At Invest STL, we identify, try, evaluate, and facilitate potential solutions to systemic issues facing predominantly Black neighborhoods, including displacement. In 2023, we set out to investigate if direct funds can help Black residents remain in their chosen community by increasing access to assets such as housing, long-term capital, and business development. This became our Rooted: Cultivating Black Wealth in Place pilot, an initiative that provided 50 Black households in the West End and Visitation Park neighborhoods of St. Louis with funding and support to build long-term, generational wealth; own and protect property; build and scale businesses; and invest in their futures—especially as development and speculative real estate activity increases significantly in their neighborhoods.

Based on our pilot initiative, we developed the Rooted Powerbook: Action Steps for Investing Directly in People to Prevent Displacement through Wealth Building, a comprehensive guide that documents our process, learnings, and best practices—so other communities can replicate and scale similar wealth-building efforts.

A Unique Approach to Complex Issues: Wealth Building x Financial Planning x Anti-Displacement

The Rooted initiative takes a unique approach to complex issues by merging wealth building and financial planning in a place-based effort to prevent displacement during gentrification. This is one localized effort, and we hope it inspires more pathways for policy change.

By integrating wealth-building programs into their strategies, policymakers would be able to offer focused financial support to help individuals and families accumulate assets, secure stable housing, and resist being pushed out of their neighborhoods. This approach not only addresses immediate displacement issues but also promotes long-term, equitable growth by working to ensure all community members have a fair chance to benefit from local development and prosperity.

We are taking a big swing at an issue prevalent in many urban cities and neighborhoods across the United States. We invite you to join us on this journey to learn about what we have tried in developing this effort and our lessons learned so far.

The $22K Investment: A Thoughtful Approach to Community Wealth Building in Place

One of the biggest challenges in designing Rooted was determining the right investment amount and the number of participants (known as “resident investors”) to make the most meaningful impact. Our starting budget was $1 million, and we needed to balance maximizing impact with ensuring a statistically significant sample size for future evaluation and replication.

Finding the Right Amount

• Initial considerations pointed to $10,000 per resident investor, but market data indicated this amount was too low to make a real impact.
• While $40,000 would have been ideal for wealth building, it would have only allowed 25 residents to participate, limiting the program’s broader neighborhood impact and evaluative reliability.
• We landed on $20,000 per resident investment as the most viable amount for the St. Louis market—enough to support home purchases, repairs, business investments, and other wealth-building activities while ensuring an impactful sample size of 50 residents.

Addressing Immediate Financial Needs

• In addition to the $20,000 investment, each resident investor also received $2,000 for immediate financial concerns such as paying off debt, property taxes, or establishing an emergency savings fund.
• This decision was based on conversations with community members and data showing that the footprint’s average unsecured household debt was $2,200. We recognized it would not be realistic or reasonable for residents to ignore any existing financial burdens in favor of long-term wealth building.
• Rather than making this amount need-based, we raised additional funds to ensure all resident investors received it, recognizing that financial circumstances can shift unpredictably.

We understand $22,000 may not be substantial enough for a wealth-building investment in other communities. Please consider your area’s cost of living, housing market, area median income, and existing financial burdens the community might have when setting individual investment amounts.

Lessons Learned from Implementation

While the Rooted pilot provided critical support to resident investors, we also encountered key challenges and learning opportunities that have informed our approach moving forward:

Residents faced financial hardships that exceeded our original allocation

• Some participants struggled with high debt, overdue property taxes, major car repairs, or housing instability that $2,000 couldn’t fully cover.
• Future iterations of the program could consider additional emergency financial support to address these urgent needs.

The rising cost of home repairs affected funding allocation

• The initiative was designed before the sharp increase in construction costs following the COVID-19 pandemic.
• Some residents who chose to invest in home improvements found their funds didn’t stretch as far as expected.
• Other programs should consider adjustable funding models that account for economic fluctuations.

Why the Rooted Powerbook Matters

The Rooted Powerbook is more than just a report—it’s a blueprint for other neighborhoods, cities, and organizations looking to replicate Invest STL’s approach to place-based wealth building and wealth building as an anti-displacement strategy. It details the decision-making process, data considerations, program implementation, and real-world impact so that this initiative can serve as a model for future efforts nationwide.

By openly sharing our findings and experiences, we hope to encourage policymakers, funders, and community organizations to invest in similar models that support Black property ownership, entrepreneurship, and generational financial prosperity.

What’s Next?

The impact of this pilot in the West End and Visitation Park neighborhoods is just the beginning. As we continue evaluating the impact of our Rooted model, we’re poised to share the initiative’s impact. We aim to help others build similar wealth-building, cash transfer, and anti-displacement projects and programs for their neighborhoods and cities.

The ultimate goal? To create a nationwide movement that elevates wealth-building as a place-based investment strategy for Black and other communities at risk of displacement and erasure. The people who have tended to their communities when others neglected them deserve to be the first to benefit when there’s an economic upswing. Direct cash investments to seed wealth building can help their roots in their chosen place run longer and stronger for the next generation.

Interested in Learning More?

Visit our Rooted page to download the Rooted Powerbook and explore how direct investments can drive transformative change for people and their chosen communities.

Check out our News + Updates page to stay informed about other Invest STL initiatives and work like Rooted.