elizabeth a duke : keys to successful neighborhood stabilization speech by ms elizabeth a duke, member of the board of governors of the us federal reserve system, at the community stabilization symposium, neighborworks training institute, national harbor, maryland, 9 december 2009. the original speech, which contains various links to the documents mentioned, can be found on the us federal reserve system ’ s website. * * * good morning. i am very pleased to be here to welcome you to the neighborworks'training institute symposium on community stabilization. the federal reserve is co - sponsoring this event as part of a partnership we have with neighborworks america ( neighborworks ) to reduce the impact of foreclosures in low - and moderate - income communities. clearly, much remains to be done to stabilize communities hard - hit by the foreclosure crisis, but we are encouraged by the work of this partnership, now in its second year. we are leveraging the resources of the federal reserve, particularly our data resources and our network of regional reserve banks across the country, to assist neighborworks'activities with respect to training, foreclosure counseling resources, and building the capacity of local community organizations. federal reserve board chairman bernanke asked me to chair the board's committee on consumer and community affairs and to represent the federal reserve on the neighborworks board. as a former community banker, i came to my new assignments with an understanding of the role that financial institutions, in partnership with local stakeholders, play in creating healthy sustainable communities. but i wanted to see first - hand how the economic crisis was impacting communities, how neighborworks was responding, and how the reserve banks were assisting communities under stress and the organizations that serve them. so, community affairs staff in the twelve reserve bank districts and the community organizations they work with – including many neighborworks organizations – arranged for me to tour several stressed communities across the country. and i must say, these visits have enriched my understanding of the vital work being done in local communities, and its importance for the nation's economic future. so i thought the best way i could kick off this conference would be to tell you a little bit about what i learned on my visits, particularly as these lessons relate to community stabilization efforts. i know that most of what i say will come as no surprise to those of you who work with these issues every day. but i want to recognize the significant work you do and express my profound appreciation, especially to those who shared their experiences with

recently. for cities like atlanta, strategies addressing high foreclosure rates must take into account wide variations in local capacity across and within metropolitan areas. newer suburbs have not, for the most part, had time to develop the community resources and technical expertise that exist in urban centers. another lesson i learned in my travels is about the need to understand community dynamics. in the end, the success of any community stabilization plan depends on the dedication and expertise of local leaders like those of you here today. cleveland's detroit shoreway neighborhood, for example, clearly demonstrates that with the right vision, leadership, and planning even a highly distressed community can regain its position as a dynamic and attractive neighborhood by maximizing its natural and cultural assets. holistic approach is key foreclosure mitigation activities, by necessity, focus on individual houses and mortgages in an attempt to resolve legal and economic issues between borrowers, servicers, and investors. nonetheless, after visiting with community organizations and seeing their work first - hand, it is clear to me that the most effective community stabilization approaches look beyond homes and mortgages. successful community stabilization requires a broader vision of community, one that factors in the many elements that make a neighborhood a desirable place to live. the bottom line is that housing alone is not sufficient to create sustainable and economically resilient communities. i have seen several compelling examples of this kind of multi - faceted approach to community development. atlanta's development efforts, for example, included the creation of the center for working families. the center serves people who are seeking employment and are eager to learn new skills that will help them support their families, build wealth, or start a business. the center also offers its clients individual coaching to help them hurdle the barriers that keep them from securing and maintaining employment by providing transportation assistance, childcare subsidies, and computer literacy training. and, unlike a traditional job training and placement program, the center's relationship with its clients continues long after they secure employment. nearby, in the centennial place neighborhood, a mixed - income, mixed - use community developed by the atlanta housing authority on the site of one of the nation's first public housing complexes, i found centennial place elementary school. centennial place is a math, science, and technology - oriented school that is breaking records as one of the top performing schools in the atlanta school system. they have steadily improved test scores in reading and math. students and parents alike are fully engaged in the learning process in this