December 2025— Community development institutions are standing at an inflection point. Across the country, local leaders, residents, and practitioners know what they need to see in their neighborhoods to thrive. Yet, the systems that move capital and shape decisions are still too often organized around institutional priorities rather than community wisdom.
This report argues that co-design, a structured process of sharing power with those closest to the issues, is among the most effective tools for closing this gap.
Drawing on nearly ten years of experience with Invest Health, a national initiative in fifty small and mid-sized cities, and Building Healthier, More Equitable Communities (BHEC), a single state initiative in New Jersey, Reinvestment Fund’s Healthy Communities team and local partners have learned how co-design can transform relationships, improve practice, and deepen impact. As one city participant reflected, “I feel like I am part of Invest Health, it is in my DNA at this point, in a way that is not typical of anything else I have been part of.”