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Tech for Good: Investing in Users, Entrepreneurs, and Communities to Create Beneficial Technologies and Innovation Ecosystems

July 27, 2022 / No Comments

By Kate Wittels, Giacomo Bagarella, Bret Collazzi, and Amelia Taylor-Hochberg

Innovation happens constantly, some of it directed at cities. Not all of that urban community-directed technology is actually good for the people who live in cities. That’s why we see collaboration as essential to creating technology for good — going beyond the collaboration among innovators that is routinely celebrated to effect collaboration with and led by tech users, civic stakeholders, and communities themselves. Our clients have demonstrated that collaboratively developed tech products can redress economic, environmental, and social challenges and contribute to local strength and resiliency.

1. Collaboration with users is fundamental to building public service tools that are accessible, useful, and effective.

When millions lost their jobs in early 2020 due to the impact of COVID-19, the federal government expanded eligibility for unemployment insurance, enabling gig workers to apply for benefits for the first time. However, state agencies weren’t prepared to process their applications, leading to months-long delays, inaccurate benefit payouts, and vulnerability to fraud.

The Workers Lab (TWL), a nonprofit based in Oakland, CA, that is committed to developing ideas that increase worker power, partnered with Steady, a mission-driven consumer technology company to develop a tool that would enable gig workers to report their incomes more easily and states to deliver accurate benefits faster. HR&A supported TWL by serving as the project manager and strategic advisor for the pilot of the tool — TWL’s Design Sprint for Unemployment Insurance.

(Image Courtesy of The Workers Lab | TWL Benefits for Gig Workers Part 1)

In our first phase of work, we focused on partnering directly with gig workers to design the tool to reflect their experience and needs. The resulting browser-based tool enabled gig workers to draw proof of their earnings directly from their gig platforms and financial accounts, and produce a simple, legible income report for use in unemployment applications.

We then piloted the tool in a real workflow, assisting state departments of labor in Alabama and Louisiana to process their backlog of thousands of unemployment benefit applications. In Alabama, the tool was able to automatically process 35% of claims as eligible, helping clear issues before a state staffer even had to look at the application — reducing staff review time from 15–60 minutes per claim to as few as 1–2. The tool also deters fraud, as it requires being linked to a person’s financial accounts and reporting that connection to the state. An Alabama Department of Labor staffer told us, “If we could’ve had [this at the beginning of the pandemic], that would have been excellent. It would have expedited some of the backlog.” In Louisiana, after receiving an application with a Steady income report, the state could approve the claim and pay the worker in less than 24 hours — far faster than the three weeks that the manual approach required.

The Workers Lab was invited to testify in front of the U.S. House Congressional Subcommittee on Government Operations in March 2022 and delivered a strong endorsement of worker innovation.

As more states seek to automate verification of income from gig work across public benefit programs (including the Supplemental Nutrition Assistance Program, Medicaid, and more), pilots like this Design Sprint can serve as a proof of concept for how partnerships between tech and government can help meet intense demands during crises and improve policy for the future.

2. Platforms that support urban tech entrepreneurs are critical to scaling solutions that address pressing civic issues.

URBAN-X is a venture accelerator founded by the iconic carmaker MINI in 2016. It supports urban tech startups in developing, bringing to market, and scaling solutions across three major challenges: climate change, obsolescent urban systems, and inequality. URBAN-X leverages in-house talent and external expertise to provide guidance and mentorship in design, engineering, business strategy, sales, marketing, product development, and fundraising. HR&A, supported by Autocase Economic Advisory, evaluated how URBAN-X helps startups scale and generate economic and social impacts, promote entrepreneurial diversity by gender and race, and reduce environmental harms.

(Image Courtesy of URBAN-X)

Many urban tech founders credit their success in advancing innovative solutions to their participation in URBAN-X. Of the $6.1M in funding that each alumnus has raised on average, $5.7M was raised during and after participating in the program. In addition, every job created at an URBAN-X company supports the creation of 1.5 additional jobs, with an average compensation of $100,000.

A sample of achievements by URBAN-X’s alumni includes:

Circuit, which provides access to on-demand, free or low-cost electric shuttles in dense areas, helps cities reduce congestion, enhance mobility options, and lower emissions. In four years, the company has avoided the emission of 19,000 metric tons of CO2 and reduced the cost of congestion by $16M.
Farmshelf, which creates smart, indoor, bookshelf-like farms that allow anyone to grow their own food, avoids 30,000 metric tons of waste annually by growing food where it’s consumed.
Gradient, an in-home, residential cooling and heating system that is easy to install and lowers carbon emissions, is currently partnering with the State of California to provide units to low-and moderate-income households that otherwise might not be able to afford such solutions.

