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Topics: Community

Community Impact Through Neighborhood Partnerships, continued

Index

Foreword
Acknowledgments
Introduction
United Way's Growing Suport for Housing and Community Development

Boston, Massachusetts—
The Model: A Shot Heard 'Round the World

York, Pennsylvania—
Small Cities Have Neighborhoods, Too

Memphis, Tennessee—
Leveraging Dollars and Legitimacy

Houston, Texas—
Starting a Community Development Industry

Chicago, Illinois——
Funding Community Development Corporations

Providence, Rhode Island—
Self-Sufficiency Through Community Economic Development

Denver, Colorado—
Strength in Partnership: Convening Is Key

Strategies for Success
Lessons Learned
List of Acronyms

Contents

Providence, Rhode Island—
Self-Sufficiency Through Community Economic Development

Denver, Colorado—
Strength in Partnership: Convening Is Key

Self-Sufficiency Through Community Economic Development—
Providence, Rhode Island

In its first year, "Making It Work" invested $425,000 in five community projects. William Allen, United Way's executive vice president, said, "We hope these initiatives will become model programs pointing the way to things we should do in the future."

"Making It Work" emanated from a broad-based research effort that United Way and SJS, Inc., a local public policy foundation, co-managed. The research applied a systems approach to evaluating how human services should be reshaped to meet future needs. The result of their efforts ultimately led to the "Making It Work" initiative.

As the "Making It Work" project was taking shape, United Way helped create an affordable housing initiative, working in cooperation with the Rhode Island Foundation, the Governor's office and the Rhode Island Housing and Mortgage Finance Corporation (RIHMFC). This group aimed to improve the affordable housing delivery system and promote community building. The centerpiece of this effort involved attracting LISC, a national community development intermediary. Its expertise in affordable housing development and CDC capacity building brought instant expertise to RIHMFC's efforts.

United Way convinced the national LISC organization to open an office in Rhode Island with $1 million, on the condition that local funders match LISC's contribution. After the first round of fund raising, the founding partners had accumulated an initial pool of $3 million: RIHMFC contributed $1 million; United Way, the Rhode Island Foundation, local banks, utilities and other organizations combined to add another $1 million. These contributions far exceeded LISC's matching requirement and helped attract LISC resources.

United Way played a significant role in leveraging the matching funds for LISC. "United Way provided primary publicity and funding, as well as connection for other funding," said Doris Donovan, former vice president for Programs at the Rhode Island Foundation. She said that businesses making corporate donations to United Way often are reluctant to support other causes. However, having United Way as part of the fund-raising effort helped overcome this potential barrier.

Over the last four years, LISC's national office and its subsidiary, the National Equity Fund, have brought more than $10 million in matching funds and project equity to Rhode Island. These funds have provided crucial "first dollar" financing, which has leveraged more than four dollars for each LISC dollar invested. Moreover, LISC has provided training and technical assistance to 18 CDC staffs and boards.

To further accelerate CDC capacity-building efforts and consequently their community revitalization strategies, LISC joined with United Way, the Rhode Island Foundation, Rhode Island Housing and Prince Charitable Trust to launch the Neighborhood Development Fund (NDF). Similar to Boston's Neighborhood Development Support Collaborative, this multi-year operating support and management assistance program accepted five CDCs in its first year of operation. Four of the participating CDCs "made huge gains in sophistication and production," said Donovan.

Accomplishments

One CDC did not meet the funders' expectations and was dropped from the program. In discussing NDF's support for this organization and attempts to help it succeed, Donovan said, "This is like venture capital— you expect that not everyone is going to make it."

Leveraging and Strategically Supporting Affordable Housing. United Way's focus on "system thinking" has created leveraging opportunities that facilitate change that will enhance the community development infrastructure. Attracting LISC to Rhode Island not only provided a stage for leveraging $2 million for community development, but also stimulated the creation of real estate development resources that support the affordable housing development process.

LISC's pre-development loans have a critical function in completing affordable housing projects successfully. Although front-end financing represents a small portion of the overall development cost, it is virtually impossible to obtain from traditional financing sources. "LISC provides front-end financing to get community development projects underway—the dollars that would otherwise not be there on day-one of a project," said Richard Staples, vice president and senior community development manager for Fleet Bank. "LISC says to business and charitable communities, we can make enough sense out of these ideas. I think eventually this project will work. What it needs now is a surveyor on-site and an environmental assessment."

