WASHINGTON -- A coalition of technology companies and nonprofit groups is launching a national effort to encourage builders of low-income housing to include broadband Internet connections in new building projects.
The coalition, led by nonprofit technology group One Economy, announced Monday a two-year Bring IT Home campaign, which encourages broadband access by putting incentives into the national Low-Income Housing Tax Credit (LIHTC) program, which helps fund $6 billion worth of low-income housing each year. The LIHTC program, funded by the federal government and administered by states, provides tax credits to encourage private investment in low-income housing projects.
State Action Urged
Bring IT Home is encouraging states to require high-speed Internet connections in LIHTC housing, and to include the cost of broadband in the subsidized-housing operating budgets. So far, 12 states have changed LIHTC rules to encourage broadband connections, but One Economy officials say they hope all 50 states will participate.
One Economy estimates that 12 million U.S. residents living in government-funded housing can't get broadband Internet service. Broadband access is necessary for residents of low-income housing to fully take advantage of the Internet, says Rey Ramsey, chief executive officer of One Economy and chairman of Habitat for Humanity.
With broadband access, the poor can access resources such as government services, online banking, and educational and job opportunities, instead of standing in line for services, supporters of the campaign say.
"It takes a long time to be poor," Ramsey say. "We often ask the poor to stand in line, when they could be online."
Lining Up Support
The Bring IT Home campaign is supported by ten corporate partners, including Microsoft, Verizon, and Cisco. Housing authorities and other nonprofit groups in eight cities also support the program. Honorary cochairmen for the campaign are U.S. Senate Majority Leader Bill Frist (R-Tennessee) and Minority Leader Tom Daschle (D-South Dakota).
Getting states to amend their LIHTC policies is the first step in the program, but One Economy will look for other ways to encourage broadband adoption in low-income housing, Ramsey says. The Bring IT Home program doesn't address the cost of buying a home computer, but other One Economy programs assist with loans and discounts for software and hardware, says Amy Critchett, One Economy's director of media and marketing.
The goal of One Economy is to use Bring IT Home to help the residents of low-income housing learn about and address other issues affecting poor communities, including health care, jobs, and crime, Critchett says.
"We think the Internet provides access to information on all fronts," Critchett adds. "Hopefully, the Internet will solve some of those problems."
Also on Monday, One Economy announced it has teamed with National Equity Fund to provide $20 million in funding, plus technical assistance and training, to help developers work with the Bring IT Home project. National Equity Fund is the largest nonprofit syndicator of low-income housing tax credits in the U.S. The funding will enable One Economy to install high-speed Internet access for the National Equity Fund's building project partners.
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