Salt Lake City group fights crime by putting youth to work

Safety is one of the most basic requirements of desirable communities. If residents are afraid to walk down their streets, or even to socialize in their own front yards, they will flee the first chance they get – and certainly won’t engage with their community, much less their neighbors.

“We learned early on that we couldn’t just focus on housing,” says Maria Garciaz, executive director of NeighborWorks Salt Lake. “What’s the point of developing more housing if the crime rate is going up and people are afraid to live there?”

That’s what her organization discovered when it first began serving the west side of Salt Lake City (the quintessential “other side of the tracks”). It was 1982, and as members of the organization talked to stakeholders in the community, one problem kept surfacing: the neighborhood was increasingly ruled by gangs. Thus, the West Side Youth Project was born.  It gave youth hanging out on the street corners productive work, along with the skills and motivation to forge a new direction for their lives. Garciaz was probation officer for the local juvenile court at the time, and many of the youth were her charges. It was a natural fit for her to come on board, first as a volunteer, then as director of what came to be known as the YouthWorks program. Garciaz was named executive director in 1989, just a few years before the organization joined the NeighborWorks network – a milestone for which it celebrated its 20th anniversary this year. Other services offered by NeighborWorks Salt Lake are commercial-development projects to reverse blight in retail districts, development of affordable housing and resident leadership training.

In the early years, YouthWorks targeted hard-core gang members, with youth enrolled for a year at a time. “We saw some amazing changes in their lives,” Garciaz recalls. “Last Monday, a young man who graduated from the program in 1989 walked through the door. I said, ‘I’m so glad to see you’re alive!’ He was so much more than alive…He now has a successful job as a machinist. Another graduate is now on our board of directors!”

A YouthWorks team frames a new, affordable home.

Today, YouthWorks focuses on prevention -- helping larger numbers of young people before they become “hard core.” About 14 youth are enrolled in each three-month “crew” – mostly 16- and 17-year-olds during the school year, and as young as 14 in the summers. Three days a week, they work from 1-6 p.m. building one of the organization’s affordable homes – from framing the building to pouring concrete and painting walls (with expert contractors providing on-site training). “Being able to build a home, to see their work come to such concrete, successful fruition, teaches so many important lessons,” explains Garciaz. “For instance, if the framing doesn’t turn out right, they can take it apart and re-build it. What better analogy for life?”

On the afternoons when they aren’t working on a home or community project, the youth learn the financial-management skills they need to wisely spend the weekly stipend they earn while employed with YouthWorks. Sometimes, they do painting jobs for other nonprofits such as museums, in return for free tickets or a pizza party. “It’s a subtle way to engage them with the community,” she says.

Teamwork is a strong emphasis of the youth program.

Twice a year, female crews are recruited to assure that hormones don’t get in the way of the learning experience. The organization also actively recruits “new Americans” for all of its sessions. Since Utah is a federally designated resettlement state, many youth now come from families who emigrated from countries as far-flung as Afghanistan and Somalia. To date, more than 1,800 youth have graduated from the program.

“We define success as completing high school, staying out of the court system and – once they graduate – either enrolling in college or getting a job,” says Garciaz. Program participants are surveyed a year after they graduate from YouthWorks, but she knows that the impact has longevity. One group of about 100 graduates was contacted 10 years later, and 80 percent owned their own homes, with many starting their own businesses.

“This isn’t the kind of program that produces immediate results, and it will never be economically self-sufficient,” says Garciaz. “But think about it. Seventy-five percent of our kids are poor, often from families of color, who aren’t reached by any other program. They’d be lost to the streets without YouthWorks. What better investment is that?”

Written by Pam Bailey, communications writer for NeighborWorks America.

‘Families and friends’ good for social support, not housing advice

By Pam Bailey, communications writer for NeighborWorks America

It’s been five years since the full force of the Great Recession hit the United States, with a combination of risky mortgages and declining housing prices forcing approximately 4.6 million families into foreclosure. While more than 13 million households are still underwater, saddled with homes worth less than their mortgage loans, the crisis is losing steam. Foreclosures fell 3 percent in 2012, according to RealtyTrac, and this year is looking even better. In October, foreclosure filings were 28 percent lower than the same month in 2012.

Still, many families are still struggling, and making smart choices will continue to be critical for both the next wave of new house buyers and existing owners working to hold on to their homes. In the aftermath of the crisis, are people now equipped with the information they need to negotiate the right mortgage, as well as to make other pivotal choices? If not, do they know where to go to get help that can be trusted?

