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1
Working with CDCs – the Providence, Rhode Island experience
Amintha K. Cinotti, Deputy DirectorPlanning and Development
David N. CicillineMayor
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
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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
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
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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
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
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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.
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.
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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.