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Working with CDCs – the Providence, Rhode Island experience

Amintha K. Cinotti, Deputy DirectorPlanning and Development

David N. CicillineMayor

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Who we are – 180,252 strong in 2007

Largest growing City in New England A majority “minority “ city A young city – 43% of our residents are under 25 Small in area – 12 sq. miles An Arts Center for New England Home to World Class Educational Institutions,

Medical Facilities and Businesses

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How we work

Planning and Development is the lead agency for all housing and community development efforts

25 Neighborhoods Strong Mayor 15 City Councilors all ward

based Over 150 Community and

Advocacy Groups Charrette Based Planning

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Major Programs

Second Largest CDBG Entitlement in New England - $10 Million in Consolidated Programs

Providence Housing Trust – Consumer Programs and CDC programs

Lead Hazard/Healthy Homes Neighborhood Markets

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Economics

Median Household Income - $26,867 (RI - $42,090)

Families in Poverty – 24% (RI 9%) Unemployment – 9.3% (RI 5.6%) Average Rent 2BR - $1,097 (2005) You

need income of $43,880 Median Sales Price - $210,000 (2005) You

need income of $67,835

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Housing in Providence

47% of the housing stock is 60 years or older Home Ownership rate is 35% Over 40% of residents pay more 30% of

income for housing Vacancy rate of 7% Primary Housing stock – “Triple Deckers”

and Capes – unless you live on the Eastside.

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Our Housing CDCS

13 active and producing units

Varying range of capacity and sophistication

LIHTC – primary rental production tool

Renewed focus on Homeownership

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How we work together

Providence needs the Housing CDCs to plan, produce and manage the affordable housing initiative with us!

CDCs have been extensively involved in the CPS process through the steering committee and focus groups.

Housing policies and programs are brought to the monthly CDC lunch for vetting prior to implementation.

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How we work together

Mayor David N. Cicilline has made a solid commitment to the CDCs by forming the Housing Council that meets quarterly and brings all partners to the table to discuss planning and resources.

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What do we provide?

HOME funding CHDO operating in conjunction with LISC’s

Neighborhood Development Fund CDBG funded Administration support through

the Formula Funding process Number of units and complexity Section 3 Homeownership Development outside of concentrations of poverty

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What do we provide?

Ongoing Education and TA Providence Housing Trust programs

Vacant Property Acquisition Commercial Development Fund – mixed use

developments City HOME – up to 120% of median CDC Consolidation deferred loans

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So, how do we improve in a time of diminishing resources?

With 13 CDCs all of our resources are stretched to breaking

Out of 766 units produced from 1998 to 2005 only five CDCs produced over 90 individually

Four CDCs produced under 15 units during the same time period

During that time period 2 CDCs shut their doors – no staff or funding to continue

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Consolidation of CDCs

DPD staffed reviewed performance of CDCs

– Units produced– Timeliness of efforts– Leveraging– Unaddressed areas of

the City and CDC overcrowding in three neighborhoods

Why Consolidate?– Increase the number of

units produced on a yearly or cyclical basis

– Improve or remove operational inefficiencies

– Spread affordable housing production to all neighborhoods of the City.

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Consolidation Assistance Grant

New Program Summary Purpose: In order to significantly increase the

production of affordable housing in Providence, the Providence Housing Trust is initiating a new program. The new CDC Consolidation Funding Initiative will provide a grant(s) to existing community development corporations for the purpose of increasing operational efficiencies by consolidating their organizations.

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Consolidation Assistance Grant

Consolidation must result in the successor CDC’s ability to expand its area of affordable housing production and improved operation efficiencies. The ability of the consolidated entity to expand housing production into low and moderate income neighborhoods of the City hitherto not served would also be a desired benefit.

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Consolidation Assistance Grant

Examples of consolidation efficiencies The following are examples of proposed consolidation efficiencies

that would be expected to lead to increased affordable housing production:

Elimination of duplicative staff positions. Elimination of duplicative office locations. Elimination of consultants where in-house staffing is more efficient. Analysis of staffing strengths and weaknesses making necessary

adjustments.

Analysis of institutional strengths and weaknesses making necessary adjustments.

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Consolidation Assistance Grant

Distribution: Request for Proposals Maximum grant: $200,000 Average less than $75,000 per year for multi-year proposals. Eligible use of funds: Any activity that results in the consolidation of two or more

existing CDCs within the proposal period. Eligibility of funds is relatively broad to encourage proposals tailored to what may be the special needs of organizations with different non-profit cultures.

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Consolidation Assistance Grant

The consolidation proposal may have a term of 1 to 3 years and must include regular accomplishment milestones.

The successful proposal will indicate how the consolidation will result in the creation of a more efficient CDC which is able to produce more housing units than would have been produced by the CDCs separately.

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Did we have any Takers?

YES!!! The Elmwood Foundation and Greater Elmwood

Neighborhood Services have applied for and received a $75,000 one year grant to hire a consultant to bring them through the process

Instead of a straight grant, the contract has been written as a forgivable loan that will be discharged upon completion of the consolidation.