To learn the answers to those and related questions, NeighborWorks America commissioned a nationally representative survey of 1,000 adults, which was conducted by Widmeyer Communications, a Finn Partners company, Sept. 23-26.  Among the many findings: Seventy-five percent of adults describe the the home-buying process as "complicated," and a quarter (24 percent) admitted to not being knowledgeable about the different kinds of mortgages.

So where, then, do they turn for advice when buying a house or avoiding foreclosure – a decision that is usually among the biggest financial choices they will make in their lifetimes? More than any other source, “family and friends” are relied upon most often.

When respondents who said they are considering buying a house were asked where they go to first for advice, more than a third (39 percent) cited family and friends who had already purchased a home. Distant runners-up were the Internet (17 percent) and real estate agents (16 percent). Far behind were housing counselors and (more specifically) non-profit homeownership advisers (3 and 5 percent, respectively).

The patterns for seeking information on foreclosure prevention are similar.  Individuals are most likely to turn to family, friends and co-workers (30 percent), followed by the Internet (27 percent), real estate agents (26 percent) or mortgage lenders (23 percent). Just 17 percent of respondents reported they are “very likely” to consult with a housing counselor. The reliance on friends, family and co-workers is especially seen among adults under 55 (37 percent) – particularly women.

Advantages of nonprofit housing counselors

There is nothing wrong, of course, with calling upon your social network. In fact, much research has documented the importance of family and friends in helping individuals cope with all sorts of stress. However, rarely are they professionals in the field of housing or banking, and even when they have gone through the process of home buying or loan modification themselves, each family’s financial situation is unique, not to mention the fact that rules vary depending on the lender and the timing.

“Having a supportive family is wonderful, and the Internet offers a wealth of information,” says Rose Marie Roberts, an advisor with the NeighborWorks Homeownership Center in Utica, NY. “But I wouldn’t go from there to action.” For example, when trying to prevent foreclosure, she notes, “rules and available programs, plus the related legal aspects, change almost daily. It’s a challenge to stay on top of them. But that’s the job of a housing counselor.” (Roberts talks about foreclosure counseling in a NeighborWorks America video.)

With the Government Accountability Office reporting that complaints about fraudulent “foreclosure rescue” schemes jumped from 9,000 in 2009 to more than 18,000 in 2012, it’s critical to have a professional advocate on your side. (Since 2007, NeighborWorks America has managed, at the request of Congress, the National Foreclosure Mitigation Counseling program. It funds more than 1,700 agencies that have assisted nearly 1.6 million homeowners struggling to stay in their houses – without charging a fee. In fact, one sure sign of a scam is an individual or program that attempts to charge for this service. Yet, the survey found that slightly more than a third – 33 percent – of people think that free help is not as good as counsel that you pay to receive.)

A nonprofit housing counselor can help head off
trouble during the complicated home-buying process.

While realtors and mortgage lenders are essential advisors as well, housing counselors with nonprofit organizations such as those that are supported by NeighborWorks America take a holistic approach to each client’s situation – helping them evaluate far more than how much a particular house is worth, which mortgage they can afford or whether they are eligible for re-financing.

“For example, some of the residents in our community are attracted to the less-expensive homes one county over,” recounts Letty Plasencia, a counselor with NeighborWorks Orange County (CA). “But you have to look at more than the sales price. How much time and money will it take to commute to your job, for instance?”

There is hard data showing that pre-purchase counseling by a trained counselor works. A study conducted of 75,000 loans originated between October 2007 and September 2009 showed that clients receiving pre-purchase counseling and education from NeighborWorks organizations were one-third less likely to fall behind on their payments during  the two years after receiving their mortgage.

It’s not surprising that most people don’t think first of turning to a nonprofit housing counselor. Most local organizations do not have the budget for extensive public education. (One of the most successful national campaigns was the “Nothing is worse than doing nothing” campaign launched by NeighborWorks America and the Ad Council, centered on a series of public service announcements for broadcast. Another is the Loan Modification Scam Alert website and hotline.) Instead, local organizations typically rely on referrals and word-of-mouth. The good news is that clients do spread the word to friends and family. And many states and organizations, such as unions, have institutionalized referrals to housing counselors for residents or employees who find themselves underwater.

