Closing Digital Access Gaps in Affordable Housing

As people continue to rely on and adapt to telehealth, remote working and remote learning, there’s an even greater urgency to close the digital divide. 

The costs of obtaining internet access, in addition to devices such as desktop computers and laptops, are significant barriers to improving digital access in underserved communities, according to a recent report by Stewards of Affordable Housing for the Future (SAHF). The nonprofit organization noted that, in public housing, an estimated 75% of connected households rely on smartphones for internet access, and that this reliance is especially prevalent within Black and Hispanic communities. But, smartphone service plans often have strict limits on data usage, limiting access to online education, telehealth and potential jobs. 

“Since the pandemic, the world has realized the importance of being connected to the internet, of having a device that meets your needs and of digital skills to use these tools,” the National Digital Inclusion Alliance’s Executive Director Angela Siefer has said.

Another barrier is digital fluency, which refers to a range of skills that allow people to use technology to locate, evaluate, organize, create, and communicate information. Examples of these skills include the ability to operate devices, and competency using multiple digital tools to participate in civic life, as well as reach professional and educational goals. 

The Department of Housing and Urban Development’s (HUD) ConnectHome report on digital access showed that adults living in affordable housing are generally less comfortable using laptops or desktop computers, especially for tasks such as checking medical records and paying bills, due to concerns about potential security threats and their privacy. The lack of familiarity with computers and other devices is also a factor. 

Infrastructure and ISPs

SAHF has also noted that affordable housing infrastructure plays a part in limiting digital access since many properties were built before the internet was developed. Some challenges include buildings’ wiring issues and design, as well as the unwillingness by Internet Service Providers (ISPs) to improve infrastructure and provide service in areas where profits are limited. However, there are several areas showing progression in this, including New York City and San Antonio, Texas.

In March 2021, the New York City Department of Housing Preservation and Development released revised Design Guidelines encourages, to the extent feasible, new affordable housing utilizing city funds be wired and to offer free high-speed Internet access. Martin Dunn, President of the Brooklyn-based housing developer Dunn Development Corporation, has said that the city, by mandating that people should have internet access at a certain speed, is treating digital access as a basic need. 

In San Antonio, $27 million in funding has propelled efforts to close the digital divide, long sought by community leaders such as Jordana Barton, Vice President of Community Investments at the Methodist Healthcare Ministries of South Texas, Inc. “The digital divide is a structural barrier to upward mobility,” says Barton. This plays out in the classroom, where at-home digital connectivity can affect homework access and completion. To help address this, San Antonio's Connected Beyond the Classroom initiative is working to advance education equity and close the homework gap by developing permanent digital infrastructure covering 50 low-income school neighborhoods.

Enter CODA

The Capital One Digital Access (CODA) pilot program explores solutions that promote digital connectivity while minimizing the cost burden to households.

CODA provides broadband internet, as well as a Chromebook or tablet, to residents in affordable housing properties that Capital One has helped finance. The initial pilot program helped close the digital divide by providing over 1,000 participants at seven sites in New York’s Bronx borough and in the DC metro area with free connectivity. As part of the program, residents in the Bronx received digital education training on the Chromebook’s features and applications through EveryoneOn (EO), a nonprofit that connects low-income families to digital training, access, and devices. 

By providing free broadband and devices, CODA has shown that innovative strategies can decrease the digital divide. An independent evaluator, PIE Org, helped Capital One track implementation of the CODA pilot. Key findings included:

• Following the completion of the program, 74% of residents surveyed said that CODA had improved their lives. In addition to being able to use the devices to gain information about COVID-19 and connect with family members, some had started their own businesses while others had been able to obtain much-needed budget relief owing to the loss of income. 
  • Prior to CODA, only 20% of residents were accessing social communication daily, but afterward, 50% engaged in daily social communication. 
• CODA has given residents further access to seek jobs, healthcare and educational services using devices that are more powerful and efficient than smartphones.
  • The number of times per week participants accessed online employment opportunities increased from 27% to 51%, while the use of Chromebooks and the internet for community services expanded from 23% to 47%. 
  • At the same time, tenants’ daily use of online education grew from 13% to 39%.

CODA also expanded access to employment-related tools and remote work opportunities for participants. Most reported that their ability to search for jobs and explore self-employment increased from once per month before the program to several times per month after.

“I was unemployed as a result of the pandemic, and I couldn’t pay my bills. Having internet access enabled me to start an online store retailing various merchandise. Since then, I was able to pay my bills,” said a resident at Webster Residences in the Bronx, New York.

Since its initial launch in the Bronx and the D.C, metro area, CODA has expanded to 5 more affordable housing communities and will continue to expand in 2022. Leveraging key findings from the pilot phase, CODA’s updated model will connect residents to the internet through a mesh network system and will help provide an onsite resident technology coordinator for at least one year. 

Scaling Digital Access 

CODA shows that it is possible to facilitate greater digital access in affordable housing communities, in part by minimizing the costs of devices and services. More must be done, however, to deploy scalable, cost effective solutions that bridge the digital divide.

One potential pathway is for the U.S. Department of Housing and Urban Development (HUD) to set a minimum broadband speed standard for business and educational purposes. By doing so, all services offered by ISPs, including low-cost packages, would be better equipped to accommodate remote working and learning. 

HUD could also require state housing finance agencies to build the cost of broadband into the operation and maintenance of new affordable housing developments and retrofits. Such direction would make broadband access standard for any development.

Ultimately, this level of support in increasing digital access and service plans would help to address systemic inequities and promote higher rates of digital engagement across underserved communities.

 

 

About the Capital One Insights Center

The Insights Center combines Capital One research and partnerships to produce findings that advance equity and inclusion. As a nascent platform for data and dialogue, the Center strives to help changemakers create an inclusive society, build thriving communities and develop financial tools that enrich lives. The Center draws on Capital One’s deep market expertise and legacy of revolutionizing the credit system through the application of data, information and technology. 

About Capital One

Capital One Financial Corporation is headquartered in McLean, Virginia. Its subsidiaries, Capital One, N.A. and Capital One Bank (USA), N. A., offer a broad spectrum of financial products and services to consumers, small businesses and commercial clients. We apply the same principles of innovation, collaboration and empowerment in our commitment to our communities across the country that we do in our business. We recognize that helping to build strong and healthy communities – good places to work, good places to do business and good places to raise families – benefits us all and we are proud to support this and other community initiatives.

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