What would we do?

If money was no object, but the funding came from the community and our decisions were public.
If we could build anywhere, as long as it was in our neighbourhood.
If it wasn't for us, but someone in a less fortunate, less privileged or more restricted situation.

It would depend on our people, our place, and our passions. It might look something like:

Housing for key contributors to move into the neighbourhood. For example: Housing for university students who also volunteer at the local primary school.
Relocating or creating services, facilities, or people in specific locations to bring greater connections between people. For example: Building a pre-school next door to a retirement village.
Building high-quality rental accommodation managed by a compassionate and skilled landlord. E.g. Managed by a neighbour supported by a network of social services.
Infill development that encourages connection and affordable accomodation. For example: Building a small self-contained studio unit that is managed by an affordable accomodation service, or subdividing and building a second house without putting a 6-foot fence between the two houses.
Redeveloping a whole street together.
Establishing affordable accomodation systems that ground people long-term in the neighbourhood and retain the discounts past the initial owner. For example: Rent-to-own schemes