View original document

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

No. 58 Summer 2005

PUBLISHED BY THE
COMMUNITY AFFAIRS
DEPARTMENT OF THE
FEDERAL RESERVE BANK
OF PHILADELPHIA

INSIDE:
2 — Message from the
Community Affairs Officer
3 — Houstoun’s Four Targets
for Regional Equity
4 — Funders Advocate EquityCentered Smart Growth
5 — Pennsauken, NJ, Strives
for Integration
6 — RCAs Are Contrary to
Regional Equity Goals
7 — Regional Equity Can
Benefit All
8 — Spotlight on Research:
Per Capita Personal Income
Differences Among States
16 — Amy Lempert Joins
Community Affairs Department
16 — Calendar of Events

A COMMUNITY DEVELOPMENT PUBLICATION

CASCADE
Isles Adopts Regional
Focus for Greater
Impact
By Martin Johnson, President, Isles Inc.,
Trenton, New Jersey
Five years ago, as a 20-year-old community
development organization (CDC), Isles was
a model of effectiveness. In Trenton, the
nonprofit corporation was building energyefficient homes, training high-school dropouts in construction, addressing environmental contamination, promoting financial
literacy and savings accounts, and helping
community groups complete neighborhood plans. With strong management systems, diverse funding sources, and awards
from the White House and United Nations,
Isles was at the top of its game.
The good news is that Isles was able to improve upon that reputation, but only a�er
learning what it wasn’t able to accomplish
through traditional community development.
In the late 1990s, Isles began rethinking
the question: “How do we know we are
succeeding?” With a mission to foster more
self-reliant families in healthy, sustainable
communities, how would we really know
this was happening? A�er developing
measures for self-reliance (a real challenge), Isles looked to the Healthy Cities
movement in Europe and Canada to devise ways to assess neighborhood and city
“health.” When we did that, vexing questions kept arising: even though Isles devel-

Martin Johnson, President, Isles Inc.

oped hundreds of homes, nurtured many
family self-help successes, and spent millions to redevelop Trenton communities,
the population of the city kept shrinking.
Working-class families continued to flee to
the suburbs, leaving behind increasingly
concentrated poverty. In fact, the suburbs
around the city were witnessing white
flight out to the even further exurbs.
Could we be winning and losing at the
same time? We were successful at the
community development game, but our
work was growing more difficult as overall neighborhood deterioration increased.
Once we mapped the regional social and
economic forces fueled by sprawl, we were
surprised. It was as if we were making
waves at the local level, but the tide was
heading out.
Not only was our community development work not addressing the core forces
of sprawl, but sprawl was undermining the
important community work we had accomplished. And community residents were
weighing in: 85 percent of the roughly 300
families that came to us annually to buy a
home sought homes outside of Trenton.
...continued on page 12

www.philadelphiafed.org

CASCADE
No. 58
Summer 2005
CASCADE is published four times a year by the
Federal Reserve Bank of Philadelphia’s Community Affairs Department. It is available on the Bank’s
web site at www.philadelphiafed.org. Please note
that this is the Bank’s new address.
Material may be reprinted or abstracted provided CASCADE is credited. Please provide the
Community Affairs Department with a copy of
any publication in which material is reprinted.
The views expressed are not necessarily those of
the Federal Reserve Bank of Philadelphia or the
Federal Reserve System. Free subscriptions and
additional copies are available upon request to:
Federal Reserve Bank of Philadelphia, Community
Affairs Department, 100 North 6th Street, Philadelphia, PA 19106-1574.
CASCADE derives its name from White Cascade,
a large mobile designed by Alexander Calder that
revolves in the atrium of the Philadelphia Fed.
Comments and ideas for future coverage are
welcomed. Contact Keith L. Rolland at (215) 5746569 (telephone), (215) 574-2512 (fax), or keith.
rolland@phil.frb.org.
COMMUNITY AFFAIRS DEPARTMENT
Dede Myers
Vice President and Community Affairs Officer
(215) 574-6482
dede.myers@phil.frb.org
Amy B. Lempert
Community Development Advisor and Manager
(215) 574-6570
amy.lempert@phil.frb.org
Keith L. Rolland
Community Development Advisor
(215) 574-6569
keith.rolland@phil.frb.org
Christy Chung Hevener
Community Affairs Analyst
(215) 574-6461
christy.hevener@phil.frb.org
Andrew T. Hill, Ph.D.
Economic Education Specialist
(215) 574-4392
andrew.hill@phil.frb.org
Marvin M. Smith, Ph.D.
Economic Education Specialist
(215) 574-6393
marty.smith@phil.frb.org
Todd Zartman
Economic Education Analyst
(215) 574-6457
todd.zartman@phil.frb.org
John J. Wackes
Community Affairs Specialist
(215) 574-3810
john.j.wackes@phil.frb.org
Jeri Cohen
Secretary
(215) 574-6458
jeri.cohen@phil.frb.org
Yvette Cooper
Department Analyst
(215) 574-6037
yvette.cooper@phil.frb.org

2

Message from the
Community Affairs Officer
Regional equity — What is it? For
whom? How is it reached? Are we
talking about equal opportunity or equal
outcome? Do we mean equity by race,
income, education, health? And how will
we know when we are done?
All these questions and more
were considered in May when
Philadelphia was the host of a major
conference, Advancing Regional
Equity: The Second National
Summit on Equitable Development,
Social Justice, and Smart Growth,
sponsored by PolicyLink and the
Funders’ Network for Livable Cities
and Smart Growth. For two-anda-half days, more than 1300 people
from 42 states talked or heard about
the issues our communities face. The
range of topics discussed was broad:
affordable housing located where the
jobs are not; transportation to the
jobs is difficult for the people who
want them; good schools are out of
reach by location or cost; and health
problems are higher because of fewer
medical facilities, overdependence
on vehicles, or other environmental
factors such as diesel-fueled buses.
And one session on the federal
and state budget cuts advocated
mobilizing not around the reduction
of HUD programs, but around the
plan to reduce the estate tax on
wealthy individuals.
Many of the panels discussed the
solutions individual communities
had started; for example, a Nebraskan
Indian tribe is building a traditional
neighborhood community, maximizing the pedestrian features, so its
residents can walk to work. The tribal

leaders hope that future residents
will have reduced levels of obesity
and diabetes if they are more active.
One Philadelphia organization, the
Allegheny West Foundation, has
asked the Southeastern Pennsylvania
Transportation Authority (SEPTA)
to improve the local station so that
new residential and nonresidential
projects can be built on neighboring
lands that were once brownfields.
In New Jersey, which is considered
by many to be a leader in affordable
housing production because of its
Mt. Laurel court decisions, there
is dissent. Marty Johnson of Isles
in Trenton, New Jersey, argues
that being good at community
development does not necessarily
mean you have achieved success.
Regional factors cannot be ignored.
So to answer my questions above,
here’s what I know to date. Regional
equity means different things to
different people. To me it means
giving everyone an equal opportunity
for a healthy, productive life. For that
outcome, I need a good education,
a job that pays me well enough to
support my family, and a place to live
that I can afford, that is accessible to
schools, jobs, and amenities, and that
is in a healthy location.
And how will we know we are done?
I have been around long enough to
know that we will probably never be
done, but every step closer is a good
thing.