LISC's expertise also is helping other financial institutions shape and expand their assistance to and investments in CDCs. "One of the things that is invaluable to me is the intellectual resources of LISC. I don't make a move with CDC support without consulting the local LISC office. Talking with the LISC office often has given us ideas on how the bank can give more creative or comprehensive support to CDCs," said Staples. For example, Fleet Bank is considering how it could incorporate LISC's recoverable grant model for providing pre-development funds into its charitable trust and corporate CDC.

Promoting Systems Change Through Collaboration and Partnership. United Way's leadership in bringing LISC to Rhode Island is an example of its practice of seeking out, investing in and facilitating new collaborative efforts. United Way's foresight has reaped great rewards by accelerating affordable housing development. LISC has brought considerable technical and financial resources as well as focus to the disparate efforts of affordable housing players in the state.

Not only has United Way convened major players around important issues, but it also has created its own funding mechanism for community development—the Critical Issues Fund—to bring significant resources to the table. As of 1995, donor designations to the Funds represented 5.9 percent of United Way's overall fund-raising campaign, an increase of 31 percent since 1993.

The approach adopted by the collaborative demonstrates the value of using the collective expertise and wisdom of the entire community. "For all the talk of health care reform, education reform and welfare reform, there is very little happening on the streets today to help people. 'Making It Work' is a bold plan of action. It is a giant step forward. It holds the promise of removing barriers to the workplace and creating meaningful jobs. It is an investment in people and their abilities," said Paul Pickens, president of Vocational Resources, Inc.

How Did These Accomplishments Happen?

Following the release of this information, the governor of Rhode Island formed the Needs for the Nineties Commission, which made the key point that, "Major reform agendas must be developed together, not in isolation." Therefore, the ensuing "Making It Work" initiative began with a commitment of jobs from the business sector and the necessary accompanying social services.

Current Status

Also, the South Providence Development Corporation, with the help of social service agencies, has a commitment of 250 jobs for residents living near Rhode Island Hospital, St. Joseph's Hospital and Women and Infants Hospital to work in one of those three institutions. According to an editorial in Providence Journal (December 26, 1994):

"This program has the potential to dramatically improve social organization in the neighborhood—and along with it, the safety, stability and even appearance of the area, especially in partnership with appropriate housing initiatives."

United Way's fundamental conclusion about human services, which will have a far-reaching impact on its work in the future is: "Human services must be part of a community economic development approach in which connections are made to education, training and economic opportunities for people who are dependent and want independence."

Outcomes and Supporting Data
Providence, Rhode Island

Source: United Way of America consultant research, 1996.

Strength in Partnership: Convening Is Key—
Denver, Colorado

In the early 1990s, volunteers and employees at Mile High United Way concluded that traditional human services would not restore the economic and social life of Denver's low-income communities. This realization would change their course for years to come and paved the way for three innovative collaborative efforts: the Housing Development Project, the Denver Neighborhood Partnership and Barrio Aztlan. Between 1992 and 1996, the three collaboratives leveraged $2.6 million.

In the very beginning, local wealthy donors agreed with United Way and committed an initial $35,000 for community-building activities. The "seed money" investment and interest by powerful members of the community became the seed from which United Way's affordable housing and community development efforts grew.

Around the same time that United Way received its "seed money," the Enterprise Foundation, a national nonprofit organization with extensive technical expertise in affordable housing development, was in the process of exploring the possibility of working in Denver. The two organizations discussed how they could work together. Maryann Dillon, director of Housing Services at the Enterprise Foundation, said, "We always work with local partners, and our positive relationship with United Way was key to our decision to come to Denver."

As a result, United Way, the Enterprise Foundation, the City and County of Denver and several local banks launched the Housing Development Project (HDP) in 1992 to provide operating support and technical assistance to nonprofit housing developers. Between 1992 and 1996, HDP leveraged $1.6 million in grants to support the core operating capacity of 14 nonprofit housing development organizations.

