Lit Review: Interesting Articles from the Boston Federal Reserve

Reposted from the "Stabilize" blog of the NeighborWorks America Stable Communities program.
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The latest issue of New England Community Developments from the Federal Reserve Bank of Boston has a couple of articles particularly interesting for those engaged in stabilizing neighborhoods.  In the first, the author discusses preliminary findings from ongoing research exploring the effect of foreclosure and NSP intervention on neighborhood social stability, with surprising results. The second presents a logical framework for deciding what REO is best marketed as rental property.

In "What Do the Neighbors Think? Assessing the Community Impact of Neighborhood Stabilization Efforts," author Erin M. Graves describes her research assessing residents’ perspectives on neighborhood-level social capital and social disorder.  She hopes to assess the impact of foreclosed properties on those residents before and after NSP intervention.


Graves used a standardized “Sense of Community” survey administered door-to-door, and also assessed property conditions of all parcels in the subject neighborhood.  In the article, Graves describes three themes that emerged from the first round of the survey. The first theme was that residents did not view the vacant foreclosed homes on their street as the primary threat to stability in the neighborhood; nor did they often realize which were due to foreclosures.  If they did know of a foreclosure, they saw it as an individual problem rather than a community problem or trend.

Second, existing crime and gun violence were the main concerns of these neighborhood residents. Residents in this neighborhood did not see vacant properties as attracting crime, and they viewed vacant lots as a greater threat to their sense of community than vacant homes.

Third, residents did believe in the efficacy of government institutions, including the police, to solve community problems, but felt underserved by them.  In order to deal with the safety and property abandonment issues on their streets, Graves says residents defined ever-smaller boundaries for what they consider their [good] part of the community – a street, a section of a street, or sometimes only their house.  These carefully drawn boundaries allow some residents to enjoy and stay in their unstable neighborhoods longer than outsiders would expect them to.

For Graves’ discussion of policy implications, see the full article.

In "New Ideas for Old REOs : A Disposition Framework for Marketing REOs for Rental Properties,"  Prabal Chakrabati and Mariana Arcaya propose a four-step rationale for sorting a community’s REO portfolio to find those properties that are the best candidates for disposition as rental units.  The criteria include:

• whether or not the property is GSE-owned,
• whether the property has been REO for less than or greater than one year (greater than one year means it is unlikely to  be taken up as a homeownership property),
• whether the property is located in an area of high need for affordable rental units (vis a vis Massachusetts’ 10% mandate for municipal subsidized housing inventory),
• whether or not the property is also located in an area that lacks rental housing options (since rental housing demand is on the increase, the model assumes places without those options need them, and that mixed-income communities are a goal).

Additional considerations, such as proximity to transit and jobs, are also mentioned. The article includes an easy-to-read chart, and a specific analysis of Massachusetts REO inventory.

New England Community Developments is published by the Federal Reserve Bank of Boston.  Free subscriptions are available here.

On the Road with Chuck: Part II

Chuck Wehrwein
NeighborWorks America COO

When I arrive in DC, I know I’ll be getting lots of questions about why I left the beautiful Rocky Mountains for the city life, so I want to explain my reasons here. The truth is that it was no easy decision. I’ve been living in Colorado for over 11 years and my children have grown up there, so I would not be headed east if I weren’t strongly motivated to join the NeighborWorks team.

In fact, my enthusiasm is already high enough for others to take notice. The day before I left Denver, my wife and I were meeting with LeeAnne, our realtor. When LeeAnne asked me to explain what NeighborWorks is about and why I was leaving, I spent several minutes describing the organization, its members and the great work that takes place in communities across the nation. LeeAnne was immediately struck by the passion in my voice, and commented that she, too, felt inspired by our vision of building strong, vibrant communities.

Pagedale Senior Housing was built across from
a Save-a-Lot grocery as part of the 24:1 initiative

I found a great example of this work in St. Louis last Friday. I met with Beyond Housing’s leader, Chris Krehmeyer. We talked a little bit about his experiences as a NeighborWorks organization and he showed me a small sample of the economic development projects and housing they’ve been building in the inner ring suburbs of St. Louis as part of a program called 24:1. This initiative has three main goals: strong communities, engaged families and successful children and it is addresses each goal by really integrating the various elements of community – from district schools to housing for the elderly to a new grocery store making fresh produce more available to residents.

Great work like this is inspiring and is indicative of why I am so pleased to be taking on my new role as COO. I’m looking forward to meeting with and hearing from more of our members in the coming weeks as we begin to formulate, together, how we can better develop responses to the myriad needs and opportunities in our communities across the country.

