building a future 2008

� BuildingaFuture

Building a FutureVolume 6

Texas Association of Community Development Corporations

The Contributions of Community Development Corporations in Texas

BuildingaFuture �

Introduction 9

History of CDC’s 11

TACDC Policy Priorities 2009 13 Case Studies

ACCION Texas 14 Affordable Homes of South Texas, Inc. 18 Brazos Valley Affordable Housing Corporation 21

CDC of Brownsville 25 Foundation Communities 29 WOMAN, Inc. 34

Conclusion 38

Table of Contents

� BuildingaFuture

Building a Future: The Contributions of Community Development Corporations in Texas

(TACDC)isanon-profitstatewidemembershipassociationofCommunityDevelopmentCorporations(CDCs)andrelatednon-profit,governmentandfor-profitentitiesengagedinproducingaffordablehousingandcommunityeconomicdevelopment.

Cover photo: Clockwise from front: Raquel Gonzales, 17; Huburto Alvarado, 17; Clendon Mader, 18; Nick Searcy, 18; Terrence Stewart, 16; and Shamia Pope, 18; stand before the entryway to the house they built as a part of the partnership be-tween the Brazos Valley Council of Governments, Workforce Solutions Brazos Valley, the city of Bryan, Blinn College and the Bryan school district.

The Windwood subdivision created through the Community Development Corporation of Brownsville.

BuildingaFuture �

Mission StatementTACDC’s mission is to enhance community development throughoutTexas. We accomplish this through the implementation of strategicinitiatives including supporting a network of experienced communitydevelopmentprofessionals,offeringcomprehensivemembershipservices,andconductingprogramsdesignedtobuildthecapacityandimprovetheproductivityofTexasCDCs.Wealsostrivetoimprovecommunicationsamongourownnetworkandbetween theCDC industryand the restofTexas.

Volunteers helping to build a house for the CDC of Brownsville.

� BuildingaFuture

TACDCisgovernedbyamember-elected,volunteerboardof��.Allboardmembersrepresentnon-profitorganizationsdeeplyinvolvedincommunitydevelopment.

TheTACDCRoundtable,whichadvisestheboardonpolicyandtechnicalissues,includestheseBoardmembersaswellasrepresentativesofnationalfinancialintermediaries,privatelendinginstitutions,andbusinesseswhosupportTACDC’sworkwiththeirfinancialandstaffresources.

2008-2009 TACDC Board of DirectorsOfficersPresident-NormanHenry,BuildersofHopeVice-President-NickMitchell-Bennett,CDCofBrownsvilleSecretary-MadlynBowen,CenteronIndependentLivingCDC[COIL]Treasurer-DavidDiaz,MidlandCDCPast-President-TomWilkinson,BrazosValleyAffordableHousing Corporation

DirectorsRobert(Bobby)Calvillo,AffordableHomesofSouthTexasInc.MichaelWillard,AustinHabitatforHumanityGeraldCarlton,EastDallasCommunityOrganizationSylviaFord,CorpusChristiCDCStephanFairfield,CovenantCommunityCapitalRodolfoCantu,NuecesCountyCommunityActionAgencySamuelHom,PecanVillage,Inc./MHMRARichardFarias,TejanoCenterforCommunityConcernsMichaelleWormly,WomenOpting forMoreAffordableHousingNow,Inc.(WOMAN,INC.)AnniePayton,ElPasoCommunityActionProgram-ProjectBravo,Inc.

TolearnmoreaboutTACDCortodownloadamembershipapplication,pleasevisitwww.tacdc.org

Governance Structure

BuildingaFuture �

AcknowledgementsReport Authors:ClareDuncanDeenaPerkins

Original Survey Design and Report Author:MichaelOdenPh.D.

Contributor:SteveCarriker

Research Project Managed by:SteveCarriker

Design Provided by:DeenaPerkins

Photos Provided by:ACCIONTexasAffordableHomesofSouthTexas,Inc.BrazosValleyAffordableHousingCorporationCDCofBrownsvilleFoundationCommunitiesWOMANInc.