URBAN-X has begun to share its impact and lessons learned, leading the way in accelerating innovation by the next generation of urban entrepreneurs.

3. To ensure that innovation economies serve everyone, builders of technology ecosystems must proactively engage affected communities and commit to investments that benefit all.

Houston’s workforce is a national leader when it comes to the Black and Latinx share of the tech ecosystem, but progress is still needed to reach equitable representation. Houston has the third-highest concentration of STEM workers in the country, but Black and Latinx workers make up only 36% of the tech ecosystem despite being 58% of Houston’s overall workforce – a mismatch that also occurs nationally, with participation in the tech ecosystem at 15% versus being 23% of the overall workforce.1 HR&A’s work with the Rice Management Company (RMC) seeks to move this needle through the Ion District innovation campus. The District’s anchor, the Ion, is a quarter-million square foot development that provides offices for tenants like Microsoft and Chevron Technology Ventures, shared workspaces, makerspaces, event venues, classrooms, and a host of other amenities. These resources offer a platform for growth and collaboration among entrepreneurs, incubators, accelerators, corporations, academics, and others in the Houston community.

Launching the Ion involved establishing a Community Benefits Agreement (CBA) between RMC and the City of Houston. The CBA, which sets a national standard for such agreements, was the result of a two-year community engagement process that brought together stakeholders from neighborhoods adjacent to the Ion, business, and civic leaders to identify and address community desires. Concerns around displacement and gentrification were top of mind, resulting in a CBA that dedicates $15.3 million in direct investments and community partnerships that provide tech sector job training and placement, an accelerator and innovation programs — including a venture fund — for women- and minority-led ventures, support for affordable housing, and social services to address homelessness. RMC has also committed to provide real estate investment opportunities for minority residents and minority- and women-owned businesses so that the District can facilitate building local wealth.

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We’re proud to have worked with a diverse set of partners committed to applying these principles and ensuring that cities are the source of solutions to our most pressing issues.

Welcoming New Team Members and Celebrating HR&A University

July 22, 2022 / No Comments

HR&A is pleased to announce one of our largest and most diverse cohorts of new additions to the firm, spanning our six offices and various roles. This group of analysts, urbanists, and creative problem-solvers came together early this summer in our New York office for our annual HR&A University training week to network and learn about the wide range of important work happening across our practice. We’re excited to continue tackling the complex challenges facing our cities with these talented team members.

Alexandra Belyaev, Special Assistant to the Executive Office | Alexandra joins HR&A as Special Assistant to the Executive Office. She brings extensive experience in shaping collaborations that center dignity, generativity, and abundance.

Andrew Bolton, Research Analyst | In his role as a Research Analyst, Andrew provides research and analytical support to a wide range of projects at HR&A.

Melanie Downing, Practice Operations Manager – Broadband & Digital Equity | Melanie supports HR&A’s growing Broadband & Digital Equity Practice in the public interest broadband ecosystem.

Kayley Estoesta, Research Analyst | Kayley is interested in making cities more economically, racially, and socially just, while meaningfully engaging with neighborhood residents throughout the process.

Tara Fay-Reilly, Recruitment Manager | Tara works with our People team to oversee HR&A’s recruitment strategies, helping to ensure equitable recruitment processes and a strong pipeline of candidates.

Will Finkelstein, Research Analyst | Will provides research and analytical support to urban innovation, economic development, and real estate projects throughout the southern United States.

Vidhee Garg, Principal | Vidhee brings over 14 years of experience advising public and private sector clients in 25+ countries on developing new policies, programs, and business plans to help improve access to housing for underserved populations.

Kayla Jaffe, Analyst | Kayla is at the forefront of creating equitable and just urban communities; she has worked with a variety of government agencies, nonprofits, foundations, and private sector clients to develop policies and programs that support the United States’ changing demographics.

Anna Messer | A research analyst in our New York office, Anna is passionate about equitable economic development, affordable housing, and urban resilience.

Kimbaley Mitchell, Administrative Assistant | ‘Kimberly’ brings over 15 years of administrative experience across government, public, and the corporate sectors supporting Sr. Executives to her role as Administrative Assistant in HR&A’s Atlanta office.

David Nugroho, Analyst | David provides research and analytical support to projects ranging from transit-oriented development to affordable housing and real estate advisory.

