CAPI USA is a nonprofit organization in Brooklyn Center that, according to its website, “helps immigrants, refugees, and those in need meet their basic needs, reach financial stability, and get engaged in their communities.” Guest contributor Patricia Aguilar Ortiz is the organization’s economic empowerment director.
Minnesota is often celebrated for its high quality of life, excellent education, top-tier health care, and overall livability. However, beneath this veneer of prosperity lies a stark contrast: significant racial disparities experienced by its BIPOC residents.
Minnesota ranks poorly regarding racial equality, highlighting a critical issue that demands our attention and action. For example, Minnesota ranks 50th nationwide for the median household income gap between Black and white residents.
It’s important to consider current statistics to understand the broader context of homeownership. The state ranks 46th in homeownership disparities. According to the Minnesota Housing Partnership 2024 report, the disparity between Black and white Minnesotans who own a home is substantial (77% white and 29% Black homeowners).
Minnesota ranks 50th in the nation for the median household income gap between Black and white residents.
This paradox is rooted in systemic racism and historical policies that have disadvantaged Black communities. Dr. Samuel Myers, an economist at the University of Minnesota, says, “It’s a great place to live. Let’s make it a great place for everybody.” He says Minnesota has historically professed a progressive ideology and deep egalitarian sentiment, but that often only went so far.
For example, government and business redlined neighborhoods, identifying “riskier” areas to invest in, which was just a form of racial discrimination; racial covenants were language written into home deeds that said who could — or couldn’t — live there. Highways were often placed in areas that destroyed Black neighborhoods (Rondo area of Minneapolis-St. Paul) or separated neighborhoods from community resources.
These disparities highlight the importance of CAPI’s work in promoting equitable access to homeownership. While our client base is ethnically, culturally, and linguistically diverse, client households commonly share challenges such as racial discrimination, limited work history and educational attainment, housing instability, health care inequities.
They need support in navigating the U.S.-based labor market, educational, financial, and other systems. With nearly all client households facing significant degrees of economic hardship, poverty is the greatest common denominator among those we serve.
CAPI is dedicated to empowering individuals and families in their journey toward homeownership through a comprehensive and compassionate approach. As a HUD-approved housing counseling agency, CAPI USA provides services designed to support community members in achieving financial stability and securing their own homes.
Recognizing that financial stability is a cornerstone of homeownership, we provide personalized financial counseling. This service includes budget assistance, debt management strategies, and guidance on improving credit scores. CAPI USA empowers participants to achieve their homeownership goals by addressing financial challenges and promoting sound financial practices.
CAPI’s Homeownership Program advances equitable access to homeownership for underserved populations (low- to moderate-income, BIPOC households, single-parent households, and individuals with disabilities). We support homeownership sustainability through instructor-led homeownership education, financial wellness, and homeownership counseling.
CAPI’s holistic approach to homeownership advocacy recognizes that each participant’s journey is unique. By providing non-judgmental guidance and honoring individual experiences, CAPI USA creates a supportive atmosphere where participants feel valued and empowered. This compassionate approach addresses immediate housing needs and promotes long-term financial stability and well-being.
As a member of the Minnesota Homeownership Alliance, CAPI USA collaborates with other organizations to advocate for policies and initiatives that promote equitable access to homeownership. This partnership amplifies CAPI USA’s impact and ensures that the community’s needs are represented at the state and local levels.
CAPI works closely with the Minnesota Housing Finance Agency (MHFA) and the Minnesota Homeownership Center, which offer various programs to help first-time homebuyers, including down payment assistance, affordable mortgage options, and homebuyer education courses. In addition, cities like Minneapolis, Brooklyn Park, and St. Paul have programs to increase homeownership rates among minority communities, including grants, low-interest loans, and other financial assistance programs.
The state government has passed legislation to reduce racial disparities, such as the First Time-First Gen down payment assistance program. These efforts collectively aim to make homeownership more attainable and sustainable for all Minnesotans, particularly those from underserved communities.
Despite those collective efforts, Minnesota faces another challenge: a substantial housing shortage, with an estimated gap of 104,000 homes. This shortage drives up prices and makes it harder for low-income families to find affordable housing. To face the challenge, streamlining the approval process for housing projects would encourage the development of affordable homes, including simplifying regulations and reducing bureaucratic hurdles.
Additionally, zoning changes should be implemented to allow for the construction of starter homes and more diverse housing options, like tiny homes. This can help increase the supply of affordable homes and reduce housing costs, as well as expanding the use of Community Land Trust models to provide long-term affordable housing.
While Minnesota has already begun implementing several of these approaches, including policy changes and community initiatives, much work still needs to be done. Continued efforts to increase funding, expand financial education and counseling, and ensure livable wages are crucial to achieving truly equitable, accessible, and affordable homeownership.
By maintaining our commitment to these goals, we can create a more inclusive and supportive environment where all Minnesotans can thrive as homeowners. Together, we can build a brighter future for everyone.
For more information, visit capiusa.org.