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1 Equitable Development: The Path to an All-In Pittsburgh

2 Acknowledgments Many thanks to the core project team for their hard work and valuable contributions to this report, including Presley Gillespie, Shad Henderson, and Doni Crawford of Neighbor - hood Allies; Bill Generett, Marteen Garay, and James Myers of Urban Innovation21; Jamil Bey and Tayler Clemm of the UrbanKind Institute; and Angela Glover Blackwell, Rosa Carrillo, Shaibya Dalal, Heather Tamir, and Chris Schildt of PolicyLink. The entire team is grateful to the more than 200 local leaders who supported and informed this report by participating in interviews or attending workshops to help us craft the defi­ nition of equitable development and shape our recommen- dations. We thank The Heinz Endowments for supporting this work and promoting the vision of a Just Pittsburgh, and we thank the national funders of our All-In Cities initiative: Prudential, the Surdna Foundation, and the JPMorgan Chase Foundation. We also thank Mayor William Peduto and his staff including Kevin Acklin, Kyle Chintalapalli, Grant Ervin, and LaTrenda Sherrill, and former staff member Betty Cruz, for their support of this project, including helping us convene roundtables with local developers and organizations working with the Latino, immigrant, and refugee communities through the Welcoming Pittsburgh effort. ©2016 PolicyLink. All rights reserved. PolicyLink is a national research and action institute advancing ® . economic and social equity by Lifting Up What Works Through the All-In Cities initiative, we equip city leaders with policy ideas, data, and strategy to make racial economic inclusion and equitable growth their reality. Neighborhood Allies supports the people, organizations and partnerships committed to creating and maintaining thriving neighborhoods. Urban Innovation21 is a public-private partnership working to drive economic growth that is inclusive and equitable. 2 The Path to an All-In Pittsburgh Equitable Development:

3 Equitable Development: The Path to an All-In Pittsburgh Sarah Treuhaft Equitable Development: The Path to an All-In Pittsburgh 1

4 Contents Introduction 3 6 Why Pittsburgh Needs Equitable Development Now 8 An Equitable Development Agenda for Pittsburgh 9 I. Raise the Bar for New Development 14 II. Make All Neighborhoods Healthy Communities of Opportunity 18 Expand Employment and Business Ownership III. Opportunities 20 IV. Embed Racial Equity Throughout Pittsburgh’s Institutions and Businesses 22 V. Build Community Power, Voice, and Capacity 25 Conclusion 26 Notes The Path to an All-In Pittsburgh 2 Equitable Development:

5 Pittsburgh is a city on the rise. After decades of decline Introduction following the collapse of the steel industry, the region has successfully transformed its manufacturing economy into one driven by knowledge and technology. Young college graduates are moving in and a thriving start-up and entrepreneurial culture has taken root. A development boom is also underway, with some 8,000 new market-rate homes coming online not only downtown, but also in neighborhoods like East Liberty, 1 Lawrenceville, and Uptown. This resurgence brings great potential to deliver long-awaited jobs, economic opportunities, and neighborhood improve- ments to the region’s low-income communities and commu- nities of color. Yet locally, the pervasive sense is that there are “two Pittsburghs”: one growing more prosperous, and the other cut off from opportunity by poverty, structural racism, and discrimination. The data show this fear is well­justified: over the past five years, racial gaps in wages, employment, and poverty have widened rather than narrowed, ranking Pittsburgh 78th among the largest 100 regions when it comes to progress on racial economic inclusion according to a 2 Numerous reports—including Brookings Institution analysis. two released last year by the Urban Institute and the University of Pittsburgh Center on Race and Social Problems—document Pittsburgh’s stark and persistent racial inequities, particularly for its Black residents, in income, employment, education, 3 Data in the National health, wealth, housing, and opportunity. Equity Atlas show that racial inequality has a steep cost: Pittsburgh’s economic output would be about $5 billion higher 4 every year absent its racial inequities in income. Pittsburgh’s comeback is also geographically uneven. Across the city’s 90 neighborhoods, some are gentrifying, with rising rents and home prices threatening longtime residents and businesses with displacement. The horror of mass displace- ment came true in June 2015, when the owner of Penn Plaza apart ments in East Liberty sent notices to vacate to about 200 tenants, many of whom were low-income, elderly, and Black. And a analysis of home-price increases Washington Post since 2004 found the zip code containing Lawrenceville and 5 Garfield has some of the highest increases nationwide. At the same time, many more Pittsburghers live in neighbor hoods that continue to lose population, are dotted with vacant lots, and suffer from a lack of new investment and private market activity. Other working-class families, priced out of up-and- coming neighborhoods or searching for better schools and safer streets, are moving to older suburbs like Penn Hills— often arriving in communities facing decline that lack adequate public transportation, services, and other key ingredients of economic success. The Path to an All-In Pittsburgh 3 Equitable Development:

6 In the face of these trends, urgent action is needed to steer challenge of equitable growth with the same gusto, unlocking growth and change in a new direction: toward one, “all-in” tunities and tapping the ingenuity and creativity of its oppor Pittsburgh. The evidence is clear that the benefits of new residents to build a stronger, more resilient, more inclusive growth and development will not automatically trickle down to region for all. Many are already taking up the challenge, and poor and working-class residents. Local leaders must imple- emerging models of equitable development can be found ment a targeted, intentional strategy to ensure all can thrive in across the region. equitable development the new Pittsburgh. That strategy is . As a part of the process for developing this report, PolicyLink, • On the Northside, a group of tenants came together as Neighborhood Allies, and Urban Innovation21 convened the Northside Coalition for Fair Housing to first prevent dozens of Pittsburgh community leaders to create a shared the eviction of more than 300 families, and then secured definition of equitable develop ment, and this is how we funding from the city to buy a majority share of the defined it: development, creating a unique tenant ownership model that has guaranteed affordability and improved the living 7 Equitable development is a positive development strategy conditions and livelihoods of hundreds of tenants. that ensures everyone participates in and benefits from the region’s economic transformation—especially low- • In Homewood, the 100,000-square-foot former income residents, communities of color, immigrants, and Westinghouse factory, redeveloped by Bridgeway Capital, others at risk of being left behind. It requires an intentional has been transformed into a business incubator, with 85 ating racial inequities and barriers, and focus on elimin percent of the construction contracts going to minority- making accountable and catalytic invest ments to assure owned businesses. The main contractor, Ma’at Construction that lower-wealth residents: Group, hired and trained young apprentices who face • live in healthy, safe, opportunity-rich neighborhoods that barriers to employment, such as criminal records, on 8 reflect their culture (and are not displaced from them); the project. • connect to economic and ownership opportunities; and have voice and influence in the decisions that shape • • In Larimer, a community-driven planning process is now their neighborhoods. guiding the redevelopment of the long-distressed neighborhood and two public housing complexes into a Realizing this vision of equitable development is no small task. mixed-income community. Cities across the globe have struggled to develop in ways that ensure their long ­standing residents benefit from change, and Building on Local Knowledge Pittsburgh is no exception. The region’s inequities have deep roots, and eliminating them will require healing wounds that The definition of equitable development shared here are still gaping, including the legacies of urban renewal and builds on local ideas and advocacy. A report on equitable redlining. In 1956, to build the Civic Arena for the Pittsburgh Black Homes opment released in January 2016, devel Penguins hockey team, the city demolished 1,300 buildings, Matter: Alternate Approaches to Neighborhood Revitali­ evicting more than 400 businesses and 8,000 people (including 6 , produced by the Pittsburgh zation in the City of Pittsburgh more than 1,000 Black families) in the Lower Hill District. Fair Development Action Group, shared the following The domed arena came down in 2011, and a mixed-use, mixed- principles for equitable development. income development is now planned for the 28-acre site, which is currently a parking lot. But, for many, it remains a • Do no harm to residents and small business owners painful reminder of government actions that harmed the • Increase access to opportunity Black community. • Increase resident incomes • Support resident ownership of housing Yet, Pittsburgh is in an ideal position to make equitable • Support resident ownership of businesses ment its new reality. The region’s rebound from the elop dev • Ensure long-term housing security brink of economic collapse is a testament to its ability to take on the toughest challenges and not just imagine but Our definition and recommendations endorse and seek actually build a different future. Just as community, govern­ to advance these principles. thropic, and business leaders laid the ground- ment, philan work for today’s resurgence, they now need to take on the The Path to an All-In Pittsburgh 4 Equitable Development:

