Growing up in Section 8 housing, I witnessed firsthand the struggles of living day-to-day when it came to underserved and underrepresented populations. Not only did I see neighbors being displaced, but I saw family members wrestling with bills, trying to meet the needs of daily life. In each of those moments, even at a young age, I knew there had to be a better way.
Through Bridging the Gap Development I have found outwhat home ownership means for families and communities. My vision is to create mixed-income communities with rich amenities — to revitalize neighborhoods, develop housing and establish small business opportunities, all while fostering public-private partnerships.
Collaboration and investment are key. It takes varied funding streams to strengthen communities and partnerships between the public and private sectors to achieve remarkable results.
The bleak reality, however, is that for developers like me, the playing field is far from level. Minority developers face significant disadvantages. In a 2021 article published by the Knight Foundation, it was noted that of the $82 trillion in private equity, less than 1.3% went to developers who identify as Black, a person of color or as women. This stark disparity underscores the need for systemic change and equitable access to capital for all developers.
Public-private partnerships can be powerful when all parties are involved and invested. For example, community partners can help identify local needs and provide valuable insights, even if there isn’t 100% alignment on every detail. Team members with the right experience and passion for the project can fill in gaps and bring essential expertise to the table.
Government partnerships are also vital. When government entities are just as invested in the project as the developers and the community, they can:
• Advocate for funding
• Provide direct funding and help developers overcome challenges
• Facilitate the approval process
• Provide crucial support
This cooperative approach is far more effective than developers navigating complexities alone.
From an equity partnership perspective, minority developers often rely on tax credit investors, whether for historic tax credits, new market tax credits or low-income housing tax credits. We need partners in our efforts. Supporting minority developers is not only good for the economy but also essential for advancing communities. We seek partners who offer fair pricing and terms that set us up for success, rather than imposing unrealistic conditions.
This investment is not just about supporting individual developers but about rebuilding and revitalizing entire communities. Minority developers often focus on projects that eliminate blight, create jobs and provide opportunities for small businesses. These projects have a multiplier effect, benefiting the entire community. By being intentional about investing in minority developers, we can drive meaningful change and foster economic growth.
There also needs to be some adjustments in the approval process for development projects. The system is antiquated and often holds communities back. By streamlining and expediting this process, we can generate growth and development more efficiently. This evolution is not just a possibility but a necessity for the future of our communities.
We must recognize the benefits these projects bring to both lower- and higher-income residents. For lower-income residents, mixed-income developments can provide better living conditions and opportunities for upward mobility. For higher-income residents, these projects create a sense of community and inclusivity. The mutual benefits are becoming more apparent, and we should expect to see more projects like these in the future.
Often, solutions are created with good intentions but fail to address the actual needs of developers and communities. By integrating and implementing input from those on the ground, we can ensure that policies and solutions are truly effective and responsive to the needs of our communities, leading to better outcomes and a more inclusive development process.
Moving forward, we must create a more wide-ranging, vibrant and prosperous future for all.
Derrick Tillman is president and CEO of Bridging the Gap Development in Pittsburgh.