Houstoun’s Four Targets for Regional Equity
By Feather O’Connor Houstoun, President, William Penn Foundation

Feather Houstoun joined the William
Penn Foundation in March 2005. She
served in state government as secretary
of public welfare in Pennsylvania and
treasurer of New Jersey. She was chief
financial officer of the Southeastern
Pennsylvania Transportation Authority,
executive director of New Jersey’s housing finance agency, and acting deputy
assistant secretary for policy development
at the U.S. Department of Housing and
Urban Development. More recently, she
spent a year as a visiting scholar at the
University of Pennsylvania researching
gubernatorial leadership in state housing
policy, and was an executive at AmeriChoice, a health-care company serving
Medicaid clients in 13 states.
In front of an enthusiastic audience
at the Second National Summit on
Equitable Development, Social Justice, and Smart Growth in Philadelphia this May, Jeremy Nowak of
The Reinvestment Fund (TRF) wryly
observed that “regional equity is in
danger of becoming a co�age indus-

The William Penn Foundation is one of
several public and private investors that
are helping the Allegheny West Foundation
(AWF) and other organizations to realize the
potential of Philadelphia’s Allegheny West
neighborhood. AWF took two two-bedroom
units and constructed one three-bedroom
house as part of a larger effort to develop 65
mostly vacant units in a six-block area.

try of conferences.” He may be right,
and his comment offers a challenge to
the field: How do we move from talking and thinking to action that shi�s
realities on the ground?
For decades, the elements that make
up equitable regions — housing
choices for all households, high-quality schools, accessible transportation,
sustainable land use, well-conceived
economic development, and workforce development — have been part
of policy debates at the local, state,
and federal levels. They o�en emerge
as goals within the programmatic
silos of domestic policy lexicon, but
more recently, these ideas have been
woven together under the phrase
“regional equity.” Demonstrating the
interdependence of these programmatic themes is worthwhile, but it
risks moving advocacy to a level of
abstraction without traction. As a
public official, I concluded long ago
that ever-more-sophisticated talk
among the converted achieves li�le.
Issues of regional equity
play out in the trenches of
policymaking around housing, land use, transporta-

tion, jobs, education, and economic
development.
I believe that energy for more equitable regions should be focused on
actionable policy targets that can
affect decisions by individuals, communities, local governments, and the
private sector. It is possible to select
targets that resonate with the public
and support sustainable, equitable regions. These targets must be framed
around themes that broaden rather
than narrow public understanding
and political support.
In Massachuse�s, the Romney administration has woven housing
choices and opportunities with a
broader theme of sustainable development. They’ve gained political
traction for these efforts by building
a vision of the kind of community
most people want: If we think about
it, most of us would like to live in a
place where our children can grow
up and afford to buy their first home,
and where our parents can retire in
their homes. Most people want to
live where police officers and teachers can be part of their community.
They understand that
huge spatial gaps
between housing
and jobs make for a
poorer quality of life
and lead to environmental degradation.
These are powerful
public sentiments
that should guide
advocates to policy
priorities that create
progress toward more
affordable, livable
communities.
...continued on page 14

3

Advocates for Equity-Centered Smart Growth
By L. Benjamin Starrett, Executive Director, Funders’ Network for Smart Growth and Livable Communities
Note: The Funders’ Network for Smart
Growth and Livable Communities is a
nonprofit that strengthens the ability of
funders to support organizations working to improve communities through
better development decisions and
growth policies. It is based in Coral
Gables, FL.

funders’ abilities to support organizations working to improve communities through be�er development decisions and growth policies. Network
members include corporate, private,
and community foundations and
intermediaries. One of the network’s
current efforts, the regional and
neighborhood equity project (RNEP),
is designed to connect and engage

Across North America there is a
growing recognition that current
public decisions
To build understanding of the importance
guiding land use
of equity-centered smart growth, the
and development
are pu�ing people,
network convenes leaders from a range
the environment,
of sectors — philanthropic, nonprofit,
and the economy
academic, private, and public.
at risk. The resulting regional
growth and defunders who believe that racial, ecovelopment pa�erns profoundly affect
nomic, and social justice need to be at
the life circumstances of low-income
the core of the movement for smarter
communities and, in particular, peogrowth, recognizing that true smart
ple of color. Philanthropy has a critigrowth policies address equity, the
cal role to play in demonstrating how
economy, and the environment.1
a regional and neighborhood equity
framework — by which we mean peoThrough RNEP, the network is docuple- and place-based strategies that
menting the growing number of exrevitalize the physical environment of
periments, projects, and initiatives
distressed communities and improve
that show how funders and grantees
the lives of the people who live there
are working across disciplines to
— can be advanced to change how
achieve significant and lasting progthese decisions are made.
ress — progress that will ensure that
all people and families can particiThe Funders’ Network for Smart
pate in and benefit from economic
Growth and Livable Communigrowth and activity throughout
ties, founded in 1999, seeks to help
regions. Recognizing that land-use
funders fulfill this role. The network
decisions have an impact on a broad
exists to inspire, strengthen, and exrange of issues that funders care
pand philanthropic leadership and

about, including poverty alleviation,
economic opportunity, and the fate
of children and families, the network
has since its inception partnered with
organizations such as PolicyLink to
advance the objectives of opportunity, justice, and equity by encouraging
be�er decisions about growth and
development. To build understanding
of the importance of equity-centered
smart growth, the network convenes leaders from a range of sectors
— philanthropic, nonprofit, academic,
private, and public — at national
meetings that serve as forums for
developing common understandings
about the relationship between smart
growth and regional and neighborhood equity.2
A May 2005 network publication,
Signs of Promise: Stories of Philanthropic
Leadership in Advancing Regional and
Neighborhood Equity, includes 21 stories of the projects, nonprofit organizations, and philanthropic partners
involved in working to achieve be�er
outcomes in neighborhoods and regions, told primarily from the perspective of the foundations that have
provided financial and other support.
The stories include many examples of
the philanthropic community capitalizing on its ability to be innovative
and flexible and to take a longer-term
perspective.
Lessons Learned
Three clear lessons emerge that are
integral to efforts to advance a frame...continued on page 15

“Smart growth” is used by the Funders’ Network for Smart Growth and Livable Communities to describe a series of policies and practices to ensure
that decisions about growth result in well-planned development that protects open space and farmland, revitalizes communities, keeps housing affordable, and provides transportation choices.
1

The term “regional and neighborhood equity” is used to describe a learning and action framework designed to reduce social and economic disparities among individuals, social groups, neighborhoods, and local jurisdictions within a metropolitan area; connect neighborhoods to regional and state
public policy decision-making; and harness private market opportunities for community benefits.

