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Through specific examples, the authors demonstrate how OZ could advance its intended purpose across geographies and at scale. Without future reforms, however, Opportunity Zones may actually exacerbate the wealth inequality gap, rather than narrow it.

In “Rebuilding the Bond Market for Mixed-Income Housing,” Carol Galante, Carolina Reid, and Nathaniel Decker of the Terner Center for Housing Innovation, University of California, Berkeley argue for the use of tax-exempt bonds — otherwise known as 80-20 deals — as a method to finance mixed-income housing. These projects combine market-rate units (usually 80 percent of total units) and affordable units (usually 20 percent of the units reserved for families at or below 50 percent of the area median income) in a single deal funded through tax-exempt private activity bonds. This financing approach has been used to generate and preserve low-cost, income-restricted housing in both higher-income and gentrifying neighborhoods. As Galante, Reid, and Decker argue, the advantages are clear:

“Expanding public- and private-sector capacity to arrange 80-20 deals would tap into an underutilized funding stream without reducing the resources for 100-percent affordable projects. Furthermore, as cities increasingly turn to inclusionary zoning and other policies to expand the supply of affordable housing, 80-20s may help make more projects financially feasible.”

Current examples of 80-20 projects in New York, Texas, and Minnesota illuminate how successful they have been in boosting the financial viability of mixed-income projects and expanding affordable housing in higher-resourced neighborhoods. These case study examples show how 80-20 projects may help local stakeholders overcome NIMBY objections while at the same time aligning with the policy framework of the Affirmatively Furthering Fair Housing rule. Yet, there are many challenges to balancing the needs of private market-rate developers with those of mission-driven, affordable housing developers.

Both essays illustrate obstacles that can arise when using market-centered policies to address entrenched patterns of economic segregation and disinvestment in communities of color. Both Opportunity Zones and 80-20 bond projects require government and market actors to work effectively together. The public good must be balanced with profit interests. Equity and inclusion must be recognized as a core component, not only to meet the legislative mandate and administrative rules but for the implementation processes and long-term outcomes.

Aaron Seybert is a social investment officer at The Kresge Foundation where he supports the Social Investment Practice and the Detroit Program. Previously, he served as executive director at JPMorgan Chase Bank. He started his career in impact investing at Cinnaire (formerly the Great Lakes Capital Fund) addressing affordable housing, and previously worked with Legal Aid of Central Michigan. Aaron earned a bachelor in business administration in corporate finance and accounting from Central Michigan University in Mt. Pleasant, Mich., and a juris doctorate from the Michigan State University College of Law.

Lori Chatman is a senior vice president of Enterprise Community Investment, Inc., and serves as president of the Enterprise Community Loan Fund, Inc. Lori is responsible for setting and implementing the strategy for Enterprise to raise and deploy capital through large-scale national, regional and local debt funds as well as tax advantaged equity through Qualified Opportunity Funds and New Markets Tax Credits. Lori joined Enterprise in November 2004 with more than 15 years of community development experience. Prior to her current position, she was the senior vice president and chief credit officer of the Enterprise Community Loan Fund, Enterprise’s U.S. Treasury-certified Community Development Financial Institution (CDFI). Before joining Enterprise, Lori was the director of lending for the Calvert Social Investment Foundation (now Calvert Impact Capital), where she managed their portfolio of loans to CDFIs, community development corporations, community service organizations and international microfinance institutions. Lori was also responsible for delivering a broad menu of portfolio and asset management services under contractual arrangements with a host of institutional investors, including administering several portfolios of loans funded by these investors.

Robert Bachmann

In his role as Senior Director of Impact Investing at Enterprise, Rob provides leadership and support for various components of Enterprise’s Creative Capital team including Enterprise’s Opportunity Zone Funds and the Enterprise Community Impact Note, where he focuses on capital raising, fund operations and strategy, impact, and policy. In his previous role at Enterprise as Chief of Staff to the CEO, Rob served as key support and advisor to the CEO on a range of matters, including organizational strategy, board governance, speechwriting and external communications, fundraising, stakeholder engagement, operational issues, and other critical priorities to the organization. Prior to Enterprise, Rob worked at Citi Community Development in the bank’s Community Reinvestment Act (CRA) division, and prior to that, he served both as an aide to the chairman of the Financial Crisis Inquiry Commission and as a special assistant on the Obama-Biden Transition Team in 2008, following his role on the Obama presidential campaign.

