovative public–private partnership — that also included capital investment through Citi Community Capital — in San Francisco. Launched in February 2017, this partnership aims to help preserve and produce homes for lower-income families in one of the country’s most expensive real estate markets. The San Francisco Housing Accelerator Fund was launched by the city of San Francisco, local founda- tions, corporations and other partners as a nonprofit financial intermediary that acts as a “one-stop shop” for investing in affordable housing in the city with a speed and responsiveness not otherwise possible in such a competitive real estate market. Through the Fund, the City of San Francisco will have a sustain- able funding source to acquire new sites for affordable housing development in the future, and will continue to leverage private and philanthropic contributions to increase its impact. The Fund aims to preserve and protect 1,500 affordable housing units in its first five years by helping affordable housing devel- opers better compete with market rate players, and is one example of creative problem-solving by Citi and our nonprofit and municipal partners. CCD also works to strengthen affordable housing options for vulnerable populations that are often overlooked, such as the elder LGBTQ community. One recent study found that nearly half of older same-sex couples applying for senior housing faced discrimination. In March 2017, SAGE, one of the nation’s oldest nonprofit organizations dedicated to the needs of that constituency, announced plans to expand its LGBT Elder Housing Initiative with the help of CCD. Under this expansion, SAGE is scaling its strategy to produce safe and welcoming affordable housing projects and promoting best practices for building inclusive housing among the housing development sector, community groups servicing LGBT individuals, policy- makers and regulators. SDG SPOTLIGHT: GOAL 11 Sustainable Cities and Communities 6 Joint Center for Housing Studies of Harvard University, The State of the Nation’s Housing 2017 (April 2017), http://www.jchs.harvard.edu/sites/jchs.harvard.edu/files/harvard_jchs_state_of_the_nations_housing_2017.pdf. 7 Ibid. Citi 2017 Global Citizenship Report 99 CONTENTS    INTRODUCTION    HOW WE DO BUSINESS    SOLUTIONS FOR IMPACT     APPENDICES Environmental Finance    Inclusive and Resilient Communities