2

4

Pennsauken, NJ, Community
Strives for Integration
Keith L. Rolland, community development advisor, wrote the following
article. John J. Wackes, community affairs specialist, Christy Chung
Hevener, community affairs analyst, and Eugene Park, intern, compiled
census and housing-loan data that accompany the article.
Eighty volunteers from a nonprofit
neighbors organization and government affiliate are engaged in an unusual experiment to maintain racial
integration in Pennsauken Township,
New Jersey, an inner-ring older suburb of Philadelphia.
Originally se�led by the Lenni
Lenape and later by Quakers,
Pennsauken Township borders affluent Cherry Hill as well as impoverished Camden. Pennsauken became
a township in 1892 and has traditionally been a blue-collar community.
In recent years it has been a�racting
young professionals. The 12.5-squaremile township has single-family
houses at a wide range of prices.
In 1996 Neighbors Empowering
Pennsauken (NEP) was formed by
seven neighbors who valued their
community’s cultural diversity but
were concerned about a growing

number of for-sale signs
by white homeowners,
reports of racial steering
by realtors, and several
negative incidents in area
schools. NEP recruits volunteers and raises funds
for leadership development and other programs.

Photo Cre
dit: Paul P
ierlott

Lynn Cummings, NEP’s chairperson
and a Pennsauken homeowner for
33 years, said: “Integration doesn’t
just happen. People have to plan to
make it happen. If we didn’t intervene when African Americans and
Hispanics were buying houses and
whites were leaving, Pennsauken
would have become a segregated
community.” Pennsauken’s homeownership rate has remained high
(80.7 percent in 1990 and 80.4 percent
in 2000).

In 2000, the Pennsauken Stable Integration Governing Board
(PSIGB) was
created as
an advisory
commi�ee of
Pennsauken
Township.
Its goal is “to
reduce the
underrepresentation
of whites in
Pennsauken’s
markets for
housing and
From left, John F. Killion, Mayor of Pennsauken Township, Lynn Cummings,
schools and
Chairperson of Neighbors Empowering Pennsauken, and Harold M. Adams Jr.,
Chairperson of the Pennsauken Stable Integration Governing Board

to reduce the underrepresentation of
people of color in its civic life.”
For the past three years, NEP and
PSIGB volunteers have organized an
annual event in which new homeowners are treated to a buffet provided by area restaurants, hear welcoming words from the mayor, police and
fire chiefs, and the school superintendent, and are eligible for door prizes.
Last fall, 250 homeowners a�ended
the event.
Harold M. Adams, a housing appraiser and chairperson of PSIGB, said:
“People love the event and say ‘we’ve
never been anywhere where we
were welcomed like this.’ They tell
their friends and this helps get other
people to take a look at Pennsauken.”
PSIGB has also a�racted homeowners
by seeking positive local newspaper
coverage about Pennsauken’s quality
of life and inclusiveness and mailing brochures to Philadelphia home
sellers that promise “suburban living
within your reach.” Adams added
that the township strictly enforces its
housing code because property deterioration makes it difficult to a�ract
new homeowners.
...continued on page 10

5

RCAs Contrary to the Goals of Regional Equity
By Kevin D. Walsh, Esq., Associate Director, Fair Share Housing Center, Cherry Hill, New Jersey
Founded in 1975, FSHC is an independent public interest law firm and policy center that promotes racial and economic
integration in communities through regional housing policies and enforcement of the Mount Laurel doctrine.

Editor’s Note: Another perspective on
RCAs will appear in a future issue of
Cascade.
New Jersey has long been at the forefront of regional equity. Well before
that term was coined, the New Jersey
Supreme Court ordered the state’s
municipalities to fill their fair share
of the region’s need for affordable
housing in the landmark Mount Laurel I (1975) and Mount Laurel II (1983)
decisions. Informed by the civil rights
movement and coming not long a�er
the smoke of urban riots had cleared,
the Mount Laurel doctrine was born
of the recognition that racial and
economic segregation hurts people
of color uniquely and society overall.
The court required municipalities to
provide affordable housing as part of
an effort to solve problems with racial
and economic origins. Anything less,
the court decreed, would be a violation of the state constitution.

The recognition in 1975 of the doctrine as a constitutional imperative
was a bold move. Revisiting the issue
in 1983, the court wrote that “the clarity of the constitutional obligation
is seen most simply by imagining
what this state could be like were
this claim never to be recognized
and enforced.” If the court did not
act, it wrote, “poor people [would be]
forced to live in urban slums forever,
not because suburbia, developing
rural areas, fully developed residential sections, seashore resorts, and
other a�ractive locations could not
accommodate them, but simply because they are not wanted.” The court
concluded that this was “a vision not
only at variance with the requirement
that the zoning power be used for the
general welfare but with all concepts
of fundamental fairness and decency
that underpin many constitutional
obligations.”

Ethel R. Lawrence was the lead individual plaintiff in the Mount
Laurel, NJ, lawsuit filed in 1971. The litigation involved a request
to rezone land for the development of 36 garden apartments for
low-income residents. Lawrence, a long-time resident of Mount
Laurel, died in 1994. The development that bears her name opened
in 2001.

6

Despite the courage
shown by the court,
the Mount Laurel
doctrine’s promise
of inclusion has not
been fulfilled, and
the polarization
the court intended
to reverse has in
fact go�en worse.
New Jersey is still
at the top of the list
of racially and economically segregated
states, according to
numerous sources.1
Although the doctrine has resulted in
significant amounts

of affordable housing, and thus accomplished some of its goals, the goal
of promoting racial and economic
integration, of responding effectively
to the apartheid in our state, has not
even been seriously pursued by New
Jersey policymakers.
The greatest example of the distortion and failure of the Mount Laurel
doctrine is the use of regional contribution agreements (RCAs). These
agreements are essentially contracts
between two municipalities, one of
which sends its fair share to the other
along with a check that the receiving
municipality can use for affordable
housing. RCAs were permi�ed by
the Fair Housing Act of 1985, a piece
of legislation that was passed in response to the second Mount Laurel
decision. For as li�le as $20,000, the
cost of sending two children to school
for one year, a suburban municipality
avoids having one lower-income family living within its borders.
The Council on Affordable Housing (COAH), which was established
by the 1985 legislation, is the state
agency in charge of approving and
monitoring RCAs, and it has never
met one that it didn’t like. COAH approves RCAs from almost exclusively
...continued on page 13

See, for instance, David Rusk, “Sprawl
and Fair Housing: New Jersey’s Unfinished
Agenda,” Annual Isadore Caneub Memorial
Lecture in Planning, New Brunswick, NJ,
delivered Oct. 31, 2002 (www.gamaliel.org/
DavidRusk/Rutgers%20talk%2010-31-02.pdf);
synopsis of New Jersey Public Policy Research
Institute, “The State of Black New Jersey,”
January 2003 (www.policy.rutgers.edu:16080/
njppri/pdf/policynews1.pdf).
1

