Living Cities Reinventing Philanthropy to Serve Poor Communities

Living Cities: Reinventing Philanthropy to Serve Poor Communities Prof. Avis C. Vidal Humanities Center Seminar October 1, 2013

Evolution of Living Cities � 1991 – 2001 - National Community Development Initiative � 2001 -2007 - Living Cities: The National Community Development Initiative � 2007 - present - Living Cities

Context: The Urban Crisis � Inner-city housing abandonment rampant in 1970 s � Community development corporations (CDCs) form to respond � High-profile issue in Presidential campaign of 1980 � ~1980 – National Community Development Intermediaries founded: ◦ Local Initiatives Support Corporation (LISC) ◦ The Enterprise Foundation ◦ Neighbor. Works

Context: the 1980 s � Intermediaries � CDC successful Movement Grows ◦ Number of CDCs grows sharply ◦ Some CDCs very successful – ‘housing first’ � Most CDCs too small for neighborhood-level impact Field remains unrecognized � Rockefeller to scale” Foundation: “Take CDC movement

NCDI – Round I � 7 philanthropic & corporate funders � $62. 5 M for 1 st three years (Goal: 10 years) � Virtual organization ◦ Funder CEOs are the virtual Board ◦ Commitment to collaborative decision-making ◦ Oversight by one consultant (later with a Deputy) as ‘Secretary’ ◦ Administered by LISC and Enterprise in 20 cities (later 23)

Key Strategic Tasks � Attract new capital by attracting new partners ◦ All sectors grants and loans ◦ National and local ◦ Goal: $250 M over 10 years � Refine program scope – participating cities have different needs, priorities, and capacities � Build capacity of CDCs � Build local systems of support

Attract Capital and Partners � HUD becomes partner (Section 4 - 1993) � National partnership grows: 11 foundations + 6 major financial institutions � Total funds committed: $253. 7 M � Leverages $2. 23 B in CDC real estate development projects � Parallel growth at local level ◦ Match for NCDI funds ◦ Key players at table to build support systems

Refine Program Scope � Tailor program focus to meet local needs ◦ Neighborhood needs ◦ CDC capacity ◦ Funder tolerance for risk � Gradually broaden support to include new CDC activities – locally driven ◦ Affordable home ownership ◦ Commercial and industrial real estate ◦ Community facilities

� Four ◦ ◦ Build CDC Capacity strategies Core operating support programs Formal capacity building programs Improved training programs Greater role for local or state CDC associations � Significant ◦ ◦ ◦ capacity gains Housing production increases sharply Number of consistent producers more than doubles Many CDCs broaden scope of neighborhood work National standards of practice widely adopted CDCs’ reputation improves locally

Build Local Systems of Support � Key problem: financing of affordable housing complex; need many funding sources � Basic strategy ◦ ◦ Local funders make decisions (programs & projects) Deepened understanding of the work Gradually developed relationships of mutual trust NCDI covered riskiest parts of projects � Systems outcome (uneven across cities): Private capital more available for CDC housing; productions systems streamlined; new support systems for non-housing activities

Assessment of National Partners � CDCs, supported by intermediaries, provide platform for comprehensive neighborhood improvement � Local systems of support critical � Collaboration among funders more capital, strategic deployment ◦ greater impact ◦ platform to try new approaches � Surprise decision: extend program, formalize organization

Living Cities: The National Community Development Initiative � Small staff led by formed Deputy Secretary � Funder board, committee structure to give funders leadership roles (“member driven”) � 3 -year funding cycle continues � Broader goals ◦ ◦ Improve lives of people in distressed neighborhoods Connect urban neighborhoods to regional economy Better use of information technology Shape public policy

The Cities Program � Structure from NCDI continues � Momentum continues to build ◦ Funding to intermediaries continues to rise – both grants and loans ◦ Loans an increasing share of total funds ◦ “NCDI” share of total development costs falls ◦ Volume of real estate development stimulated increases dramatically, becomes more diverse � Agenda still driven by intermediaries

New Agenda � Pilot Cities Initiative – 4 Cities ◦ Local funders design strategies to align resources (following national LC model) for comprehensive revitalization of neighborhoods ◦ No cross-cutting themes no lessons � Urban Markets Initiative - Close the urban information gap ◦ Better data on urban assets to simulate investment ◦ Neighborhood data available to CDCs, especially GIS � Policy Advisor

Assessment of National Partners � Platform created by collaboration not living up to its potential � Cities Program ◦ Proven record of success ◦ No new opportunities to test approaches to systems change ◦ Not member driven � Major restructuring to support more ambitious agenda needed

Living Cities � Broader Mission ◦ Strengthen neighborhoods by �Strengthening their cities �Changing public and private systems that create and sustain concentrated poverty ◦ Build knowledge �Program development and evaluation/research �Broad, transparent dissemination of information ◦ Develop leadership � New leadership, larger staff � New board structure – include members’ staff on committees and working groups

Broad Programming � Catalytic Capital (Private) � Leadership & Influence (Public) � Research & Development ◦ ◦ Green Economy Transit Oriented Development Asset Building Education � The Integration Initiative

The Integration Initiative � Ambitious 10 -year, 5 -city intervention � Build new civic infrastructure: “One table” collaborative leadership � Combines targeted neighborhood initiatives with broad systems change ◦ Move beyond delivering programs to changing systems ◦ Mainstream disruptive innovations ‘new normal’ ◦ Drive private market to serve low-income people � $83 M for first 3 years - $13. 75 M grants

Woodward Corridor Initiative � Anchor Strategy (Live, Buy, Hire Local) � New Housing & Real Estate Development � Land Use Policies & Practices � Education � Business development and regulation � Access to capital � Capacity & Leadership � Data & Evaluation