Mission Driven Steward
Summary
A Mission-Driven Steward (hereon referred to as ”steward”) is a property or land owner through non-profits, corporations, quasi-public, or public entities delivering social value where there might not be legal community ownership over the real estate. These entities can steward the properties in both the long and short term.
Long-term stewards provide affordable, inclusive, and culturally significant spaces to serve the common good, such as public parks, affordable housing, museums, and community-serving or nonprofit workspaces. It is also sometimes called Social Purpose Real Estate.
Short-term stewards buy time and provide assistance to support the community or partner organization’s pathway to ownership or stability (in terms of long-term affordable lease). Some short-term stewards refer to themselves as community real estate partners or holding entities.
Example: Community Arts Stabilization Trust (CAST): both a long-term and short-term steward
Long term: CAST developed 447 Minna, providing affordable and accessible spaces for arts and culture in San Francisco. CAST’s stewardship removes the pressure and responsibilities of ownership for artists and residents
Short term: CAST purchased and renovated a vacant cinema (80 Turk St) in 2013 which was rented to CounterPulse, an art incubator, under a seven-year, below-market lease with a purchase option agreement. This gave them the time to fundraise and plan for their eventual purchase in 2023.
Compared to other models we shared here, the mission-driven steward model is highly flexible as it can morph into many other models and combine a different mix of anti-displacement and community ownership and stewardship strategies.
Advantages
Moves fast to buy the community the time needed: many stewards we came across are more established organizations with the track record, credibility, and financial resources to remove the property from the market quickly, allowing community or partner organizations the time needed to organize finances.
Example 1: Cultural Space Agency, a quasi-public city-charted real estate development company, secured $2.3 million from Seattle’s Strategic Investment Fund and another $3.5 million in donations to acquire and hold properties in the South Park neighborhood until El Barrio Community Trust can establish a board and governance processes rooted in the community.
Example 2: In 2005, Urban Land Conservancy (ULC) acquired the Tennyson Center for Children, which has been serving the community for 100 years, at risk of losing its campus due to bankruptcy. ULC then stewarded the property for six years and sold the property back to Tennyson Center in 2011.
Not tied to a specific model: stewards often blend different strategies on a project-by-project basis and collaborate with partners such as public and private affordable housing developers and other community ownership entities.
Example: ULC, in financial agreement with Denver Public School and Denver Housing Authority, used their revolving loan fund to purchase Mosaic Community Campus. Part of the campus is owned under ULC’s community land trust and leased or resold to other community organizations. Other parts are to be developed as affordable housing and a k-12 school by housing and education partners. It also includes an open space easement for the public.
Challenges & Critics
Lower accountability to the broader community: Mission-driven stewards can have concentrated decision-making power. The community at large is not part of the governance when the working partnership is solely between the steward and another entity. It differs from coops (which follow the “open membership” principle) and community land trusts’ triparty governance. In this model, community input is predicated on a seat on the board or stewardship committee.
Less community building and agency cultivation opportunities: The process of moving fast in real estate might not lend itself to robust community engagement, especially for projects where a fast turnaround is needed to remove it from the market.
Emerging Practices
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Build accountability by incorporating genuine community engagement
Mission-driven stewards can increase accountability through community leadership, regardless of their legal entity.
💡 Examples 1: Cultural Space Agency is a quasi-public entity chartered by the City of Seattle. Instead of being led by elected officials or offices, it is led by the “Constituency,” which is a group of 60 BIPOC community leaders in commercial real estate, arts & culture, community development, philanthropy, and finance and a governing council (similar to a board of directors for nonprofits) nominated by the Constituency.
💡 Examples 2: Kensington Corridor Trust (KCT) uses a perpetual purpose trust, where the purpose is collectively defined with the community through rigorous engagement to make investing and asset control decisions. KCT, the 501c3 entity itself, is responsible for fundraising and operations.
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Provide real estate services along with capacity building: stewards not only step in as the real estate partner, providing technical, finance, and legal expertise in real estate acquisition and management, but they also contribute to building the capacities of the community or partner entities.
💡 Example: E.G. Woode acquires and redevelops commercial real estate for the use of member small businesses while ensuring the small businesses’ success through business support services.
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Extending stewardship during ownership transition: Stewards can extend stewardship through the use of sales restrictions and covenants when real properties are disposed of and by having clear criteria for eligible future owners.
💡 Example 1: When ULC sold the property back to Tennyson Center for Children after acquiring and holding it to prevent the loss of the campus as the result of the center’s bankruptcy, the sale stipulated for 89 years if the center sold the property, it would be sold to another nonprofit entity with an education-focused mission.
💡 Example 2: KCT makes only exception to selling its properties to long-time small business owners that have demonstrated their commitment to the neighborhood for the purpose of inter-generational wealth