Carol Galante is the I. Donald Terner Professor in Affordable Housing and Urban Planning at UC Berkeley and the founder and Faculty Director of the Terner Center for Housing Innovation and the Terner Housing Lab, a new accelerator program working with early- stage ventures on housing affordability. Galante previously served in the Obama Administration as Assistant Secretary for Housing/Federal Housing Commissioner at the U.S. Department of Housing and Urban Development and as Deputy Assistant Secretary for Multifamily Housing Programs. Prior to her appointment at HUD, she served for over ten years as President and CEO of BRIDGE Housing Corporation. She also serves on the Advisory Board of Factory OS, an innovative new company changing how we build. Galante holds a Master of City Planning from UC Berkeley and a Bachelor of Arts from Ohio Wesleyan.

Carolina Reid is an Assistant Professor in the Department of City and Regional Planning and the Faculty Research Advisor at the Terner Center for Housing Innovation. Carolina specializes in housing and community development, with a specific focus on place-based anti-poverty strategies including policies to expand access to affordable housing and homeownership for low-income and minority households, the Community Reinvestment Act, and neighborhood stabilization.

Nathaniel Decker is a doctoral candidate in the city and regional planning department at UC Berkeley. Prior to this he was a senior associate at Forsyth Street Advisors, an advisory and asset management firm based in New York focused on affordable housing, real estate, and municipal and impact investment. His recent research has examined topics such as the behaviors of small rental property owners, the impact of technology on the housing search, and the drivers of rent changes for units. Nat received his masters in urban planning from Cornell University in 2011 and his B.A. from Oberlin College in 2004.

In “A Call for Property Management Transformation To Meet the Challenges of Mixed-Income Communities,” by Frankie Blackburn and Bill Traynor, the authors present a guide for meaningful community building in mixed-income developments. Blackburn and Traynor provide in-depth analysis of a case study from Pittsburgh, where developer and property-management investments in transforming organizational culture led to positive outcomes for residents. Their essay touches on common challenges in mixed-income communities: conflict among community members, typical site management and operations issues, and property managements’ efforts to reconcile the needs of all community members without being overly punitive or exclusionary. The authors propose intentional community-building practices as a way of strengthening community ties in order to build thriving mixed-income communities:

We assert that the principal difference between communities and neighborhoods that work and those that languish is that the former have a network—a group of people who make the choice to embrace differences and to cultivate and act on their interconnectedness. This group works to develop the personal capacity to form mutually beneficial relationships, in order to tackle tough challenges, plan for an uncertain future, and cultivate quality of life.

Blackburn and Traynor’s story of working with TREK Development illustrates how organizational leaders took risks, demonstrated vulnerability, committed themselves to learning, and changed norms for how their communities are managed. The authors share lessons about practical solutions for others who seek new ways to address common property-management challenges. With their wisdom, readers will learn pathways to the shifts in operating culture needed to ensure that mixed-income developments live up to their potential, offering not only housing but diverse, inclusive, and supportive communities for all residents.

The second essay combines the collective experience of two real estate professionals with extensive experience building affordable and mixed-income communities and a research and policy expert. In “What Works for Building and Sustaining Mixed-Income Communities: A Perspective from the Development Community,” Vicki Davis of Urban Atlantic, Daryl J. Carter of Avanath Capital Management, and Rosemarie Hepner of Urban Land Institute (ULI)’s Terwilliger Center for Housing describe five key strategies for building and sustaining mixed-income communities:

• Developing the right mix of affordable to market-rate units: “Finding the right mix enables residents with diverse incomes to live side by side and benefit from new investment in the neighborhood. But the “right” ratio depends entirely on the market, which can vary from site to site.”
• Overcoming financing barriers: “Finance plays a big role in building mixed-income communities, but the variety of debt and equity sources needed—and the related requirements and administration—make financing mixed-income projects particularly challenging.”
• Creating and sustaining a community: “Because we are committed to having a positive impact on families and communities…we strategize about how to establish and sustain the elements of an equitable, inclusive, high-opportunity community.”
• Building stakeholder support: “Developers must have buy-in from many different stakeholders…Building support among residents often is a major challenge, as upper-income residents have concerns about bringing low-income people into their neighborhoods and lower-income residents of emerging neighborhoods worry about gentrification and displacement.”
• Working with local and state regulations: “Local zoning requirements can assist developers of mixed-income housing developments by requiring that a specified proportion of new homes be affordable. On the other hand, local and state regulations can also create roadblocks for the development of mixed-income and mixed-use projects.”

Davis, Carter, and Hepner remind us that developers can hold a strong commitment to inclusion and equity, yet face tremendous obstacles to translating those principles into action. By voicing those obstacles along with successful solutions, we hope this essay will help the development community be more forthright about the challenges they face and lessons that can be replicated by others pursuing mixed-income communities.