For additional copies, please contact:TexasAssociationofCommunityDevelopmentCorporations��S.IH��,Suite��0Austin,TX7870�(��)9��-0�08office(��)9��-0��[email protected]

©�009,TexasAssociationofCommunityDevelopmentCorporations

7 BuildingaFuture

Author’s NotesThe authors wish to thank the following individuals for their many contributions tothe success of the �008 survey: Eduardo Magaloni, Nicole Schwulera, Fiona MurphyMazurenko,HelenNguyen,Dr.MichaelOden,andtheauthorsofearliervolumeswhodevelopedthebasicmethodology,design,andresearchprinciplesthatshapethiswork.Wewouldalsoliketothanktheorganizations,andparticularlytheirstaff,whocompletedthesurveyandcontributedtheirstoriesandphotographsforinclusioninthisreport.Thisreportwouldnothavebeenpossiblewithouttheirhelp.

Authors’ Biographies

Clare DuncanClareDuncan ispursuingamaster’sdegree from theLBJSchoolofPublicAffairs attheUniversityofTexasatAustin.Clare’sinterestinsocialandeconomicdevelopment,particularlyaffordableandsupportivehousinghasledhertofocusontheseissuesinhercourseworkandcareerexperience.Asthepolicyandresearchassociatechargedwiththispublication,ClarespentsignificanttimecollectingthesestoriesfromtheselectedCDCsaswellasdraftingthisreport.ClareearnedherB.A.inSociologyfromtheUniversityofNotreDame.

Deena PerkinsDeenaPerkinsistheDirectorofPolicyandResearchattheTexasAssociationofCDC’s.DeenaworkswithCDCstodeveloptheirpolicyprioritiesandservesasanadvocateonbehalfofCDCstotheTexasLegislatureandtheTexasCongressionalDelegation.Deenareceived her Master’s of Science in Social Work with an emphasis on policy and herbachelor’sdegreeinjournalismfromtheUniversityofTexasatAustin.

Original Survey Design and Report AuthorMichael Oden, Ph.D.MichaelOden,AssociateProfessorintheCommunityandRegionalPlanningProgramattheUniversityofTexasatAustin,focuseshisresearchonlocalandregionaldevelopmentissues. His work on economic development, affordable housing, and growth anddevelopmentinhightechnologyregionsledhimtocollaborationwithsuchdiverseentitiesastheStateofMichigan,theOfficeofEconomicCooperation,andDevelopmentinParisandtheAppalachianRegionalCommission.

BuildingaFuture 8

MethodologyThis report is based on detailed information gathered from six CDCs and CDFIs in

Texas,aswellasfromprevioussurveysofCDCsandCDFIsconductedin�000,�00�,�00�,and�00�.ThepurposeofthisreportistobetterunderstandtheworkofCDCsandCDFIsworkingtoimprovehousingandeconomicopportunitiesinthecommunitiestheyserve.RatherthanattempttoquantifytheproductionofCDCsandCDFIs,thispublicationfocusesonahalfdozendiverseorganizationsthatarerepresentativeofthetypeofworkbeingdoneinTexas.Thesecasestudiesshowanin-depthlookintohowtheseexampleorganizations receive funding, overcome obstacles, and work to improve housing andeconomicopportunitiesintheircommunities.

The organizations selected as case studies are TACDC member organizations whoare involved in the provision of affordable housing, commercial development, andbusiness lending in underserved communities. The organizational information in thisreportwasgatheredusinganexpandedversionofthe�00�survey,whichalsoincludeddata specifically focused towards the growth, funding, obstacles, and successes of theorganization.

Thedatatablesandfiguresinthisreportdrawontheresultsofthe�000,�00�,�00�,and�00�surveys.Atotalof��organizationsrespondedtooneormoreofthesurveys.Itshouldbenotedthatnotallrespondentsansweredeachsurvey.Theactualrespondentscapturedinalldatatablesandfiguresisindicatedbysurveyyearwhenavailable.

Celebrating at Foundation Communities.

9 BuildingaFuture

Introduction

TheTexasAssociationofCommu-nityDevelopmentCorporationsispleasedtobringyouthiseditionof“Building a Future” highlighting

theoutstandingaccomplishmentsof com-munity-based non-profit organizations.Some of these organizations use the term“Community Development Corporation,”or“CDC”intheirnames.Othersidentifythemselves differently, such as “HabitatforHumanity,”“Peoplefund,”or“Founda-tionCommunities.”Whattheyallhaveincommonisamissiontoimprovethelivesofpeopleintheircommunities,whetheritis through attractive, affordable housing;small business development; or essentialcommunityservices.

