Affordable housing is essential to individual financial stability and community resilience. The availability and accessibility of housing shape numerous socio-economic outcomes, including employment, health, educational attainment, and intergenerational wealth building (Desmond, 2016; Taylor, 2018). In recent decades, however, the gap between housing costs and household incomes in the United States has widened, leading to increased housing insecurity for millions of Americans (Joint Center for Housing Studies, 2023). This crisis is particularly acute among low- and moderate-income populations, for whom traditional financing models and market-based supply mechanisms have proven insufficient.
Credit unions, as member-owned, not-for-profit financial cooperatives, are uniquely positioned to advance equitable and sustainable housing solutions. Credit unions are committed to financial inclusion, local investment, and cooperative principles (Birchall, 2013). They also possess both the mission and the tools to help address the nation’s affordable housing challenges. Yet, realizing this potential requires innovation—across lending practices, land use strategies, ownership structures, and capital investment mechanisms.
Previously in the Center for Community Social Impact, we’ve explored housing from a couple perspectives, including how credit unions have helped Americans deal with the housing crisis and lessons for creating an affordable housing fund.
This five-part series explores practical, scalable innovations in affordable housing with a focus on how credit unions can participate meaningfully in housing solutions—whether through lending, partnerships, advocacy, or investment. While the affordable housing landscape is complex, it is also rich with opportunities for credit unions to act in alignment with their core values of equity, cooperation, and member service. The pieces in this series draw on existing research, emerging models, and interviews with credit union leaders to offer valuable and actionable insights.
| Now Available for Download | 10.9.25 |
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Part 1 — Meeting the Moment: How Credit Unions Are Tackling the Housing Shortage in Their Communities This piece synthesizes secondary research on how credit unions can increase the supply of affordable housing. In particular, it emphasizes the role of financial institutions in filling in the capital stack in order to make the development of affordable housing feasible. It also offers case studies from credit unions that are currently financing or co-developing affordable housing projects, offering insights into traditional and innovative methods that credit unions use to increase housing supply. |
| Coming Soon! | 10.23.25 |
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Part 2 — Another Housing Future is Possible: How Credit Unions Can Support Shared Equity Models In this piece we investigate models that offer long-term housing affordability such as community land trusts (CLTs), limited equity housing cooperatives (LEHCs), and resident-owned communities (ROCs). These models preserve affordability across generations and promote community control of assets (Davis, 2010). Credit unions can play a pivotal role in financing and sustaining these models by tailoring lending products and offering technical assistance. |
| Coming Soon! | 11.06.25 |
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Part 3 — From Land to Homes: Credit Unions’ Role in Affordable Housing |
| Coming Soon! | 11.20.25 |
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Part 4 — A Guide to Affordable Housing Investment Funds for Credit Unions Here we explore the structure and function of regional housing investment funds as a mechanism for aggregating capital and mitigating risk. These funds often leverage cross-sector partnerships to catalyze affordable housing development (Enterprise Community Partners, 2020). This report examines how credit unions can serve as investors, originators, or conveners in such vehicles. |
| Coming Soon! | 12.01.25 |
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Part 5 — Innovations on Affordable Mortgages The final installment in the series examines new mortgage models designed to expand access to homeownership among underserved populations. It highlights tools such as 40-year mortgages, zero down payment, shared equity arrangements, nontraditional underwriting criteria, and collaboration with community development financial institutions (CDFIs) (Temkin et al., 2021). The analysis considers how credit unions can offer flexible, mission-aligned mortgage products that address systemic barriers without compromising financial soundness. |
References
- Birchall, J. (2013). Resilience in a Downturn: The Power of Financial Cooperatives. International Labour Organization.
- Davis, J. E. (2010). The Community Land Trust Reader. Lincoln Institute of Land Policy.
- Desmond, M. (2016). Evicted: Poverty and Profit in the American City. Crown Publishing.
- Enterprise Community Partners. (2020). Equitable Path Forward: Investment Strategies for Inclusive Housing.
- Joint Center for Housing Studies of Harvard University. (2023). The State of the Nation’s Housing 2023.
- Scally, C. P., Gold, A., & DuBois, N. (2018). The Case for Public Land in Affordable Housing Development. Urban Institute.
- Taylor, L. A. (2018). Housing and Health: An Overview of the Literature. Health Affairs.
- Temkin, K., Zielenbach, S., & Quercia, R. (2021). Innovative Mortgage Products and the Future of Affordable Homeownership. Housing Policy Debate, 31(1), 1–17.