“In New York, lenders are required to notify homeowners in trouble,” says Roberts. “The problem is that they often don’t trust the lender by that point, or they assume they are a lost cause and no one can help them. I’d say 75 percent of the time, we get these individuals late in the game, from a lawyer or Supreme Court judge who handles settlements.”

The challenge for housing organizations is to build and better leverage relationships with a diverse array of other community stakeholders, such as schools and health clinics, to spread the word about their services to people before they need it. (And of course, expanded demand would require increased staff.) It is clear, counselors agree, that the best time to see a housing adviser is early on, prior to any critical decision-making.

Kevin Washington, a counselor with Neighborhood Housing Services of New York City (NHS-NYC) who specializes in foreclosure intervention, gives this example: “By the time people get to me, they often have gotten advice from a neighbor down the block who has been through foreclosure before, and they end up getting further in trouble. For example, sometimes these clients close all of their accounts down to pay off their debts, but that’s very bad for their credit scores. Plus, you’ll need some money to cover down payment and closing costs (to buy a more affordable house). You don’t need to pay off your debts; you just need to make the required payments. If they get to us too late, and they’ve already made mistakes, they have to wait even longer (to buy) so they can build their assets back up again.”

But perhaps Ruth Pena, another counselor with NHS-NYC, sums up the value of a housing counselor the best: “We create an action plan, and then hold (our clients’) hands through the entire process. Who else will do that?”

Missouri group revitalizes neighborhoods with mixed-income housing and urban orchards

When we hear about declining downtown districts beginning to become trendy again, it’s good news. But there’s usually a downside: As property values shoot up, affordable housing becomes scarce and low-income residents are pushed out.

That’s the challenge faced by Kansas City, MO. And the Westside Housing Organization – a NeighborWorks member celebrating the 40th anniversary of its founding this year – is determined to assure that affordable housing remains central to the downtown community’s identity.

Westside serves a primarily Latino population, a demographic that first began making its way to the city in the 1920s and ‘30s for jobs with the railroad, explains Executive Director Gloria Ortiz Fisher, whose own family emigrated from Mexico. The organization was founded in 1973 to lead residents’ fight against the loss of their homes to two new highways. Although they lost that struggle, Westside (named for the neighborhood on the west side of the city’s downtown district) developed into a strong local advocate for residents, and is today the only community development corporation in Kansas City for which a significant focus is Latinos.

As the railroad declined, so did the town’s economy, with the West Side’s working-class residents finding employment in restaurants, hotels and similar, small, service-based businesses. However, that all changed in 2009 when the Sprint Center – an indoor arena for concerts and other entertainment -- was built downtown, followed by a host of other attractions.

“The West Side is now a desirable place to live again,” says Fisher. “There are new businesses coming in and lots of creative artist types. Our focus is to make sure affordable, multi-family housing remains in the mix.”

Westside is headquartered
in a renovated firehouse,
rehabbed to green
standards.

Westside has long been in the business of developing affordable housing to nurture mixed-income neighborhoods. In the 1980s, Westside Housing began acquiring and rehabbing older apartment buildings in the neighborhood, and now has a portfolio of 165 rental units. The organization also facilitated the development of 120 new, affordable houses. Today, it is accelerating that work and hopes to double its rental units to 300. Meanwhile, Westside is eying an old high school, long since closed as young families left the urban core, which it would like to acquire for housing as well as community space. Energy-efficiency is emphasized during construction, both to keep residents’ utility bills low and continue its leadership role. (In December 2012, Westside was recognized as a NeighborWorks America Green Organization.)

“We operate with an average 98 percent occupancy,” says Fisher. “There is always a waiting list.”

Still, it’s a challenge, and many working-class families from the West Side neighborhood are moving to less-expensive homes to the historic northeast district. So, Westside has expanded to serve them, since an older community development corporation in that neighborhood had closed down.

Two residents of the neighborhood water
one of the orchard's trees.

“You can get a house there for $35,000, but there is a lot of crime, and 25 percent of the buildings are abandoned or vacant,” says Fisher. “It’s a good place for fearful immigrants to stay under the radar.”

To help prevent crime through greater community engagement, Westside is recruiting resident leaders to organize clean-ups, advocating for sidewalk construction, starting community gardens and partnering with the police department to implement a program called “Crime Prevention through Environmental Design,” including window repairs and the trimming of shrubs and trees that can hide illicit activity.