ThebroadestareaofenterpriseforCDCsisinaffordablehousing,particularlyhelp-ing underserved neighborhoods. Asidefromputtingpeopleinaffordablehousing,CDCworkhelpsraisethevalueofneigh-boring property. CDC’s use all kinds oftools toservetheresidentsof theirneigh-borhoods: downpayment assistance,Low-IncomeHousingTaxCredits,bondfinanc-ing through TSAHC and local bondingauthorities,assistancefromtheStateHous-ing Trust Fund (appropriated by the Leg-islature),andCRAinvestmentsbyprivatebanks.Theyalsoprovidefinancialliteracytrainingandvarioussocialsupportservicesthat help potential and recent buyers besuccessfulhomeowners.

HomeownershippromotedbyCDCs ismuch more successful than average, withthe delinquency and foreclosure rates be-loweven“A”paperstandardsandfarbe-low the sub-prime mortgage delinquencyratesonehearssomuchaboutthesedays.While CDC clients are low- and moder-ate-incomeandwouldotherwisebetargetsforthepurveyorsofsub-primemortgages,peoplewhoobtaintheirhomeandmortgagethroughCDCspayfairprices,getexcellent

interest rates, and favorable loan terms.They are also educated on homeownerchallengesandhowtodealwiththem.

John C. Dugan, the U.S. Comptrollerof theCurrencyandthemaninchargeofoverseeing CRA regulations, had this tosay about CRA investments in affordablehousing: “CRA isnot the culprit in sub-prime mortgage abuses . . . indeed, thelenders most prominently associated withsubprime mortgage lending abuses andhighratesof foreclosureareNOTsubjecttoCRA.”Duganwentontosay“CRA-re-latedmortgagesofferedinconjunctionwithNeighborWorks organizations (a networkof CDCs) performed on a par with stan-dard conventional mortgages. Neighbor-Worksforeclosurerateswere.0��percentforthesecondquartercomparedwith�.��percentofsubprimeloansand.��percentof conventional conforming mortgages.”Clearly,single-familyhomeownershipfa-cilitatedthroughCDCsisbyallmeasuressuccessfulandastabilizinginfluenceinthehousingmarket.

Despite the great successes CDCs havehadinenablinghomeownershipforthou-sandsofTexans,homeownershipisnotforeveryone.Whethertheissueisage,mobili-ty,finances,orspecialneeds,manyTexansarebestservedthroughdecent,safe,sani-tary, and attractive multifamily housing.Thousands of Texas families are improv-ingtheircircumstancesthrougheducation,jobexperience,andfinancialsavingswhileliving in multifamily housing developedthroughprogramssuchasLIHTC.

While both non-profit and for-profitentrepreneurs do a great job developingmultifamily housing for limited-incomeresidents,it isthenon-profitCDCswhichstrivetohousethehardesttoserve:peoplewith disabilities, single-parent families,displaced veterans, and very low-incomepersons who are at risk of homelessness.

Non-Profit Organizations and the Future of the Community

BuildingaFuture �0

OnlyCDCsandsimilarnon-profitorgani-zationsarewillingtoleveragetheresourcesandforegoprofitsinordertodevelopandmaintain housing for many of the peoplein these groups. Thanks to the efforts ofCDCs, thousands of at-risk Texans whomightotherwisebehomeless,orhousedatstateexpenseininstitutionsorjails,areliv-ingproductive lives inprivatelyfinanced,attractive,andappropriatefacilitieswheretheyreceivethesupportivesocialservicestheyneed.

