Building with Purpose: Black Leaders in Real Estate

The BIA Celebrates Black History Month

Last year the BIA’s Diversity, Equity, and Inclusion (DEI) Committee prepared an ambitious plan designed to tackle the barriers to opportunity and access that exist for the Black community in real estate development. While we have a long way to go to level the playing field, the BIA made some significant strides.

To start, 15 of the 57 new companies we welcomed to the BIA in 2021 are represented by Black and brown members. Some of these members are the business owners, others are the primary contacts for the firm. And although overall Black and brown professionals make up just 7 percent of the total primary contacts in the membership, we expect the trend to continue naturally as those members introduce their colleagues to the BIA. The more business and social circles begin to overlap, the diversity of people, cultures, expertise, and ideas joining the BIA will be enhanced.

For the first time in 2021, the BIA included an M/W/DBE list of industry-related businesses in its published and online directories. And we collaborated with The Enterprise Center to bring M/W/DBE businesses in its network together with BIA builders, developers, and contractors. Both efforts are designed to increase the diversity of the companies with which our members do business.

Most importantly, we took steps to provide an "in" for Black and brown urban developers and to begin to provide access and mentorship opportunities. Our DEI Committee outlined a developer mentor and mentee program of its own but was approached by the Philadelphia Housing Development Corporation (PHDC), which was working on a similar concept.

PHDC’s Minority Developer Program (MDP) is a hands-on, business assistance program that leverages public land to create opportunities for small developers and contractors in Philadelphia. The program is designed to help minority developers obtain contracts for real estate development projects and gain the experience that promotes wealth and business growth. The city land released as part of the MDP will support the goals of the Land Bank’s strategic plan and produce workforce and affordable housing. Qualified participants will receive tailored business training, one-on-one business consulting, marketing assistance, and mentoring from established developers.

The BIA provided input to PHDC on the mentee pre-qualification application and how to structure mentor-mentee “partnerships,” which will include various equity arrangements. Sixteen out of 70 applicants were qualified for the MDP in its first cohort, and several are members of the BIA. Classroom training was completed in February with an overview of the Land Bank application process, the income levels for affordable rental and for-sale units, budget proforma, and land value determination. During the second phase of the program, all participants will compete in a mock competitive RFP for land development and will be critiqued on their submission. All participants will receive some technical assistance as well.

In 2022, the BIA wants its members to step up as mentors and partners for the MDP participants. A few mentoring relationships are underway, and we plan to increase that number. This program has the potential to truly move the needle forward, creating more equity in the real estate development industry in Philadelphia, and more equitable development in its neighborhoods. We want the BIA and its network of experts to be viewed as a resource and to help this cohort of up-and-coming developers succeed.

By all accounts, the start of the city's MDP is viewed as a valuable and significant step in the right direction. We asked two BIA member participants why they applied for the MDP, what they think of the program so far, and how they plan to use the training.

Dawud Bey of Fine Print Construction applied to the MDP because it gives minority developers access to public land unlike ever before. “It’s a game-changer,” he said, “and it’s been a great experience – informative and interactive.” Dawud believes the MDP is an important opportunity for the public sector to partner with the private sector in a way that advances minority developers and benefits Philadelphia residents. “I’m eager to help speed the delivery of affordable housing into the market and into the community where I was raised,” he said.

For Calvin Snowden of BDFS Group, Inc., the MDP was a great opportunity for his construction company to gain exposure to information and tools that he wouldn’t have otherwise. “I have a passion to build affordable housing in Philadelphia and a drive to learn more about the nuances of the process,” Calvin said. “The program has been truly insightful,” he continued. “I’ve been able to connect with other minority developers in the city as we learn from PHDC what is required to access the land under its control, and to present that information appropriately to be competitive.”

Both Calvin and Dawud have already put the training to work. Dawud has stepped up as an advocate for affordable housing policy since he has learned more about the development process, even testifying at City Council. “My goal is to continue to use my voice, platform, and influence to be an agent of change for social impact development,” Dawud said. And Calvin has hit the ground running. “I anticipate breaking ground on my first affordable housing project in 2023,” he said, “and that's just the start.”

RPC United Advisors Reflects on Black History Month and Black Leaders in Real Estate

New member David Stubbs of RPC United Advisors forwarded his company's January/February newsletter to the BIA, which focused on the beginnings of Black History Month and prominent Black leaders in real estate.

RPC highlights a long history of accomplished and often overlooked leaders in our industry, including Benjamin Bannacker who is known as one of the designers of Washington, D.C., Ottaway W. Gurley, the founder of "Black Wall Street" in Tulsa, Philip A. Payton Jr. described as the "Father of Harlem," Atlanta's Maynard Jackson, and others.

Click here to view the full newsletter in your browser and don't miss RPC's book recommendation.

Book Recommendation:

Where Do We Go from Here: Chaos or Community?

In 1967, Dr. Martin Luther King, Jr., isolated himself from the demands of the civil rights movement, rented a house in Jamaica with no telephone, and labored over his final manuscript. In this prophetic work, which has been unavailable for more than ten years, he lays out his thoughts, plans, and dreams for America's future, including the need for better jobs, higher wages, decent housing, and quality education. With a universal message of hope that continues to resonate, King demanded an end to global suffering, asserting that humankind - for the first time - has the resources and technology to eradicate poverty.