HDP has become "the best place to put funds for local impact," said John C. Nelson, chair of the board at Norwest Bank and chair-elect of United Way. Between 1993 and 1995, HDP-funded agencies have developed and repaired more than 1,900 units of affordable housing; they project that an additional 1,500 units will be completed by the end of 1996. The combined estimated market value of units completed and in process is nearly $93 million.

As HDP was taking shape, United Way helped launch a second funding partnership in 1993—the Denver Neighborhood Partnership (DNP). This collaborative effort of United Way, four local foundations and Norwest Bank is committed to helping neighborhood associations make their neighborhoods stronger, vibrant and more livable. To accomplish this mission, DNP boldly provided annual block grants of $30,000 to each of five neighborhood associations who then made grants of up to $5,000 for specific projects in their respective neighborhoods. Funders were concerned about pooling resources among themselves and transferring grantmaking to neighborhood associations. But, Shannon said, "The participating funders found that neighborhood stake-holders often develop the most relevant approaches to address local issues, and neighborhood-based boards are expert stewards of the resources they administer."

In 1994, United Way entered into another partnership with the National Council of La Raza to start Barrio Aztlan. As part of La Raza's 15-city Southwest Community Development Initiative, this program began with funding from the Ford Foundation. It offers multi-year operating support grants and technical assistance to build the organizational capacity of Chicano/Latino CDCs. To facilitate the CDCs' ability to produce affordable housing, First Interstate (now Wells Fargo) Bank provided $3 million in below-market-rate mortgage financing and a full-time, bilingual loan originator. Moreover, the bank and the city each provided $100,000 in grants for down payment assistance.

"One of the best parts of the program is the strong partnership that developed between funders, both public and private, and nonprofit housing organizations. The partnership created a home ownership program that helped Latino families purchase a home that they otherwise would not have been able to purchase. We were able to make a start at stabilizing Latino neighborhoods," said Linda Kloosterman, community development officer for Wells Fargo Bank.

Accomplishments

DNP and the Neighborhood Support Group (NSG)—an informal association of funders including banks, corporations and foundations—particularly exemplify this change. "Clearly, from the beginning they began stretching an old understanding of charity to a new understanding of investment where real power is shared with neighborhoods," said Jody Kretzmann, director, Neighborhood Innovations Network, Center for Urban Affairs and Policy Research at Northwestern University.

Promoting Collaboration and Partnership. United Way's long-standing relationships with the corporate community and its reputation as a neutral convener have brought together public, private and philanthropic funders to develop innovative funding partnerships. "United Way is an organization that can convene foundations. It plays that role very effectively because it is not bringing one agenda above an other," said Mary Giddings Cronin, executive director of the Piton Foundation.

"United Way also brings to HDP the full focus of community. It is helping to build our funding base and, hence, our involvement," said Linda Tinney, vice president for Community Reinvestment at Colorado National Bank.

Both United Way's long-standing relationships with nonprofit organizations and its position in the community have helped promote collaboration between CDCs and human-service agencies, which help them work more efficiently and cost-effectively. For example, United Way facilitated relationships among the Rocky Mountain Mutual Housing Association (RMMHA) and service providers when RMMHA needed to negotiate with providers to fulfill its $1 million YouthBuild grant obligations. United Way helped RMMHA secure services from organizations, such as Catholic Charities to manage cases, the Aurora public schools to help participants earn GEDs, Goodwill Industries to help screen applicants and Mile High Child Care to provide necessary child care. Bill Sullivan, the RMMHA's executive director, said, "United Way is putting us into the network and facilitating meetings with potential partners to create a program that avoids turf battles and serves youth."

Another significant evolution is United Way's decision to participate in the development of neighborhood action plans for five neighborhood coalitions. Although community problem solving is not a new role for United Way, it is a shift for the organization to focus single neighborhood units comprehensively.

Fostering Neighborhood Leadership and Enhancing Civic Involvement. As partnerships build the capacity of neighborhood-based organizations, neighborhood leaders emerge. DNP has been particularly successful in this area. First, its decision-making structure facilitates leadership development. "Suddenly, people who have received services are setting neighborhood priorities and making funding decisions. They developed criteria and are monitoring the programs they fund," said Jan Belle, executive director for the SouthWest Improvement Council.

