Housing Assistance Council2012 National Rural Housing ConferencePromises To Keep In Challenging TimesDecember 6-7, 2012 Washington, DC

Affordable Housing as Economic Development:How Housing People Can Lead to a Stronger Economy

December 6, 2012

LISC’S MISSION

In 30 cities and rural counties in 32 states, LISC mobilizes corporate,

government, and philanthropic support to provide local community

organizations with:

loans, grants and equity investments

local, statewide and national policy support

technical and management assistance

Founded in 1979 by the Ford Foundation, the Local Initiatives

Support Corporation (LISC) helps nonprofit community

organizations transform distressed neighborhoods into healthy and

sustainable communities—good places to work, do business and raise children.

Funders & Investors

Community Organizations

LISC assembles capital for community

investment

LISC is a partner and a catalyst

LISC provides advice on market activities and policy trends LISC invests financial

and technical resources to maximize

results

HOW LISC WORKS

LISC BY THE NUMBERS

RURAL LISC BY THE NUMBERS

Total Investment$913.7 million

Dollars Leveraged$1.82 billion

Affordable Homes22,549

Commercial, Industrial and Community Facilities

2.52 million sq. ft.

Small Businesses Assisted 455

Jobs Created 5,250

Total Investment$913.7 million

Dollars Leveraged$1.82 billion

Affordable Homes22,549

Commercial, Industrial and Community Facilities

2.52 million sq. ft.

Small Businesses Assisted 455

Jobs Created 5,250

30 urban programs

WHERE LISC WORKSWashington State

(Impact Capital)

San Francisco Bay Area

Los Angeles

San Diego

Phoenix

Rural LISC partners in 32 states

Houston

Mid South Delta(La., Miss., Ark.)

Greater Kansas City

Twin Cities Duluth

Milwaukee

Chicago

Indianapolis Detroit

Michigan

Toledo

Cincinnati

Virginia

Washington, D.C.

Philadelphia

New York City

Buffalo

Newark &Jersey City

Hartford & CT Statewide

Boston

Rhode Island

Jacksonville

Note: 17 Sustainable Communities sites appear in blue

Rural Pennsylvania

Gulf Region(New Orleans)

Pittsburgh(PPND)

2. Increasing family income and wealth

BUILDING SUSTAINABLE COMMUNITIES

5. Fostering livable, safe and healthy environments

4. Improving access to quality education

1. Expanding investment in housing and other real estate

3. Stimulating economic activity, locally and regionally

Five Goals ofBuilding Sustainable

Communities

LISC’s strategic plan—Building Sustainable Communities—focuses on creating healthy communities in the broadest sense and connecting residents to the mainstream economy.

RURAL LISC FACT SHEET

Southern Mutual Help AssociationNew Iberia, LA

Hopkins Street/West End Redevelopment Initiative

West End homeowner in newly rehabilitated home

Hopkins Street/West End Redevelopment InitiativeOverview

600-acre redevelopment area encompassing four distinct neighborhoods and three Census tracts.

Homeownership rates in these tracts averaged 53.4%; lower than New Iberia’s rate of 62.1%, Iberia Parish’s 73.4%, and Louisiana’s 67.9%. Median year of construction for housing stock in the area was 1963 in tract 0308, 1965 in tract 0309, and 1957 in 0310.

The initiative originally concentrated on revitalizing the “West End” of New Iberia, a traditionally African-American area rich in history, culture and tradition that had fallen into disrepair:

Dilapidated housing

Disinvestment

Deteriorating Infrastructure

Rising crime rates

Primary focus was replacing demolished homes and helping residents bring housing stock in compliance with the Codes.

Soon realized the need to undertake a more comprehensive approach

including attracting new investment to the area

and to a partnership with the City and parish, leading to the creation of the Hopkins Street Redevelopment District.

Added were: new sidewalks, streetscapes and storm water run-off upgrades.

The area had no grocery store; as a result of Southern Mutual’s initiative, a family of national sports figures originally from the West End committed to invest over $1 million into a 17,000 square foot supermarket in compliance with the architectural code.

Hopkins Street/West End Redevelopment InitiativeEvolution

Importance of partners: Mennonites (new definition of disaster). Southern Mutual’s major partners in this effort are the City of New Iberia (including the Sheriff’s Office and Office of Culture and Tourism), a private donor, Southern Mutual’s affiliate CDFI Southern Mutual Financial Services, Inc., Architects Southwest, and the four Neighborhood Associations being established in the Hopkins Street Redevelopment District (The People!!!)