Butthefutureofthecommunitygoesbe-yond good housing. Many CDCs are keyto business development and job creationacrossthestate.SmallbusinessloanfundslikeACCIONorPeoplefundnotonlymakecapital available to small entrepreneursthroughloans,theyalsoprovideeducation,training,andtechnicalassistancethatcon-ventional business lenders cannot. Theirhighrateofsuccesshasmeantmovinghun-dredsofpeopleoutofpovertyandallowingthemtogrowintonotonlysuccessfulbusi-nessowners,butemployersandtaxpayersaswell.Theultimategoalofsmallbusinessloanfunds,manyofthemcertifiedasCom-munityDevelopmentFinancialInstitutionsbytheU.S.DepartmentofTreasury, is to“graduate”theirclientsasworthycustom-ers for commercial banks and to enhancethestabilityofthecommunitythroughthejobstheirclientscreate.

CDCsarealways sensitive to theneedsof thecommunitiestheyserveandcanbecatalysts or avenues through which thegreater community needs are achieved.AcrossTexas,CDCsnot only createnewhomeowners,developandmaintainmulti-familyhousing,andassistsmallbusiness;they also do things as diverse as providecomputer access to low-income residentsand schoolchildren, house health clinics,provide financial literacy training, assistworkingpeoplewith theirEarnedIncomeTaxCredit,administerIndividualDevelop-mentAccounts(IDAs)toputpeopleontheroadtofinancialindependence,anddevel-opotherfacilitiesforessentialcommunityservices.

Thereisonethingincommonwithallsuc-cessfulCDCs,anditishighlightedbythesixstoriesinthisvolume:CDCsmusthavethecapacitytodotheworktheircommuni-tiesneed.Housingfinanceiscomplicated;smallbusinesslendingtakesparticularex-

pertise; managing multifamily projects isnotfortheuninitiated;andprovidingsocialservices to at-risk residents requires veryspecialtrainingandskills.Thecapacitytohandlethesetasksdoesnotcomeautomati-cally,andtoomanycommunity-basednon-profitorganizations,despitethegreatneedandtheirbestefforts,simplydonotpossessthecapacitytoproducetotheirfullpoten-tial.WhatthemostsuccessfulCDCsusu-allyshareincommonisthatatsometimeand in someway, theyhavebeenblessedwithresourcesforcapacitybuilding– theopportunity to train their employees, hireappropriate professional consultation, andmarkedlyimprovetheirabilitytocarryouttheirmissions.

I hope you enjoy reading the stories ofsix Texas CDCs and how they achievedsuccess as organizations and, more im-portantly,for thecommunities theyserve.Keep inmind that seedsmust first sproutbeforeyoucanhaveplants,andplantsmustthengrowbeforetheybearfruit.TACDCisproudtobeworkingtobuildthecapac-ityofCDCsinourstateto“growandbearfruit”andwelcomes the supportof cities,counties,state,andprivatepartners in theefforts to enhance the work of non-profitcommunitydevelopmentforthebenefitofourresidents.

Sincerely,Steven A. CarrikerExecutive Director

�� BuildingaFuture

ACommunity DevelopmentCorporation (CDC) is acommunity-based organizationwhose mission is to serve

low-income families and underservedneighborhoods. Community DevelopmentCorporations(CDCs),sometimesknownasNeighborhoodDevelopmentCorporations,Community-Based Organizations, orCommunity Housing DevelopmentOrganizations,varyinsize,organizationalstructure, and in their primary mission.CDCboardsofdirectorsarecomprisedofmemberrepresentativesofthecommunitiestheyserve,withcommunity residentsandstakeholdersservingoneachboard.

TheconceptoftheCDChasbeenaroundsince the �9�0’s and the Great Societyprograms of the Johnson administration.Originally, many of these community-based organizations, neighborhoodassociations, and other groups workingto improve conditions in low-incomeneighborhoods focused on education,counseling, improvement of the housingstock,andcrimecontrol.Whilethiseffortwas effective in the beginning, it becameincreasinglydifficultfororganizationstodothiswithoutsignificantgovernmentsupport.

Furthermore, both those engaged in thefieldofcommunityeconomicdevelopmentandthosewhofundedtheseeffortsrealizedthatfocusingontryingtobringpeopleoutof poverty by moving them out of theirneighborhoodswasexpensive,ineffective,andstilldidnoteliminatetheproblemsofpoorneighborhoods.

