2011 Annual Report

Henry G. Cisernos

Henry G. Cisernos
Chairman
Cityview
Former Secretary
U.S. Department of Housing and Urban Development
(1993-1997)

I remember the moment when Bruce Katz, then Chief of Staff at the U.S. Department of Housing and Urban Development (HUD), rushed into my office with an idea. Bruce excitedly described a meeting he had with foundation representatives who were exploring HUD’s involvement in a collaboration to bring philanthropic resources to urban projects. Within days, the importance of such cooperation was being assessed at the assistant secretaries’ meeting and there was wide agreement that we should proceed to find HUD resources to cement the partnership.

My own perspective was shaped by my previous service on the Rockefeller Foundation board and on its investment committee. I remember feeling at times that despite the Rockefeller Foundation’s generous funding strategies, often its resources alone could not be decisive in the urban arena. I also was intrigued by foundations’ abilities to add to their annual grantmaking by targeting funds from their investment corpus, so-called program-related investments. My sense was that the cumulative assets represented by America’s most progressive foundations constituted formidable resources to address urban needs, such as affordable housing and community development.

The partnership was the right idea at the right moment. It was clear the nation’s cities needed more resources than government alone could apply. Foundations and other intermediaries could bring specialized expertise and long-standing networks to reach the entire nation. President Clinton’s broader “reinventing government” theme encouraged hybrid strategies and “third way” solutions. And the economic expansion then beginning would make it possible for public-private models to generate both effective community-building and acceptable financial returns.

The last 20 years have brought modifications and improvements to the basic partnership. The early work evolved into Living Cities as we know it today, thanks to many dedicated people. Living Cities is proof once again that we do better when we work together.