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HBCU-CDFI Economic Mobility Strategy Guide

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How can CDFIs and HBCUs collaborate to augment and leverage the position of HBCUs as anchor institutions to increase economic mobility in low-income communities?

Section One: Background
Section Two: Strategies For Collaboration
Section Three: Community Engagement Summaries and Strategic Plans West Jackson, MS and Jackson State University
Section Four: Community Engagement Summaries and Strategic Plans Itta Bena, MS and Mississippi Valley State University
Section Five: Lessons Learned
Resources

Most Historically Black Colleges and Universities (HBCUs) are located in the South in areas facing severe levels of economic distress. The high levels of disinvestment in these areas make them prime locations to foster natural alliances between HBCUs and Community Development Financial Institutions. Given their embeddedness in these communities, HBCUs are uniquely positioned to not only promote economic mobility among their students, but to serve as critical anchors of development in their surrounding neighborhoods. Likewise, CDFIs are experts at the import and deployment of financial resources to advance ownership and agency among individuals and communities.

The HBCU-CDFI Economic Mobility Guide outlines the key outcomes of a strategic collaboration undertaken to answer the question – how can Community Development Financial Institutions and Historically Black Colleges and Universities collaborate to augment and leverage the position of HBCUs as anchor institutions to increase economic mobility in low-income communities? To answer the question, Hope Enterprise Corporation / Hope Credit Union (HOPE), a regional CDFI working in the Deep South, came together with Jackson State University – an urban HBCU – and Mississippi Valley State University – a rural HBCU located in the Mississippi Delta – to identify priorities and develop plans to address neighborhood conditions associated with persistent and concentrated poverty.

Through surveys, analysis of secondary data sources, public meetings and focus groups, HOPE, the two HBCUs and local people identified the critical needs, potential development opportunities and common goals of the surrounding community. Following months of working together, the HBCU-CDFI Economic Mobility Team drew from the research findings to develop a number of specific projects designed to improve substantially conditions in communities adjacent to the universities. During the project development phase, team leaders placed an emphasis on prioritizing projects aligned with the core competencies of CDFIs: housing, health and fresh food access, entrepreneurship and jobs, and community infrastructure.

 

Community Development Financial Institutions
Catalytic Partners for Upward Economic Mobility

CDFIs strengthen pathways for upward economic mobility in low-income communities through deposit and wealth building accounts, home mortgages, capital for small business owners, and by financing projects that strengthen essential community infrastructures such as jobs, healthcare, education, access to healthy food, and affordable housing. CDFIs have a history of expertly linking community planning strategies with creative capital deployment methods to meet the development needs of distressed communities. This uniquely positions CDFIs to leverage resources (financial, development partners, etc.) and work with HBCUs to catalyze upward economic mobility in their communities.


 

Section One: Background
The term “anchor institutions” broadly refers to organizations that are “anchored” in place, often due to a large number of fixed assets, customer relationships, or historical ties that would make relocation highly unlikely (Zuckerman, 2013). As a result of this physical tie to place, these institutions are valuable contributors to local economic activity, offering a stable economic presence even if the neighborhoods that surround the anchor experience economic distress (Ehlenz, 2015). While some economic development experts define the term broadly to include any large employer, a subfield has emerged which looks particularly at how universities and hospitals can operate as anchor institutions.


 

Section Two: Strategies For Collaboration
Phase I: Collaboration Research & Analysis (November 2017 – June 2018)

  • Community Surveys
  • Third-party Data Analysis
  • Public Meetings & Focus Groups
  • Inventory of Existing Plans and Development Initiatives
  • Community Leadership Development
  • Community Catalyst Projects

Phase II: Community & Economic Development Projects Development (July 2018 – December 2018)

  • Affordable Housing
  • Business Development
  • Health and Fresh Food Access
  • Utility Infrastructure

 

Section Three: Community Engagement Summaries and Strategic Plans
West Jackson, MS and Jackson State University
Jackson State University and the community of West Jackson share not only geographical space but also many common goals.  They face many of the same issues, deal with shared challenges, and face similar circumstances that have been continuously problematic for decades.  The purpose of the planning is to discover the details of the shared goals, challenges, and circumstances in order to create a shared vision and strategies and implement positive change that benefits both the university and the community.  The planning process begins by listening to the community and the university and identifying their goals and challenges individually. These are then moved forward as a formative strategy that seeks to build bridges between the university and the community.  Successful implementation of these strategies must recognize that the university and community are inextricably linked. Positive change can only be made real through a shared vision and shared strategies.


 

Section Four: Community Engagement Summaries and Strategic Plans
Itta Bena, MS and Mississippi Valley State University
Mississippi Valley State University and the community of Itta Bena share not only geographical space but also many common goals.  They face many of the same issues, deal with shared challenges, and face similar circumstances that have been continuously problematic for decades.  The planning process undertaken is intended to discover, in detail, those shared goals, challenges, and circumstances in order to create a shared vision and strategies to implement positive change benefitting both the university and the community.  The planning process begins by listening to the community and the university and identifying their goals and challenges individually. These are then moved forward as a formative strategy that seeks to build bridges between the university and the community.  In implementing these strategies, it is imperative to recognize the reciprocal roles that the community and university play amongst each other.  The two entities are inextricably linked. It is through a shared vision, and shared strategies, that positive progress can be made real.


 

Section Five: Lessons Learned

  • Dedicate time to learn the history of the people engaged in neighborhood development
  • HBCUs bring diverse levels of capacity to community development
  • Relationship building is key to success for CDFIs and HBCUs
  • Recognize unique value of every community and ground work in resident leaders
  • Cater engagement to marginalized members of the community
  • Catalyst funds can prove to be a useful tool when managed well
  • CDFIs will need to navigate competing priorities

 
Resources