Community Development Corporations(CDCs)beganappearinginthe�970sand�980s as a local answer to the problemscommunities were facing. Many did notbeartheCDClabelintheirname(andstilldon’t),yettheyidentifythemselvesassuch--HabitatforHumanityandNeighborhoodHousingServicesaretwoexamplesoflargeCDCs. In addition, many who started outin community organizing for civil rightseffortsmovedintothecommunityeconomicdevelopment field as a new approach toimprovingtheirneighborhoods.

CDCsandothersinthefielddiscoveredthat the best way to begin to solve theproblems in low-income neighborhoodswastogeneratemorehome-grownbusinessactivity.ThefirstCDCactivitiescenteredon housing - a primary need for poorfamilies.Duringthe�990s,theevolutionoffederal programs such as the CommunityDevelopment Block Grant (CDBG) andtheHOMEProgramenabledmanyCDCsto become successful at improving theircommunities through improving housingandbuildingassetsthatcouldremainapartofthecommunity.

Today, CDCs develop real estate forhousing and commercial properties, offereconomic development services such asloans to small businesses in low-incomeareas, and operate other programs andservices that help improve the quality oflife in their communities.The strengthandeffectivenessofCDCscomefromthiscommunity-based focus, which allowsthem to tailor projects and programs tothe specific needs and situations of theircommunity.CDCs help communities takeaproactiveroleintheireconomic,political,and social development. They are able toaccomplish their goals and mission bypartnering with other non-profits, banks,private corporations, and other privatesectorinstitutions.

CDCs that provide direct loans andtechnical assistance to small businessesare known as Community DevelopmentFinancial Institutions (CDFIs). TheseorganizationsmaygenerallybeconsideredCDCs whose primary focus is businesslending. Throughout this report,organizations that are primarily housingdevelopers will be identified as “CDCs”and Community Development FinancialInstitutionswillbeidentifiedas“CDFIs.”

The Community Revitalization Act(CRA)wasmodernizedinthe�990sandalsosupportedthegrowthofthesehome-growninitiativesbyspurringbankinvestmentintopoorneighborhoodsandintoCDCs.Bytheend of the �990s, more CDCs began todevelopbusinessinitiativesthatcouldhelpthem become self-sufficient, and would

History of CDCs

BuildingaFuture ��

alsoservetheirconstituentsthroughasset-building,jobdevelopmentandotherformsofrevitalization.Thismarkedachangeindirection from a previous focus on socialservicesalone.

CDCs developed housing in the formsof apartments, single-family subdivisions,and homeless shelters. They also beganto develop commercial real estate inan effort to bring retailers and servicessuch as insurance agents, doctors, andsupermarketsbackintotheneighborhoods.Someevenstartedloanfundstooffersmallbusinesses loans when these businessescould not secure traditional financing.Simultaneously, the U.S. TreasuryinitiatedaprogramcalledtheCommunityDevelopmentFinancialInstitutions(CDFI)Fundtohelpcreatecommunityloanfunds

andbankinginstitutions,whichcouldspurmoreinvestmentbybanksandothersintopoor neighborhoods. Some CDCs createdCDFIs or were created as CDFIs to offeraccesstocapitalforhousing,smallbusinessdevelopment,andmore.

Today, the community economicdevelopment movement is thriving, withCDCs and CDFIs developing creativeand sustainable solutions to the problemsfacinglow-incomecommunities.InTexas,TACDChasidentifiedover�00CDCswhowork in housing, economic development,lending, job training, community servicesandmuchmore.

A pool is one of the many amenities in a Foundation Communities apartment complex.


Housing Trust Fund *IncreaseFunding

*Secureadedicatedsourceofrevenue

*Improveprogramadministration

Residential Property Taxes *Keepcurrentsingle-familyexemptionsfornon-profit development

*Improvemulti-familyappraisalsystemtobenefitlow-income tenants

Improve State Program Administration *AssureequitablerulesinTDHCAprograms

*ContinuetheTexasStateAffordableHousingCorporation

*CreateaRecoveryFundintheTexasResidentialConstruction Commission

Foreclosure Prevention *Providethepublicwithhomebuyereducation

*Supportworkoutsandalternativestoforeclosure

Promote Homeownership and Asset Sustainability *SupportmatchingfundsforIndividualDevelopmentAccounts

*SupportprogramstomaximizeEICrefunds

*SupporturbanLandBankingtoredevelopabandonedproperties

TACDC Policy Priorities 2009


Coming from a family of bakers,ErnestoandGuadalupeRodriquezhadadreamtoownandruntheirownbakery.However,theydidn’t

havethemeanstobuytheirownbusiness,so they baked hojarascas, a Mexicancookie, out of their small and ineffectivehome kitchen. Then, with the help of anACCION, Texas loan, they were able toachievetheirdreamandownLaPrincesitaBakery.