She also said that DNP is building neighborhood unity. "Although not in the work plan, DNP has created a forum where Asian and Latino neighborhood leaders work together. The process is promoting unity between these two cultures."

Second, DNP has made neighborhood leadership development a priority by creating a leadership training program. Representatives from the five participating neighborhood as sociations have attended the training, which provides information, contacts and resources to neighborhood residents that will enhance the skills and abilities they bring to their communities. DNP anticipates that, over time, the leadership training also will increase the number of people who create and participate in neighborhood projects.

In addition, many of the Neighborhood Council grants provide resources that enhance volunteerism and civic involvement in neighborhood associations. For example, in June 1995, the associations for East Montclair, Whittier and Northeast Park Hill each made $5,000 grants to the Neighborhood Rites of Passage project. Project organizers used the $15,000 to leverage an additional $25,000 in grant funds from the State of Colorado to foster mentoring relationships between adult volunteers and young people in their respective neighborhoods. Rites of Passage mentors particularly use African dance and martial arts to teach values and self-discipline. Grant funds cover operational costs, mentor expenses and student scholarships.

How Did These Accomplishments Happen?

United Way in conjunction with adopting its policy on community development conducted a community strategic assessment. The assessment was a traditional needs assessment that included a community capacity assessment component. As a result of the assessment, United Way added "Neighborhood Strengthening" to the list of service areas it routinely funds and accepted three CDCs as member agencies.

Current Status

Over the last three years, the five neighborhood associations receiving DNP grants have funded 83 projects. One of the projects is the Sun Valley Neighborhood Association, which serves the poorest neighborhood in Denver. The association has made 18 grants, including a $2,000 grant to Sun Valley Homes RAIN-Makers. The RAIN-Makers provide their neighbors volunteer services such as transportation, translators for non-English speaking residents and lead gardeners for the community garden. The DNP grant will expand the RAIN-Maker's program with operating costs for specific projects that the volunteers manage and operate.

Outcomes and Supporting Data
Denver, Colorado

Source: United Way of America consultant research, 1996.

Strategies for Success

The community-building strategies are as follows:

• Promote collaboration and partnership.
• Promote systems change.
• Foster leadership and diversity.
• Enhance volunteerism.
• Promote capacity building.
• Emphasize prevention.
• Influence public policy.

Cumulative Outcomes
Seven-Profiled Communities

Source: United Way of America consultant research, 1996.

Over the past 10 years, neighborhood support collaboratives that focused on affordable housing and community development have had tremendous impact on their communities. To date, the seven communities featured in Community Impact Through Neighborhood Partnerships collectively have raised more than $23.6 million in operating support for CDCs and other organizations that develop affordable housing and revitalize low-income neighborhoods. In addition, the neighborhood support collaboratives catalyzed additional investments of $24.6 million in the development of approximately 11,000 units of affordable housing by 50 CDCs and other nonprofit developers. That housing, located in low- and moderate-income neighborhoods, is valued at more than $600 million.

Furthermore, the CDCs have become stronger neighborhood-based institutions that will continue to catalyze neighborhood transformation over the long-term. Today, approximately 2,000 additional units of housing are in pre-development.

Local United Ways have gained experience and learned a lot from participating in these collaboratives. As members of United Way system, United Ways can learn collectively and build on their experience in neighborhood development with a view toward replicating effective programs in other communities. The seven stories featured in this publication indicate several common community-building strategies. Together, they serve as the foundation of a bold movement to diversify United Ways' traditional roles and definition of health and human services. Although the strategies are broad and useful in many issue areas, this publication defines them through community development initiatives with special emphasis on affordable housing.

The key to success and implementing these strategies is forming a collaborative of all community sectors—public, private and nonprofit—into a partnership in which everyone is pro-active, shares power and focuses on productivity. Such partnerships enable low-income neighborhoods to function in a supportive environment.

Promote Collaboration and Partnership.

"In Memphis, United Way has positive name recognition. It has pulled everyone together on neutral turf, so we can work together toward a common purpose," said Howard Eddings, Neighborhood Housing Opportunities' executive director.