Getting Out the Vote for Starbucks' Vote.Give.Grow.

By Alexandra Chaikin,
Online Media Project Manager

As you may have seen on our NeighborWorks Twitter and Facebook pages, we are pretty excited about the results of the Starbucks Foundation Vote.Give.Grow. contest. Nine NeighborWorks organizations participated, and they raised a combined total of $125,000. Not too shabby.

First, a little background. Vote.Give.Grow. is a new initiative which allowed Starbucks cardholders to vote every week on how the foundation should allocate funds among 124 nonprofits nationwide. The best part? Every nonprofit selected for the contest is guaranteed to win at least $5000! That said, the object is to get the most votes, because more votes could mean thousands more dollars – up to $50,000 to be exact.

To find out how our network members succeeded in getting out the vote, I interviewed Matt Miller, communications and marketing director of Community Housing Initiatives (CHI) in Iowa. Matt explained that Starbucks first contacted them in March about the April contest. At first, they thought it was too good to be true, but, after doing their due diligence, they realized the magnitude of this opportunity. However, there was a big challenge, namely a competing nonprofit in Iowa with more than eight times the number of employees.

Matt, being the entrepreneur he is, went straight to the local Starbucks and worked with the store managers to hand out the Vote.Give.Grow. coasters he’d received from Starbucks Foundation (see image at right). Next, he did the same thing at libraries and the local hospitals. Then he jumped into digital media with a weekly email campaign and a big sign on CHI’s website.  His favorite marketing tool though? Social media. Twitter and Facebook allowed him to easily spread the word to local government and other nonprofits. CHI even made their main Facebook image include information about the contest.

In the end Matt helped CHI win first place in Iowa and a grant of $15,000, which they will use to fund an Eviction Prevention Program this summer. I haven’t had a chance to learn how all our other member organizations will use their funds, but I’m confident they will use them wisely, and I hope they will share their stories too. Feel free to send me an update at achaikin[at]nw.org or to post directly to the NeighborWorks America Facebook page.

Homeport Plans ‘Extreme Makeover’ of Columbus Communities

By Ascala Sisk
Senior Manager, Neighborhood Stabilization
NeighborWorks America

As I watched the ABC program “Extreme Makeover” during the holidays, I saw in the faces of an entire community why neighborhood revitalization is so important.

Through the efforts of NeighborWorks member Homeport in Columbus, Ohio, the ABC hit show came to American Addition, a neighborhood Columbus Mayor Michael B. Coleman said was “the most egregiously neglected urban neighborhood I have ever seen.”

It was heartwarming to see national visibility brought to the work Homeport is doing to invest in this distressed neighborhood, and to see the true impact rebuilding a community has on families. Neighborhood stabilization is more than rehabbing abandoned and foreclosed homes and buildings, putting them up for sale or rent and protecting property values.

Extreme Makeover reveals the Rhodes family's new home.
Homeport helped the family submit its application to the show.
View full episode and house tour.

It is also about the people. It is about putting families back in homes, providing safe and secure communities, and bringing back important community connections and infrastructure, such as parks, playgrounds and community spaces.

This is the long-term vision Homeport has for American Addition. The organization used Extreme Makeover as a launching pad for its efforts to rebuild 100 new homes over the next 10 years using Neighborhood Stabilization Program grants, city funds and private investments. In October 2011, Homeport broke ground on the first six lots with homes to be completed by February 2012. All of the houses will be built to green standards. [See Homeport’s story behind Extreme Makeover and American Addition].

If you’d like to see how else Homeport and other NSP grantees are successfully using program funds to reinvest in declining neighborhoods, view these videos. The videos were produced by HUD in collaboration with NeighborWorks America and Enterprise Community Partners.

Opportunity Finance Network and Starbucks Collaborate to Create Jobs

Many people must have their cup of Joe to make it through the morning. Now they can contribute to a much needed cause while they are at it.

On November 1, almost 7,000 Starbucks stores across the country and the Opportunity Finance Network, a national coalition of more than 180 community development financial institutions (CDFIs), launched a fundraising initiative to kick start job creation in the U.S.

Through the initiative, Create Jobs for USA, Starbucks customers can make tax-deductible contributions to a fund to help local companies hire and retain workers.

One hundred percent of donations will go to the CDFIs to finance underserved community businesses—small businesses, microenterprises, nonprofit organizations, commercial real estate developers, and affordable housing developers. All of these community businesses help to create and sustain local jobs.

More than 90 members of the NeighborWorks network are CDFIs. Related NeighborWorks capital corporations NeighborWorks Capital and Community Housing Capital are also CDFIs.