Regional Equity Can Benefit All
By Angela Glover Blackwell, Founder and CEO, PolicyLink
PolicyLink is a national nonprofit research, communications, capacity-building, and advocacy organization. It was founded in
1999 to promote a new generation of policies directed toward achieving economic and social equity. PolicyLink’s headquarters
are in Oakland, California, and it has an office in New York City.
In today’s economy, the region is the
arena for opportunity or exclusion.
Advocates of economic and social justice recognize that efforts to achieve
quality education, decent housing,
jobs, and services for residents of
low-income communities and communities of color will succeed only
by changing the way resources,
investments, and opportunities are
allocated. Achieving regional equity
means that everyone can participate
in and benefit from economic growth
and activity throughout a metropolitan region.

hensive approaches to addressing the
needs of low-income communities
that incorporate strategies to support
people and the places where they
live. The Atlanta Neighborhood Development Partnership, for example,
completed an extensive research and
data project on regional housing
disparities to develop a set of policy
recommendations for promoting
mixed-income housing across the
Atlanta metro region. In the Boston
metropolitan area, Action for Regional Equity, a coalition of 19 Massachuse�s organizations working
Regional equity will not
on affordable
In the 1990s, conversations about regionalhousing,
fulfill its potential unless
ism and smart growth
transportation
it
connects
to
people
in
were rarely with peoinvestment,
their neighborhoods and and environple of color and seldom
involved discussions of
mental justice
daily lives.
race and equity. Over
issues across
time, however, regionthe Boston
alism has been informed, inspired,
region, is campaigning for a dediand energized by the growing movecated permanent revenue stream for
ment to achieve economic and social
affordable housing that meets specific
equity through a focus on regional
equity criteria and building the cadevelopment pa�erns, policies, and
pacity of local leaders to advocate for
practices. This quest for regional
equitable transit investments.
equity builds on the vast experience
and wisdom of other important social
Regional equity will not fulfill its pochange movements. From the civil
tential unless it connects to people in
rights movement, regional equity
their neighborhoods and daily lives.
advocates have adopted a racial perThis is beginning to happen through
spective for analyzing development
the work of a growing number of
and growth pa�erns. Neighborhood
national organizing networks such as
revitalization and community develthe Association of Community Orgaopment efforts have contributed the
nizations for Reform Now (ACORN),
knowledge that “place ma�ers.”
the Pacific Institute for Community
Organization, and the Gamaliel
Foundation. These groups are buildFrom the community building movement, regional equity seeks compreing a power base in low-income com-

Angela Glover Blackwell, Founder and
CEO, PolicyLink

munities to advocate policies that
address the inequitable impact of
regional development. New organizing tactics and alliances are emerging
at the community and regional levels,
with special a�ention to organizing
across racial and geographic lines.
Ultimately, regional equity addresses
the growing trend in the United
States that where you live has become
closely equivalent to opportunity.
Ensuring that quality housing is affordable and available throughout
metropolitan areas is essential. Lowincome families that reside in affordable housing close to good schools,
employment centers, transportation
systems, parks, grocery stores, civic
institutions, and services are be�er
positioned to succeed economically
and socially. As jobs move away
from cities, improved transportation options can connect low-income
...continued on page 15

7
7

Per Capita Personal Income Differences Among States
The Declaration of Independence
maintains that “all men are created
equal.” Arguably, this is far from the
case when it comes to our states. The
various regions of our country and
the states within them have grown
at different rates over time, and this
variation in the pa�ern of growth
has important implications for professionals in the public and private
sectors. Understanding the forces that
have created these differences is of
particular concern to economists and
planners interested in regional economic development and growth.
A number of studies have a�empted
to address the variation in economic
performance by state. A recent paper
by John E. Connaughton and Ronald
A. Madsen of the University of North
Carolina at Charlo�e adds to this
body of literature.1 Connaughton and
Madsen’s aim is to identify “factors
that explain the levels of and differences in state per capita personal
income (PCPI) and to examine the
question of how the influence of these
factors has changed over time.” What
follows is a summary of their study.
Previous Studies
Connaughton and Madsen build on
earlier studies of economic performance across states, with special attention to the factors that give rise to
underlying differences. On balance,
this research tends to show a con-

vergence in state productivity over
time, even though the period studied
varies and the variables identified as
influencing state performance differ.
One study, for example, “specifies differences in the gender composition of
the labor force, differences in industrial mix, differences in human capital, and differences in technology or
physical capital to explain forces influencing productivity and the rate of
convergence among states.”2 Another
study discovers that low taxes and
strong support for higher education
were influential in explaining the
variation in economic growth among
states over time. Other researchers
find that separating the impact of
manufacturing employment from
service-sector employment proved
enlightening when explaining state
performance over time (manufacturing employment had a decreasing
role, while service-sector employment
played an increasing role).
Despite the useful insights offered by
the previous studies, Connaughton
and Madsen find that the issue of the
impact of states’ racial composition
on state performance, as measured
by per capita personal income, is not
well developed. They note that in
prior studies “the impact of the racial
composition has focused on the intra-state and intra-region income dispersion, not the level of state PCPI.”
Moreover, there is a common pre-

Marvin M. Smith, Ph.D.
Economic Education Specialist
Community Affairs Department

sumption that the percentage of the
population that is black and state per
capita income levels are negatively
correlated. This notion seems to be
somewhat supported by one study
that finds a nonwhite population
variable to be negative and “weakly
significant” in explaining the convergence of state per capita personal
income.
However, one researcher disputes
this perception and points to a Census Bureau study that indicates that
the real per capita income of whites
rose 13 percent between 1989 and
1999, while the real per capita income of blacks rose 24 percent. Connaughton and Madsen point out that
there is a wide variance in the racial
composition of state populations and

“Explaining Per Capita Personal Income Differences Between States,” Review of Regional Studies 34, no. 2 (2005): 206-20. Both Connaughton and
Madsen are in the Dept. of Economics, Univ. of North Carolina at Charlo�e.
1

Human capital reflects the measurement of the economic value of one’s skill set. One’s skill set is composed of and can be enhanced by education,
experience, and training.
2

8

the impact of this variation may be
instrumental in explaining the difference in state per capita personal income levels; but it is unclear if the impact is negative, positive, or neutral.
Data and Methodology
Connaughton and Madsen use statelevel decennial census information
for the years 1950 through 2000.
They employ regression analysis to
explain the differences in state per
capita personal income levels over
time.3 Connaughton and Madsen rely
on two estimation approaches. First,
they estimate the effects of a set of
demographic, human capital, and
industrial structure variables, and a
set of regional dummy variables on
the differences in real state per capita
personal income levels for each of the
years 1950, 1960, 1970, 1980, 1990, and
2000 (the effects of the regional variables will not be reported here).4 This
allows Connaughton and Madsen to
identify factors that have significant
effects in each year as well as to compare the changes in the influence of
these factors over time. Second, they
estimate a similar regression using
the data for all six census years taken
together with the addition of a set
of variables that reflect the census
years.5 They rely on this approach
to ferret out any results and pa�erns
that are significantly different from
those reflected in the regressions for
the individual
census years.

