Community banks open doors for homeowners and entrepreneurs

I am a proud daughter of Rondo. I know the people, the culture and the heartbeat that drives our unique and vibrant St. Paul community. That history and legacy are a big part of why I chose to lead the Rondo Community Land Trust (Rondo CLT). 

Our place-based work is fostering a Rondo Renaissance, creating new Twin Cities dining destinations like Golden Thyme, enhancing entrepreneurial opportunities with affordable commercial space leases, elevating one-of-a-kind art through our Rondo African American Arts District (RAAD), and ensuring generations of families can purchase affordable homes.

Our community land trust model is a proven, innovative approach to address our state’s affordable housing crisis, where the median Twin Cities home price has reached a whopping $400,000. Our work is also critical to give entrepreneurs with a vision a place to launch their business and reach new customers.

But all of this work isn’t done in a bubble — it takes a shared commitment and partnership. Community banks are one of those key partners helping our mission in Rondo move from vision to reality.

Rondo CLT works with numerous local banks because they are embedded within our communities. They are vital partners with a unique insight into the needs and challenges of their customers. This close-knit relationship not only fosters a deeper understanding but also enables community banks to tailor their services to the needs of their customers, from small business loans to personal banking solutions that cater to local demographics.

Community banks make great partners because they see opportunity — to serve, to help and to uplift. They are essential in supporting the mission of organizations like Rondo CLT and people who are frequently underbanked, including many first-time or minority homeowners and entrepreneurs.  

Continued opportunities for traditionally underserved communities are imperative, but it also depends on community banks being able to continue to offer accessible loans. The efficacy of community banks is directly tied to their financial health, which depends on the diversity and stability of their funding. Without access to a broad range of financial resources, community banks face significant challenges in maintaining their liquidity, and by extension, their ability to credibly compete.

This is where innovative funding strategies become critical — such as apps and third-party partnerships with platforms such as Raisin that allow local financial institutions to source liquidity more broadly, such as sourcing deposits from beyond our immediate home geography. The ability to tap into these varied funding streams allows our banks to continue their operations smoothly and meet the needs of their customer base.

So when we speak of partnerships to build economic opportunity and address our affordable housing crisis, nonprofits and community banks also look to a third partner — our elected officials. From critical support for federal housing programs, to policies that enhance the funding mechanisms available to community banks, we can ensure that our institutions are truly partnering to build an ecosystem that drives opportunities for homeownership, for small businesses and for traditionally underserved communities.

Ensuring community banks can continue to be leading community partners for homeowners and small businesses is not just about sound financial policy. It is about committing to the economic and social well-being of neighborhoods like Rondo and communities across Minnesota.

Rondo CLT has been innovating and providing affordable housing opportunities for more than three decades, and community bank partnerships have been a part of that work. Our community land trust model opens paths for homeownership, economic mobility and financial independence.

Mikeya Griffin is executive director of the Rondo Community Land Trust.

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