Founded in �99� in San Antonio,ACCION,Texashasprovided9,�00loanstoover�,�00individualsinover90countiesinTexas.Theyareastate-wideCommunityDevelopmentFinancialInstitution(CDFI)thathas��officesinSanAntonio,Austin,Arlington, Brownsville, Corpus Christi,Dallas/Fort Worth, El Paso, Houston,Laredo,andEdinburg.Theirmissionistoprovidecredit to smallbusinesses thatdonothaveaccesstoloansfromcommercialsources to help microentrepreneursstrengthen their businesses, stabilize andincrease their incomes, create additionalemploymentandcontributetotheeconomicrevitalizationoftheircommunities.

WiththeACCIONloan,theRodriquez’swere able to buy a commercial oven,refrigerator,andhireemployees,increasingproduction by 7� percent as well as theirfoodofferingstoincludepasteltresleches,empanadas, conchas, and other Mexicansweet breads. They plan to expand theirstore to include a coffee shop as well asopenanotherstoreinLaredowithabiggermarket.

Technical assistanceTechnical assistance provided by

ACCION,Texas,particularlyhelpedArga,ayoungsinglemotherfromtheThirdWardofHouston,whowantedtomakeanimpact

onhercommunity.Shedecidedtoopenanaturalorganicfoodrestaurantandnutritionstore in her neighborhood and in �00�SunfiredFoodswasborn. In the first fewyears,thestorehadveryfewproductsbutagrowingclienteleandArgastruggled tokeepupwiththedemand.ACCION,Texassteppedinandprovidedherwitha$��,000loan as well as technical assistance. Sheused the funds and assistance to increaseherinventory,hireastaffofsix-includingputtingherselfandherfatheronthepayroll-aswellasholdinghealthyeating,cooking,and exercise classes. ACCION, Texashelped her to get her business thriving.“I received education through them, anda lifetimeof learning and resources.Thatiswhat Iappreciatemost.”In�007,Agrawas selected as the Wachovia-ACCION,Texas Microentreprenuer of the Year fortheHoustonRegion.

ACCION, Texas provides an array ofloans, such as small business loans andSBA �0� loans at long-term fixed rates.These loans are designed to promoteeconomicdevelopmentbyfinancingmajorfixed assets, such as buildings, rangingbetween$�-�0Million.Theyalsoprovidehome mortgage loans with fixed interestrates based on project risk. An averageACCION,Texasloanis$��,99�,withthemajority of loans ranging from $�00 to$�0,000.

Other storiesWorkingasacabdriverinSanAntonio,

Alejandro Perez wanted to start his owncompanywithhiscabdriverfriends.Withthe help of a $�00 loan from ACCION,Texas he was able to secure the permitsneeded to be an independent driver. Hiscompany, San Antonio Cab, has beena successful business for nine years.


“ACCION, Texas has been a big part ofmy business,” says Mr. Perez. “They gotmeonmyfeetandhelpedgetmethroughtheroughtimes.”Hehasacquiredanotherloanwithplanstoexpandhisbusinessandbuyanothercab.

Two other clients that ACCION, TexasloanshelpedareNormaandMarlyPayan,amother/daughterteamwhodesigndresses.Normastartedsewinganddesigningoutfitsin her home �0 years ago. With the helpof a loan from ACCION, Texas, Normawasable toopenacustomdressbusinessindowntownElPaso.Sincethemove,thebusinesshasgrownandimprovedandafterherdaughterMarlyreturnedfromcollege,they were able to add a larger clientele,thus expanding the business even more.Recently, Marly took part in a citywidefashionshowwithherowndesigns.NormasaysthatitwaswiththehelpofACCION,Texasthattheirdreamswereabletocometrue.