and industrial structure variables are
statistically significant. The positive
coefficient (33.76) on the percent of
the state’s population that was classified urban in the given census year
“suggests that for each one percent
increase in the urban population of a
state in 1950, the state real per capita
personal income level increased by
$33.76 … holding all other things
constant.” Likewise, the coefficient
(64.82) on the percent of the state’s
adult population that had a four-year
college education is both positive and
significant as is the coefficient (575.13)
on the percent of the state’s population employed in the service sector.
The results for these variables can be
interpreted in a manner similar to
that described above.
However, the coefficient on the percent of the state’s population classified as African American in the
given census year is negative but not
significant. This implies that there
are no systematic differences in 1950
state real per capita personal income
levels associated with the state’s ra-

cial composition, all other things held
constant.
Finally, Connaughton and Madsen
estimate a regression in which they
pool all of the observations from the
six census years. The results show
positive and significant coefficients
for a college education and servicesector employment. The coefficient on
the percent of the population classified as African American, however, is
small, positive, and not significant.
Based on the results of their analysis,
Connaughton and Madsen conclude
that “the important variables in
explaining R[eal]PCPI differences
between the states appear to be the
percentage of the population that
lives in urban areas, the percentage of
the population with a four-year college degree, and the percentage of the
population employed in the service
sector.” They also suggest that the
states’ racial composition exerts li�le
influence on state real per capita personal income levels.

They chose per capita personal income for their measure of state performance because it is widely used in the literature in similar investigations and it has been proven to have been measured in
a consistent manner over time.

3

Connaughton and Madsen chose to represent per capita personal income in the various census
years in 2000 dollars so the reader could have the most recent frame of reference by which to
gauge the relative magnitude of the estimated coefficients of the variables and how they might
have changed over time.

4

Variables, Coefficient Signs, and Statistical Significance

Results and
Conclusions
The results of
Connaughton and
Madsen’s statistical analysis are
quite revealing.
For the 1950 census year, three of
the six coefficients
of the demographic, human capital,

Regressions for Census Years
1950 1960 1970 1980 1990 2000 1950-2000
Variables
Percent African American
Percent Urban
Percent High School Education
Percent College Education
Percent Employment in Manufacturing Sector
Percent Employment in Service Sector
P = positive sign on coefficient

N
P*
P
P*
P
P*

N = negative sign on coefficient

N
P
P
P*
P
P

N
P*
P
P*
N
P

P
P
P*
P*
N
N

N
P*
P
P*
N
P

P
P*
P
P*
P
P

P
P
P
P*
N
P*

* = Variable’s coefficient is statistically significant

9

Pennsauken, NJ, Community Strives for Integration
...continued from page 5

One of NEP’s ongoing activities has
been to organize study circles in
which Pennsauken adults or teenagers meet to discuss films or articles
that concern race. “We’ve discovered
we’re more alike than different,”
Lynn Cummings said. “People who
have met in the study circles have
formed lasting friendships.”
Last year, NEP held a leadership development program that prepared
33 people who lived or worked in
Pennsauken to become volunteer
leaders in Pennsauken’s civic organizations. The participants, who
were from different ethnic and racial
groups, a�ended NEP workshops on
meeting organization and follow-up
and group dynamics in a program
funded in part by the Geraldine R.
Dodge Foundation.
NEP will sometimes address residents’ concerns, for example, on
crime or zoning, by arranging for
speakers to meet with residents. “It

may be just a perception, but it’s real
to the people who are concerned,”
Cummings said.
Meanwhile, PSIGB has tried to a�ract
white homeowners by advertising on
billboards in northeast Philadelphia
and other areas, holding housing
tours, and seeking positive media
coverage. Pennsauken home-purchase
loan data in the table below suggest
that PSIGB may be having some success meeting this goal and show a
steady increase in conventional lending from 1999 to 2003.
Early this year, Pennsauken Township took the highly unusual step of
declining the offer of Medford, New
Jersey, to sign a regional contribution
agreement (RCA) with the township.
The agreement would have provided
Pennsauken with about $3 million
in return for assuming some of
Medford’s state-directed responsibility to provide low-income housing.
Adams said that the township turned
down the offer because it felt that all
communities have a moral obligation

to do their fair share of providing affordable housing, and because the
RCA funds o�en have homeowner
resale restrictions that depress housing values.
Adams said that the RCAs “have
been a vehicle enabling many communities to avoid building affordable
housing.” He said that at least 50
percent of the RCAs have been sold to
older towns that needed the funds to
provide housing for their low-income
residents and that this process “pools
resources in a few existing low-income areas and adds to the concentration of poverty in New Jersey.”
Moreover, he added, low-income residents are located far from the areas
where many jobs are created.
Adams noted that there is a continuing cycle in both New Jersey and the
nation in which investment, businesses, and tax revenues are drained
from older communities to new ones.
At any one time, one-fi�h of New Jersey’s older communities are fighting
on their own to survive, he said.

Originations of Owner-Occupied Home-Purchase
Loans in Pennsauken Township, NJ
Conventional

Government

1999

2000

2001

2002

2003

1999

2000

2001

2002

2003

158

195

223

245

378

195

246

293

242

173

Originations by Race* (%)
White
51.0
African American
22.0
Hispanic
19.0
Asian/Pacific
6.0
American Indian/Alaskan
0.6
Other
1.0

44.0
21.0
25.0
9.0
2.0
0.5

46.0
19.0
24.0
9.0
0.0
2.0

52.0
17.0
22.0
7.0
0.0
1.0

49.0
17.0
23.0
8.0
0.8
2.0

37.0
35.0
23.0
4.0
0.0
2.0

35.0
39.0
22.0
3.0
0.8
0.4

42.0
33.0
21.0
3.0
0.7
0.3

40.0
31.0
24.0
3.0
0.0
0.8

42.0
22.0
32.0
3.0
0.0
2.0

Total Number of Originations
for Which Race Is Available

Source: CRA Wiz, June 2005
* The number of originations for each group is divided by the total number of originations for which race is available.
Note: The government-sponsored category consists of FHA, VA, or USDA Farm Service Agency or Rural Housing Service loans.

