Working with CDCs – the Providence, Rhode Island experience

1. Working with CDCs – the Providence, Rhode Island experience Amintha K. Cinotti, Deputy Director Planning and Development David N. Cicilline Mayor

2. 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

3. 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

4. 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

5. 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

6. 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.

7. Our Housing CDCS • 13 active and producing units • Varying range of capacity and sophistication • LIHTC – primary rental production tool • Renewed focus on Homeownership

8. 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.

9. 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.

10. 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

11. 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

12. 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

13. 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. Consolidation of CDCs

14. 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.

15. 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.

16. 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 necessaryadjustments.

17. 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.

18. 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.

19. 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.