Manage market and funding risk
- By definition, revitalization involves bringing investment back to areas that don’t have enough of it. This may require organizations to be the first investor in neighborhoods perceived as a risky bet (e.g., to be the first to acquire and rehabilitate a home to a high physical standard). In turn, organizational activities must generate additional investment by others for their original investment to be protected.
- Funders have varied their emphasis over time on neighborhood revitalization. Some funders may be impatient with the long time frames that may be required to achieve certain neighborhood changes.
- Revitalization work may require advocating for policy changes or making other politically risky commitments.
- Organizations can partially mitigate certain of these risks, for example by diversifying their activities and investments, or through careful and respectful communication with political partners. Nevertheless, an acceptance of these risks is needed to engage fully in the work of revitalization.
- See Manage Risk in REO Strategies for risk mitigation steps that organizations can take when acquiring and rehabilitating foreclosed property.
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