10

A big challenge facing NEP and
the PSIGB is trying to improve
Pennsauken’s public schools, which
have had low test scores.
NEP and PSIGB have received consulting services from the Fund for
an Open Society (OPEN), a Philadelphia-based nonprofit that strives
to create integrated communities by
a�racting people of underrepresented
races. OPEN was founded in 1975 by
James Farmer and Morris Milgram,
two leaders in the civil rights movement. Milgram helped build one of
the nation’s first planned integrated
communities, Concord Park, outside
Philadelphia.
Pennsauken Township recently
signed an agreement with Cherokee Investment Partners of Raleigh,
North Carolina, for a $1.6 billion
redevelopment of a nearly three-mile
stretch of Pennsauken’s waterfront
that would create 3,100 new homes,

Average Sales Prices in Pennsauken Township, NJ
Year

Total Sales

Number of
Properties

Average
Sales Price

2000
2001
2002
2003
2004
2005*

$62,463,827
$52,869,553
$57,271,681
$66,819,166
$81,055,703
$18,096,570

697
559
550
557
618
130

$89,600
$94,500
$104,100
$120,000
$131,200
$139,200

Source: Tax Assessor’s Office, Pennsauken Township
* Consists of data from January to April 2005.

550,000 square feet of mixed-use
commercial space, a hotel and conference center, golf course, community
recreation center, and parks.
Don DeMarco, OPEN’s executive director, said that the redevelopment
will provide “move-up housing” for
existing Pennsauken homeowners

and should not cause residential displacement because it will re-use old
industrial properties.
For information, contact Harold M.
Adams at (856) 662-3856 or
hmadams@comcast.net, or Lynn
Cummings at (856) 662-7982 or
lcummings@lcdc.us; www.twp.
pennsauken.nj.us; www.opensoc.org.

Pennsauken Township, NJ, Snapshot of Social and Economic Trends 1990-2000
Pennsauken Township, NJ
Percent
1990
2000
Change
Population:
Total population
White (%)
Black (%)
Hispanic (%)
Education:
Bachelor’s degree or higher
(% of population 25 years and older)
Housing:
Owner-occupied housing units
(% of total occupied housing units)
Vacant housing units
(% of total housing units)
Median value of single-family
owner-occupied homes
Income:
Median family income (MFI)
MFI of area as a percentage of
Camden County, NJ, MFI
Individuals below poverty level (%)
Families below poverty level (%)

Camden County, NJ
Percent
1990
2000
Change

1.21%

New Jersey
1990

2000

34,738
80.50%
14.69%
4.87%

35,737
60.10%
24.20%
14.30%

2.88% 502,824
76.60%
16.20%
7.20%

508,932
70.90%
18.10%
9.70%

13.30%

15.40%

21.00%

24.00%

24.80%

29.80%

80.70%

80.40%

69.77%

70.00%

64.90%

65.60%

2.43%

4.30%

6.37%

6.98%

9.12%

7.42%

$91,000

$95,300

4.73% $99,300 $111,200 11.98% $162,300 $170,800

5.24%

$40,810

$52,760

29.28% $41,961

$57,429

37.36%

97.26%
5.46%
4.10%

91.87%
8.00%
6.18%

10.30%
7.96%

10.40%
8.17%

36.86%

7,730,188 8,414,350
79.30% 72.55%
13.41% 13.60%
9.60%
13.30%

Percent
Change

$47,589

$65,370

8.85%

113.41% 113.83%
7.60%
8.50%
5.59%
6.29%

11

Isles Adopts Regional Focus for Greater Impact
...continued from page 1

Learning to Be Regional
We pulled together leaders of area
organizations to help us be�er understand — and address — these
regional challenges. They brought
planning, research, racial justice,
environmental, and community development interests to the table. Recognizing the common ground — that
sprawl was causing the deterioration
of the social and economic life of the
region (not just environmental) — we
formed a regional coalition. From an
initial focus on central New Jersey,
we quickly realized that an effective
response had to be statewide.
The New Jersey Regional Coalition
(NJRC) was incorporated in 2003 and
is now a statewide nonprofit, coordinating three organizations in the
north, central, and southern parts of
the state. As chairperson of the board
of the NJRC, I’ve learned how to look
at the broader regional issues (property tax reform, regional land-use
decision-making, suburban affordable housing, and suburban white
flight) in addition to our work on
critical issues in the inner cities.
The future of effective community
change may lie in the capacity of
organizations to tackle local development issues while also affecting
the broad regional forces that lead to
distressed local communities, such as
concentrated poverty.
From CDC to RDC
To do this, Isles is transforming itself
from a CDC to a regional development corporation (RDC). This requires us to:
• Understand the limits of community development-type projects.
Bootstrap, self-help development
projects are important, but they will
12

be undermined if poverty is too concentrated and other systemic reforms
are not achieved.
• Improve our research capacity.
To address New Jersey’s urban and
now suburban ills, we need to better understand their causes, not just
symptoms.
• Challenge segregation and foster
integration. Racism is a powerful
force that drives fear of affordable
housing outside the cities, white
flight in the suburbs, and countless
other ills.
• De-concentrate poverty as a program and policy goal.
• Build affordable housing in
places with the greatest social, educational, and economic opportunities
within a region. Today in New Jersey,
these are almost always in suburbs
where low-income housing is typically not welcomed. This requires a
be�er understanding of regional dynamics, including suburban housing
markets, tax-base capacities, services,
transportation, and pa�erns of segregation.
• Affect public policy. Tax, housing, regional governance, and other
issues are best addressed by statewide policy changes. It is not enough
to be “right” on the issues, though.
Average citizens must be educated,
organized, and able to support courageous public leaders that support
regional equity.
• Connect to the suburbs. Few organizations understand the markets,
leaders, politics, and development
strategies needed to succeed in the
suburbs. Yet over 70 older suburban
municipalities are in fiscal distress
and at risk.
•

Link working families with edu-

cational, economic, and employment
opportunities within a region.
• Support lower-income families
that seek a greater voice and choice in
moving to communities where opportunities — with good jobs, schools,
and lower taxes — are available.
• Build relationships with organizations that use organizing, advocacy, and litigation to advance a
regional housing agenda.
• Persevere when resistance comes.
Wealthier municipalities (those most
able to absorb some lower-income
families) will most fiercely oppose
building affordable housing. Thus, a
tenacious spirit, and the capacity to
challenge local zoning, discrimination, state funding policies, and other
institutional forms of segregation are
important.
• Remain involved in and support
inner-city investment and revitalization. For New Jersey to prosper
economically, support public transit,
maintain critical open spaces, and retain biodiversity, cities must develop
into healthy places to live, work, and
play.
Housing and community development organizations in the region do
great work, but we need some new
tools and a more systemic approach
to changing communities. The growing regional equity movement offers
a number of them. Yet these tools
require us to be viable in the suburbs,
not just the cities. To do that, we need
to tear down walls to the suburbs
while learning some new lessons.
For information, contact Martin Johnson
at (609) 341-4710 or mjohnson@isles.org;
www.isles.org; www.njregionalequity.
org.

