The Central Brooklyn Economic Development Corporation (CBEDC) is a nonprofit organization dedicated to promoting economic development and community empowerment in Brooklyn. They excel in creating innovative programs and initiatives that address the economic needs of local communities. However, one of their challenges is finding sustainable ways to retain community wealth and prevent displacement in rapidly appreciating neighborhoods.

The specific business challenge related to this project is the need for an alternative to traditional home sales that often result in the loss of community wealth and rising housing costs. Homeowners in appreciating neighborhoods are faced with the dilemma of realizing their wealth only through selling their homes, which often benefits outside investors rather than the community. This challenge has significant consequences, including neighborhood displacement and the transfer of wealth outside the community.

This project presents an opportunity for students to address this challenge by developing a Community Equity Reinvestment Fund. Students will explore existing community investment models and analyze policy opportunities to design a fund that retains wealth within the community while providing financial returns to participating homeowners. The project will be carried out in phases, including policy analysis, financial feasibility studies, and the development of governance and management recommendations.

This project is ideal for students as it allows them to apply their academic knowledge to a real-world problem, enhancing their skills in consulting, finance, operations, and policy analysis. It provides a platform for students to engage with complex social and economic challenges, develop strategic solutions, and contribute to meaningful community development. The project is relevant and exciting as it connects students with practical career skills while addressing a strategic challenge faced by CBEDC.