Charles Marohn, the Founder and President of Strong Towns, shares five low cost initiatives that every city across the country should prioritize.

5. Small Change

Wealthy individuals who want to invest in real estate have every opportunity to do so and, because of the way the tax and financing rules are written, receive preferential treatment when they do. The result is often very large projects – from a city’s perspective, the build-it-and-they-will-come variety – or large numbers of standard units that fit neatly into the federal government’s housing programs. Neither of these are what cities need more of right now.

Small Change is allowing the regular investor to use their resources to invest in small scale projects, improvements that often don’t neatly fit standard financing models. It’s a little like crowdfunding, but for real estate, and there is an expectation of a return on investment.

Want to invest in development you deem meaningful in your city? Have a property that you and your neighbors would like to see improved? Small Change offers a way. Individuals are able to invest as little as $100 to become an owner in a real estate project. After the project is developed and once it is operational, if all goes as planned, investors will receive a return.

Small Change is a national platform based in Pittsburgh. Communities around the country should take note of this concept.

Resources:

• Small Change Investment Portal • Interview with Eve Picker

There is a longer list of similarly innovative approaches we could share, none of which are based out of Washington DC and none of which receive federal money. The five we’ve shared here are all low-cost, low-risk endeavors with a track record of success. These are proven models.

Yet, they will all be marginalized, to one degree or another, by a flood of federal infrastructure money, spending that will stifle these and other innovations while making America’s cities poorer. We need to rethink our approach. These five ideas are just a start.

This article was originally published by Charles Marohn on Strong Towns, https://www.strongtowns.org .

Charles Marohn - known as “Chuck” to friends and colleagues - is a Professional Engineer (PE) licensed in the State of Minnesota and a member of the American Institute of Certified Planners (AICP). Chuck is the Founder and President of Strong Towns. He has a Bachelor’s degree in Civil Engineering from the University of Minnesota’s Institute of Technology and a Masters in Urban and Regional Planning from the University of Minnesota’s Humphrey Institute.

He is the author of Thoughts on Building Strong Towns (Volume 1) and A World Class Transportation System as well as the host of the Strong Towns Podcast and a primary writer for Strong Towns’ web content. He has spoken in dozens of towns and cities across North America, and speaks regularly for diverse audiences and venues.

The mission of Strong Towns is to support a model of development that allows America’s cities, towns and neighborhoods to become financially strong and resilient. </i>