7 Implementing this agenda and setting Pittsburgh on the path This report—based on interviews and conversations with toward truly shared prosperity will take courage, hard work, dozens of Pittsburgh leaders and drawing from national best and investment. A group of core equity leaders have been - practices and approaches to equitable development—under scores the urgency of equitable development for Pittsburgh meeting regularly for the past year to develop strategies and and outlines a five­point agenda to achieve it, with 16 specific inform this report. For equitable development to happen, this informal strategizing needs greater structure to advance recommendations. collective goals. At the same time, leaders working throughout the region’s public, private, and nonprofit sectors need to As the region Raise the bar for new development. I. assume the mantle of inclusion and commit to moving beyond undergoes a development boom, new development and talk to deliver results for those who are being left behind. Most growth must happen in a way that benefits and does importantly, Pittsburgh must do the difficult and uncomfortable not displace longtime lower-income residents and neigh- work of confronting structural racism and bias with dialogue bor hood entrepreneurs. and action, unleashing the potential of all Pittsburghers and Make all neighborhoods healthy communities of the region as a whole. II. Beyond new development, the region needs opportunity. a comprehensive strategy to increase housing affordability and stability and to unlock opportunity in its highest- poverty neighborhoods. Expand employment and ownership opportunities. III. Connecting lower-wealth residents to good, family- sustaining jobs and asset-building opportunities is critical to ensuring they participate in and contribute to the region’s resurgence. Embed racial equity throughout Pittsburgh’s IV. To eliminate wide racial institutions and businesses. inequities and uproot bias, the region’s institutions, organizations, and businesses need to adopt racial equity- Up the street from this mural, a vacant linen warehouse is focused approaches. being renovated into the Bloomfield neighborhood’s first (William Real/Flickr) condo development. High- Build community power, voice, and capacity. V. capacity community-rooted organizations and multiracial, multisector coalitions are essential to advancing equitable development policies and practices over the long term. This agenda represents a core set of strategies that we view as catalytic and meaningful starting points for making real progress toward equitable development in Pittsburgh at this moment. While it is wide-reaching, this agenda is not com- pre hensive. To truly maximize equitable development, its principles must be expressed in every policy arena, including transportation, criminal justice, public education, health, workforce development, food systems, immigrant integration, and more. And given that the majority of the region’s poor population lives outside of the city of Pittsburgh, a regional approach is needed. The Path to an All-In Pittsburgh 5 Equitable Development:

8 Why Pittsburgh Needs Equitable Development Now Equitable Development: The Path to an All-In Pittsburgh 6

9 Pittsburgh’s racial, economic, and geographic inequities are to work in Pittsburgh’s technology and innovation industries, not only a moral challenge, but also a threat to its long-term but the lack of diversity could hinder the region’s ability to 12 resilience and prosperity. The region cannot reach its full retain them. potential while so many of its residents, and a growing segment of its workforce, face barriers to participating and contributing Ensuring Pittsburgh’s low-income residents can stay in or as consumers, workers, entrepreneurs, innovators, and leaders. move to opportunity-rich neighborhoods is an antidote One of the key themes from interviews with local leaders to intergenerational poverty. Equitable development would and decision makers interviewed for this project was that result in more low-income children of color living in neighbor - racial bias—at the individual and institutional levels—is a key hoods that are improving or already thriving, which research challenge to progress in the region. They expressed how shows would provide them with a much better chance of bridging racial gaps is an economic imperative in addition to escaping poverty, attaining good health, and moving up the a moral one. Recent research also underscores how greater economic ladder. Economist Raj Chetty’s research on economic equity and inclusion are critical to solving the region’s biggest mobility finds that place plays a key role in increasing the challenges and building a robust, resilient economy. odds that children born poor will move up the economic ladder: neighborhoods with less racial and economic segregation, Cultivating homegrown talent is central to solving the less income inequality, better primary schools, greater social The Allegheny Conference on region’s workforce challenge. capital, shorter commutes, and more family stability provide 13 Community Development’s recent Inflection Point study on While the effects of displacement greater upward mobility. the region’s workforce needs revealed that Pittsburgh could are notoriously difficult to study, a recent study by the Federal face a shortfall of 80,000 workers over the next decade as Reserve Bank of Philadelphia found that when lower-income baby boomers retire and employers demand ever higher levels residents move out of gentrifying neighborhoods they move of skills. Every year, 29,000 baby boomers will leave the to areas with lower-performing schools and a lower quality workforce and another 5,000 new jobs will be created, yet there of life. On the other hand, when they stay in neighborhoods 14 are not enough new workers with the skills to fill these jobs. that are improving, they improve their financial conditions. The report cited the need to attract new young workers and retain university students to meet the region’s workforce Racial diversity, local art and culture, and thriving resident- needs. It also noted the importance of preparing Pittsburgh’s owned businesses are key assets of Pittsburgh’s up-and- young people who are entering the workforce as well as coming neighborhoods. Rising rents and home prices in its unemployed and underemployed residents for these job gentrifying neighborhoods threaten to push out lower-income openings. In the region, 32,000 long-term residents are residents of color along with their culture and small businesses, unemployed, many of whom could be trained to fill middle­ yet it is the very presence of diverse neighbors, cultural skill jobs that require some training but not a four-year expressions, and businesses that makes these neighborhoods 9 college degree. attractive to newcomers. As developer Tony Dolan, who has built many of the new luxury apartments in East Liberty and Greater inclusion will help the region attract and retain elsewhere put it: “The millennials moving into my apartment 15 buildings don’t want to live in sanitized neighborhoods.” While Pittsburgh needs to attract and retain diverse workers. new workers, its lack of diversity and racial inequities hinder Negotiating neighborhood change and fostering authentic it from doing so. Pittsburgh is becoming more diverse over relationships and connections between new and longtime time, but it is much more homogeneous than its peers and is residents from very different backgrounds is always challeng­ the least diverse of all 40 regions with populations over one ­ ing. But in a city like Pittsburgh that has suffered from long term depopulation and has plenty of developable land, there million; people of color represent just 13 percent of residents is space for everyone. Ensuring that longtime residents and in the region (although 35 percent of city residents are of 10 business owners have the resources and opportunities to stay, color). Many people of color and immigrants do not feel thrive, and connect is a winning proposition for residents, welcome to the area. The 2016 Pittsburgh Regional Diversity developers, newcomers, and the city as a whole. Survey found that while 79 percent of White Pittsburghers think the region is welcoming to people of color, only 36 percent of residents of color and 46 percent of foreign-born 11 residents report feeling welcomed in the region. Millennials— are coming (or staying) specifically, workers ages 25 to 34— The Path to an All-In Pittsburgh 7 Equitable Development:

10 To address these challenges and put the region on the path An Equitable to equitable development, Pittsburgh’s leaders in the public, private, philanthropic, and nonprofit sectors need to ensure Development Agenda new development projects deliver on the vision of equitable development while advancing the broader, transformational for Pittsburgh change needed to link low-wealth residents to economic and neighborhood opportunities. We propose the following table five­point agenda and specific recommendations for equi development. I. Raise the bar for new development. 1. Set equitable development goals, performance metrics, and a reporting framework. 2. Require publicly supported projects to advance equi- table development. 3. Ensure accountability through monitoring and enforcement. II. Make all neighborhoods healthy communities of opportunity. 4. Implement the city’s Affordable Housing Task Force recommendations. 5. Track and monitor neighborhood opportunity and change to continuously inform policy strategies. Develop a community land trust strategy. 6. Use publicly owned land for equitable development. 7. Invest in resident-driven art, culture, and enterprise. 8. 9. Support community schools, neighborhood safety, and justice. III. Expand employment and ownership opportunities. 10. Implement targeted racial equity strategies as part of the Inclusive Innovation Roadmap. 11. Leverage anchor institution spending to support inclusive business development. IV. Embed racial equity throughout Pittsburgh’s institutions and businesses. Adopt a racial equity focus within govern ment. 12. 13. Advance equity, diversity, and inclusion in the business community. V. Build community power, voice, and capacity. 14. Support multiracial, cross-sector collective action for equitable development. 15. Ensure sustainable funding for neighborhood-based organizations and development strategies. Fund tenant organizing and resident leadership 16. development. The Path to an All-In Pittsburgh 8 Equitable Development:

11 It is time to raise the standards for all new development I. Raise the Bar for New projects in Pittsburgh, especially those that are supported by government actions and investments. After decades of efforts Development by Pittsburgh’s government, community development sector, and residents to shore up distressed neighborhoods and attract private investment, the real estate market has changed. Pittsburgh needs to modernize its land-use development policy framework and tools to keep up with these changes and leverage market forces in order to address racial inequities and build a stronger and more inclusive region. Across the country, communities are demanding greater accountability and tangible benefits from projects built by private developers with public subsidies in the form of “community benefits agreements” or CBAs. Broad community, labor, and environmental coalitions have negotiated binding CBAs that ensure large development projects provide living- wage jobs, affordable homes, business opportunities, neigh­ borhood amenities, and other benefits. In Pittsburgh, the One Hill CBA Coalition secured a CBA for the redev elopment of the Civic Arena into the Consol Energy Center in 2008; this CBA included funding for a community master plan, support for the much-needed Shop n’ Save grocery store, living wages, 16 A second agreement focusing on local hiring, and more. the remaining 28-acre site of the former arena was signed 17 in 2014. As the CBA movement has matured, communities have sought to make community benefits more of a standard practice. New development projects create opportunities to connect Many cities have passed policies that require specific commu­ residents facing barriers to employment to good jobs and nity benefits (such as living wages or local hiring) from (Talia Piazza/Neighborhood Allies) career pathways. publicly supported development projects. While individually negotiated CBAs can meet specific community needs and help to build the power of community coalitions, negotiating project-by-project agreements is a time-consuming endeavor. Citywide policies can have a broader impact by providing tions and predictable costs while developers with clear expecta not requiring individual negotiations. The Path to an All-In Pittsburgh 9 Equitable Development:

12 To raise the floor on new development, Pittsburgh leaders Set equitable development goals, 1. should pursue a threefold strategy: 1) support inclusive performance metrics, and a reporting community­driven efforts to negotiate CBAs on very large framework. projects; 2) adopt a set of baseline community benefits expectations for development projects, with requirements Pittsburgh’s economic development leaders need to use their for those receiving public support (see text box below); power and influence to set high expectations from all devel­ and 3) establish a “race-to-the-top” system of performance opment projects and employers, including those that do not metrics that incentivizes developers to provide additional use public subsidies. The city should lead the way by officially community benefits beyond baseline requirements. To the adopting equitable development goals and perfor mance nity benefits expectations and extent possible, these commu metrics, and by producing guidelines that define expectations, the performance metrics should apply to private employers explain current requirements and aspirational targets, and seeking economic development subsidies in addition to provide examples of successful implementation from Pittsburgh developers. They should apply to public works projects and and elsewhere. Ideally, these goals and performance metrics infrastructure investments as well, such as the $2 billion would be a part of a broader strategic plan and vision for sewer upgrade currently in the works. equitable economic growth that includes citywide goals and performance measures, such as Portland’s economic devel- 18 opment agency has done. Community Benefits Expectations Developers and employers should be asked to submit Baseline community benefits expectations should Community Impact Reports that outline how they will meet include the following goals. these expectations, provide data for the performance metrics, and assess the impacts of the project and potential • Local and targeted hiring of residents and disadvantaged displacement or other risks for low-income and marginalized workers, in both construction and ongoing operations communities. These reports should be made publicly at a project available. Equitable development goals and standards should • Job training, including access to apprenticeships also be integrated into planning and land-use policies, • Creation of high-quality construction and permanent including the city’s comprehensive plan if it moves forward. jobs that provide living wages, career pathways, and fair schedules and work environments Community Impact Reports submitted by developers and • Contracting opportunities for small local-, minority-, businesses—indicating how proposed projects will impede or and women-owned businesses advance the community’s equitable development goals— Affordable homes for low­income households, including • should be taken into account in awarding subsidies and in family­ sized units, with long ­term affordability covenants discretionary land-use decisions (including height or density to preserve affordability over time bonuses). A system of performance metrics is currently being • Affordable rents for small local­, minority­, and women­ developed by the p4 (People, Planet, Place, and Performance) owned businesses, with long-term rent stability initiative spearheaded by The Heinz Endowments and the • Labor peace agreements providing workers the right city of Pittsburgh. The community benefits described above to organize should be incorporated into that performance metrics • One­for ­one replacement of affordable homes system, and data should be collected on race/ethnicity as well “Build first” before demolishing so tenants can move • as income to evaluate how development is fostering racial into new units with minimum disruption and economic inclusion. • Relocation assistance for displaced tenants • Right to return for displaced tenants Energy­efficient building techniques • • Resident and small business-owner engagement in the development and planning process The Path to an All-In Pittsburgh 10 Equitable Development:

13 Since 1999, Pittsburgh has had a “Pittsburgh Works!” policy Equitable Development in Action: on the books that directs at least 35 percent of work hours on city-funded construction projects to city residents, but Austin 20 this policy has not yet been implemented. An updated The city of Austin, Texas, uses a performance-based policy was proposed in 2014 with additional requirements approach to its economic development incentives for that 15 percent of work hours be performed by disadvan- business recruitment and expansion. Companies request - taged workers (those with incomes less than half the area ing subsidies must meet a set of minimum thresholds median or those facing other barriers to employment (living wages and the provision of health benefits, for such as involvement in the criminal justice system), that 50 example), and are then scored according to how well percent of apprenticeship hours go to city residents and they meet additional criteria, such as hiring economically 25 percent to disadvantaged workers, and that First Source disadvantaged workers, contracting with disadvantaged Hiring Centers be established to connect residents to ­offenders, businesses, and recruiting and training of ex training and employment opportunities. 19 as well as fiscal impact. The city of Pittsburgh should identify a funding source for the First Source Hiring Centers and pass this updated legislation, and Allegheny County should establish a 2. Require publicly supported projects to similar policy for the infrastructure and economic develop- ment projects it supports, requiring local hiring in both advance equitable development. construction and operation of city- and county-supported development projects. The city and county should also Like most cities, Pittsburgh’s local authorities provide economic extend these hiring practices to state-funded and federally development incentives to private developers in the form of 21 funded projects whenever permissible. ­increment financing, public land, and grant tax abatements, tax funds, as well as support projects through infrastructure Projects Strengthen and enforce job quality standards. • improvements and in numerous other ways. While the city of that are supported by public funds should create good Pittsburgh, like all jurisdictions, faces legal limitations on the jobs and pathways to economic security for lower-income mechanisms it can use to regulate private businesses, it has residents. Quality jobs provide living wages; benefits greater leeway in negotiations related to public subsidies, tax including paid leave, health care, and retirement savings; incentives, land sales, density bonuses, and so forth. When training and advancement opportunities; wealth-building offering up public funds and proactive support to developers, opportunities to help employees build assets and manage cities can negotiate from a position of strength, setting high financial emergencies; and fair work environments that treat standards to ensure that their spending delivers on critical workers with respect, support working parents, and provide community goals. Specific actions that can advance equitable 22 fair and predictable schedules. Research shows that development include the following. providing these elements of quality jobs is not only good for workers, but also can strengthen employers’ bottom Implement and fund local and targeted hiring. • 23 lines by reducing turnover and increasing productivity. Development projects create opportunities to address the employment challenges of un- and underemployed Pittsburgh has already exhibited policy leadership on raising residents by providing equitable access to the construction job quality, passing a landmark Service Worker Prevailing and permanent jobs created by the development. In cities Wage Ordinance in 2010, which requires that contractors across the country, local and targeted hiring policies have and projects supported by city funds pay the area’s prevailing helped residents and families escape poverty and reach wage to their building service, food service, grocery, and economic security. hotel employees. This policy was also extended to Allegheny County in 2010. In 2015, Mayor Peduto raised the mini- mum wage for city employees to $15 per hour, and the city council passed paid sick days legislation (though that policy has been held up in the courts). The city also has a living-wage ordinance on the books, but this policy has not yet been implemented because a subsequent ordinance The Path to an All-In Pittsburgh 11 Equitable Development:

14 ­wage ordinance required that the county first pass a living The Urban Redevelopment Authority has taken a step 24 forward, by hiring a firm to analyze its minority­ and before the city ordinance could take effect. Implementing the living-wage law would cover some additional workers women-owned business policies. Other city and county agencies need to undertake similar assessments, ensure who are not covered by the prevailing wage ordinance and 25 the validity of certified minority­ and women­owned also set a higher floor for some workers. businesses, and develop a focused and ambitious strategy Pittsburgh should maintain and build upon its job quality to advance inclusive contracting that incorporates best practices from the field. requirements. The city should implement its living-wage ordinance by passing legislation eliminating the county policy requirement and continue to defend its paid sick Equitable Development in Action: leave ordinance. New Orleans • Increase minority- and women-owned business In New Orleans, Louisiana, the Regional Transit Authority participation. Development projects and other government utilizing commissioners, after determining they were under spending on goods and services provide significant oppor­ companies owned by people of color in their contracts, tunities to address racial barriers to business ownership and revamped their bidding and provided increased support - growth, but historically government agencies have under for businesses to navigate the process to be certified utilized minority- and women-owned businesses. To counter as disadvantaged business enterprises (DBEs) and build this inequity, many cities and counties across the country up their capacity to pursue contracting opportunities. have established inclusive contracting and procurement Because of these changes, DBE participation in contracts 26 Successful programs set clear goals and bench- programs. increased from an average of 11 percent to 31 percent marks (optimally with specific, race­conscious targets), 30 within a year. regularly collect and share data on progress and outcomes, have stiff penalties for fraud, break up large contracts to create opportunities for smaller businesses, and help • Include affordable homes in new private developments. companies become competitive for contracts by assisting The increased demand for new apartments presents 27 with certification and bonding. Pittsburgh with an opportunity to create economically integrated neighborhoods by ensuring that affordable City and county agencies need to develop a strategy to units are built within those developments. Inclusionary achieve greater participation of minority- and women-owned zoning policies were first adopted by Montgomery County, businesses on the projects they support, beginning by Maryland, in 1974. Since then, more than 500 cities and evaluating the effectiveness of their current programs. counties have adopted policies that require developers Currently the city seeks 18 percent minority-owned business to set aside a portion of the homes they build at below- participation and 7 percent women-owned business market rates in exchange for zoning and land-use approval participation and the county’s goals are 13 percent and 31 or other public benefits. 2 percent, respectively. These are aspirational goals rather than specific targets, and the general procedure is for the Consensus around the need for inclusionary zoning is agency to accept the lowest responsible bid (required growing in Pittsburgh. In May 2016, the city’s Affordable by the city’s charter), and for that bidder to subsequently Housing Task Force recommended implementing inclu- submit a plan for minority- and women-owned business sionary zoning in private developments of 25 or more units participation to the Equal Opportunity Review Commission. that receive public benefits, and by creating Affordable A study of the city’s programs from 2000 found that these Housing Overlay zones in strong market neighborhoods businesses were not getting a fair share of contracts and that require the inclusion of affordable units in all new faced discriminatory conditions, contracts were going to ­rate developments. The recommended affordable market fraudulent “front” companies, and systems for compliance levels are at or below 50 percent of the area median income 28 and monitoring were inadequate. There has never been for rentals and 80 percent of the area median income for a follow-up to this disparity study, even though the U.S. homeownership. Commission on Civil Rights recommends updates every five years, nor has there been any reporting on how well 29 the city’s contracting goals are being met. The Path to an All-In Pittsburgh 12 Equitable Development:

15 Every day the city waits to implement an inclusionary zoning Ensure accountability through 3. policy, it loses a chance to leverage the current market monitoring and enforcement. dynamism to build more inclusive neighborhoods and solve its affordability crisis. Pittsburgh should move quickly to Just because a policy is passed or a CBA is signed does not implement a strong inclusionary zoning policy—one that mean those benefits will be delivered. Communities need keeps the task force’s recommended affordability levels, - formal vehicles for holding developers and companies account preserves affordability over the long term, and is calculated able for fulfilling their commitments and meeting community according to the city’s median income (which is lower standards. Many Pittsburgh community leaders pointed to than the regional median)—so affordability is baked into the lack of accountability, transparency, and follow-through the city’s robust development pipeline. Additionally, it is as major challenges to advancing equitable development important that inclusionary housing implementation aligns policies locally. Strong monitoring and enforcement mechan- with the performance metrics system described earlier isms, including penalties for nonperformance, are critical. to provide clear expectations and processes for developers. The impacts of CBAs and policies must be continuously monitored and evaluated, with an eye toward setting more aggressive targets (for enduring policies), through the Equitable Development in Action: collection and dissemination of consistently reported data. Montgomery County In Maryland, Montgomery County’s inclusionary zoning Equitable Development in Action: policy has generated approximately 13,000 affordable housing units and has resulted in thousands of low- San Francisco income children attending low-poverty schools in their San Francisco’s experience with local hiring illustrates neighborhoods. Evaluations show these children have the importance of mandatory compliance, monitoring, significantly better educational outcomes compared to and enforcement to meet policy goals. A review of the 32 their counterparts in moderate- to high-poverty schools. city’s decades-old local hire policy requiring contractors to make a “good faith effort” to hire 50 percent of their construction workers locally found that only about 20 percent of public works jobs went to local workers in 2009. A broad community coalition came together to Leveling the playing field for minority­owned businesses can successfully pass a much stronger ordinance in 2010, build a more diverse real estate sector and create jobs for with mandatory requirements for each trade, financial (Urban Innovation21) residents. ting on penalties for noncompliance, and regular repor progress. The policy required 20 percent of work hours to go to local residents, and 10 percent to economically disadvantaged workers, with targets increasing annually to reach 50 percent for local hires and 25 percent for disadvantaged workers by 2017. The policy is now deliver - ing on its promise to increase job access, and, in 2014, 38 percent of job hours and 59 percent of apprenticeship 33 hours went to local residents. The Path to an All-In Pittsburgh 13 Equitable Development:

16 Thriving neighborhoods are critical building blocks of strong II. Make All Neighborhoods urban economies and central to expanding opportunity for low-wealth residents. Neighborhoods that provide quality Healthy Communities schools, safe streets and sidewalks, fresh-food markets, parks, transit, service, and public spaces support residents’ of Opportunity health, well-being, and economic success. In addition to ensuring that new developments benefit and do not displace dents, Pittsburgh needs a compre hen sive existing resi strategy to expand opportunities for its low-income residents and communities of color to live in healthy, opportunity-rich neighborhoods. This includes addressing affordability and acces sibility chal lenges, preventing the displacement of low-wealth residents and small businesses, and making targeted invest ments to increase opportunity and quality of life in distressed neighborhoods. While Pittsburgh’s housing is relatively affordable compared with other regions, it is not affordable for all. The city has a large affordability gap, with a need for nearly 20,000 more homes affordable to those earning less than half the area’s 34 Region-wide, 45 percent of renters are median income. “housing burdened,” paying more than 30 percent of their income on rent, and about half of the city’s renters are housing 35 burdened. This affordability crisis has hit Pittsburgh’s com­ nities of color particularly hard because they earn lower mu incomes, face higher housing burdens than their White cent of Black counterparts, and are more likely to rent (63 per households in the region rent, while 74 percent of White 36 households own). Investing in resident-driven art, culture, and enterprise can strengthen neighborhood identity and stabilize changing Opportunity varies tremendously across Pittsburgh’s neigh- neighborhoods. (Urban Innovation21) borhoods. Data on neighborhood-level opportunity measures, such as school quality, jobs proximity, and environmental health, reveal that the region’s Black households live in lower- 37 bor hoods than their White counterparts. opportunity neigh Public transit access is also a critical issue, especially given the extremely low levels of Black car ownership: 37 percent of Black households in the region and 47 percent in the city 38 do not own vehicles. The data also show that race matters - more than income when it comes to neighborhood oppor - tunity in the region: poor White households live in neighbor hoods with much higher levels of opportunity than poor 39 Black households. While we highlight several key approaches below, building opportunity in distressed neighborhoods needs to be a focus across every arena of policy and planning, including food systems, public health, parks and recreation, open space, child care, financial services, transportation, energy, digital connection, and sustainability and resiliency. Targeted place- The Path to an All-In Pittsburgh 14 Equitable Development:

17 based efforts—such as the HELP initiative focused on the • Defend the city’s ordinance preventing landlords from East End neighborhoods, and the One Northside initiative— discriminating against tenants using Section 8 vouchers as are also necessary to deeply engage residents in rebuilding payment, which is facing legal challenges. • Protect longtime, low- and moderate-income homeowners their communities and to implement strategies specific to neighborhood conditions and needs. from unaffordable increases in property taxes by imple­ menting the county’s Longtime Owner Occupant Protection tax exemption. • Leverage the city’s new land bank to create and preserve 4. Implement the city’s Affordable affordable homes. Housing Task Force recommendations. Recognizing the challenges of affordability and displacement Equitable Development in Action: risk given the changing housing market, the city established Washington, DC an Affordable Housing Task Force in January 2015 to develop In Washington, DC, the Tenant Opportunity to Purchase recommendations for increasing and preserving afford­ Act provides renters with the opportunity to purchase ability, stabilizing existing residents, funding new affordable their homes if the owners decide to sell. Tenant groups housing construction, and developing vibrant mixed-income can access low-interest loans and technical assistance to neigh bor hoods. The task force recom men dations released in purchase their buildings through the First Right Purchase May 2016 included the following important strategies. program operated by the city’s housing and community development department. The policy helped to preserve - • Establish a Pittsburgh housing trust fund focused on address 40 nearly 1,400 units between 2000 and 2010. ing those with the greatest housing needs by target ing half the funds to residents earning less than 30 percent of the area median income. The full implementation of these strategies, with a focus on • Implement inclusionary zoning as described earlier under the households with the greatest needs (those at or below action #2 (see “Include affordable homes in new private 50 percent of the city’s median income), would go a long way developments”). toward improving housing affordability and securing residents • Preserve the affordability of the city’s 15,000 homes that as their neighborhoods improve. The city should implement have deed or income restrictions by creating a housing these policy strategies as swiftly as possible and continue to preservation program and database, by passing an ordinance investigate programmatic approaches to preserving rental requiring notice of the owner’s intent to sell or increase housing and fostering homeownership described in its report. the rent, by instituting a one-for-one replacement policy for Regional housing advocates and policymakers should also the Housing Authority of the City of Pittsburgh, and by consider four additional strategies. including lasting affordability requirements on projects developed with public funding. • Pass a just-cause eviction ordinance and additional tenant ­rate units that Preserve the affordability of existing market • protections that apply to all renters, not only those living ­income households by implemen­ are affordable to lower in publicly subsidized homes. ting the rental registration program established in 2014 • Understand eviction trends, and provide legal and financial but which currently faces a legal challenge, and by exploring assistance to prevent it. Harvard sociologist Matthew grammatic opportunities to preserve and upgrade pro Desmond’s recent research revealed how eviction is a wide- these units, including an acquisition strategy. spread phenomenon, particularly among Black women and • Protect tenants by instituting just-cause eviction provisions, families, that creates housing instability and drives families tenant protections, and relocation assistance for housing 41 Very little is known about the into poverty and debt. developments receiving public assistance and by exploring scale of evictions in Pittsburgh, because paper records are the potential to amend the state’s landlord-tenant act to held in 13 magisterial courts. Advocates should explore expand tenant protections. ways of accessing this data to better understand its extent • Help low-income tenants become homeowners by imple- and to develop effective solutions, including potentially ting the mayor’s proposed program to allow the men establishing a housing court. In the meantime, local govern- use of Section 8 vouchers for purchasing and renovating ments and philanthropy should act now to increase legal blighted homes. The Path to an All-In Pittsburgh 15 Equitable Development:

18 particular attention to what is happening in the region’s Black assistance to low-income renters facing eviction, and ensure hoods and neighborhoods that are seeing a great neighbor the availability of rental assistance programs. deal of investment, such as in the East End. Pittsburgh already • Analyze the potential for a commercial linkage fee to has the basic infrastructure in place for such monitoring, fund affordable housing. Recognizing that new commercial with a strong data intermediary, the University of Pittsburgh’s development creates a need for additional workforce University Center for Social and Urban Research, which housing, many cities collect “linkage fees” to fund nearby manages the Western Pennsylvania Regional Data Center and affordable housing development. Pittsburgh policymakers the Southwestern Pennsylvania Community Profiles. The should assess the viability of a linkage fee. area also has a number of university- and community-based • Coordinate housing and transportation policy and invest - research institutions that could, with consistent funding, - ments to increase mobility and access, and reduce transpor conduct regular analyses of the data to report on the state of tation costs. Housing investments should be made in a equity and opportunity in Pittsburgh. way that increases the ability of low-income residents and people with disabilities to live in walkable, bikable, transit- accessible communities. Concentrating affordable housing development and preservation near frequent transit Develop a community land trust 6. service is a key approach. Also, the Port Authority’s transit- strategy. oriented development (TOD) guidelines should be used along Pittsburgh’s frequent bus and light-rail network and Long-standing community land trusts, such as Boston’s Dudley create the basis for new TOD zoning throughout the city. Street Neighborhood Initiative, Burlington’s citywide land New development should also adhere to Pittsburgh’s trust, and Albuquerque’s Sawmill Community Land Trust, emerging Complete Streets policy to ensure that commu- demonstrate their power to foster community-driven develop- nities are walkable and bikable from the beginning and ment without displacement. The Dudley Street initiative not overburdened with auto reliance, which is expensive created 225 permanently affordable homes as well as a green­ and for low-income residents developers. house, community garden, and charter school in a single neighborhood while Burlington’s land trust includes more 42 Community land trusts are than 2,500 homes citywide. Equitable Development in Action: nonprofit organizations governed by community members New York City ­term public benefit. Through their that hold land for long To reduce evictions and fight homelessness, New York City permanently affordable homeownership model, they help increased funding for tenant legal services and accelerated lower-income households who are priced out of the regular emergency rental assistance programs in 2014. The housing market access stable housing and build assets while programs are working: evictions declined by 24 percent preserving affordability by limiting the resale price to what 48 between 2013 and 2015. is affordable to the next low­income buyer. Coalitions in Baltimore, Buffalo, Philadelphia, and elsewhere are embracing community land trusts as cornerstones of their approach to equitable development. Baltimore’s fair development coalition, ing for example, is seeking to build a large-scale model, request 5. Track and monitor neighborhood $20 million annually from public bonds to support a land opportunity and change to continuously trust with another $20 million in city funds toward community inform policy strategies. jobs deconstructing abandoned structures, greening vacant 43 lots, and providing opportunities for urban agriculture. Understanding and regularly monitoring the level of oppor - tunity in the region’s neighborhoods, how neighborhood Given Pittsburgh’s significant amount of vacant land and housing markets are changing, where development and rising market pressures, its city and community development gentrification is occurring, displacement risks, and access to leaders should develop a community land trust strategy. The wealth-building opportunities would provide critical data idea is already taking root locally: a Community Land Trust for developing coordinated policy responses. For this data Exploratory Committee convened in 2015 to study the model to support equitable development strategies, trends must for Allegheny County, and Lawrenceville United has begun be analyzed by race and ethnicity in addition to income, with developing a land trust in the Upper Lawrenceville neighbor - The Path to an All-In Pittsburgh 16 Equitable Development:

19 44 hood where home prices have skyrocketed. A larger-scale can disappear. Investing in the artistic, cultural, and entre- preneurial expressions of existing neighborhood residents strategy should focus on addressing racial gaps in home and groups that are vulnerable to displacement is an important ownership and ensuring affordable homes (rentals or owned) strategy to protect against this effect and stabilize changing are available in neighborhoods that are gentrifying or slated communities. for new public or private investments. 7. Use publicly owned land for equitable 9. Support community schools, development. neighborhood safety, and justice. Depopulation has left Pittsburgh with tens of thousands of The quality of neighborhood schools and the safety of neigh- borhood streets and sidewalks are core features of neighbor vacant and abandoned lots, and many of them are owned by - hoods that impact the opportunity, health, and well-being of government authorities. In the city of Pittsburgh alone, there are some 27,000 vacant lots and more than a quarter of them residents. One effective approach to improve the quality 45 of public education in low-income neighborhoods—embodied In 2014 the city established a land are owned by the city. bank with the goal of returning vacant land to productive uses by the Promise Neighborhoods Initiative—is to provide wrap- around services (tutoring, after-school programs, health aligned with neighborhood priorities. The land bank includes oversight by a board that includes community members, services, etc.) to students to support their academic success. “Community schools” is a similar approach that integrates policies to ensure community engagement and review, protec- such services into public schools through partnerships with tions and hardship payment plans for homeowners facing local organizations. Pittsburgh is already experimenting with tax foreclosure, and contracting preferences for minority- 46 The land bank should adopt these approaches, with the Homewood Children’s Village and women-owned businesses. disposition policies that prioritize the use of the land for and a recent school board vote to adopt a community schools equitable development, including ownership and wealth- policy, and the city should continue to implement these building opportunities for low-income residents, parks and approaches to improve its most-challenged schools. City open spaces in distressed neighborhoods, community gardens leaders should also test strategies to increase the rates of and urban farming opportunities, and development projects low-income young Black men entering the Pittsburgh Promise that meet community needs such as grocery stores in food- program, which provides $40,000 college scholarships to desert neighborhoods and affordable and mixed­income Pittsburgh public school students, but whose eligibility criteria housing. One specific priority of the land bank should be to (a 2.5 GPA and 90 percent attendance rate) have created 49 47 support the community land trust strategy described above. barriers for this group. In assessing the viability of vacant land for affordable housing, With respect to safety and justice, the city should continue it is important to consider the site’s accessibility to transit and other elements of neighborhood opportunity. its efforts to improve community­police relationships. Pittsburgh Police Chief Cameron McLay has committed to working on issues brought to the department by the Pennsylvania Interfaith Impact Network (PIIN) community Invest in resident-driven art, culture, 8. coalition, including diversity in hiring (between 2001 and and enterprise. 2012, only 4 percent of hires were Black), training in implicit bias and procedural justice, data collection, and community- When neighborhoods begin to gentrify, the influx of wealthier accountability meetings. Pittsburgh is also one of six cities residents and businesses catering to their needs often participating in the National Initiative for Building Community changes the cultural environment and identity of the neighbor - 50 Trust and Justice. The city (and surrounding municipalities) hood. Longtime low-income and working-class residents can should commit to monitoring policing data and providing feel a sense of “psychological displacement” and disconnection this data to the public to ensure accountability. They should from neighborhoods where they’ve lived for years or even also assess their systems of fines and fees to ensure low­ decades. Over time, the changing resident mix can decrease income residents of color are not being unfairly targeted and demand for businesses and services oriented toward working- fined into poverty or jail. class residents, such as laundromats, and these businesses The Path to an All-In Pittsburgh 17 Equitable Development:

20 For Pittsburgh to achieve equitable development, its lower- III. Expand Employment income residents and entrepreneurs of color need more opportunities to contribute to building Pittsburgh’s next and Ownership economy—across all of its industry sectors. Black Pittsburghers and other marginalized workers such as undocumented Opportunities immigrants and the members of the transgender community face barriers to accessing the good jobs that are essential to earning enough income to support their families and invest in their future. In addition to facing disproportionately high unemployment levels, working families of color struggle eco- nomically. One-fourth of the region’s Black workers who are working full-time live in families with incomes below 200 percent of the federal poverty level ($46,100 for a family of four in 2012) as do 14 percent of Latino workers, compared 51 Continuing to with just 9 percent of their White counterparts. improve job quality via policy, business practices, and worker organizing is critical to increasing family economic security. Increasing opportunities for entrepreneurs of color to start and grow businesses is a win-win strategy for inclusive growth, because they are more likely to hire people of color and to 52 A survey of locate their businesses in communities of color. Black business owners, for example, found that two-thirds of 53 While Black entrepreneurs are their employees were Black. contributing to growth locally, they are still underrepresented and their businesses tend to be very small. The number of Black-owned businesses in Allegheny County increased by nearly 40 percent since 2007—one of the fastest growth rates in the country. But even with this recent growth, roughly 7 Equitable economic development strategies build residents’ percent of businesses in the county are Black owned, and less incomes and assets, ensuring they can stay in revitalizing than 1.5 percent of all businesses with employees are Black neighborhoods. owned, despite the fact that Black residents make up more 54 than 13 percent of the county’s population. To expand employment and business opportunities and address the racial wealth gap, Pittsburgh leaders should focus on the following actions. The Path to an All-In Pittsburgh 18 Equitable Development:

21 Communities have developed several models for anchor pro- Implement targeted racial equity 10. curement, including: strategies as part of the Inclusive • shifting a portion of an institution’s purchasing to local Innovation Roadmap. vendors, for example the University of Pennsylvania directing 10 percent of its purchasing to West Philadelphia; The city of Pittsburgh and partners launched an “Inclusive • directing the procurement of multiple anchor institutions Innovation Roadmap” in 2015 that aims to leverage innovation to support a network of worker-owned cooperatives to improve the quality of life for all residents through strategies in a specific community, such as Cleveland’s Evergreen to bridge the digital divide, provide open data, streamline Cooperatives model; and 55 This road- procurement, advance clean technology, and more. • creating an intermediary to help multiple anchors connect map should be updated to incorporate a racial equity analysis with local companies that also provides technical assistance that explicitly considers racial barriers to participation in to help small businesses become competitive for anchor innovation sectors and proposes targeted solutions. contracts (such as the Chicago Anchors for a Strong Economy 57 effort that includes 15 anchor partners). Pittsburgh can learn from efforts underway in Portland, Oregon, where the city’s economic development agency has Pittsburgh community leaders have explored this strategy embarked on a three-year Inclusive Entrepreneurship Action in the past and they have identified the need for strong Plan to create a more inclusive start-up ecosystem. Recognizing anchor institution leadership and interest to move it forward. the low diversity of its technology and innovation sectors, Given the evolution and momentum of these strategies the city has successfully increased the diversity of participants nationally, as well as the pressure for the city’s largest nonprofit in its Startup PDX Challenge, an annual competition designed anchors (who are exempt from paying taxes) to make to connect technology and manufacturing entrepreneurs with tangible contributions to improving local conditions, it is early-stage growth support and funding. In the 2014 and time for Pittsburgh’s anchor institutions to step up and 2015 classes, 61 percent of the founders were Black and/or develop an intentional procurement strategy. A critical first Latino. And in 2016, the agency launched an inclusive start-up step is to analyze local anchor purchasing and supply fund specifically devoted to providing initial investment chains. Pittsburgh’s anchor institutions should support such capital and mentoring to local high-growth companies founded an assessment and hold an anchor convening to discuss by women and members of disadvantaged communities the assessment, explore different models, and identify next 56 58 of color. steps toward developing a strategy locally. Equitable Development in Action: Leverage anchor institution spending 11. Cincinnati to support inclusive business Cincinnati, Ohio’s Minority Business Accelerator, run development. by its Chamber of Commerce, supports the growth of local, minority-owned companies through annual spending Pittsburgh has a wealth of “anchor institutions”: large educa- goals. In 2014, 40 local corporations and nonprofit tional, health, and cultural institutions, like the University organizations committed to spend $1.1 billion with 30 of Pittsburgh, UPMC Health System, and Phipps Conservatory, 59 local minority-owned businesses. that are both significant regional economic engines and deeply rooted in the community. Many communities have recognized the unique potential of anchor institutions to connect their overlooked residents and neighborhoods to their regional economies. One of the key levers for doing this is by leveraging the spending power of anchor institutions to support local- and minority-owned businesses. The Path to an All-In Pittsburgh 19 Equitable Development:

22 Racial inequities are not inevitable; they were created by the IV. Embed Racial Equity actions, investments, policies, and decisions of society’s most powerful institutions, including government, foundations, Throughout businesses, and banks. Institutional practices of redlining, urban renewal, and segregation from decades ago all played Pittsburgh’s Institutions a tremendous role in producing today’s uneven geography of opportunity. While these overt forms of racial discrimination and Businesses no longer persist, more subtle forms of racial bias and structural challenges—such as mass incarceration, the concentration of poor children of color in poor schools, and the racial wealth gap—contribute to the reproduction of racial inequities. To eliminate Pittsburgh’s racial inequities, its institutions need to transform from within, analyzing their decisions and practices with a racial equity lens, using their powers and influence to remove barriers and expand opportunities for people of color and other marginalized groups. In the 1930s, the federal government redlined Pittsburgh’s Black and immigrant neighborhoods, rating them as high risk for investment. (LaDale Winling/Urban Oasis) The Path to an All-In Pittsburgh 20 Equitable Development:

23 wages. And they need to take action to improve racial and 12. Adopt a racial equity focus within economic inclusion outcomes across their operations. government. Several efforts in the region are working to advance diversity In 2005, Seattle became the first city in the nation to launch a and inclusion within the business community. The Corporate citywide initiative to eliminate racial inequities and structural Equity and Inclusion Roundtable has been building momentum racism, followed by surrounding King County in 2008. Since toward the adoption of best practices, including versions then, many government agencies have integrated an explicit of the National Football League’s “Rooney Rule” policy that focus on racial equity throughout their operations, demonstra- requires teams to interview people of color as candidates ting leadership at the top and seeking to integrate the for senior positions. Companies including the Rivers Casino, approach agency-wide. They are acknowledging structural and UPMC, and Highmark have adopted this practice for hiring or institutional racism, analyzing the state of equity in their contracting, and the Allegheny Conference on Community communities, training staff, building stronger relationships Development has promoted this policy among its members. with marginalized communities, adopting racial equity analysis tools to inform decision making, and creating action These efforts should be amplified and accelerated through strategies and plans to eliminate inequities and unlock a campaign that encourages companies to track and report opportunity for all community members. annually on a series of equity and inclusion performance metrics that include supply-chain spend, job quality, hiring Pittsburgh’s government agencies should adopt a racial equity and promotions, turnover of employees of color, and other focus and become members of the Government Alliance on indicators. Such equity metrics should also be incorporated Race and Equity national network, which provides technical into sustainability metrics aimed at private businesses, assistance to help its member governments develop successful as Sustainable Pittsburgh has recently done with its Green approaches. All departments should use a racial equity analysis 60 Economic development leaders Workplace Challenge. tool to understand the potential equity impacts of decision should also develop tailored campaigns to reach industry - making on marginalized populations and neighborhood oppor sectors that have particularly low levels of diversity. In tunity, and should make choices that advance equity and Portland, Oregon, over a dozen companies in the city have inclusion. Annual reporting to the public on how the tool signed on to a “Tech Diversity Pledge” to improve training informed decision making will increase transparency and 61 and hiring practices to create a more diverse workforce. ensure accountability. To support the building of healthy neigh - borhoods of opportunity, agencies also need to collaborate While this recommendation focuses on the private sector, the and share information with each other about how decisions same campaign should extend to the region’s philanthropic can best contribute to neighborhood goals. Pittsburgh’s and nonprofit community development sector as well. These government agencies should also continue to advance the organizations should demonstrate equity, inclusion, and goals of increasing language and cultural access to city leadership development, and their staff and boards should government and public agencies for immigrants as outlined in reflect the diversity of the communities they seek to serve. the Welcoming Pittsburgh plan, and the city should proceed with launching a municipal ID program. Equitable Development in Action: Grand Rapids Advance equity, diversity, and 13. Cascade Engineering, a manufacturing company in Grand inclusion in the business community. Rapids, Michigan, exemplifies how private companies can put equity into action. It adopted an anti-racism mission While government is an important force for change, improving statement, and puts that intention into action through economic opportunities and outcomes at scale and over the dedicated hiring strategies to employ people with criminal long term requires the full engagement and participation of the records, publicizing the business advantages of doing private sector. Companies themselves need to understand the so, and spearheading a campaign to get 30 other area bottom­line benefits of hiring and promoting diverse employ­ 62 companies to also hire people with records. ees, supporting locally owned businesses, and ensuring all of the jobs they support are quality jobs with family-sustaining The Path to an All-In Pittsburgh 21 Equitable Development:

24 Residents and community-based organizations living and Build Community Power, V. working in Pittsburgh’s distressed communities are central to making equitable development a reality. None of the equitable Voice, and Capacity development examples shared in this report came about exclusively through top-down policy action and ideas: most began as ideas from residents and neighborhood organiza- tions about how to address challenges, remove barriers, and build more inclusive communities. Pittsburgh’s residents are the eyes and ears of its neighborhoods, and possess valuable information, insight, and wisdom critical to designing solutions that work. Residents are also uniquely positioned to be the agents and owners of neighborhood change, transforming problems like vacant lots into community assets. Experience from communities that have gentrified also reveals the importance of community ownership and control of land as well as authentic community engagement in the development process to ensure that community residents and small businesses can stay in their neighborhoods as they improve. Pittsburgh should take the following steps to build community power, voice, and capacity to advance equitable development. Support multiracial, cross-sector 14. collective action for equitable development. For the region to make meaningful progress toward equitable Residents gain community development skills in Neighborhood development, the core champions of equity and inclusion (Talia Piazza/ Allies’ Community Leadership Forum. must have a way of working together across neighborhoods Neighborhood Allies) and issue areas to advance citywide and regional strategies. Pittsburgh has many strong organizations and institutional leaders that are already implementing many of the strategies described in this report and are interested in collaboratively advancing a coherent action plan. This activity needs direction, leadership, and coordination. Pittsburgh also has a strong labor movement and a labor/ community coalition, Pittsburgh United, that has successfully organized for living-wage and green infrastructure policies, and is now leading a campaign to establish the housing trust fund recommended by the Affordable Housing Task Force. Building structures for information-sharing and collective action within and across these groups and developing policy leadership from within Pittsburgh’s communities of color are critical to carrying this agenda forward and growing a larger multiethnic and multiracial constituency for equitable development. Local and/or national foundations should The Path to an All-In Pittsburgh 22 Equitable Development:

25 invest in the institutional structures and networks that can Equitable Development in Action: take collective action for equitable development through organizing and policy development. Detroit The Detroit Microloan Collaborative was founded in 2014 to address the need for new affordable financing sources 15. Ensure sustainable funding for for small businesses in the region. Huntington Bank neighborhood-based organizations provided a $5 million line of credit to seed the collabor - ative, which provides $5,000 to $100,000 loans to small and equitable development strategies. businesses that do not qualify for traditional lending, as well as business technical assistance to help business Neighborhood-based organizations that engage residents owners become loan ready. The majority of the first 60 and implement strategies that build residents’ incomes and loans—totaling $2.2 million—went to minority-owned assets while revitalizing places and welcoming newcomers businesses and have created or retained hun dreds of are essential to implementing equitable development in jobs. In fall 2015, the Detroit Development Fund started Pittsburgh. These organizations play a vital role in building a new Entrepreneurs of Color loan fund, which in its first community cohesion, articulating a vision for the community’s 64 10 months, closed 25 loans totaling over $2 million. future, negotiating with developers, and partnering to implement investment without displacement strategies. Community leaders interviewed for this project highlighted local challenges including the tendency of local philanthropy Fund tenant organizing and resident 16. to fund outside organizations with new ideas (and largely White staff and leadership) rather than investing in building leadership development. the capacity of neighborhood-based organizations led and staffed by people of color. Additionally, there is a need for Tenant and resident leadership and organizing is foundational additional sources of low­cost financing for community­based to ensuring those most at risk of being displaced know their equitable development strategies. rights and have a voice in how their neighborhoods change. The city and developers should provide clear, widespread Pittsburgh’s government agencies, financial institutions, information about the development process and specific employers, and philanthropies should support funding proposals in neighborhoods, so residents are informed and programs for community-based organizations rooted in the empowered to weigh in on proposals in their neighborhood. region’s low-income communities of color. Additionally, the In addition, local foundations should create a tenant protection region should seek to increase funding available for equitable fund to support tenant advocacy and organizing to prevent development strategies. Community development financial displacement, engage in neighborhood planning, and ensure institutions are important sources of funding for inclusive healthy habitable housing. Community development groups el opment strategies and they need more capital to finance dev should also implement strategies to empower residents to them. One approach Pittsburgh should pursue is the securing engage in the development process. of community benefits agreements with banks when they propose mergers, such as the agreement negotiated with Huntington Bancshares that will increase small business, mortgage, and community development lending as well as 63 Local governments and anchor bank branches locally. institutions doing business with banks should also choose banks that are supporting equitable development, with strong lending for small, local, minority-, and women-owned businesses. Also, local banks should step up to develop targeted strategies to fill identified funding gaps. The Path to an All-In Pittsburgh 23 Equitable Development:

26 Equitable Development: The Path to an All-In Pittsburgh 24

27 Now is Pittsburgh’s moment for equitable development, and Conclusion its leaders must commit to implementing the recommen- dations in this report and ensuring everyone is a part of the new Pittsburgh. As this report illustrates, there are viable strategies that leaders in government, business, community develop ment, and philanthropy can undertake to address racial inequities and put all residents on track to reaching their potential, starting with baking equity in to its new develop- ment projects and reaching across its institutional landscape and entrepreneurial ecosystem. Just as Pittsburgh has embraced its identity as a tech-forward region, it should— and can—be a frontrunner on equitable development. Pittsburgh has the opportunity to build a brighter future for all through equitable development. (Brian Donovan/Flickr) The Path to an All-In Pittsburgh 25 Equitable Development:

28 Burning Glass Technologies, The Council for Adult and Experiential 9 Notes Learning, Allegheny Conference on Community Development, Inflection Point: Supply, Demand and the Future of Work in the Pittsburgh Region , 2016, . PDFs/Misc/InflectionPoint_May2016.pdf 10 National Equity Atlas, “Racial/Ethnic Composition: Pittsburgh, PA Metro Area,” ; Race~ethnicity/32756/Pittsburgh,_PA_Metro_Area/false/ Harold D. Miller, “Regional Insights: Little Room for Growth , June 2, 2013, Without Minorities,” Pittsburgh Post Gazelle Building Inclusive Communities: 1 Regional Housing Legal Services, A Review of Local Conditions, Legal Authority and Best Practices Regional-Insights-Little-room-for-growth-without-minorities/ for Pittsburgh (Pittsburgh, PA: Regional Housing Legal Services, stories/201306020127 . 2015), 11 Jeffery Fraser, The Pittsburgh Regional Diversity Survey (Pittsburgh, . Overview_Final_Web.pdf PA: The Regional Workforce Diversity Indicators Initiative, 2016), 2 For comparison, Pittsburgh ranked 48th on Growth, 6th on Prosperity, and 25th on (Economic) Inclusion. The Brookings regional-diversity-survey/ . Institution, “Metro Monitor: Pittsburgh, PA” ( January 2016), Gary Rotstein, “Census Shows Millennial Population Growing in 12 http:// , December 3, 2015, ­Gazette Pittsburgh Post Pittsburgh,” . monitor#V1G38300 Barriers 3 Margaret C. Simms, Marla McDaniel, and Saunji D. Fyffe, shows-millennial-population-growing-in-Pittsburgh/stories/ and Bridges: An Action Plan for Overcoming Obstacles and 201512030053 . Unlocking Opportunities for African American Men in Pittsburgh Raj Chetty, Nathaniel Hendren, Patrick Kline, and Emmanuel 13 (Washington, DC: Urban Institute, 2015), http://www.urban. Saez, “Where Is the Land of Opportunity? The Geography of org/research/publication/barriers-and-bridges-action-plan- National Intergenerational Mobility in The United States ,” overcoming-obstacles-and-unlocking-opportunities-african- Bureau of Economic Research (2014) No. w19843, http://www. ; Center on Race & Social Problems, american-men-pittsburgh . Pittsburgh’s Racial Demographics 2015: Differences and Disparities (Pittsburgh, PA: University of Pittsburgh School of Lei Ding and Jackelyn Hwang, 14 The Consequences of Gentrification: http:// Social Work, Center on Race & Social Problems, 2015), A Focus On Residents’ Financial Health in Philadelphia , Working . Paper 16-22 (Philadelphia, PA: Research Department, Federal Reserve Bank of Philadelphia, 2016), https://www.philadelphiafed. National Equity Atlas, “Actual GDP and Estimated GDP with 4 org/community-development/publications/discussion-papers . Racial Equity in Income (Billions): Pittsburgh, PA Metro Area, 2012,” 15 Tony Dolan, April 19, 2016. Advancing Equitable Development with_racial_equity/7426/Pittsburgh,_PA_Metro_Area/false/ , in Pittsburgh: Developer Roundtable. Pittsburgh, PA. (accessed August 2016). 16 One Hill Neighborhood Coalition, “Community Benefits Fact Emily Badger, “What’s Happening in The Neighborhoods with 5 Sheet,” Wonkblog, Washington Post The Wildest Gains in Home Values,” documents/HillDistrictCBAFactSheet.pdf (accessed August April 30, 2016, 2016). wp/2016/04/30/what-the-best-places-to-buy-a-home-in- Lower Hill Redevelopment: Community Collaboration and 17 . america-have-in-common/ http://www. Implementation Plan, September 11, 2014, ­Gazette 6 Dan Fitzpatrick, “The Story of Urban Renewal,” Post , May 21, 2000, . redevelopment.pdf 0521eastliberty1.asp . 18 Portland Development Commission, “Strategic Plan 2015-2020,” 7 Regional Housing Legal Services, “Northside Coalition for Fair . Housing,” City of Austin, Chapter 380 Performance-Based Contracts 19 (accessed August 2016). housing/ Policy, March 2015, 8 Ryan Deto, “Workforce Training Program Looks To Increase The ­program.pdf. files/EGRSO/EconomicDevelopment Participation Of Minority Workers In Pittsburgh’s Construction 20 “Councilman Lavelle Introduces Local Hire Bill, ‘Pittsburgh Boom,” Pittsburgh City Paper , November 25, 2015, http://www. Works’,” City of Pittsburgh, article.htm?id=3500 , (accessed July 26, 2016). to-increase-the-participation-of-minority-workers-in-pittsburghs- . construction-boom/Content?oid=1870492 The Path to an All-In Pittsburgh 26 Equitable Development:

29 21 Achieving Robert Hickey, Lisa Sturtevant, and Emily Thaden, 31 Local Hiring and First Source Katrina Liu and Robert Damewood, , Working Hiring Policies: A National Review of Policies and Identification of Lasting Affordability Through Inclusionary Housing Best Practices (Pittsburgh, PA: Regional Housing Legal Services, Paper (Cambridge, MA: Lincoln Institute of Land Policy, 2014), 2013), . The state of Pennsylvania’s Redevelopment . Overview-RHLS.pdf InterestInclusionaryHousingLincolnInstituteWorkingPaper.pdf Assistance Capital Program specifically prohibits local (geograph­ Heather Schwatrz, 32 Housing Policy Is School Policy: Economically ically targeted) hiring, though targeted hiring of disadvantaged Integrative Housing Promotes Academic Success in Montgomery workers may be possible. (New York, NY: The Century Foundation, 2010), County, Maryland 22 Insight at Pacific Community Ventures, Moving Beyond Job . Creation: Defining and Measuring the Creation of Quality Jobs Emerald Cities Collaborative, “San Francisco’s 5-Year-Old Local 33 (San Francisco, CA: Pacific Community Ventures, 2016), https:// Hire Policy a Huge Success,”­content/uploads/ news/san-franciscos-5-year-old-local-hire-policy-a-huge-success . sites/6/2016/04/Quality-Jobs_Moving-Beyond-Job-Creation.pdf Putting (accessed August 2016); Brightline Defense Project, , (San Francisco, CA: Brightline Defense Project, Zeynep Ton, (New York, NY: New Harvest The Good Jobs Strategy, 23 Local Hire To Work Houghton Mifflin Harcourt, 2014) 2012) . advocacy201203052744a.pdf . Joe Smydo, “Bill Would Set ‘Living Wage’ 150 Percent of Minimum 24 Mullin and Lonergan Associates Incorporated, and Brean 34 Wage in Pittsburgh,” Pittsburgh Post , April 20, 2010, ­Gazette Fourth Economy, City of Pittsburgh ­­ Housing Needs Associates, Assessment, 2016 20/Bill-would-set-living-wage-150-percent-of-minimum-wage- , (presentation to The City of Pittsburgh . in-Pittsburgh/stories/201004200192 Affordable Housing Task Force), dcp/Pittsburgh_Housing_Needs_Assessment.pdf . 25 Satya Rhodes-Conway, Laura Dresser, Mel Meder, and Mary 35 National Equity Atlas, “Housing Burden by Tenure and Race/ Ebeling, A Pittsburgh That Works for Working People (Madison, Ethnicity: Pittsburgh City, PA vs. Pittsburgh, PA Metro Area, http://www.seiu32bj. WI: Center on Wisconsin Strategy, 2016), . org/wp-content/uploads/2016/05/Pittsburgh-Report_Final.pdf Renters, 2012,” Housing_burden/By_race~ethnicity:32961/Pittsburgh_City,_ 26 Tim Lohrentz, Amiee Chitayat, Angela McCray, and Yuritzy PA/Pittsburgh,_PA_Metropolitan_Statistical_Area/Year(s):2012/ Gomez, Economic Development in Diverse Communities: Inclusive . Tenure:Renters/ (Oakland, CA: Insight Center Procurement by Cities and Counties for Community Economic Development, 2014), National Equity Atlas, “Percent Owner-Occupied Households 36 http://ww1. by Race/Ethnicity: Pittsburgh City, PA vs. Pittsburgh, PA Metro . Area, 2012,” communities.pdf Homeownership/By_race~ethnicity:38486/Pittsburgh_City,_ 27 Ibid. PA/Pittsburgh,_PA_Metropolitan_Statistical_Area/Year:2012/ . 28 Pennsylvania State Advisory Committee, “Developments in 37 U.S. Department of Housing and Urban Development, Minority- and Women-Owned Business Utilization at the State Affirmatively Furthering Fair Housing Data and Mapping Tool, and Local Levels,” Barriers Facing Minority- and Women-Owned Table 12: Opportunity Indicators by Race/Ethnicity: Pittsburgh Businesses in Pennsylvania, (2012) (December 2015), . ; Ralph Bangs, Audrey Murrell, and sac/pa0802/main.htm 38 Monique Constance-Huggins, Prime Opportunities for Minority National Equity Atlas, “Percent of Households Without a Vehicle: Pittsburgh, PA Metro Area vs. Pittsburgh City, 2012,” (Pittsburgh, PA: University Center for Social and Contracting http:// http:// Urban Research, Pittsburgh Economic Quarterly, 2005), 33486/Pittsburgh,_PA_Metro_Area/Pittsburgh_City,_PA/ . . 39 29 Rich Lord, “New Effort in Works to Assure Diversity to City U.S. Department of Housing and Urban Development, Contracting,” Pittsburgh Post ­Gazette , February 25, 2008, http:// Affirmatively Furthering Fair Housing Data and Mapping Tool, 2015. ­in­works ­to­ assure­diversity­to­city­contracting/ New­effort 40 Jenny Reed, DC’s First Right Purchase Program Helps to Preserve stories/200802250191 . Affordable Housing and Is One of DC’s Key Introduction Anti- Displacement Tools , (Washington, DC: DC Fiscal Policy Institute, PolicyLink, “New Orleans Fast-Tracks Equitable Transit 30 America’s Tomorrow 2013), , June 6, 2013, Investment,” https://www. ­tomorrow­ 24-13-First_Right_Purchase_Paper-Final.pdf . . june62013.pdf Matthew Desmond. 41 Evicted: Poverty and Profit in the American City . (New York, NY: Crown, 2016). The Path to an All-In Pittsburgh 27 Equitable Development:

30 2007 and 2012 Survey of Business Owners, U.S. Census 42 Jake Blumgart, “How Bernie Sanders Made Burlington Affordable,” 54 , January 19, 2016, Slate Bureau, econ/2012-sbo.html . metropolis/2016/01/bernie_sanders_made_burlington_s_land_ trust_possible_it_s_still_an_innovative.html . 55 Pittsburgh Road­ Urban Redevelopment Authority of Pittsburgh, Community + Land + Trust: Tools for map for Inclusive Innovation (Pittsburgh, PA: Urban Redevelopment 43 Peter Sabonis and Matt Hill, (Baltimore, MD: Baltimore Authority of Pittsburgh, 2015), Development Without Displacement Housing Roundtable, 2016), innovation-performance/innovationroadmap/index.html . files/C%2BL%2BT_web%20copy.pdf . Equitable Innovation Economies, “Portland: Cultivating Diverse 56 Ryan Deto, “Land Trust Will Help Low-Income Residents Purchase Leaders and an Inclusive Startup Culture,” City Snapshots, 44 Homes in Lawrenceville,” , (accessed Pittsburgh City Paper , January 20, 2016, August 4, 2016). help-low-income-residents-purchase-homes-in-lawrenceville/ Ted Howard, “Leveraging Anchor Institution Purchasing to 57 . Content?oid=1884073 Balle: Be a Localist Benefit Communities,” https://bealocalist. , ­anchor ­institution­purchasing ­benefit ­ “Policies,” Lots to Love Pittsburgh, 45 org/leveraging communities ; “Chicago Anchors for a Strong Economy,” World your-lot/policies/ , (accessed August 1, 2016). Business Chicago, http://pittsburghpa. “Land Banking FAQs,” City of Pittsburgh, 46 case/ , (accessed August 3, 2016). gov/landbanking/faqs , (accessed August 3, 2016). 58 The Philadelphia City Controller, Survey of The Current And , The Untapped Potential of Land Bank/Land 47 John Emmeus Davis Potential Impact of Local Procurement by Philadelphia Anchor (Burlington, VT: Housing Alliance of Trust Partnerships Institutions (Philadelphia, PA: Econsult Solutions Inc., 2014), Pennsylvania, 2012), uploads/2013/02/Land_Bank-Land_Trust.pdf . AnchorInstitutions_January2014.pdf ; Econsult Solutions Inc., Anchoring Our Local Economy: Developing a Local Procurement https:// 48 New York Office of Civil Justice, “2016 Annual Report,” Strategy for Philadelphia’s Higher Education and Healthcare Institutions , (Philadelphia, PA: Econsult Solutions Inc., 2015), Report#from_embed . 49 Rebecca Nuttall, “The Pittsburgh Promise Was Supposed to Get . AnchorInitiative_ManufacturingJobsRoadmap_2015.pdf More City Youths into College. So Why Are so Many Black 59 Alexis Stephens, “How A Business Accelerator Is Literally Pittsburgh City Paper , May, 27, Males Left Out of the Equation?,” Cementing Equity into Cincinnati’s Economy,” America’s 2015, Tomorrow newsletter, April 21, 2016, promise-was-supposed-to-get-more-city-youths-into-college- focus-areas/equitable-economy/americas-tomorrow- so-why-are-so-many-black-males-left-out-of-the-equation/ . newsletters/evicted-author-matthew-desmond . Content?oid=1828152 “Social Equity Playbook,” The Pittsburgh Green Workplace 60 50 “Pittsburgh Police Reform Benefits from a Structural Approach, . Challenge, PIIN Leaders Say,” tabid/244/PostID/466/Pittsburgh­police­reform­benefits ­from­ “Portland Tech CEOS Unite to Take Tech Diversity Pledge,” 61 , (accessed August structural-approach-PIIN-leaders-say.aspx http://www. Portland Development Commission, June 17, 2015, 2016). Portland_tech_CEOs_unite_to_take_Tech_Diversity_Pledge.aspx . 51 National Equity Atlas, “Full-Time Workers by Poverty Status: Pittsburgh, PA Metro Area, 2012,” http://nationalequityatlas. Courtney Hutchison, “Grand Rapids Company Unlocks the 62 org/indicators/Working_poor/Workers_by_poverty:40291/ , March 21, 2016, Potential of Former Inmates,” Next City Pittsburgh,_PA_Metro_Area/false/Year:2012/ . . inmates-jobs 52 Timothy Bates, “Utilizing Affirmative Action in Public Sector Procurement as a Local Economic Development Strategy,” Pittsburgh Community Reinvestment Group (PCRG), Community 63 , 23 (2009): 180-192, Economic Development Quarterly http:// Organizations Celebrate Huntington Bancshares’ $16.1 Billion ; Thomas D. Boston , Community Development Plan May 20, 2016, http://www.pcrg. and Linje R. Boston, Increasing the Capacity of the Nation’s Small org/community-organizations-celebrate-huntington-bancshares- Disadvantaged Businesses (SDBs), (Atlanta, GA: EuQuant, 2007), . 16-1-billion-community-development-plan/ Crain’s Amy Haimerl, “Small-Biz Lending Gets $5M injection,” 64 children-family-justice-center/documents/EOEP/Doc_1203_ Detroit Business , October 26, 2014, http://www.crainsdetroit. . Increasing_Capacity_SDB_200710.ashx?la=en com/article/20141026/NEWS/310269935/small-biz-lending- EUQUANT, “The Job Creating Power of the Black Dollar,” 53 ; Outcomes data shared by the New Economy gets-5m-injection , March 7, 2012, EUQUANT Blog Initiative, personal communication, August 2016. . spending-patterns-and-black-jobs-how-they-are-connected/ The Path to an All-In Pittsburgh 28 Equitable Development:

31 Author Biography Sarah Treuhaft Sarah Treuhaft is the director of equitable growth initiatives at PolicyLink. She coordinates the organization’s work on demographic change and the economy, collaborating with local and national partners on research and action projects that aim to build a more equitable economy. She leads the All-In Cities initiative and manages the research partnership between PolicyLink and the Program for Environmental and Regional Equity at the University of Southern California, which maintains the National Equity Atlas, an online data and policy tool. The Path to an All-In Pittsburgh 29 Equitable Development:

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