Trusted Space Partners is a team of experienced community developers and designers who are supporting collaborative community change initiatives all over the United States. These initiatives are firmly grounded in the wisdom of people who live and work together in local communities.

The Partners, Frankie Blackburn and Bill Traynor, are long time practitioners who have worked at the grass roots level in community for a combined 60 years. Both Bill and Frankie have direct experience as organizers, developers, social designers and Executive Directors of powerful local organizations focused on building new networks of residents and institutions that cross traditional boundaries.

Vicki Davis is responsible for managing the acquisition, planning, design, and implementation of all Urban Atlantic projects, and asset management of properties that the company owns and its Mid-City Community CDE investment portfolio. With over 30 years of experience in real estate development, she formerly served as Deputy Director of the Maryland Housing Fund at Maryland DHCD. Her experience also includes portfolio management for MNC Financial-South Charles Realty and multifamily development for Trammell Crow Residential. Ms. Davis holds a MBA in Finance from American University, an MS in Engineering & Construction Management from University of Texas, and a BS in Civil Engineering from the University of Maryland.

Daryl J. Carter is the Founder, Chairman and CEO of Avanath Capital Management, LLC, a California-based investment firm that acquires, renovates, and operates apartment properties, with an emphasis on affordable and workforce communities. Mr. Carter directs the overall strategy and operations of the Company. Mr. Carter has 39 years of experience in the commercial real estate industry. Previously, he was an Executive Managing Director of Centerline Capital Group. Mr. Carter became part of the Centerline team when his company, Capri Capital Finance, was acquired by Centerline in 2005. Mr. Carter co-founded and served as Co-Chairman of the Capri Capital family of companies. Prior to Capri, Mr. Carter was Regional Vice President at Westinghouse Credit Corporation and a Second Vice President at Continental Bank. Mr. Carter holds a Master’s in Architecture and a Master’s in Business Administration, both from the Massachusetts Institute of Technology. He received a Bachelor of Science degree in Architecture from the University of Michigan.

Rosemarie Hepner serves as Director of the ULI Terwilliger Center for Housing. For the Center, Ms. Hepner manages the housing awards program, supports the Housing Opportunity Conference, assists with research and publications, and collaborates with ULI’s other departments and District Councils on projects. Before joining ULI in 2017, she worked for two international development nonprofits, most recently as the International Capital Markets Specialist at Habitat for Humanity International. In that role, Ms. Hepner supported the operations for the MicroBuild Fund (Habitat’s housing microfinance fund), and managed the State of Housing Microfinance survey reports. Ms. Hepner holds a Master’s in City and Regional Planning from The Catholic University of America’s School of Architecture and Planning, where her research focused on low-income housing practices and design. Her thesis examined housing reconstruction in informal settlements post-disaster. Ms. Hepner also holds a B.A. from The George Washington University’s Elliott School of International Affairs.

In “Achieving Durable Mixed-Income Communities through Affordable Housing Preservation: A Successful Model of Scattered-Site Housing Redevelopment in West Philadelphia,” Michael Norton, Karen Black, and Jacob Rosch describe a model of scattered-site affordable housing development implemented by West Philadelphia Real Estate and Neighborhood Restorations (WPRE/NR) to create 1,100 affordable rental housing units in 760 single-family homes and duplexes using a mix of creative land acquisition, Low Income Housing Tax Credits, and private financing. The WPRE/NT model has effectively built in long-term affordability in some of West Philadelphia’s most rapidly changing housing markets. The essay introduces the Displacement Risk Ratio (DRR) methodology, developed by Reinvestment Fund to analyze gentrification pressures. The authors compare changes in the DRR in West Philadelphia neighborhoods and the location and timing of WPRE-NR developments. In neighborhoods facing tremendous displacement pressure, WPRE/NR’s development activities have created long-term affordable units for low and moderate income, predominantly black households. In West Philadelphia’s more distressed areas, WPRE/NR investments have served as a stabilizing force and provided a much-needed boost to depressed housing values.

In “Weinland Park, Columbus, Ohio: Building Community as a Neighborhood Transitions to Mixed-Income,” Kip Holley, Matthew Martin, and Stephen Sterrett document the achievements of the Weinland Park Collaborative (WPC), a partnership of public, non-profit, and private entities that includes The Ohio State University. They describe how property acquisition, renovation, and construction in Weinland Park catalyzed the area’s transformation from the neighborhood with the city’s highest violent crime rate and highest concentration of project-based Section 8 housing into a mixed-income, mixed-race neighborhood. The essay describes how a household survey conducted by Ohio State’s Kirwan Institute for the Study of Race and Ethnicity helped identify five demographically distinct resident clusters. Analysis of resident perspectives by cluster revealed a nuanced understanding of different attitudes and perceptions among sub-groups of residents who share common life experiences. Using maps that portray areas of the neighborhood perceived as safe and unsafe by survey respondents, Kirwan researchers generated provocative insights about ways in which neighborhood perceptions were dramatically different by race and household make-up. The essay describes the difficult conversations the survey results provoked among residents and presents implications for effective mixed-income community building.

