Historic South Atlanta was once a proud center of Black middle-class life. The neighborhood was built in the late 1800s around the original campus of Clark University. Unfortunately, by the early 2000s, decades of disinvestment and industrial decline had eroded its foundation.

By the time the 2008 housing crisis hit, nearly a third of the area’s 530 single-family homes sat empty. Entire blocks fell to neglect, and property values declined dramatically.

Residents needed help. The neighborhood association asked Focused Community Strategies (FCS), a local nonprofit, to collaborate with them and revitalize the community.

Katie Delp served as the organization's executive director. She said the group saw a unique opportunity in the area. "Historic South Atlanta was our chance to apply every lesson we’d learned from decades of work—to start fresh in a neighborhood before the pressures of gentrification arrived."

FCS's leaders decided that increasing homeownership would be central to renewal. The organization used a $1 million seed grant from a local foundation to start acquiring residential properties in the area.

Delp recalls that the organization intentionally kept the effort low-profile. “We quietly bought about 100 lots before investors even noticed the area,” she said. "That early move gave us room to think long-term instead of fighting speculation."

After its initial purchases, the organization created a rotational capital fund that has three main functions.

Purchase distressed or vacant properties. FCS prioritizes acquiring clusters of properties on the same block to preserve homeowner value and create mixed-income communities that increase economic connectedness.
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Rebuild or construct new homes. Construction is managed by local staff paid by the fund and conducted by local contractors and workers.
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Sell them to qualified buyers. The program targets families earning up to 120 percent of area median income and gives priority to legacy residents.

The proceeds from each sale are then recycled, or "rotated," back into the fund to pay for additional homes.

These impressive results came from a relatively small amount of resources. The entire rotational capital program was funded with just $4.7 million of invested capital, which has all been paid back to the fund's investors with returns between 1-4%. Grants and donations supporting the program total another $1.2 million.

FCS’s work also attracted other supporters to the community. Partner organizations have added around 80 additional homes since FCS began its work.

Marvin Nesbitt, the current president of FCS, estimates that homeowners in Historic South Atlanta have built about $26 million in equity since 2000. This is wealth that, he said, “belongs to neighbors who might otherwise have been priced out.”

FCS’s experience offers a practical model for inclusive prosperity. The organization combines flexible funding, early land purchases, and clear affordability levers, such as land costs, design, and financing, to keep homes within reach.

Delp said the guiding principle was always balance. “If you want a truly mixed-income neighborhood, you need a mix of housing types and price points—apartments, rentals, and homes for purchase,” she said. “That’s how families stay and thrive through every stage of life.”