Garrett Robinson, Research Analyst | Garrett provides research and analytic support for a variety of real estate and economic development projects.

Marielle Saunders, Analyst | Marielle provides research and analytical support to projects ranging from economic development and inclusive cities to urban resilience and innovation.

Mark Siriban, Business Analyst | Mark supports the internal business using data analytics to aid in making decisions on strategic initiatives about growth, people, and operations.

Kas Tebbetts, Analyst | Kas supports projects ranging from comprehensive planning to real estate development, with a focus on meaningful community engagement and holistic, interdisciplinary solutions to place-based challenges.

Alexandra Tomasulo, Executive Assistant | Alexandra joins HR&A’s New York City Office as an Executive Assistant where she brings over 6 years of executive assisting experience across private and public sector projects.

Tommy Truong, Analyst | Tommy draws on his experience in community engagement, data analysis and democratization, and public policy to support equitable and inclusive urban development.

Shoshana Wintman, Research Analyst | Shoshana is a Research Analyst based in the New York office. She is passionate about equitable urban development, resilient planning, and climate change adaptation.

Sylvia Xiaomeng Li, Director | Sylvia leverages her planning, design, policy, and engagement expertise to help shape transformative development, robust large-scale planning efforts, and regulatory innovations to advance housing and economic equity.

An Innovative Approach to Evaluating the Public and Private Benefits of Land Use Decisions

June 29, 2022 / No Comments

Written by Shuprotim Bhaumik and Alexander Meeks.

The Massachusetts Public Waterfront Act — “Chapter 91” — gives every state resident a legal right to access waterfront areas called tidelands. The Act defines specific requirements for land uses, building heights, and the siting of public open space in tidelands. The goal of these rules is to preserve public access to the waterfront.

In high-value real estate markets — such as Downtown Boston and Boston’s Seaport neighborhood — Chapter 91 requirements and real estate and economic development goals can come into conflict. On the one hand, waterfront tideland parcels offer access to high quality open space, provide opportunities for waterfront connectivity, permit water-dependent uses, and are the logical sites for resilient, green infrastructure. On the other, they provide significant opportunities for public fiscal return, enabling economic and housing development and private return on investment.

Under Chapter 91, if a property owner receives a waiver from the law to build bigger, higher, or otherwise reduce public access onsite, then the owner usually has to compensate the public for the public access it is removing. This compensation is called a “mitigation payment.” There is, however, no consistent or clear methodology or framework for negotiating such a payment. This lack of clarity can make waterfront development approvals and decision-making challenging and controversial.

To fill in this gap, the Conservation Law Foundation—an environmental advocacy organization based in New England—worked with HR&A to design the Massachusetts Tideland Development Calculator.

The Tideland Development Calculator estimates the additional land value unlocked by a project that reduces public access to tidelands compared to a Chapter 91-compliant project. The calculator suggests that this “land value premium” could be a source of financial compensation to the public that could support other public benefits, including alternative public access to the waterfront, water taxi stations, community spaces, public programming and/or coastal resilience infrastructure.

To assess the land value premium, the calculator creates two versions of the same project.

Proposed project. The calculator allows the user to define a tideland site and a potential project on that site. Given regional market assumptions, the calculator estimates the ballpark land value of this proposed project.
Compliant comparison project. The calculator compares the proposed project to a Chapter 91-compliant comparison project. The comparison project represents the legally achievable building scale onsite given Chapter 91 requirements. The compliant project is assumed to share the same proportional mix of uses as the proposed project.

The difference in value between the two projects (assuming the proposed project is taller or bulkier than the compliant project) is the “land value premium” – the total extra value generated by reducing public waterfront access.

By estimating the land value premium associated with relaxing Chapter 91 rules and limiting public access, the Calculator transparently sets the upper bound for negotiation about what amount of compensation is owed back to the public. The Calculator provides a framework for debating the private value at stake in Chapter 91 decisions and their economic and fiscal impacts. This information, which is usually not shared or agreed to, can serve as input to a more informed process of municipal harbor planning.

We invite you to play with the Calculator. We welcome your suggestions as to how it could be made useful for your community and your land use debates.

This article is an abridged version of an article previously published on HR&A’s website and is a companion to an article published by The Conservation Law Foundation. Both are part of a series of articles on the Massachusetts Tideland Calculator.

