How MoCaFi’s collaboration with Citi’s Affordable Housing Resident Initiative increases opportunity for low-income New Yorkers
The road to economic stability can be riddled with barriers, especially for low-income communities that traditional financial systems overlook. In New York City, especially, housing affordability is the worst it has been for decades. The NYC affordability crisis is exacerbated for low-income renters with subprime credit scores who face additional barriers to purchasing assets or gaining access to capital. A recent study by the Urban Institute concluded that rent reporting can lead to statistically significant increases in credit scores and access to lower-interest loan products.
MoCaFi is excited to be part of Citi’s Affordable Housing Resident Initiative (AHRI), in collaboration with Credit Builders Alliance and three nonprofit organizations including Project Access, Phipps Neighborhoods, and Marshall Heights Community Development Organization, Inc. This initiative aims to help affordable housing residents establish or improve their credit scores by enabling residents to report their rental payments, leading to greater financial well-being.
This model’s approach can be replicated and scaled to additional affordable housing developments across the U.S
MoCaFi will host On Our Block community pop-up events to connect residents to resources such as 1:1 financial counseling, workforce programs, and other resources in an engaging, informative, and family-friendly format.
In Brooklyn, the first On Our Block® event held at a Phipps development provided over 100 residents access to rent reporting tools, credit education, and connected residents to local resources ranging from banking services to workforce development. The event’s success demonstrates On Our Block’s effectiveness in creating a replicable and engaging entry point to connect with low-income residents. MoCaFi is planning additional events in Los Angeles, San Francisco, and Washington, D.C. as part of the AHRI.
The MoCaFi Bank Account offers a rent reporting feature to users in recognition of the impact that rent reporting can have on credit scores.
As a Citi Impact Fund portfolio company, MoCaFi brings deep expertise in engaging affordable housing residents to drive greater impact on positive credit profiles and financial mobility.
Interested in learning about AHRI? Read more here.
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