A new Boston-based nonprofit dedicated to closing the racial homeownership gap has announced it found success in its down-payment pilot program. 

The Welcome Home Fund “addresses the racial and economic divides in homeownership by giving supplemental, unrestricted cash to first-generation homebuyers in Boston.” As part of the pilot, five families were given $20,000 to purchase their first homes. These five families were all led by single mothers of color who purchased homes in several locations including Brockton, Mattapan and Randolph, according to a press release.

“Economic and racial diversity is vital to the fabric of strong communities, but neighborhoods in and around Boston are becoming increasingly unaffordable for the families who live and work in our communities,” said Josh Muncey, team leader at the Muncey Group. “We started the Welcome Home Fund to address the systemic inequities that make owning a home out of reach for many families of color. It’s proven to be a successful model, and our goal is to expand the fund to help even more people achieve their dream of purchasing their first home and building generational wealth.”

The Welcome Home Fund was created in 2022 by the Muncey Group residential real estate firm and Compass Working Capital, a nonprofit that works with low-income families to build assets to find their way out of poverty. The organization’s creation followed a 2019 Survey of Consumer Finances that found the median homeowner has 40 times the household wealth of a renter, as well as 2022 statistics that found Boston’s homeownership rate was 44% for white residents, 30% for Black residents and 17% for Latino residents. Post pandemic, the disparities only worsened, Welcome Home Fund leaders said.

“This country’s history of racism and misogyny, including redlining and banking discrimination, has created a pervasive gender and race wealth gap that we must bring to an end to advance economic and racial justice,” said Markita Morris-Louis, CEO of Compass Working Capital. “Homeownership is a vital piece to closing that divide, particularly in historically segregated cities like Boston. The Welcome Home Fund’s pilot investment demonstrates the effectiveness of addressing these inequities through direct funding.”

The fund hopes to expand to provide grants to more first-generation homebuyers and women of color, as well as create a grantmaking model that others can use both in the Bay State and eventually nationwide.