One organization that is making a difference both in housing and business lending is Community Ventures Corp (CVC), a Lexington-based member of the NeighborWorks network for ten years. CVC is the largest micro-enterprise business lender in the Small Business Administration system, making business loans as small as $500.

Kevin Smith, president and CEO of CVC said, “As a CDFI serving entrepreneurs throughout Kentucky, Community Ventures Corporation applauds the Opportunity Finance Network and Starbucks for creating space where small actions can pay great returns.”

Jennifer Vasiloff, executive vice president for policy at the Opportunity Finance Network is excited about the potential.

“Create Jobs for USA has the potential to raise tens of millions of dollars and make more credit available all across the U.S,” Vasiloff said. “I never thought I would see a major corporation like Starbucks using its scale, the power of its brand, and its vast consumer marketing expertise to help people understand the concept of a CDFI. Millions will learn about these profit-making (but not profit-maximizing) nonprofit financial institutions that lend in underserved communities.”

The Starbucks Foundation is putting up $5 million to kick start the Create Jobs for USA campaign and is encouraging others to chip in. Customers who donate $5 or more will get a red, white and blue wristband with the message “Indivisible.”

NeighborWorks America Announces $3.65 Million in Expansion Grants for NeighborWorks Organizations

Today NeighborWorks America announced $3.65 million in grant funding to nonprofit organizations that will enable them to expand their service areas and reach deeper within underserved communities.

“The expansion grants announced today are a truly efficient use of funding for the nonprofit industry.  Instead of starting from scratch, the expansion grants enable NeighborWorks organizations to broaden their reach and bring their already established services and best practices into underserved communities,” said Eileen Fitzgerald, CEO of NeighborWorks America. 

The grants help organizations like Neighborhood Development Services in Ravenna, Ohio, to further expand their reach into 17 counties in southeast Ohio. Through their expansion, Neighborhood Development Services will develop affordable multifamily and owner-occupied homes for low- and moderate-income residents, work to develop the local economies in this region, and bring much-needed services to the residents, such as: financial education, homebuyer education, foreclosure intervention counseling, and other resident services.

The expansion grants will also assist Tierra del Sol, of Anthony, N.M., in its efforts to develop affordable rental housing for agricultural workers, low-income senior citizens, and persons with disabilities, rehabilitate owner-occupied homes, and provide financial and homebuyer education to residents in of five western Texas counties: El Paso, Hudspeth, Culberson, Jeff Davis and Presidio.

The $3.65 million in grant funding is being provided to 25 organizations nationwide. See who they are.

September 11 National Day of Service and Remembrance

[Can't see the video above? View it on YouTube: http://bit.ly/qpn6np]

Sunday marks the 10th anniversary of the September 11 attacks. It is a day forever embedded in the heart of this nation, not only because of the senseless loss of life, but also because of the spirit of unity and compassion that swept our nation that day and the months that followed.

More than 1 million people are expected to participate in the September 11 National Day of Service and Remembrance, an effort originally launched in 2002 by family members who lost loved ones in the attacks and support groups, led by the nonprofit organization MyGoodDeed. In 2009, Congress designated September 11 as a national day of service and charged the Corporation for National and Community Service with supporting this effort across the country.

At NeighborWorks America we firmly believe in the value and impact of volunteer engagement. In 2010, our Community Building and Organizing Programs generated 322,000 volunteer hours, building stronger, vibrant and more connected communities. We know the difference ordinary people working together can make in the lives of individuals and entire communities. That is why we are encouraging you to participate in this year’s National Day of Service and Remembrance.

There are so many ways to get involved, ranging from performing a simple act of kindness to helping with home repairs, neighborhood cleanups and disaster relief activities. Visit serve.gov to learn how you can help, or check your local NeighborWorks organization to see if any volunteer events are planned.

New Video for Homebuyers Available from NeighborWorks UNHS HomeOwnership Center

Those in the market to buy a home for the first time are often unsure about the home inspection process. In this video, Julie Jalowiec and George Acee with UNHS HomeOwnership Center in New York, provide homebuyers with some insight about what the professionals look for. It is the fourth in the center's educational series about homeownership and the home buying process.

If you are unable to view the video below, it is available online at http://www.youtube.com/watch?v=Y8eAFJnbUAQ.

NeighborWorks Spotlights Seven High-Impact Social Media Trends for Neighborhoods and Local Nonprofits

With all the talk about Facebook, Twitter and online social networks lately, it’s easy to lose sight of the impact of social media on neighborhoods and nonprofit community development efforts.

Here are seven trends worth noting.