NEIGHBORHOOD REVITALIZATION PLANNING What is Your Definition of
NEIGHBORHOOD REVITALIZATION PLANNING
What is Your Definition of A Neighborhood Revitalization Plan? A Neighborhood Revitalization Plan crafts a Vision for a defined geographic area that provides a path to improved quality of life for existing and new stakeholders. After analysis of physical and market data and stakeholder input, the Plan identifies a range of interventions to realize the Vision. An Actionable Plan must answer the following: How will the interventions be prioritized? How will they be funded? Who is going to do the work?
Principles for Neighborhood Revitalization • Focus on Great Product. Moderate- & middle-income homebuyers who are willing to live in central city neighborhoods but want a high quality home. • New homeownership development within the context of a neighborhood revitalization plan can anchor the economic recovery of neighborhoods. • Development should be at the scale of 50+ units of new homeownership opportunities, especially new construction. • Developers must serve existing homeowners with as much care as those buyers they seek to attract. • Developments must compete with suburban development with VALUE, not by imitating suburban home styles.
Neighborhood Revitalization Planning Process 1. Identify Target Area 2. Seek Stakeholder Input -- Before During and After 3. Inventory and Assess Existing Conditions: physical, ownership, market 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. Develop Neighborhood Vision Identify Target Markets Identify Leadership & Implementation Organization Determine Range of Products & Services Develop a Land Use Plan Select a Implementation Team Generate Budget For Each Intervention (Project or Program) Fundraising Plan Acquisition Plan Make The Conceptual Sale EVERYDAY!
1. Identify Target Area • Keep it concentrated and manageable at 12 blocks or less • Make use of natural boundaries • What is its strategic importance? Is there a “there” there? • Review past plans & efforts • Leadership Matters. Gauge political forces affecting area
2. Seek Stakeholder Input – Before, During & After Before: Get Blessed by Stakeholders: • Elected Officials (City, State and Federal) • Neighborhood Residents • Neighborhood Organizations and Businesses • Local Government Agencies such as: housing, redevelopment, planning, tax assessor, city attorney, public works • Prospective Funders and Lenders
3. Inventory Existing Conditions Assemble Empirical and Perceptional Data • Property Conditions Survey • Existing Conditions Map • Property Ownership & Condition Database • Neighborhood Market Analysis • Stakeholder Interviews
Existing Conditions Map
3. Inventory Existing Conditions: Market Study • If doing large # of units, pay a third party • Avoid a standardized “data dump” or LIHTC formulaic analysis • Be very clear about what questions you want answered • Seek a 2 -step process if possible: – Depiction of the market and reaction to initial project concept – Reaction to final project concept
3. Market Study: Findings & Recommendations • Existing Property Values As-Is. Provides Basis for Property Acquisition Budget. • Anticipated Values As-Completed • Assets to Build Upon • Liabilities to Mitigate and Manage • The Mix of: – – Product Amenities Incentives and Marketing Approach
4. Develop Neighborhood Vision Paint the Picture of Revitalization: At the end of 5 years as a result of our work the neighborhood will…. – Physical: property and environment – Economic: retail, businesses, work force – Cultural – Community Quality of Life
Vision for Kingsessing Heights will emerge as a neighborhood of choice for people who earn a range of incomes. New homes and green space will promote a healthy environment and energy efficiency. Neighbors will embrace Civility in sustaining their community.
Neighborhood Revitalization Site Plan
5. Identify Target Markets (whom you seek to serve) • Needs of existing homeowners • Needs of existing renters • Unmet demand for affordable & market rate homeownership • Household segments likely to be drawn to project area
6. Identify Leadership & Implementation Organization Executive Sponsor (s): Fundraiser-in-Chief (corporate leader, elected official, faith-based leader, community rainmaker) Implementation Manager: Day-to-Day Manager (CDC, local government, private developer)
7. Select a Team of Professional Service Providers • • • Architect / Land Use Planner Surveyor / Civil Engineer Title Agency Environmental Consultant Lawyer
8. Determine Range of Products & Services to Be Provided • Acquisition & Demolition of Blighted Properties • Infrastructure improvements • Homeownership Production - new construction and/or purchase rehab • Rental housing new & rehab, especially for seniors • Existing Homeowner Rehab • Homebuyer Education & Down Payment Assistance • Public Amenities: Parks, Playgrounds, etc. • Community Commercial Real Estate
9. Implementation Team Who’s Going to Do the Work? • Property Acquisition is the Highest Priority • Distinguish between Projects, Programs and Services • Determine a protocol for selection and quality control of developers and/or service providers • Use contracts. • You get what you pay for.
10. Generate Budget for Each Intervention • Identify costs for each Project or Program • Every Project or Program should have a budget that details Sources and Uses
11. Acquisition Plan • How to purchase? Public conveyance, private purchase, condemnation? • Budget based on Property Database & Acquisition Benchmarks provided by Market Study • A pool of patient, unrestricted funds is critical to achieving scale • Partnership with municipal land owners (land banks)
12. Fundraising Plan USE SOURCE Acquisition & Predevelopment Grants from non-income restricted sources Equity Investment and/or Revolving Credit Line to be taken out with subsidy, construction loan settlement and/or sales proceeds Appraisal Gap including: – Acquisition and Site City Neighborhood Transformation Initiative State Department of Community and Economic Development Grants Pennsylvania Housing Finance Agency Homeownership Choice Program Congressional Earmark via HUD Economic Development Initiative subsidy Preparation – Infrastructure Improvements – Hard and Soft Cost Affordability Gap: – Mortgage buy down – Down payment & closing cost assistance City of Philadelphia Community Development Block Grants Federal Home Loan Bank Affordable Housing Program City of Philadelphia American Dream Down Payment Assistance Program University of Pennsylvania Down Payment Assistance Program Foundation Grants
Revitalization Plan Success Factors • Wait to Acquire as much property as possible and then build at Large Scale for Optimal Impact • Commission a customized market study • Cultivate a Fundraiser-In-Chief Executive Sponsor • Identify & Empower Implementation Manager to implement and manage. • Raise a pool of unrestricted, patient funds for predevelopment & land assembly • Do mixed-income housing • Invest in marketing. Make the Conceptual Sale Every Day.
Planners and Implementers Jeremey Newberg, President, jn@capitalaccessinc. com Wendy Smith, Senior Consultant, wks@capitalaccessinc. com www. capitalaccessinc. com 215 -551 -2000
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