Applying the Massachusetts Tideland Development Calculator

June 6, 2022 / No Comments

This article is the second in a series of articles on the Massachusetts Tideland Calculator. See Part One HERE. This series is a companion to an article published by The Conservation Law Foundation, available HERE.

The Conservation Law Foundation and HR&A Advisors developed the Massachusetts Tideland Development Calculator. Grounded in a solid understanding of real estate finance and market realities, the tool suggests a helpful framework for evaluating public and private use of public lands in many contexts.

“Chapter 91” of Massachusetts General Laws preserves public access to the waterfront by establishing requirements on land uses, building heights, and the siting of public open space in waterfront areas called tidelands. However, a project can obtain exceptions and build bigger or higher than what Chapter 91 rules allow on tidelands. In these cases, the project owner often has to compensate the public for the loss of waterfront open space by making a “mitigation payment.” Unfortunately, there has been no consistent framework for sizing these payments. To help fill this gap, the Conservation Law Foundation worked with HR&A Advisors to design the Massachusetts Tideland Development Calculator. The Calculator models the land value premium that a real estate development project gains by relaxing Chapter 91 rules.

The calculator in action—a theoretical case

For example, a real estate developer files plans to build a residential high-rise located on private tidelands in Boston’s Charlestown neighborhood. In addition to imposing strict height limits on the building onsite, Chapter 91 also requires that 50 percent of the site consist of open space. However, the proposal exceeds these height limits and only preserves 34% of the site area as open space.

The Calculator estimates that the proposed project includes about 210,000 square feet of gross floor area, 60,000 square feet more than what would be legally possible under Chapter 91. This increased gross floor area results in a residual land value premium of at least $4.6 million.

Project details: The site is 35,000 square feet in area, and it is located on private tidelands in Boston’s Charlestown neighborhood. The proposed tower includes 80 rental apartments, 60 condominiums, and 20,000 square feet of retail on top of 190 units of underground parking. In addition to imposing strict height limits on the building onsite, Chapter 91 also requires that 50 percent of the site consist of open space. However, the proposal exceeds the height limits and only delivers 12,000 square feet of open space.

Because the project delivers less than the minimum required open space onsite, the project owner has to compensate the public for the loss. A portion of the residual land value premium could serve as a source of this payment. And reaching out to the surrounding community would be a key step to envision the types of benefits that payment could create for everyone along the waterfront.

For more information on the methodology for calculating project value—referred to as residual land valuation—take a look at the calculator methodology.

Public and private benefits can align under Chapter 91

Although the narrative above suggests inherent conflict between public and private interests, this is not always the case. The developer’s returns and the public’s rights can often align. For example, delivering high-quality open space and public-facing amenities such as retail and community space can also significantly boost the private value of a project.

Photo by Tim Pierce

Boston Properties’ Atlantic Wharf project in Downtown Boston exhibits the potential for alignment. The project’s waterfront amenities include a public plaza facing the water, interior public spaces and exhibition rooms, ground-floor dining, and docks for water taxis and public boating use—all of which arguably boost the value of residential and office space onsite.

A new approach to evaluating private use of public lands

When it comes to waterfront development regulations, Massachusetts’s Chapter 91 is uniquely bold and specific. However, federal agencies, states, and local governments across the country engage in similar negotiations and deals to secure public benefits from private interests that develop on or use public land and water.

In California, the California Coastal Commission—and local agencies in specific cities like San Francisco—regulate development activities along the state’s coastline to ensure that the public enjoys uninterrupted access to the beach and ocean. On rare occasions when shoreline real estate developments cannot meet coastal development guidelines, the projects contribute a payment in lieu of compliance to a trust fund administered by the California Coastal Conservancy. The Trust Fund, in turn, distributes funding to projects that improve public access, natural resources, working lands, and climate resiliency projects along California’s coast.

Around national parks across the country, the Land and Water Conservation Fund (LWCF) acquires lands and waters to expand or protect federally owned areas, or extend public access to those areas. To make purchases, the LWCF relies on earnings from offshore oil drilling and natural gas leasing on said federal lands. In doing so, the LWCF effectively monetizes private energy-related imposition on public lands in order to further expand public resources.

Monetizing private interests in public lands in order to exact payments for public goods is nothing new. But in this broader context, the Calculator represents a new approach—one grounded in a solid understanding of real estate finance and market realities—to unlocking tangible public benefits from private actors that access land and water that belongs to the public. The Calculator makes it easier to have a conversation about the scale of public benefit that is appropriate, leaving public stakeholders and community groups to weigh in on how the money is used.

