In order to write this letter, you need to figure out what the purpose of a settlement house is and how it affects the city where it is located.
Settlement houses were meant as a way to help improve the lives of (mainly) poor immigrants. They did things like helping women learn how to speak English and like providing some sorts of preschool type things for their children. They later branched out into doing craft clubs and things like that to give the women something fun to do.
I would argue in my letter that this helped the cities by reducing the amount of poverty and crime. It made the immigrants more likely to be able to get ahead and contribute to their economy and society.
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