One of its more creative projects is an urban orchard designed to accomplish several goals – increase resident engagement (and thus discourage crime), encourage sustainable living and alleviate the “food desert” the area had become. In partnership with SkillsUSA (a nonprofit that trains students in vital job and leadership skills) and TimberlandPro (a footwear manufacturer), and with the help of neighborhood volunteers, Westside Housing planted a 2.5-acre orchard in an empty grass lot behind a community center. Nearly two years later, the orchard is home to more than 200 fruit trees and berry bushes. The trees and shrubbery help improve the poor urban air quality and mitigate storm water runoff, and Westside offers the fruit free for all residents.

“I don’t see broken windows when I walk through a community,” says Fisher. “I see opportunities.”

If you'd like to see for yourself the good work Westside Housing is doing, attend the NeighborWorks Training Institute in Kansas City, MO! At the Dec. 11 symposium, "Real-World Solutions for Community Transformation," one of the "mobile workshops" will be held at its facility.

Written by Pam Bailey, communications writer for NeighborWorks America. 

Wisconsin group to transform old armory to indoor farm staffed by returning vets

When NeighborWorks Green Bay (WI) bought 815 Chicago St. in 2002, the organization assumed it would rehabilitate the building, like the others it purchased, into multi-unit housing. What wasn’t known at the time, however, was that the building, an old armory that long ago served the needs of local military families, had 14-inch-thick cement slab floors that made the cost of redevelopment prohibitively expensive. So the building sat vacant, waiting for the day when it would be demolished.

Workers clear debris from the old armory.

Today, after the better part of a decade spent in a holding pattern, there is budding hope that the old armory will get its long-deserved rebirth. As part of a partnership between NeighborWorks Green Bay and local green agro-businesses, the old armory is being assessed for its potential as Green Bay’s first indoor farm. The idea sprouted after Noel Halvorsen, executive director of NeighborWorks Green Bay, participated in a local social-innovation leadership program and learned about creative urban farming projects around the country. Shortly thereafter, Halvorsen was contacted by local hydroponics specialists who also saw potential in the armory.

Research now is underway to
determine what crops would
grow best in the "Farmory."

When completed, the “Farmory” – as it has come to be known – will not only supply food locally throughout the year but will also operate as an agricultural learning center with a focus on training returning veterans.

“We think converting the armory back into service as a training center for military folks returning from overseas would be a great life for the building and an asset for the neighborhood,” Halvorsen says.. The project is undergoing rigorous business planning and analysis to test its feasibility and the results to date are promising. NeighborWorks Green Bay hopes in the next few months to have a full business plan and training curriculum in place, with construction well underway in 2014.

It is this kind of creative thinking that characterizes NeighborWorks Green Bay’s success in the northeast region of Wisconsin it serves. The organization, which is celebrating its 20th year as a member of the NeighborWorks network, started out as a small-scale local initiative that offered tool lending, homeownership preservation and small “scrape-and-paint” projects. Over the years, the geography it serves has grown, as has its local partnerships and programming.

For example, another creative local project that NeighborWorks Green Bay is spearheading is a volunteer time bank.  The time bank, led by a team that the organization sent to NeighborWorks America’s Community Leadership Institute two years ago, is an online system for recording and rewarding volunteer exchanges, enabling local “Samaritans” to capitalize on their skills. For example, one person can exchange an hour earned walking a neighbor’s dogs to get his or her home repainted. The plan received initial support from a CLI planning grant and is in a test phase this winter to evaluate the software platform. Next February, NeighborWorks Green Bay plans to launch it publicly in select neighborhoods before hopefully introducing it community-wide in the summer.

By bringing together unique local assets through innovative projects and programs, NeighborWorks Green Bay is building a better community.

Written by Lydia Wileden, program specialist for community stabilization at NeighborWorks America. 

Forty-five years after founding, Pennsylvania group helps future homebuyers achieve ‘financial freedom’

When visitors walk into the NeighborWorks America offices in DC, one of the first images they see is a floor-to-ceiling painting of Dorothy Mae Richardson, along with the quote, “I believe people get their roots down when they own their own houses….take pride in them. That, in turn, is good for the whole city.”

