IRS FORM Urban Community Economic Development Corporation (UCEDC) EIN: PRIMARY MISSION:
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1 IRS FORM 1023 Urban Community Economic Development Corporation (UCEDC) EIN: PRIMARY MISSION: COMBAT COMMUNITY DETERIORATION UTILIIZNG A MARKET BASED COMMUNITY ECONOMIC DEVELOPMENT MODEL: Part IV: Narrative Description of Activities Urban Community Economic Development Corporation (UCEDC) will utilize a market based community economic development model using local and regional markets to positively impact the economic, environmental, and social dimensions of the Greater North West Corridor in West Palm Beach, to include Coleman Park and the Historic Northwest District. The three areas of activities will be: small business development, workforce development and community economic development. The primary mission is to develop and improve low-moderate income communities and neighborhoods through economic and related development; whose activities and decisions are initiated, managed, and controlled by the constituents of those local communities; and whose primary function is to act as the master community economic developer and packager of projects and activities that will increase their constituencies opportunities to become owners, managers, and producers of small businesses, affordable housing and jobs designed to reduce poverty, unemployment and curb blight in the Greater North West Communities of West Palm Beach and other targeted communities. Activities of a UCEDC may include projects that promote business development, access to capital for local entrepreneurs, real estate development, small business development, commercial revitalization, housing development and other issues that foster the economic growth and development of the targeted communities. The UCEDC market based community economic development model will utilize market forces (integration of inner city assets into local and regional economy, to include key assets of consumption and labor) to support business formation and job creation, with significant improvements in local environmental conditions and improvements in the social conditions, such as poverty and unemployment. UCEDC will attract substantial financial investment, business expertise and bring commercial discipline to projects in the Greater North West Corridor (to include Coleman Park and Historic Northwest District) and other low-moderate minority communities that will ensure community reinvestment and revitalization.
2 Activity 1: Community Economic Development UCEDC will carry out or support community economic development projects designed to improve the quality of life for residents in underdeveloped minority communities of Greater Northwest West Palm Beach, to include Coleman Park and Historic Northwest District. UCEDC will carry out activities within a target area that develop and improve low-moderate income communities and neighborhoods through economic and related development activities that will increase their constituencies opportunities to become owners, managers, and producers of small businesses, affordable housing, and jobs designed to reduce poverty and unemployment, increase neighborhood sustainability and curb blight in the targeted communities. Such activities are designed to improve the economic conditions of the Greater North West communities of West Palm Beach and other underserved communities through business, commercial revitalization, low-moderate income housing development and other needed community-based activities. Project activities include, but are not limited to, the following categories of activity types. The activities listed below represent a sample of UCEDC community economic development activities. Community Economic Development Strategic community economic development planning activities Needs assessments, cluster analysis and feasibility studies to determine economic development projects Commercial revitalization projects such as light industrial, mixed use and retail Specific business development projects that create or upgrade wage of jobs within a targeted area/community Community education and involvement activities that engage the target community in the development process for improving the economic development needs of the community Community-based financing activities and/or projects Wealth-building and entrepreneurship initiatives Housing Development Housing development projects within targeted underdeveloped neighborhoods (includes new construction as well as rehab revitalization) Housing counseling and education programs aligned with housing construction objectives Planning and Organizational Development Strategic planning and follow-up activities designed to develop and implement long-term plans Planning for project initiatives Organizational development activities leading to increased project activity Page 2 of 10
3 Activity 2: Workforce Development Labor is one of the greatest assets for distressed low-moderate income communities. UCEDC will utilize a multi-faceted approach which addresses the range of factors impacting on the ability of the workforce to function with maximum results. UCEDC Workforce Goals and Objectives: Increase the capacity of local leaders, organizations, and schools to create, recruit, and retain businesses and industries. Enable communities to identify key stakeholders and to work cooperatively to devise a plan to ascertain community assets to solve workforce-related problems and to strengthen community capacity. Strengthen the capacity of individuals to (a) secure employment, (b) re-enter the workforce, and (c) remain employed. Support the efforts of schools and businesses as they work together to provide career exploration opportunities for young people preparing to enter the workforce. UCEDC Workforce development will target programs and policies that promote the mastery of new job-related knowledge and skills, access to employment opportunities, and real jobs. UCEDC Workforce development programs will help support a range of strategic objectives from enhancing economic growth to targeting specific industry clusters that will lead to increased job creation for the Greater North West communities of West Palm Beach and other under served communities. UCEDC workforce development program will meet the education, training, and employmentrelated needs of a targeted group of learners. It also focuses on putting in place a supportive policy and institutional environment so that learners gain access to jobs and employers benefit from increased workforce productivity. The following is the foundation and principals to the UCEDC Workforce Development Program: 1) Construct Linkages with Private Sector 2) Establish Employment Linkages 3) Develop Labor Market Assessments 4) Develop School to work transition programs 5) Develop job placement and career counseling programs 6) Organize Training Provider/Employer Partnerships 7) Conduct Cluster (Industry) Analysis 8) Design and Implement Relevant Workforce Education and Training Strategies Page 3 of 10