United Way promotes collaboration between CDCs and social service agencies. United Ways' affordable housing and community development efforts complement the other human services they support. As the physical condition of low-income neighborhoods and the economic circumstances of people who live there deteriorate, the value of human services diminishes. United Ways' community building focus integrates human services into the economic and social life of the community, breaking down barriers between the human-service and community development fields.

Collaboration creates a rich opportunity for innovation. In Providence, The Making It Work initiative funds five innovative partnerships that will move people from dependency to self-sufficiency. One such partnership involves three hospitals, United Way, The South Providence Development Corporation, Fleet National Bank and The Providence Plan. The three hospitals have committed to hiring 250 neighborhood residents, 60 percent Aid for Families With Dependent Children (AFDC) recipients. The CDC coordinates and facilitates job readiness and retention with other social service partners.

Collaboration helps CDCs and social service agencies work more effectively and efficiently. United Way of Chicago's Housing Initiative Committee actively promotes innovative service-blending between CDCs and social service agencies located in the same neighborhoods. The People's ReInvestment and Development Effort (PRIDE), a CDC on Chicago's west side, joined forces with the YMCA, which administers the Illinois Department of Family Services' Urban-Siblings program, to keep siblings together while they live in foster homes. When the YMCA had difficulty finding homes with adequate space to accommodate large households, PRIDE realized that the program could use the vacant units in some of its buildings.

Promote Systems Change

Legitimize operating support for CDCs. Four of the seven featured cities provide general operating support on an ongoing basis, as well as technical assistance grants to improve CDC organizational capacity. Such support has been referred to as "venture capital for change in neighborhoods."

In Boston, CDCs that received support from the NDSC and later became United Way member agencies demonstrated a fourfold increase in their productivity.

Phil Clay, NDSC evaluator, said the ongoing operating support from NDSC was a primary contributing factor to CDC growth. "The support meant that groups were able to count on funds to do things that had not been possible previously. They could build their core operation to a new level, add program elements, test development ideas for feasibility, expand services to a larger area and address tenant needs—all without time-consuming and uneven fund-raising activities interfering with the effort."

Today, Boston's robust community development industry not only is the major producer of affordable housing, but also is involved in comprehensive community planning, small business development, violence prevention programs, child care, leadership development and beautification programs.

Systemic change through building consensus. The Housing Initiative in Chicago is using its position as a neutral convener to address the necessary systemic changes that must occur around issues of affordable housing property management.

The housing committee issued a "best practices" report, which addressed such issues as staffing, rent collection and evictions. Also, the committee developed a series of recommendations to address problems in affordable housing property management. The recommendations fall into three categories: (1) prevention of potential property management problems during the project's planning stage, (2) professionalizing property management and (3) resident involvement.

In February 1996, the committee convened the major players in Chicago's affordable housing arena to critique the recommendations and produce implementation steps.

Broker critical relationships that support neighborhood development. The Tejano Center for Community Concems, an emerging CDC in Houston incorporated in 1994, planned, developed and pre-sold 10 single-family homes in approximately six months. This accomplishment is amazing for a novice organization. The CDC achieved early success with technical assistance and informal deal facilitation from New Foundations for Neighborhoods, a United Way-LISC partnership.

Promote organizational change within funding organizations, including participating United Ways. Although not a typical objective, organizational change among participating partners in neighborhood support collaboratives usually occurs.

Kim Comart, United Way's former director of initiatives in Boston, said their support collaborative ". . . changed Boston's philanthropic community at least as much as it changed CDCs."

United Way's involvement prompted volunteers and staff to re-examine funding strategies. This review led them in 1994 to begin giving funding priority to prevention-oriented programs instead of crisis-intervention programs. United Way also examines the relationship and impact its funded services have on neighborhoods. UWMB allocations to agencies that embody the new strategic focus have increased by $3 million in the first two years of implementation. In addition, $1.5 million in special grants and partnerships are used to promote the strategic focus.

Foster Leadership and Diversity Neighborhood partnerships foster leadership and diversity on at least two levels. On one level, they develop indigenous neighborhood leadership and build the capacity of community-based institutions. On another, they enhance broader community leadership by creating an environment for a clearer understanding of neighborhood issues. United Ways have found that providing the opportunity for neighborhood and corporate leaders to interact enriches and improves collaborative decision making.