Dorothy Mae Richardson

These wise words can be generalized to cities everywhere, but in 1968, Richardson – the “founding mother” of NeighborWorks America -- was speaking specifically about Pittsburgh, where she enlisted bankers and government officials to support her block club’s efforts to improve her neighborhood. Together, they persuaded 16 financial institutions and a local foundation to put up the loans needed to create opportunities for affordable homeownership. They named the program Neighborhood Housing Services, and it served as the model for other programs that followed -- today known as NeighborWorks organizations.

Forty-five years later, the NeighborWorks network encompasses more than 240 such organizations, and the group founded by Richardson is still going strong, known as NeighborWorks Western Pennsylvania. The dynamics of the community, however, along with the services needed by residents, have changed – and the organization has adapted along with it.

“More people own their own homes here now, thanks to our efforts,” says Margie Howard, education specialist with NeighborWorks Western Pennsylvania. “But we’ve realized that more than homeownership education and counseling are needed.  Residents also need help keeping their homes in good shape, staying out of foreclosure and managing their budgets to make it all affordable. In particular, we are serving a growing number of low-income, single heads of household. Race isn’t the issue here; economics is.”

While the organization has offered financial education for youth for the past five years, recent support from the Heinz Endowments has made it possible to expand its efforts to include the entire family, combating generational poverty.

 “We saw that parents weren’t teaching their children about money management – mainly because they themselves didn’t learn it,” Howard explains. “You see lots of instances of a mom spending $300 on shoes for her child, yet there’s a shortage of food in the house, or maybe the family is about to be evicted. It’s not just about teaching parents how to budget; it’s about changing attitudes and behavior around money.”

Youth don’t get financial education in the schools either, says Howard. “Schools are test- rather than life-skills-oriented.”

One of the youth financial-education classes

The organization’s youth financial-education program enrolls participants as young as 14 up through age 25, with instruction provided in four, one-hour classes. The program’s practical approach encourages participants to analyze real-life spending choices, such as getting ready for prom.

“The average girl realizes it will cost about $3,000 for a one-day event; for boys, it’s more like $1,000.  Many are okay with these figures when it’s their parents who foot the bill,” explains Howard. “But then they are asked what will happen if their mom has been laid off, or is working a minimum-wage job. How will she afford that while keeping up with the bills? Some of the students find ways to cut back like having a friend style their hair or using a parent’s car instead of renting a fancy one. Others decide to skip the prom altogether. The goal is to teach them to analyze their wants vs.  their needs. We see how their thinking changes when they realize they might have to pay for things themselves.”

The key, says Howard, is to separate spending from emotional triggers, starting with tracking where the money is going with a daily log. Ideally, major spending decisions should be made collectively, by the entire family.  Although teenagers typically prefer to attend workshops with youth from their own age group, family members from different generations are encouraged to come to one of the workshops together. Howard recalls one time when a 10-year-old girl came with her mother to a class because she didn’t want to go to the gym with her brother. After the workshop, the little girl went up to the instructor and proudly reported that she had her own bank account. The teacher asked what the girl would do with the savings, and she replied, “I want to have a princess birthday party.”

“A 10-year-old is breaking the cycle by planning ahead to make sure she has the money she needs to meet her goals,” says Howard. “We’ve created a saver!”

Long-term results from the financial-capability workshops are still being assessed, but the anecdotes are promising. One recent evening, for instance, Howard was approached at a community event by Essence Howze, who completed the organization’s financial-education program five years before, when she was just 16. Always ambitious, Howze first began earning money at age 9, manning a refreshment stand in front of her home. “I would sell iced tea and lemonade to joggers,” she laughs.

Essence Howze

However, self-teaching could get her only so far. When she was in 10th grade, Howze saw a flyer on a bulletin board, promoting NeighborWorks Western Pennsylvania’s youth financial-education program. Howze enrolled, and the practical skills she learned, she says, enabled her to open her own savings account and enter community college, where today she is a sophomore studying business management. Always ambitious, she has supplemented her studies with extracurricular activities such as an internship with The Salvation Army’s Career Development Center, and recently started her own business -- which she calls “Silver Linings,” through which she helps others overcome personal barriers like those she faced during a troubled family life.

“Taking the NeighborWorks financial-education course gave me my financial freedom. It helped me avoid so many mistakes, and now I’m helping others,” Howze says, recalling how she showed her college roommate how to read the “fine print” when a credit card company tried to sign her up. “I refer back to the materials I got in those workshops all the time. It wasn’t just financial management I learned..it was empowerment.”

Written by Pam Bailey, communications writer for NeighborWorks America.