Economic Development

Community organizations, local governments, foundations, businesses, and social service providers rely on residential stability in their efforts to alleviate the plight of impoverished families in hard-pressed neighborhoods. While trading up to a better neighborhood may improve an individual family’s circumstances, frequent churning of residents may have negative effects for communities. A forthcoming examination of evidence from the Making Connections initiative, a decade-long effort sponsored by the Annie E. Casey Foundation to improve neighborhoods in 10 cities, will be the starting point for a debate about the intersection of poverty, neighborhood quality, and economic advancement.

Facing the most severe recession since the 1930s, and probably the longest as well, the U.S. government has adopted an aggressive countercyclical fiscal policy stance, beginning with the “Economic Stimulus Act of 2008” in February of that year, shortly after the recession’s designated starting date, and followed one year later by the much larger “American Recovery and Reinvestment Tax Act of 2009.” These two bills, adopted under different presidents, both contained temporary tax rebates for households and temporary investment incentives for firms, indicating at least limited bipartisan acceptance of these approaches to countercyclical stimulus.

Neighborhoods likely to be the hardest hit by foreclosure impacts in 2009 are those that experienced the highest densities of subprime (high-cost) lending during the peak 2004-2006 period. This brief examines patterns of such lending in the 100 largest metropolitan areas. The very highest subprime densities were found in minority neighborhoods that were, interestingly, at the higher rather than the lower end of the income spectrum. But there was considerable variety in characteristics among the most troubled. Of the fifth of census tracts that ranked highest in subprime density, 35 percent had predominantly white populations and 60 percent were in the suburbs.

Cities around the world are building urban cultural life as a way to develop local economies and revitalize urban centers. But they have done less to recognize and systematically promote the cultural lives of urban neighborhoods and their residents. This brief examines four characteristics of city cultural policy that affect cultural development and cultural life in neighborhoods. The brief is informed by policy forums held by The Living Cultures Project in New Orleans in 2008-2009 to address key policy issues confronting neighborhood and cultural life.

Every parent recognizes the inextricable connections between where we live and the quality of our children’s education. Although public policies have historically contributed to disparities in both neighborhood affordability and school quality, federal programs focused on affordable housing rarely take public schools into account and school officials typically assume that they have no influence over housing patterns. This paper focuses on four principles regarding the vitality and performance of schools and communities, discussing opportunities for constructive policy interventions, summarizing what we know about their likely effectiveness, and recommending next steps for the Department of Housing and Urban Development and the Department of Education.