Welcoming New Members of our Team

June 3, 2022 / No Comments

HR&A is pleased to announce new additions to the Growth, People and Operations (GPO) team in our New York and LA offices, and our Consulting team in our New York, Washington DC, and Raleigh offices.

Adina Jahan, Research Analyst | Adina’s research and quantitative analysis guides strategies for equitable urban development, bringing expertise in the health policy and politics of underprivileged populations. Learn more about Adina.

Tajae Hinds, Recruitment Coordinator | Tajae supports HR&A’s People team by informing, developing and implementing recruitment strategies for consulting and non-consulting roles. Learn more about Tajae.

Eve Lettau, Analyst | Eve’s analysis guides policy recommendations for equitable and holistic economic development related to innovation districts, workforce development, and wealth. Learn more about Eve.

Danno Lemu, Analyst | Danno pulls from diverse experiences in community organizing, research, and data analysis to support economic development and affordable housing initiatives in the DC-region. Learn more about Danno.

Sam Moeller, Communications Manager | Sam helps HR&A tell its story by overseeing the firm’s digital communications strategy in support of intentional growth and meaningful impact. Learn more about Sam.

Launching the Massachusetts Tideland Development Calculator: An Innovative Approach to Evaluating Public and Private Waterfront Benefits

May 19, 2022 / No Comments

This article is a companion to an article published by The Conservation Law Foundation, available HERE. This article is the first in a series of articles on the Massachusetts Tideland Calculator. See Part Two of the series HERE.

The Conservation Law Foundation and HR&A Advisors developed the Massachusetts Tideland Development Calculator, a unique education and advocacy tool that represents a new and innovative approach to evaluating the economic tradeoffs between public and private access to public land.

The Massachusetts Public Waterfront Act—also known as “Chapter 91” of Massachusetts General Laws—gives every state resident a legal right to access waterfront areas called tidelands. The Act sets specific requirements on land uses, building heights, and the siting of public open space in tidelands. The goal of these rules is to preserve public access to the waterfront.

Diagram of a shoreline that complies with Chapter 91 regulations.

When public and private interests conflict, a need for new tools

In high-value real estate markets—such as Downtown Boston and Boston’s Seaport neighborhood—Chapter 91 requirements and real estate development goals can come into conflict. Waterfront tideland parcels are tremendously valuable to the public, especially in contexts where development is already limiting views and available open space. At the same time, maximizing real estate development on these parcels can generate significant financial returns to private developers while achieving important economic development and housing goals in dense urban areas. Therefore, a developer or city may desire to build larger or taller, or to reduce public open space on a site in order to unlock greater financial returns for both the private and public sectors.

Public Value of the Waterfront

High-quality open space facing the water
Opportunities for waterfront urban connectivity (e.g., Boston’s Harborwalk)
Access to water-dependent uses and amenities: water taxis, boating, fishing
Space for green infrastructure that combines public use and flood resilience

Private Value of the Waterfront

Significant opportunity for private profit and greater local property tax revenue
Significant value premium conferred by waterfront views and waterfront proximity
Development of commercial office space to advance economic development goals
Development of housing in urban areas with high demand for residential space

In the context of Chapter 91, if a project owner receives an exception to build bigger, higher, or otherwise reduce public access onsite, then the owner usually has to compensate the public for the public access it is taking away. This compensation is called a “mitigation payment.” But there is no consistent or clear methodology or framework for negotiating such a payment. This lack of clarity can make waterfront development approvals and decision-making challenging and controversial.

To fill in this gap, the Conservation Law Foundation—an environmental advocacy organization based in New England—worked with HR&A Advisors to design the Massachusetts Tideland Development Calculator.

Benefits communities can unlock from waterfront development

The Tideland Development Calculator estimates the additional land value unlocked by a project that reduces public access to tidelands. The calculator suggests that this “land value premium” could—at least in part—be a source of financial compensation back to the public. This funding could support waterfront-related public benefits. Benefits could include: public access to the waterfront close to the site, enhanced public amenities (e.g. water taxi stations, community spaces, public programming), or investments that deliver waterfront open space integrated with coastal resilience infrastructure.

To assess the land value premium, the calculator creates two versions of the same project.

Proposed project. The calculator allows the user to define a tideland site and a potential project on that site. Given regional market assumptions, the calculator estimates the ballpark land value of this proposed project.
Compliant comparison project. The calculator compares the proposed project to a Ch91-compliant comparison project. The comparison project represents the legally achievable building scale onsite given Chapter 91 requirements. This project shares the same proportional mix of uses as the proposed.