RCAs Contrary to the Goals of Regional Equity
...continued from page 6

white municipalities to subsidize the
construction or rehabilitation of affordable housing in municipalities
that are home, almost exclusively, to
lower-income people of color. COAH
thus sanctions the reduction of affordable housing in thriving, job-rich
communities and replaces it with
units in communities that are the
most crime-ridden, environmentally
unsound, impoverished, dysfunctional, and lacking in employment. This
is hardly in keeping with the vision
of racial and economic integration set
forth by New Jersey’s Supreme Court.
Since 1985, $170 million has been
transferred to troubled, deteriorating
municipalities with the worst school
systems in exchange for relieving
growing suburban municipalities of
9000 affordable houses for families.
Units are most o�en sent to municipalities with segregated school
systems. In a 2000 study of RCAs,
researcher David Rusk determined
that the “ ‘sending’ communities
averaged almost three times the average income level of the ‘receiving’
communities. The percentage of poor
children in the wealthy, ‘sending’
suburban school districts averaged
just 6 percent; the percentage of poor
children in the poverty-impacted,
‘receiving’ city school districts exceeded 71 percent.” He concluded
that “whatever else they may have
achieved, rather than opening up
mainstream opportunities, the RCAs
literally cemented 15,000 to 20,000
poor children into poverty-impacted
neighborhoods and schools where
they are doomed to fail in overwhelming numbers!”2

2

Rusk, “Sprawl and Fair Housing.”

RCAs rightly remind one of the Civil
War practice of paying a substitute
to serve in the military. They operate
like pollution credits: polluters purchase credits to permit themselves to
continue to pollute; wealthy municipalities purchase RCA credits to permit themselves to continue discriminating and to keep out lower-income
New Jerseyans. In both instances,
the public at large and lower-income
New Jerseyans suffer as a result of
an arguably legal, but decidedly immoral, economy.
The case against RCAs is ge�ing
stronger, and, in addition to challenges in court brought by the Fair
Share Housing Center, new allies
are joining the fight to abolish them.
Residents of distressed municipalities
are beginning to realize that RCAs
shi� the obligation of housing lowerincome households onto municipalities that are least equipped to fulfill
it. Through the community organizing efforts sponsored by the New
Jersey Regional Coalition, a statewide
regional equity organizing project,
residents are beginning to see that
RCAs impose an increased burden
on municipal services, raising the
overall costs of fiscally strapped cities
without adding anything to their tax
bases. This fiscal impact is among the
reasons why wealthy towns seek to
exclude lower-income residents.
Assembly Majority Leader Joseph
Roberts, of Camden, one of the most
powerful politicians in the state, has
shown a commitment to fighting
RCAs. In legislation sponsored by
Roberts passed in 2002, Camden was
prohibited from accepting RCAs for
five years. More recently, speaking in
Princeton in April 2004, the major-

ity leader announced his intention
to abolish “repulsive,” “exploitative,”
and “odious” RCAs through an
amendment to the 1985 legislation
that permi�ed them. He noted that
the cost of rehabilitating housing
should not be the reduction of housing in growing municipalities, and
that we should be able to do both,
something that seems likely in view
of the relatively minor amount of
funding RCAs have generated.
Pennsauken Township and Haddonfield Borough, both near Camden,
recently also registered their opposition to RCAs. Pennsauken, which
prides itself on its successful efforts
to promote stable racial integration,
rejected a $3 million RCA offer from
a wealthy, growing town. And Haddonfield, one of the wealthiest municipalities in South Jersey, pledged to
reconsider its decision to send RCAs
to poor towns a�er being pressured
by the borough’s clergy.
Much harm has been done by RCAs,
but their end is near. The political
calculus is changing as grassroots
groups and powerful politicians appreciate the wisdom and prescience
of New Jersey’s Supreme Court when
it warned of the consequences of failing to prevent the continued racial
and economic segregation of the
state. Assembly Majority Leader Roberts reflected and helped advance this
movement when he concluded last
year that “to advance as a state, we
must move forward together — all
of us — and not pay others to stay
behind.”
For information, contact Kevin D. Walsh,
Esq. at (856) 665-5444 or kevinwalsh@
fairsharehousing.org.

13

Houstoun’s Four Targets for Regional Equity
...continued from page 3

Based on what I’ve learned from
experience in the public sector and
from research on current trends, I
see four areas where advocates of
regional equity could focus their energy to build momentum for tangible
policy changes. Some are highlighted
by examples from the William Penn
Foundation’s grantmaking in greater
Philadelphia. Some are illustrated
by examples of progress outside our
region.
1. Support programs that embrace
housing choices across income and
age. This takes different shapes in
different political environments, but
the breadth of potential support for
affordable, livable communities is encouraging. There is also support for
housing that responds to the needs of
residents with a mix of incomes and
ages — not only established families,
but also older residents and young
families pursuing their first homes.
In Utah, the Quality Growth Commission offers support to communities that plan for growth, offering
a wide range of housing types and
price levels for residents who work
in the community. The commission’s
seal of approval on projects triggers
state funding opportunities, creating
an incentive for communities and
builders to develop mixed-income
housing. In Pennsylvania, TRF has
advocated for comprehensive state
housing policies that go beyond the
supply of affordable housing to a set
of strategic principles that will result
in more inclusive communities. TRF
argues that state policy should be
backed by an objective incentive system that rewards development consistent with these principles.* TRF’s
housing policy report will be followed by a companion study that advocates be�er integration of economic
development and housing strategies.
*
The Reinvestment Fund, Choices in Pennsylvania: Developing a Rational Framework for Housing
Investment in Pennsylvania, Philadelphia, 2004,
p. 34; www.trfund.com.

14

2. Prioritize capital investments
that link jobs, housing, and transportation. New Jersey’s Transit Village initiative brings together seven
state agencies to support mixed
residential and commercial infrastructure in selected municipalities
that proactively plan for sound development. California prioritizes transportation investments in communities that are providing for housing
development in conjunction with job
growth. Where there are spatial disconnects between jobs and housing,
states, including Pennsylvania, have
used welfare block grants to jumpstart reverse-commute initiatives. The
value of connecting jobs, transportation, and mixed-income housing is
demonstrated in the Allegheny West
neighborhood of North Philadelphia,
where the community is rebuilding
from decades of disinvestment with
the help of a collaborative effort by
public and private employers and
investors. The initiative has spurred
economic development, bringing new
jobs and a mix of housing choices
for new and existing residents to an
area that is transit-rich but job-scarce.
Projects like Allegheny West have
greater chances of success within a
policy environment that builds public
consensus for the values they represent.
3. Welcome private investment in
urban neighborhoods and leverage
it to protect and preserve affordable
housing for current residents. In
West Philadelphia, People’s Emergency Center CDC (PECCDC) is
loosening the grip of poverty with
entrepreneurial, proactive efforts
that take advantage of private-sector
investments by welcoming middleincome residents. Their innovative
community development strategies
accommodate diverse households in
ways that produce a healthier neighborhood with be�er services but also
protect the interests of low-income
residents. PECCDC’s efforts support
the idea that private investment in

