Addressing the myriad of challenges in disinvested communities requires concentrated, comprehensive resources. While investment and assistance from state and regional entities are critical to forge a new path for disinvested communities, building the capacity of communities, institutions, businesses, and residents of disinvested areas can sustain long lasting change. Lack of staff, funding, technical knowledge, and other resources can limit the ability of municipalities with a high proportion of disinvested areas to interrupt the cycle of disinvestment or meet their economic and quality of life goals.

Capacity building is also required for the private sector. Small businesses in weak market areas could benefit from education on and connections to educational and financial resources. Creating a pipeline of local developers and business owners is also important. Beyond large scale, national firms, few developers have the requisite combination of skill, interest, and capacity to build projects in disinvested areas. Given this, the region needs more programs like the Chicago Urban League’s Chicago Contractor Development Program to grow and strengthen small-scale developers and contractors.{{Chicago Contractor Development Program, Chicago Urban League, http://www.thechicagourbanleague.org/page/463.}} Many mission-driven affordable housing developers — like Preservation for Affordable Housing or Hispanic Housing Development Corporation — also provide capacity-building opportunities for smaller firms by intentionally including emerging firms and subcontractors in their projects. This strategy also appears in the Governance chapter, under the recommendation to build local government capacity.

Action 1

Work to bring banks and lending institutions together with municipalities to ensure that weak market communities have access to capital and financial services that support economic development.

Implementers

CMAP and partners like the Federal Reserve Bank of Chicago

Action 2

Build relationships with financial institutions to access the resources they provide under the CRA.

Implementers

Local governments

Action 3

Build expertise about available capital and financial resources, develop a plan to attract those resources, and help businesses and residents to apply for these resources.

Implementers

Local governments

Action 4

Employ and cultivate smaller scale, minority and women-owned businesses to build their capacity.

Implementers

Community development commissions, nonprofit housing developers, and larger municipalities

Action 5

Continue to explore grants and other funding opportunities to help small-scale developers bridge funding gaps.

Implementers

Foundations and advocacy groups

Action 6

Target technical assistance, trainings, and other assistance to municipalities in low-income or low-market areas.

Implementers

CMAP and partners