Loans for Low-Income Homeowners: Darrell Clarke's Plan for Philly

Infrastructure Development Company Limited (Idcol), a government-backed Bangladeshi energy and infrastructure group, is helping bring solar power to homes in rural Bangladesh that once relied on dangerous kerosene or expensive diesel for electricity. The keys to Idcol’s expansion across Bangladesh are financing plans that cater to lower-income people, as well as partnerships with 56 grass-roots organizations like the microfinance institution Grameen. Solar energy is reliable, clean, and more cost effective in the long run, and has become a lifeline for low-income Bangladeshis living beyond access of the main grid.

With the prices of solar technology dropping and the opportunity to save drastically on energy usage and costs, businesses and organizations across the country are investing more in solar infrastructure for their buildings and facilities. The Better Buildings Initiative of the US Department of Energy is helping by providing guidance and documenting effective approaches and financing for renewables installations - from hotels, to schools, to big box retail.

Substitutes for city parking requirements are becoming increasingly popular throughout the United States. Rather than using off-street parking, many housing developers now provide residents with alternatives that promote reduced driving. This method is better for the environment and lowers the cost of housing in urban areas.

Years of misrule and a subsequent dearth of hard currency, along with crippling bank-fostered debt cycles and exorbitant home mortgage interest rates, have created immense suffering for Myanmar's poor. But with the guidance of a local NGO, Women for the World, a pilot project helped women in some of Yangon's poorest neighborhoods capitalize on their cultural "head-of-household" status; by forming and managing community savings cooperatives, the women have instilled trust through local control and, above all, enabled members to secure land, build homes, buy food, and even generate profit through loans to families' business enterprises.

In Jackson, Mississippi, a series of community-led cooperatives are creating opportunities for affordable home ownership. This is part of a trend across the country to create community land trusts. They are financed through donations, other community businesses, or commissions. Though each land trust faces hurdles, they are collectively allowing more access to wealth and ownership in historically low-income neighborhoods.

Since the 2017 Tax Cuts and Jobs Act passed, investors, community leaders, and local governments have been talking about Opportunity Zones. These are low-income areas in each state--Alabama has 150--that will incentivize investor spending by providing tax breaks for longer-term investment in areas typically not on the highest priority list for traditional investors. Montgomery, Alabama is seeking input from local groups on where funding can best be spent. Though the opportunity zones legislation is in its early days, many are excited about the potential to stimulate economic growth.

Mosaic Development Partners (MDP) seeks to create wealth for the black community in Philadelphia by providing affordable housing and creating opportunities in neighborhoods that are considered risky investments for typical real estate companies. The black-owned company has created housing as well as retail opportunities for minority and women-owned businesses who historically have a harder time accessing capital and loans. The company is mission-driven but operates on a for-profit model, finding economic solutions for systemic problems that have kept black communities from creating generational wealth.

Complementary currencies are local alternatives to national currencies that help local economies when budgets are tight. Tenino prints “wooden dollars” and residents in need get up to $300/month to spend at local businesses from grocery stores to day cares. Cities across the US have reached out for advice on starting their own local currencies, which can take many forms including digital-only. There are 3,500-4,500 local currencies in 50 countries, including Brazil’s Maricá where it helped the under-resourced city build schools and hospitals. These currencies have no value outside of the local economy.

The Nusantra Fund provides financial support directly to community-led projects in Indonesia. The aim is to improve the livelihoods of Indigenous and local people while tackling climate change impacts and protecting biodiversity.

KC Tenants is a tenant union that connects renters to put pressure on landlords and local government to protect tenant rights. With the help of the group’s political arm, KC Tenants Power, they have blocked thousands of evictions, received millions of dollars in funding to secure affordable housing for those in need and have grown to about 10,000 members. Outside of blocking evictions and securing long-term affordable housing, the group also has four members who won City Council seats.