Equitable Development & Mixed-Income Communities Understanding Best Practices & Scenarios
Agenda I. TRF Approach to Community Development II. Philadelphia & Neighborhood Transformation Initiative III. Brewerytown Redevelopment Project
Mission The Reinvestment Fund builds wealth and opportunity for low-wealth people and places through the. promotion of socially and environmentally responsible development. Loans, equity Investments, and grants Capital Knowledge Innovation Information and policy analysis Products and partnerships that open new markets
Company Profile $500 million in cumulative investments and loans Currently manage $375 million in capital, with nearly 850 investors FY2006: More $88 million in loans and investments Business Lines: Housing Community Facilities Market Analysis & Planning Services Commercial Real Estate Sustainable Energy Private Equity
Company Profile
Approach to Community Development Guiding Principles Data driven Smart use of subsidy Market orientation Partnerships Investment planning Civic engagement Regional perspective Focus on learning Balance growth & equity
Implementation Conditions of Distressed Urban Communities Internal population migration & immigration Longstanding urban poverty levels Deteriorated physical conditions Declining federal support Shift in job centers locations High levels of sub-prime lending & foreclosures Poor civic organization Market stagnation & absence of private market Poor environmental quality High levels of crime & drug related activities Low levels of implementation capacity Poor educational & social services support Conflicted political conditions Reinvestment Principles Long-term Transactional Multiple and mixed Connected (assets: social, physical, political) Properly scaled and sequenced Dynamically adjusted to market conditions Reduction of Distressed Conditions
Philadelphia
Philadelphia s Assets Strategic East Coast Location Major Transportation Hub Colleges & Universities Vibrant Central Business District Diverse Housing Stock History, Arts and Culture Rivers and Parks
Philadelphia s Challenges Changed economy Population loss Housing abandonment Housing stock in disrepair Low household incomes Low real estate values Lifestyle preferences
Neighborhood Transformation Initiative Enhance Philadelphia s regional competitiveness Address blighting conditions in neighborhoods Create opportunities for development & stimulate private investment Preserve healthy neighborhoods
Market Value Analysis Aggregates and filters large amounts of data that are descriptive of the following: Physical features of the neighborhood Market activity in a neighborhood Credit capacity of an area to support and sustain reinvestment Social features of the neighborhood Helps inform public policy, guide allocation of resources, and uncover opportunities
Market Value Analysis (MVA) Creates a platform upon which housing and community development strategies can be built by showing where: Strong housing market appreciation is taking place evidenced by significant changes in values & incomes A dynamic housing market in which both disinvestment and appreciation may be occurring in close proximity to one another Significant disinvestment is happening and evidenced by a weak or stagnate housing market with elevated vacancy rates and abandonment
Types of Strategies Suggested by MVAs Asset Promotion A set of investments that facilitate and preserve the functioning of a healthy market Asset Preservation A set of investments that prevent or mitigate problems from taking root and spreading Asset Development A set of investments that capitalize on community assets & create conditions for market rebirth
Philadelphia Market Clusters Drill Down Regional Choice High Value Steady Transitional Distressed Reclamation Non Residential Transitional Up Transitional Steady Transitional Down
Brewerytown Looking Southwest
Neighborhood Conditions Brewerytown Drill Down Regional Choice High Value Steady Transitional Distressed Reclamation Non Residential Transitional Up Transitional Steady Transitional Down
Neighborhood Conditions
Neighborhood Conditions
Neighborhood Assets
Community Issues Impact of new development on property values and taxes Real estate speculation Affordable rental and for sale housing Scattered vacant houses and lots No supermarket and few commercial retail opportunities Access to construction jobs and business opportunities Public safety
Community Issues Impact of new development on property values and taxes Real estate speculation Affordable rental and for sale housing Scattered vacant houses and lots No supermarket and few commercial retail opportunities Access to construction jobs and business opportunities Public safety
Brewerytown Redevelopment Plan Development of 500 new housing units New market-rate units Affordable in-fill & rehab housing for-sale units New low-income rental units Home repair grants for low-income homeowners on surrounding blocks Supermarket Open Space & Streetscape Improvements
Brewerytown Redevelopment Plan
Community Benefits Agreement Minority participation in construction activities The Girard Avenue Gateway Artscape Project Brewerytown Homeownership Institute The Brewerytown CDC Annual Community Festival Support of The Brew - a locally supported and published community newsletter.
Key Partners and Funders City of Philadelphia The Reinvestment Fund Fannie Mae Wachovia Bank Westrum Development Co. (Developer) Penrose Properties (Developer) Brewerytown CDC (Developer) Pennsylvania Horticultural Society
Community Supporters The development is supported by the following community groups in the area: Girard Avenue Alliance West Girard Business Association Brewerytown/Sharswood Community Civic Association.
Phase 1: Accomplishments 144 market rate town homes Developer: Westrum Development Co Status: 80% complete 92 LIHTC rental units Developer: Penrose Properties Status: Completed 25 Preservation investments Project manager: The Reinvestment Fund Status: 95% complete
Minority Participation Of the estimated $18,830,160.00 in construction costs - 52.5% of this has awarded to and will be performed by minority owned businesses. The minority employment participation at Brewerytown Square is 77%.
Phase 1: Brewerytown Square