When the proposed project is larger and more valuable than the Ch91-complaint comparison project, this means that it exceeds Chapter 91 rules and unlocks greater land value as a result. This incremental value is the “land value premium”: the total extra value generated by reducing public waterfront access.

By estimating the land value premium associated with relaxing Chapter 91 rules and limiting public access, the Calculator sets transparent bounds for negotiations about what amount of compensation is owed back to the public—to fund investments like enhanced open space nearby and other public amenities.

The Calculator can reveal vital information about the private value at stake in Chapter 91 decisions. This information, which is usually very difficult to estimate, can serve as input to a more holistic process of municipal harbor planning. In practice, this broader process of harbor planning must also continue to meaningfully engage the public to understand the quantifiable and non-quantifiable importance of waterfront access for all community members, balanced against the importance of real estate development.

This article is a companion to an article published by The Conservation Law Foundation, available HERE.

How to turn dreams into dollars

April 22, 2022 / No Comments

Written by Amitabh Barthakur, Kate Collignon, and Stan Wall

The $973 billion Infrastructure Investment and Jobs Act (IIJA), signed into law last year, represents the largest investment in national infrastructure in decades. Before cities, counties, and states can access these funds and leverage any additional public or private funding, they must differentiate their visions, competing with exemplary projects from every corner of the country.

HR&A has been helping cities across the country with competitive funding applications. We’ve convened stakeholders and partners to confirm visions, develop application narratives, refine strategies, and provide project management support through application deadlines and beyond.

To illustrate what it takes to propose new projects that secure competitive funding, we spoke with three clients, all of whom have successfully competed for state or federal funding within the last year. Angie Rodgers is the Deputy Chief Administrative Officer for Economic Development in the Office of the Executive of Prince George’s County. Ron Golem is the Director of Real Estate & Transit-Oriented Development for the Santa Clara Valley Transportation Authority (VTA). Julie Schneider is the Director of Housing and Revitalization for the City of Detroit. Although their circumstances differ, certain themes are common among their successful efforts.

A compelling narrative promises large-scale transformation. Prince George’s County, located outside of Washington, DC, recently secured over $400 million from the State of Maryland for Blue Line Corridor projects. The Blue Line Corridor is a vision for mixed-use transit-oriented development along the Washington Metropolitan Area Transit Authority Blue Line. The County is the largest and the wealthiest majority-Black county in the United States and has long sought to increase its competitive position in the Washington region. The County envisioned the Blue Line Corridor as a template for an equitable economic and community development strategy that could then be rolled out in other transit corridors in the County.

The proposal to the State went far beyond just describing how to expand transit and attract business — it included fostering housing production, including affordable housing; celebrating the existing community through arts and cultural investments; and creating active mixed-use communities to attract new businesses. It set forth a goal of creating a sense of place across a diverse, 500-square-mile County comprising rural, urban, and suburban areas.

HR&A helped develop this vision and served as an extension of the County’s Economic Development team, specifically helping to translate the vision into a portfolio of infrastructure investments. Describing and visualizing the components of the vision attracted a wide range of stakeholders who successfully advocated to state lawmakers and continue to help leverage additional investment as the project unfolds.

Establishing the connection between competitive public funding and private investment makes for a compelling narrative as we learned from the Santa Clara Valley Transportation Authority (VTA) and its successful application to expand its transportation network through the new Federal Transit Administration (FTA) Expedited Project Delivery (EPD) pilot program. VTA understood that EPDs are required to utilize public-private partnerships and have a federal share not exceeding 25% of the project cost. Therefore, a partnership with Google was critical for securing federal support for the long-dreamed-of extension of Bay Area Rapid Transit (BART). HR&A worked with VTA’s Director of Real Estate & Transit-Oriented Development to estimate the impact of the BART extension on VTA’s real estate assets as well as well as the potential growth of transit-oriented communities proximate to the new stations, referencing the City of San Jose and Google’s commitment as evidence of the validity of the estimate.

After solidifying Google as the project’s key private partner, all efforts pivoted to engaging regional agencies to establish the plan’s value, including economic opportunity, in order to secure the state and local funding commitments to establish the match for federal funding. One key hurdle was the lack of precedent — a new funding stream meant there was no playbook to reference. VTA and FTA collaborated to prove the plan’s readiness, feasibility, and impact for communities from San Jose to Santa Clara. VTA leadership stayed in close touch with their federal colleagues, especially to define the public-private partnership, proactively address equity, meet conditions required to enter into a federal funding agreement, and refine future frameworks. VTA relied on a core set of subject matter experts to assist in compiling the business case for the funding application.

