The neighborhood trust model works. The Kensington Corridor Trust is proof.

In cities across the country, economic development often follows a familiar and troubling pattern: disinvestment, decline, and then, when real estate values are at their lowest, increased outside interest that displaces legacy residents. Kensington, a neighborhood in North Philadelphia, has lived this cycle for decades, with the loss of industry finalizing in the 1960s, and the drug trade emerging in the 1970s.

But what if, instead of outsiders reaping the rewards of development, the community owned the land and collectively determined their neighborhood’s future?

Five years ago, the Kensington Corridor Trust set out to answer that question.

To our knowledge, the trust is the nation’s first neighborhood trust focused on a commercial corridor. It collectively owns a growing portfolio of properties along Kensington Avenue and has pioneered a model that puts real estate ownership and control into the hands of the community.

It currently stewards 30 properties along a four-block stretch of Kensington Avenue, comprising a mix of vacant lots and mixed-use buildings. The cumulative market value of the trust’s portfolio amounts to just over $7 million.

Strategically, the trust’s property acquisitions are concentrated along Kensington Avenue, a historically significant commercial corridor. This focus creates a buffer zone that mitigates the effects of speculative development and gentrification.

As detailed in a 2021 Purpose Foundation article, one feature that distinguishes the trust as a pioneering model is its use of a perpetual purpose trust legally tied to a nonprofit organization — a structure designed to hold assets in perpetuity. This approach ensures collective ownership and control while preserving the affordability of commercial and residential spaces.

While traditional development models focus on maximizing profit for investors and developers, they often treat communities as secondary considerations or as obstacles to be overcome. Too frequently, the economic revitalization of disinvested neighborhoods comes with a steep cost: the displacement of the people who have endured years of neglect and hardship.

In Kensington, the trust flipped that script by ensuring local voices determine what kinds of businesses occupy storefronts, how spaces are used, and even the governance structure of the trust itself.

The trust’s governance model includes a stewardship committee, which is a second decision-making body in addition to the standard 501(c)(3) board. The board and the stewardship committee are made up of community members, both residents and local business owners. At minimum, residents who serve on either the committee or the board must have lived in the area for at least five years, with preference given to those who have lived in Kensington for 10 years.

The collective ownership model is rooted in the belief that the people who live in Kensington are closest to the issues and best suited to determine the solutions. It isn’t just about building new buildings or attracting investment, it’s about ensuring development serves the people already there. The projects prioritize providing affordable commercial and residential units, community spaces that foster social connection and cultural preservation, and an opportunity for self-determination.

The model offers a local blueprint for doing things differently, but it is not without challenges. Collective ownership requires a deep commitment to collaboration, decision-making rooted in deep intention, long-term thinking, and earning and maintaining trust with the community. And sustaining the model depends on innovative financing mechanisms, such as leveraging mission-aligned investments and grants, ongoing capital infusion, and strong partnerships with funders.

The trust has raised over $15 million to date, with much work ahead. Short-term goals focus on acquiring assets to build a valuable trust portfolio that can influence policy and drive change in Kensington. In the long term, the aim is to create a sustainable, scalable, and replicable collective ownership model that can expand to neighborhoods nationwide.

The neighborhood trust model, which began as a theory, has proven that collective ownership is possible, and its lessons are clear. We can build neighborhoods that work for everyone, where the community shares the benefits of redevelopment. In Kensington, the future belongs to the people — as it should.

Adriana Abizadeh is the executive director of the Kensington Corridor Trust.