The Denver Neighborhood Partnership (DNP), which United Way initiated, is particularly successful in this arena. First, DNP's decision-making structure facilitates leadership development. "Through DNP, suddenly people who have received services are setting neighborhood priorities and making funding decisions. They developed criteria and are monitoring the programs they fund," said Jan Belle, executive director for the SouthWest Improvement Council. Belle also said that DNP is building neighborhood unity. "Although not in the work plan, DNP has created a forum where Asian and Latino neighborhood leaders work together. The process is promoting unity between these two cultures."

Secondly, DNPs' funders have had to develop a different kind of relationship with grantees. "Clearly, from the beginning they began stretching an old understanding of charity to a new understanding of investment where real power is shared with neighborhoods," reflected Jody Kretzmann, Center for Urban Affairs and Policy Research at Northwestern University.

Enhance Volunteerism

The HIC in York, Pennsylvania, has attracted the active involvement of a variety of private-sector leaders. One board member, a retired contractor, volunteered to oversee the construction of Donnelly Place and ensure that the homes were built to specifications. Another board member contributed his advertising skills to tell the affordable housing story.

Promote Capacity Building

Between 1988 and 1995, participating CDCs produced 3,679 units of housing, valued at more than $221 million, and 160,733 square feet of commercial space valued at more than $30 million. Compared to the eight years before the FCD program started, affordable housing production increased by 2.5 times more units and commercial development increased by 1.9 times more commercial space.

Emphasize Prevention

In Houston, United Way leaders wanted to prevent homelessness. They became aware of the need for long-term solutions, especially the development of affordable housing, to adequately address homelessness. United Way joined with the Houston Committee for Private Sector Initiatives and the LISC to support CDC capacity-building efforts. From that relationship, New Foundations for Neighborhoods, a public-private neighborhood partnership, was born. It became the vehicle for affordable housing development in Houston.

Influence Public Policy

In York, HIC asked the members of the United Way board to support a 1994 bill before the county commissioners that would double the deed recording fee from $11 to $22. The extra revenue would be placed into an affordable housing trust fund that would provide part of the local match for the federal HOME program. The board passed a resolution supporting the bill, and members talked with commissioners to provide additional backing. The legislation passed, resulting in $300,000 in additional local funds, which then leveraged $1.4 million federal dollars to develop local affordable housing.

Lessons Learned

United Ways also are learning a lot from their experiences in neighborhood support collaboratives. Their involvement in collaboratives has helped each United Way develop a clearer understanding of what it takes to "build communities." The following discusses lessons learned by all the partners in neighborhood support collaboratives.

Just Do It

Realize United Way's Ability to Integrate Services

Build New Relationships

The featured partnerships helped funders develop working relationships with leaders and stakeholders of low-income neighborhoods. Every partnership realized that these leaders are committed colleagues and valuable assets in restoring their neighborhoods. They help make existing services more relevant to their communities.

Rely on Existing Expertise in Community Development

United Ways discovered that the community development industry has an extensive history and track record. In fact, the movement has developed quietly over the past 30 years into a growing, vibrant industry. Reaching out to the local community development network is a crucial first step for United Ways that are interested in building communities.

Use Multiple Community-Building Strategies

As United Ways continue to pursue collaboration around affordable housing and community development, they position themselves to benefit from a variety of opportunities to add value in new ways to their communities. "When United Way builds serious new relationships with neighborhood forces, one of the logical outcomes is that a whole new range of opportunities appears. United Ways that are creative and energetic will have a new plate of options," said Jody Kretzmann, Center for Urban Affairs and Policy Research at Northwestern University in Chicago.

List of Acronyms

Index

Foreword
Acknowledgments
Introduction
United Way's Growing Suport for Housing and Community Development

Boston, Massachusetts—
The Model: A Shot Heard 'Round the World

York, Pennsylvania—
Small Cities Have Neighborhoods, Too

Memphis, Tennessee—
Leveraging Dollars and Legitimacy

Houston, Texas—
Starting a Community Development Industry

Chicago, Illinois——
Funding Community Development Corporations

Providence, Rhode Island—
Self-Sufficiency Through Community Economic Development

Denver, Colorado—
Strength in Partnership: Convening Is Key

Strategies for Success
Lessons Learned
List of Acronyms

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