Building a Better Urban Future

New Directions in Housing Policy for Weak Market Cities

In Collaboration with

Community Development Partnerships' Network

Local Initiatives Support Corporation

Enterprise Community Partners

INTRODUCTION

Changes in the American economy have given rise to new opportunities and new risks for the nation’s older cities. Over the past decade, the revitalization of downtowns and urban neighborhoods has brought new vitality to communities that were all but written off only a few years earlier. Local governments and community institutions such as universities or hospitals have led some of these revitalization efforts, while other neighborhoods have been transformed through in-migration or through the efforts of residents themselves, mobilized by neighborhood organizations or community development corporations (CDCs).

America’s cities have not shared equally, however, in the economic gains of the past decade. While many cities have thrived, gaining new residents, companies, and visitors, others have not. Those “weak market cities” continue to lose population, jobs, and businesses into the new century. Their threats are not land and housing shortages, but population loss and stagnant economies.

An important theme in the revival of many American cities has been the emergence of a new paradigm for urban revitalization. This paradigm not only acknowledges the central role of the marketplace in driving the future, but also defines new and creative roles for local government, nonprofit CDCs, and other stakeholders in harnessing the power of the marketplace for positive community change. While weak market cities face particular challenges in seeking to apply this paradigm, opportunities exist everywhere.

Although job growth and tourism are important for reversing the trends of out-migration and economic disinvestment in weak market cities, no city can hope to thrive unless it becomes an attractive, desirable place to live. Housing investment is central to the urban future of weak market cities. Better housing and neighborhoods of choice are not only intrinsically valuable, but bring major investment in job-generating retail trade, services, and entertainment in their wake. The decisions that local actors—including public officials, CDCs, foundations, corporations, and other institutions—make to secure and invest housing resources are crucially important.

There are few tasks more important and more necessary in American society today than the regeneration of cities. Recognizing the importance of this task, four different organizations concerned with the future of our cities—the Community Development Partnerships’ Network, The Enterprise Foundation, the Local Initiatives Support Corporation, and the National Housing Institute—have joined forces to prepare this paper, hoping that it will advance and accelerate the revitalization of America’s cities. The information in this paper should help CDCs, government officials and agencies, lenders, community members, and local foundations that provide resources for housing and community development in weak market cities assess the effectiveness of current revitalization efforts; develop more potent goals and strategies; and allocate resources to best achieve these goals.