4 Activity 3: Small Business Development (Technical Assistance); Provision of Technical Assistance to Small Businesses located in the UCEDC low-income primary service area. The applicant proposes to provide increased access to capital and technical assistance to Small Businesses located within the Greater North West (to include Coleman Park and Historic Northwest District) and other key under served communities to encourage and promote the hiring of low-moderate income residents in the targeted communities. Technical assistance will be provided to small businesses in order to access capital, assist in government compliance, and increase efficiency, in order to provide employment opportunities for low income residents and economically stabilize the community they serve. The development of local-based businesses in the community is illustrated by Census data showing that only 5% of the area residents reported receiving self-employment income, 100% lower than the local and national averages of 11-12%. The employment of local residents is a community concern as 15.7% of the UCEDC residents receive public assistance income which is over 250% of the local average (6.0%), and 450% of the national average (3.4%). The need for assistance for Small Businesses has been recognized by the current Obama administration with funds allocated to ARC loans which have been directed to lenders for guarantee by the U.S. Small Business Administration. Despite the massive federal subsidies given to the United States major financial institutions (Bank of America, Wells Fargo, etc.), and subsequent repayment, there is a growing concern that the smaller community based financial institutions have not received adequate Federal proceeds in order to remain a viable provider of financial services to local residents and small businesses needing capitalization. The Applicant through the technical assistance provided by the Small Business Development activity hopes to connect a path from the Federal Subsidies on Wall Street to the low income residents and mom and pop businesses in under served communities. Who will conduct the activity: The UCEDC activities will be conducted by the staff of the UCEDC. UCEDC may potentially partner with private and government entities, and/or similar 501c3 non-profit entities which have the common cause of the UCEDC to promote and advance community economic development for low income residents. Where is the activity conducted: The primary focus area bounded by the Greater North West community within the City of West Palm Beach municipal boundaries and incorporated Palm Beach County. The UCEDC primary activity area of the Greater North West community shall be defined as follows: Communities of Coleman Park -Historic Northwest District and surrounding low-moderate income communities. UCEDC will also conduct community economic development activities in distressed low-moderate income communities outside of Greater North West community when capacity will allow such activity. Page 4 of 10
5 How does the activity further your exempt purpose: The community economic development activities will further the Applicant s exempt charitable purpose of providing relief for the poor and distressed communities. All of the applicant s activities shall be for the purpose of furthering the Applicant s exempt charitable purpose of combating community deterioration in that (1) the Applicant will operate in an area with actual or potential deterioration, and (2) the Applicant s activity will directly prevent or relieve that deterioration. What percentage of your total time is related to the activity: 100% of the Organizational focus will be related to UCEDC Community Economic Development activities which furthers the Applicant s exempt and charitable purpose. How is the activity funded: The proposed UCEDC activities shall be funded through many proposed sources. Potential sources include but are not limited to: financial institutions, federal funds received from local and state jurisdictions, application and subsequent receipt of grants awarded to non-profit entities and philanthropic donations from foundations. Alternate names under which the organizational entity may operate: N/A Website address and sample homepages supporting proposed activity: currently home pages are unavailable. Page 5 of 10
6 Part 5 - Answers to 1023 Application Part V 3b: Do any of your officers, directors, trustees, highest compensated employees, and highest compensated independent contractors receive compensation from any other organizations, whether taxable or non-taxable, that are related to you through common control? No Part V 5a: The Conflict of Interest Policy is attached. It was adopted by a Resolution of the Applicant s Board of Directors. Part VI 1a: Part 6 - Answers to 1023 Application UCEDC will be provided community economic development services to low-moderate income individuals as described in statement of activities. Example of specific good/services are as follows: affordable housing product and counseling to low-moderate income residents, small business loans and counseling to individuals who will place their business within targeted low-moderate income communities, workforce training for residents of targeted low-moderate income communities and financial literacy training. Part VI 1b: UCEDC will provide organizational development training to community organizations located within targeted low-moderate income communities. Part VI 2: The provision of affordable rental housing will be limited to low-moderate income individuals as that term is used in the affordability regulations adopted by the United States HUD for its HOME program (24 CFR ). Technical assistance to Small Business will be limited to those located in low-moderate income communities and have a commitment to hire low-moderate income residents for employment. Page 6 of 10