In the end, VTA was selected as the first recipient of this new FTA program. With a second federal allocation announced in late March 2022, HR&A is excited to work with VTA on implementation.

Demonstrating community support is essential. HR&A worked with the City of Detroit’s Housing and Revitalization Department to secure $30 million in HUD Choice Neighborhoods (CNI) funding for the city’s historic Corktown neighborhood. In spite of the challenges of virtually assembling an application during the height of the pandemic, the City engaged residents from the Clement Kern Gardens Apartments, service providers, the Ford Motor Company, and City agencies to develop a collective vision for equitable redevelopment anchored by housing and workforce opportunities along with other infrastructure improvements. The City worked hard and early in the planning process to build trust with the community — undertaking an extensive effort to listen, discuss, and identify opportunities for planned improvements and new resources to benefit different groups. The City successfully adapted its approach to community engagement during the course of the project, shifting from offsite and Zoom meetings to outdoor conversations onsite during more convenient times for residents. HR&A helped the City gauge the competitiveness of its application throughout the process, enabling it to remain accountable to the community and to the grant process.

These efforts boosted the grant application’s chances of success in two ways. First, the City was able to demonstrate that the community’s priorities overlapped with the grant’s parameters. Second, the early focus on community engagement generated broad support around a set of common interests and priorities that elected officials and other stakeholders could use to advocate for the effort.

HUD’s award of $30 million to the city will preserve the existing public housing in the neighborhood and create more than 700 new affordable and mixed-income homes. In addition, the grant is leveraging over $800M in additional public and private investment in public space, community facilities and commercial development. The extensive outreach effort established a strong base of support to move the project forward and not lose sight of the relationships developed during the application process.

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There are billions of federal and state resources available for communities to address critical infrastructure investments, and the need to plan early and intentionally to win those funds has never been more evident. This is a historic opportunity to improve lives and entire regions.

Marilynn Davis Joins HR&A

March 17, 2022 / No Comments

HR&A is proud to announce that Marilynn Davis has joined the firm as our newest Senior Advisor.

Marilynn, who most recently served as the Chief Real Estate Officer at Clark Atlanta University, will help expand the firm’s impact across Atlanta and beyond.

Marilynn’s career has placed her in leadership roles across sectors, including Assistant Secretary of Administration at the U.S. Department of Housing and Urban Development, nominated by President Clinton, Managing Director of the New York office of real estate development firm IMC Octave, CEO at landscape architecture firm, Martha Schwartz Partners and other roles at FleetBoston Financial Corporation (now a part of Bank of America), American Express Corporation and General Motors Corporation.

In April, Marilyn will represent HR&A on a panel at the Urban Land Institute (ULI) Spring Meeting in San Diego — Redefining Excellence in Real Estate with Equity at the Core.

Learn more about Marilynn’s story below.

What inspired you to join HR&A following such a defining chapter of your career at Clark Atlanta University (CAU)?

For over 150 years, CAU has provided young African Americans with the intellectual and leadership tools to shape “the future of the global community.” As the institution’s first-ever Chief Real Estate Officer, we aligned our 50+ acre portfolio with our mission by actively seeking to generate revenue while also reinvesting in the Atlanta community in which the University is situated.

CAU is successfully leveraging the booming real estate market in Atlanta to create economic opportunity and prevent displacement of our neighbors. As we see in Atlanta, universities, cities, and real estate professionals are uniquely positioned to develop projects that meet financial metrics, but also provide avenues for economic and social uplift. Joining HR&A enables me to advance these opportunities across the country as part of a firm operating with equity as an intrinsic part of the solutions it proposes to clients.

How do you approach turning vision into action, especially for projects that feature public, private and community stakeholders?

The most successful development projects enable public, private, and community priorities to converge. While the community remains engaged, and their concerns actively addressed, public leaders advance solutions to improve quality of life for all residents. The private sector acknowledges the connectivity between developing visionary projects and sustaining good quality of life to attract the talent that they will need to sustain their investments. In addition, it’s critical that we incorporate the perspective of education systems, cultural, non-profit, and philanthropic institutions in building ecosystems that lead to successful planning and development.

How can the Atlanta Metro region continue to address equity through real estate and economic development?