mixed-income neighborhoods can be
advantageous not only for investors
but also for residents.
4. Be clear about the strategic importance of schools. Education is
essential to the creation of a more
equitable region. Access to quality educational opportunities is the
key to breaking the cycle of poverty
across generations and necessary
for building and sustaining a competitive workforce. And while many
middle-income urban households do
not have children, sustained urban
reinvestment requires educational
options for young families so that
they will remain in urban centers.
Systemic school reform in communities where lower- and mixed-income
housing exists is the best way to
address this inequity. But as the William Penn Foundation has learned
through years of investment in public
school reform, particularly in our
region’s urban centers of Camden
and Philadelphia, changing schools
for the be�er is certainly a long-term
proposition. In the short term, targeting affordable housing investments to
areas where quality schools already
exist can help ameliorate concentrated poverty. It is important, however,
not to lose focus on the long-term objective of improving all schools.
It is a fundamental American value
that anyone willing to work hard deserves the opportunity to live in an
affordable community with access to
employment, good schools, transportation, and amenities such as commerce, parks, and the arts. Those who
believe in this vision should focus on
opportunities to build broad consensus, effect policy change, and demonstrate achievements that tangibly
improve communities and lives.
For information, contact the William
Penn Foundation at (215) 988-1830 or
visit www.williampennfoundation.org.

Advocates for Equity-Centered Smart Growth
...continued from page 4

work for regional and neighborhood
equity. First, the region ma�ers.
Funders focused on neighborhood
quality of life increasingly recognize
that regional forces and trends — including transportation investments
and population growth and decline
— are important to consider in order
for neighborhood grantmaking to be
most effective.

community organizing. For example,
grants to build housing affordable to
working families are enhanced by
policy work that encourages a more
receptive federal, state, or local policy
framework and investment agenda
for housing. Because foundations
can legally support various types of
policy work, it is important that they
maximize their leverage by doing so.

Next, public policy is an important
lever for change. Many grantmakers are finding that they can further
leverage their grant dollars by supporting policy work, such as work
on community benefits agreements,3
inclusionary zoning policies, and

Finally, issues need to be connected.
Land-use policies and practices have
implications for work to alleviate poverty, ensure access to jobs and education, and encourage healthy, active
lifestyles. By recognizing links and
connections between issues, founda-

tions are finding that the means to
accomplish the outcomes they desire
may change once they realize the underlying factors that are driving the
surface problem or challenge.
Network members and the RNEP
recognize that it is not only possible,
but also important, to work at the
neighborhood level and connect to
the region in order to unite diverse
interests and improve the quality of
life for all residents.
For information about the Funders’
Network, RNEP, or Signs of Promise,
contact info@fundersnetwork.org; www.
fundersnetwork.org.

A community benefits agreement is a legally enforceable and negotiated result of agreements reached by community-based organizations and
developers.
3

Regional Equity Can Benefit All
...continued from page 7

people to employment and other opportunities. The community benefits
movement is promoting equitable
infrastructure investments at the
state level and demanding that public
investments yield defined public benefits, including good jobs, affordable
housing, and child care.
Regional equity will be achieved
when every neighborhood in the
region has the essentials for healthy,
productive living and is connected to
opportunities. This requires recognizing and meeting a basic standard
of livability below which no community falls. Equity also requires
guarantees that as neighborhoods are
transformed, residents who remained
during difficult times have the option
to stay if they choose.
Progress has been made in recent

years toward achieving regional
equity, but much more needs to be
done. Sustaining and expanding
hard-won gains requires:
• More resources from public,
private, and philanthropic investors in transit systems that connect
people to employment and reduce
dependence on public benefits while
increasing tax base contributions, fostering greater educational equity to
strengthen regional economic vitality,
and improving environmental conditions to support good health and
reduce health-care expenditures.
• New capacities to enable community-based organizations, advocates,
and others to have the skills and
knowledge to be effective advocates
for change.

• New collaborations across sectors, neighborhoods, and jurisdictions among smart growth and social
justice advocates that include honest
and frank conversations about race.
• A commitment to support and
cultivate new, bold regional equity
leadership in the community, philanthropic, and public and private sectors.
The goal of regional equity is simple:
to create a society in which everyone
can participate and prosper. Ge�ing
there will be challenging, but the
journey will be well worth it.
For information, contact Milly Hawk
Daniel, Associate Director of Communications of PolicyLink, at (212) 629-9570,
ext. 212, or mdaniel@policylink.org;
www.policylink.org.
15

Amy B. Lempert Joins
Calendar of Events
Community Affairs Department Developing Supportive Housing 101
Amy B. Lempert has joined the Federal Reserve Bank of Philadelphia’s
Community Affairs Department as
community development advisor
and manager. She has 25 years’ experience in affordable housing and
community development lending
and finance.
She previously managed lending,
investments, grants, and sponsorships for PNC Bank’s community
development banking group in Philadelphia, central Pennsylvania, southern New Jersey, and Delaware.
Amy B. Lempert

In earlier positions with affiliates of the Local Initiatives
Support Corporation, she created a secondary market for
affordable housing and community development loans
originated by banks, community development finance institutions, and state housing finance agencies. She also held
community development positions in state and local government in New Jersey.
She said: “I’m pleased to add my experience to the Philadelphia Fed’s community affairs team. The issues that the
department is working on touch all of our communities:
urban, suburban, and rural.”

CASCADE

Federal Reserve Bank of Philadelphia
100 N. 6th Street
Philadelphia, PA 19106-1574
ADDRESS SERVICE REQUESTED

16

Training for social service providers and affordable housing advocates interested in developing housing for vulnerable populations, such as the homeless and people with
mental and physical disabilities. Co-sponsored by the
Corporation for Supportive Housing and the City of Philadelphia’s Office of Housing and Community Development
and Division of Social Services - Adult Services.
September 20, 2005, 9 a.m. to 4 p.m., Federal Reserve
Bank of Philadelphia
For information, contact John J. Wackes at (215) 574-3810 or
john.j.wackes@phil.frb.org.
Private Sector Innovations in Asset Building
Co-sponsored by the Federal Reserve System and the
Corporation for Enterprise Development. One of a series
of regional forums, this invitation-only event is targeted
to community-based organizations, financial institutions,
institutional investors, and policymakers.
December 8, 8 a.m. to 5 p.m., at the Federal Reserve
Bank of New York
For information, contact Amy Lempert at (215) 574-6570 or
amy.lempert@phil.frb.org
Reinventing America’s Older Communities
A national conference that will feature best practices and
ways to create vibrant urban communities.
SAVE THE DATE April 5-7, 2006, Hyatt Regency Philadelphia at Penn’s Landing

PRESORTED STANDARD
U.S. POSTAGE PAID
Philadelphia, PA
PERMIT No. 529