Michael Norton serves as Chief Policy Analyst at Reinvestment Fund. In this role he supports all research related to Reinvestment Fund’s organizational goals and mission. Dr. Norton works closely with a range of partners, including small non-profit organizations, local and national philanthropies, private companies, colleges and universities, school districts, federal, state, and city governments and agencies. His work leverages nearly a decade of experience as researcher and project director to develop data driven solutions – solutions that meet the unique needs of Reinvestment Fund and our key stakeholders in the public and private sectors. Dr. Norton completed his doctoral studies in Sociology at Temple University, where his research examined the relationship between primary and secondary mortgage market activity and neighborhood change in the Philadelphia region at the turn of the 21st century. He also teaches in the John Glenn School for Public Affairs at The Ohio State University.

Karen L. Black is the CEO of May 8 Consulting, Inc. a woman-owned social impact consulting firm. May 8's research and coalition building has supported the creation of many innovative state and local laws and policies that create affordable housing, reactivate problem properties and attract new investment. Black is also a lecturer at the University of Pennsylvania and a Senior Research Fellow at Drexel University’s Lindy Institute for Urban Innovation.

Jacob L Rosch is a senior policy analyst with Reinvestment Fund. At Reinvestment Fund, Mr. Rosch leads projects to help philanthropic, government, and private investors design strategies to build healthy and thriving communities, support the expansion of high quality childcare, and improve the lives of residents and families in disadvantaged communities. His most recent projects have investigated the supply of infant and toddler care in Philadelphia area, the impact of scattered site housing projects, and the role of “middle market” neighborhoods in legacy cities.

Kip Holley is a Research Associate at The Kirwan Institute, where his primary areas of focus are using community engagement, social capital and civic leadership to promote racial equity. During his time at The Kirwan Institute, Kip has worked on a variety of civic engagement related projects with partners from areas as diverse as Central Ohio, Detroit, and California’s Central Valley.

Kip has helped to add to the knowledge of the connection between community decision-making and racial equity, contributing on a number of reports and publications. Kip is the author of The Principles for Equitable and Inclusive Civic Engagement: A Guide to Transformative Change, Kirwan’s keystone publication regarding civic engagement. He has also played a primary role in developing the curriculum and administration for the United Way of Central Ohio’s Neighborhood Leadership Academies.

Kip has also led workshops and lectures about civic engagement, both with students in academia and with residents in a number of communities, and has recently taught at the John Glenn College of Public Affairs at Ohio State. Kip Holley is a graduate of The Ohio State University, having received a MSW from the College of Social Work and a B.S in City and Regional Planning from the Knowlton School of Architecture.

Matthew Martin supports the philanthropic purpose of The Columbus Foundation and its donors through community research, evaluation, and grantmaking in order to strengthen and improve the community for all its residents. He guides the foundation's place-based neighborhood revitalization strategy, and works closely with a number of supporting foundations, including the Ingram-White Castle Foundation and the Central Benefits Healthcare Foundation. With a background in city and regional planning, and racial equity research, Matt brings relevant insight to much of the data interpretation and analysis undertaken by the grantmaking team and The Columbus Foundation’s community partners.

For more than four decades, Steve Sterrett has worked in journalism, public relations and community development. From 1994 to 2010, he was community relations director of Campus Partners, the non-profit community development corporation affiliated with The Ohio State University. He has provided staff support for the Weinland Park Collaborative (WPC) from 2010 through 2019. WPC is a coalition of 20 philanthropic, non-profit, educational, public and private entities that have worked together to foster a mixed-income, diverse urban neighborhood in Columbus, Ohio.

Cady Seabaugh is a Vice President at McCormack Baron Salazar, overseeing special projects, new initiatives and strategic opportunities. She has played a key role in the firm’s Choice Neighborhood efforts, developing strategies and approaches to transform disinvested public and assisted housing sites into holistic, stable and resilient communities for families and residents of all economic backgrounds.

Vincent R. Bennett is President of McCormack Baron Salazar, a national leader in the development of mixed-income communities. In the past 40 years, MBS has developed over 22,000 rental and for-sale homes in 47 cities with total development costs over $4 billion. The company is directed by its mission to transform places into communities where all people can thrive.