Hopkins Street/West End Redevelopment Initiative

The former Mrs. Bobb’s Boarding House – the only place in New Iberia where African-American musicians, attorneys or other visitors could stay overnight. An independent investor renovated the property into rental apartments.

Southern Mutual purchased and installed a brass plaque that describes the building’s historic significance.

A West End business, before and after.

Tamaqua Area Community PartnershipTamaqua, PA

Upper Storey Development in Downtown Tamaqua

Downtown Tamaqua, PA

Tamaqua Area Community PartnershipTamaqua, PA

Upper Storey Development in Downtown Tamaqua

Upper Storey Development in Downtown Tamaqua

Objective: encourage residential/commercial development of the under-used second and third floors of historic buildings in Tamaqua’s Main Street area.

A study was conducted to determine available space/development possibilities.

A video, “Looking Up”, was created and posted with others on the TACP website to inform the general public about possibilities and attract interest.

Two world-class artists from New York City have purchased buildings in the Main Street area and created live/work spaces. (Tamaqua is 2.5 hours from NYC.)

As part of ongoing development efforts several trips have been made to New York City to attract more artists.

Results

More jobs created and quality housing needs filled.

Residential/commercial spaces create greater customer base for existing businesses as well as increase new business development in the area.

Local economy is improved for everyone.

Rural Ulster Preservation Company (RUPCO)Kingston, NY

Abandoned lace factory in Kingston’s Midtown area

Lace Factory RenovationHulking eyesore to hipster haven

Rural Ulster Preservation Company (RUPCO)Kingston, NY

Lace Factory RenovationHulking eyesore to hipster haven

Create 55 residential artist lofts with gallery space in a 56,470-square-foot brick manufacturing building that has sat dormant for decades.

Located in old industrial area in Kingston, two hours north of New York City.

Site currently attracts vandalism and burglary.

Artists served as urban pioneers in gritty, industrial neighborhoods such as New York City’s SoHo; the Lace Factory renovation will be Kingston Midtown's catalyst for gentrification.

Artists are a leading indicator of economic revival. Artist housing improves neighborhoods. Safety, community, diversity and local commerce all benefit.

Further development in the area could lead to the creation of a specialty business zone for digital media artists working in the entertainment industry.

$16-million project will be financed through low-income housing and historic preservation tax credits.

At least 85 percent of the units will be rent-subsidized, available only to people making less than 60 percent of area medium income.

Kingston's Planning Board unanimously approved the Lace Factory site plan. Construction is scheduled to start in spring 2013, with the Lace Factory lofts slated for spring 2014 opening.

Lace Factory Renovation

Kentucky Highlands Investment CorporationLondon, KY

Houseboat to Energy Efficient Residences (HBEER)Prototype housing unit manufactured in existing houseboat factories

Development partners used the resources of the University of Kentucky College of Design and its Center for Applied Energy Research to create a design for an affordable, energy efficient, single family home that will sell for around $100,000 and cost $1.65 per day to power.

Home includes two bedrooms, one bathroom, laundry, living space and fully equipped kitchen. Approx. 1,000 square feet.

Design vision combines

Under-utilized manufacturing and material resources

Growing pressure to conserve energy

Need for affordable housing

Result

Struggling families given hope

Devastated industries revitalized

New ideas deployed to preserve energy resources

Houseboat to Energy Efficient Residences (HBEER)

Houseboat to Energy Efficient Residences (HBEER), Cont.

Design Features

Incorporate processes allowing manufacture in existing houseboat factories with minimal retooling.

Capitalize on the cost efficiency of a modular, factory-built home, while retaining the quality workmanship of a home that will appreciate in value.

Ability to control home quality in the factory setting is also critical to several of the energy efficiency attributes.

The same transportation method used to deliver houseboats used to deliver homes to construction sites.

80 percent of houses made with Kentucky products, increasing jobs created or saved.

Use of local materials also saves transportation costs, making HBEER a more environmentally friendly choice.

Economic Development Generated By Housing Development Activity

Healthy neighborhoods

Revitalized local economies

Create skilled jobs

Increase household income

Greater spending capability

Healthy construction supply chain

Increase local spending

Grow local income tax and business tax base

Attract additional investment

CONTACT INFORMATION

Bob ReederProgram DirectorRural LISC1825 K Street NWSuite 1100Washington, DC 20006(202) 739-0885jreeder@lisc.orgwww.lisc.org/rural