This region is experiencing an unprecedented economic boom from an array of industries, so a critical precedent for promoting equity exists. Historically, large-scale real estate development has been conceptualized as projects in isolation, rather than parts of communities that embrace housing, education, culture, and public space for everyone. Large-scale real estate development should be considered the ultimate platform for building an ecosystem that will interact with and respond to the needs and aspirations of the people who the project will inevitably impact.

What are three of your favorite things to eat, see and do around Atlanta?

Ponce City Market: This former Sears warehouse on the Atlanta BeltLine features curated food and retail concepts alongside public event space, as well as commercial and residential property. This is where I eat, meet friends, and explore. The historic renovation has been a catalyst for the resurgence of the Old Fourth Ward community, and I hope the broader corridor along the BeltLine continues to more fully prioritize inclusive development.
High Museum of Art: The exhibitions and programs are remarkable while also being accessible to a range of visitors with various experience in the arts.
WCLK 91.9 FM: Check out CAU’s 24/7 jazz station, which features live programming and the best from the Marsalises, Coltrane, Davis, and others. You can support the non-profit station from anywhere in the world via their app.

What advice would you give to a young person exploring a career in real estate and urbanism?

A liberal arts education empowers a young person to embrace their intellectual curiosity and find creative solutions. Since building cities and developing real estate present a multitude of challenges with monumental impacts, I strongly encourage young people not to limit their exploration. Rather, dive into a wide range of relevant topics, from history, architecture, and design to economics, sociology, and science. This diverse knowledge can expand can a young person’s perspective, enrich their life, and prepare them to lead.

HR&A study leads to Philadelphia establishing the country’s first municipal public bank

March 3, 2022 / No Comments

On March 3, the Philadelphia City Council voted to establish the country’s first municipal public bank, which will lend capital to small businesses and address the historic racial disparities in commercial banking. This decision accelerates a different path for a city with one of the highest poverty rates, as well as the highest rate of un- and underbanked residents among major U.S. cities.

HR&A built on the vision established by the City of Philadelphia and authored an independent feasibility study that sets the direction for an optimal public bank structure that could achieve the City’s dual goals of uplifting the power of small businesses, many in the Black and Latinx communities, and upholding autonomy over the City’s financial resources. A public bank will help the City channel its banking powers in the public interest and offers a launching point for both immediate action and systemic change.

We commend the City of Philadelphia for launching an autonomous and equitable financial system for the people who live and work across the city.

Learn more about HR&A’s work with public banking here.

HR&A structures and closes $15.6 million loan by Amazon’s Housing Equity Fund in Washington, DC

February 28, 2022 / No Comments

HR&A structured and closed a $15.6 million loan by Amazon’s Housing Equity Fund to support the redevelopment of Parcel 42, a District of Columbia owned parcel in the heart of the Shaw neighborhood. Parcel 42 is being redeveloped through a public private partnership between the District of Columbia, Dantes Partners and H Street Community Development Corporation. The development plan is to construct a 10-story building with 108 affordable units, 2 market-rate units, and 1,800 SF ground floor retail space that will serve community needs. The project has already broken ground and is expected to deliver in 2024.

The closing of Amazon’s loan signifies an exciting next step in a high-profile development that has been stalled for decades. Three previous RFP processes failed to result in a workable development plan. One of the continued sticking points was the community’s insistence that the resulting development be deeply affordable. Shaw is a historically black neighborhood where displacement and gentrification have defined the last twenty years. Thus, it was critical to the community that the District owned parcel be accessible to existing residents. Parcel 42 benefited from significant public sector support including discounted land acquisition costs paid to the District of Columbia, tax-exempt bonds, allocations of federal Low Income Housing Tax Credits and the newly created DC local Low Income Housing Tax Credits. Yet, there was a financing gap.

HR&A worked with Amazon to subordinate loan with a twenty-year term that filled the financing gap and ensures long term affordability. The project will be deeply affordable with nearly half the units available to households at or below fifty percent of area median income. HR&A’s work helped to ensure long term affordability that matched the terms Amazon was looking for and conformed with the various public funding sources.

Dantes Partners is a leading Black-owned affordable housing developer in the Washington DC region.

Amazon’s Housing Equity Fund (HEF) is providing more than $2 billion to preserve and create over 20,000 affordable homes in Amazon’s home communities of Washington’s Puget Sound region, Arlington, VA and Nashville, TN. HR&A works with Amazon as a credit underwriter for transaction in the Washington DC Metro Area and Nashville. 

Read the full press release from Mayor Murial Bowser’s Office of Community Affairs.