Launching the Affordable Housing Resident Initiative
New economic mobility and credit score strengthening program for affordable housing residents.
Building credit has been an integral part of my financial journey. Growing up, my family received resources about managing our money, credit building and the importance of saving through our local credit union in Richmond, Virginia. But today, many families may not know credible sources for credit education — even though in the U.S., a strong credit history is essential to establishing financial health and can help unlock access to housing, transportation and even jobs.
One approach to helping people establish and improve credit scores is by enabling them to obtain positive credit for rental payments, which are not always factored into credit scores. Studies show that rent reporting can be an effective way to increase credit scores, particularly for individuals with no or low credit scores or those with thin credit files. This approach helps individuals build healthy credit without assuming additional debt, which is especially important for households who are living paycheck to paycheck or working to increase emergency or longer-term savings.
To help put more families on the pathway to healthy credit, Citi and three community organizations are piloting the Affordable Housing Resident Initiative (AHRI), a replicable model that nonprofit affordable housing organizations in communities of all sizes can deploy to add the rental payment history of residents to their credit reports.
The AHRI pilot cohort consists of three nonprofit organizations that manage and/or provide direct services to affordable housing developments in Los Angeles, New York City, San Francisco and Washington, D.C. Over the next year, these nonprofits will receive technical assistance from Credit Builders Alliance (CBA) to implement rent reporting, enroll residents and track changes to participating resident’s credit scores over the period of the pilot.
"Based on CBA’s history [of] helping affordable housing providers implement rent reporting, those renters who benefited the most fit a pattern; those who paid rent on time with either a thin credit file or no credit history. CBA is thrilled to collaborate with Citi to help more low-income renters build credit." - Dara Duguay, CBA CEO
As part of the initiative, Citi will also deliver and facilitate financial education on topics such as homeownership, credit building, budgeting, workforce development and more. MoCaFi, a fintech platform and Citi Impact Fund portfolio company, will also facilitate community pop-up events that connect residents to local resources such as 1:1 financial counseling.
"Project Access is committed to empowering residents of affordable housing communities toward self-sufficiency. By collaborating with Credit Builders Alliance and Citi, we will equip residents with essential tools to build stronger financial futures, transforming their potential into lasting economic stability."
- Kristin Byrnes, CEO & President, Project Access.
"Phipps is honored to collaborate with Citi on the Affordable Housing Resident Initiative. This collaboration empowers our residents with essential tools for credit-building and financial growth, helping families build economic stability and pathways to upward mobility."
- Andre White, Executive Director and CEO of Phipps Neighborhoods.
“Marshall Heights Community Development Organization’s participation in Citi’s Affordable Housing Resident Initiative (AHRI) aligns with our mission to uplift D.C. residents by advancing financial inclusion. Through rent reporting and financial education, we empower residents to build credit and enhance financial health, supporting long-term economic stability for our community.”
- Babatunde Oloyede, President and CEO, Marshall Heights Community Development Organization, Inc.
As we kick off our work with these changemakers, I am excited to witness how this program can help put more families on the pathway to many “firsts” - first car, first mortgage, first small business loan. My hope is that, like my own experience with building credit, these first moments of unlocking financial education and resources translate to lasting economic opportunity.