Back to the Future? CDFI's approach to comprehensivecommunity development: Green Building & Supportive Services Consultant: Liz Bieber
Client: Mary Kaiser and George Vine, The California Community Reinvestment Corporation
About Project
Research Findings
• The California Community Reinvestment Corporation (CCRC) is a multifamily affordable housing lender and a Community Development Financial Institution (CDFI) • CCRC commissioned the report to investigate new opportunities for the organization's expansion → programmatic and fiscal • Comprehensive development model seen as the solution to fix the affordable housing crisis • Project explores how CCRC fits into this discourse and the state of CDFIs today
Methodology 1. Background Research: Affordable Housing Market 2. Literature Review: Urban policy reform, federal, state, local models of housing assistance 3. Meta Literature Review: Narrow down areas of focus 4. Mapping: Demographics & areas of need 5. Interviews: Developers, CDFIs
Research Analysis Choosing Area of Focus
Adviser: Joan Ling Department of Urban Planning University of California, Los Angeles
Childcare
Security
Green Building
Charter School
Job Training
GREEN BUILDING FINANCING
Translate green savings to loans
RISKS
Health
Transit-Oriented Development
Supportive Services
CAPITAL (loans)
HOW
Supportive Services
Medium risks, secure investment opportunity
FINANCING
CASH
HOW
Grants
RISKS
High risks, no cash back potential
Recommendations A. Provide technical assistance B. Act as a funding clearing house C. Serve as an intermediary between developers and regulatory agencies D. Form relationships with HUD grant officers E. Provide line item in loan underwriting that forces developers to record utility usage data to add to preretrofit data accumulation down the road
H i s t o r y
FDR's New Deal
1933 Social and economic reform: public housing replaced slum housing, led to social and racial segregation
1930
o f
C o m m u n i t y
D e v e l o p m e nt
Johnson's War on Poverty
Birth of CDCs
1964 Office of Economic Opportunity: Model Cities Program & Comprehensive Community Action Program
1966 Birth of Community Development Corporations: Kennedy created to do "what government could not"
1940
1950
The Housing Act of 1949 Urban Renewal: To stop white flight, razed low-income housing and built public housing
1960
1970
i n
t h e
Un i t e d
The Community Reinvestment Act 1977 Mandates equitable bank lending practices in low-income communities in an attempt to eliminate redlining
1980 Housing & Community Dev'T Act 1974 Nixon to replace urban renewal with Community Development Block Grants
A. CCRC should not pursue the financing or administration of service-supported programs. Supportive services are incredibly important, but grant funding is the only real avenue for financing. Services are best offered by service providers that have a programmatic and financial system set-up.
St a t e s
HOPE VI
New Market Tax Credits
1992 HUD created HOPE VI as a new type of public housing; new urbanism, ped and transit friendly, place-based
2000 NMTCs are tax incentives to develop commercial, non-housing properties in low-income communities, similar to LIHTC
1990 LIHTC 1986 Congress created the Low Income Housing Tax Credits, tax incentives for affordable housing
2000 Creation CDFI Fund 1994 U.S. Department of the Treasury created to institutionalize CDFI services and award equity investments and technical assistance
2010