7 Part 8 - Follow-up Answers to 1023 Application Part VIII 4a: Do you or will you undertake fund-raising? Mail Solicitations: UCEDC may send targeted sponsorship letters to civic leaders, philanthropists, and affordable housing advocates who are committed to the UCEDC goal of promoting community economic development among low-moderate income residents. Solicitations: Through the use of electronic communications and written attachments, UCEDC may tend targeted sponsorship letters to civic leaders, philanthropists, and affordable housing advocates who are committed to the UCEDC goal of promoting community economic development among lowmoderate income residents. Personal Solicitations: UCEDC Board members, officers, directors, staff, through their professional associations may solicit funding from private relationships with individuals and/or corporations, solely for the charitable and educational activities stated in the corporate purpose of the company s articles of incorporation, with a specific focus on the provision of community economic development to lowmoderate income residents. Website Solicitations: Proceeds will be accepted electronically through a host website, (to be developed), which also give donors insight into the goals and objectives for the UCEDC and our corporate purpose. Government Grant Solicitations: UCEDC will actively seek out and apply for all grants which coincide with the proposed activity of community economic development. Grants shall be solicited from Federal, State, and Local jurisdictions, of which UCEDC has been determined as a qualified applicant. While the applicant will use a variety of solicitation methods for fund-raising, none of these efforts shall require or utilize the services of a professional fundraiser. Part VIII 5: Are you affiliated with a governmental unit? No Part VIII 6a; Do you or will you engage in economic development? The primary economic development activity of the organization will be community economic development as outlined in statement of activities that benefit low- moderate residents. Page 7 of 10
8 Part VIII 6b: Describe in full who benefits from your economic development activities and how the activities promote exempt purposes? The primary beneficiaries of the UCEDC economic development activities will be low-moderate income individuals seeking housing, small business and workforce development assistance within the primary focus area of which the UCEDC will service. Part VIII 11: Do you or will you accept contributions of: real property; or collectibles of any type? If Yes describe each type of contribution, any conditions imposed by the donor on the contribution, and any agreements with the donor regarding the contribution. Our organization will accept contributions of real property as well as items of value which may be given to the UCEDC on a philanthropic basis. Currently we do not have any agreement(s) with any potential donors. UCEDC will not accept any asset, under any condition imposed by the donor, which may undermine our organization s exempt activity and mission and purpose to provide affordable housing and community economic development opportunities in the communities of which we will provide services. The typical donations of which we anticipate we will accept are as follows: Real Property, Cash, Automobiles, Professional-in kind services (website development, accounting, legal services, etc.) Page 8 of 10
9 Schedule F - Follow-up Answers Section 1 Question 1: Describe the type of housing you provide? The Applicant will acquire and substantially rehabilitate dilapidated apartment buildings and lease the units to low income persons at affordable rents. In addition, UCEDC will participate in partnerships that engage in mixed-use, single-family and low income housing projects that impact low-moderate income residents. Section 1 Question 2: Provide copies of any application forms you use for admission? No projects are yet under development. Section 1 Question 3: Explain how the public is made aware of your facility? The public will made aware by word of mouth and possibly by listings on websites maintained by the Applicant. Section 1 Question4: Provide a description of your facility? No projects are under development Section 1 Question 5: Attach a copy of your homeownership contract or agreement Currently there are no properties leased or for sale; and thus there are no existing written lease agreements or sales contracts. Section 1 Question 6: Do you participate in any joint ventures? Applicant will participate in joint ventures in the areas of housing; small business and community economic development when capacity is limited to allow fruition of projects to be completed that will benefit low-moderate income residents in target area(s). Section 1 Question 7: Do you or will you contract with another organization to develop, build, market, or finance your housing? Yes, The Applicant will be the developer. A licensed general contractor will be retained by the Applicant to do the construction. The general contractor will be chosen through a competitive bid process. Page 9 of 10
10 Schedule F - Follow-up Answers Section 1 Question 9: Do you participate in any government housing programs? Yes, In order to keep the rental units affordable to low-moderate income persons the Applicant will be relying on subsidized financing provided by various public sector sources. Both the City of West Palm Beach and Palm Beach County are recipients of federal affordable housing funding provided to them by United States HUD including HOME, CDBG, HOPWA, Neighborhood Stabilization Program, etc. Local governments make these funds available to nonprofit developers of affordable housing. Additional subsidized financing may be available from the State of Florida (the Florida Housing Finance Corporation). Section 1 Question 10A & 10B: Do you own the facility? How did you acquire the facility? The Applicant has yet to undertake its first project. It plans to acquire, rehabilitate, and own rental apartment buildings Section 3 Question 1: Do you provide low-income housing? Any low-moderate income person will be eligible to apply for the Applicant s affordable housing programs provided he or she meets the income eligibility guidelines. In leasing rental units and setting rents the Applicant shall fully comply with all of the requirements contained in the affordability regulations governing funding under the HOME program of United States HUD as found at 24 CFR Section 3 Question 3a: Is your housing affordable to low income residents: The Applicant will provide affordable housing to low-moderate income residents through recorded restrictive mortgage covenants for the homeownership opportunities. Properties which the applicant will rent will be made affordable to low-moderate income residents through government subsidized financing for the acquisition and rehabilitation of the units. Page 10 of 10
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