ACCION, Texas provides loans to anylegal small business in Texas that meetscertain eligibility; they do not excludeanyone based on occupation. In addition,noneof their serviceshaveawaiting list.They served 8�� clients in �007 alone.Since ACCION, Texas clients are unabletoreceive loansfromconventionalbanks,they tend to have low incomes averaging$�9,��,comparedtoTexas’medianfamilyincome(MFI)of$��,��.Twentypercentof their clients earn approximately 80percentMFI,whilehalfearnapproximately�0 percent MFI, and �0 percent earnapproximately �0 percent MFI. Of theirclients,�7percentareHispanic,��percentare African-American, and �� percentare Anglo American, while �� percent ofborrowersarewomen.Fortysixpercentoftheirclientshavebeeninbusinessforlessthan a year, while �� percent have beenin business three years or more. TypicalclientsusemorethanoneACCION,Texasloan.

Clientscanapply for these loansonlinesinceACCION,Texaswasoneofthefirstmicro-lender toofferon-lineapplications.In �007, only �.� percent of ACCION,Texas portfolios were at risk, defined aspastdueby�0days.Sincetheorganizationbegan,ACCION,Texashasonlylost8.7�percentofalltheir9,��loans.Thisshowsthestrengthofthisorganizationtoprovideloansresponsiblyandeffectively.

ACCION, Texas receives funding

from the US Department of TreasuryCDFI Fund, as do other CommunityDevelopmentFinancialInstitutions.Grantsand low-interest loans from externalsources have also helped to build theirgeneral loan fund. They receive grantsfromanextensivearrayofsourcesrangingfrom the government (federal, state, andlocal), private foundations, corporations,individuals,banks,religiouscommunities,and other nonprofit organizations. Someof the donors include Bank of America,AnnieE.CaseyFoundation,ChaseBank,USAA, HUD, and US Department ofTreasury. They are still searching forother low-cost capital they can lend toclients.ProgramssuchastheTexasCapitalAccessProgram(TCAP),whichACCION,TexasparticipatedinfromMarch�00�toNovember �00�, would be an excellentfundingresourceforrurallocationsasitwasextremelysuccessfulathelping“highrisk”smallbusinessowners.Usingthe$�00,000fundingfromtheStateofTexas,ACCION,Texas provided 8�0 loans for $�,�8�,70�and created or sustained �,�� full timejobs through the program. However, thisprogramisnolongeravailable.

Technical AssistanceInadditiontoprovidingandadministering

direct loans, ACCION, Texas providestechnical assistance, financial literacy,Individual Development Accountprograms,andfinancialadvocacyservicesto their clients throughcollaborationwith

Guadalupe and Ernesto Rodriquez with some of their baked goods at La Princesita Bakery.


the Small Business Administration andthe Service Corp of Retired Executives(SCORE).

Due to the clients they serve, and theareaswheretheyarelocated,thesetechnicalassistance services greatly benefit theirclients’ business practices and success.Currently they are able to provide somebasicassistance,butwithstafflimitations,theycandolittlemore.Thus,morefundingfor theseprogramswouldhelp toprovidebetterloansandincreasethesuccessofthebusinesses.Theywouldalsoliketoprovideaccountingandmarketingservices.

PartnershipsACCION, Texas has successfully

provided over $7�.� million in loans,

partly due to their excellent partnershipsinTexascommunities.Theyhaveworkedto create partnerships with governmententities, banks, and Small BusinessDevelopment Centers for loan referralsin every community where they serve.Some of their partners include the ElPaso Chamber of Commerce, NationalFoundation of Women Business Owners,Sisters of Charity, Fort Worth BusinessAssistanceCenter,andthePlanFund.Theyalso collaborate with CDFIs across thecountrythroughtheirinnovativeMicroloanManagementSystemtocreateanetworkofCDFIs, which strengthen each other andshareinformationandideas.

Oneparticularpartnershipthatisuniqueand very successful is with the City ofCorpusChrist,wheretheyworktoreduceloan interest rates for clients. Before thisprogram, ACCION, Texas’ interest rateswere at �� percent, a high rate that wasnecessary to cover organizational costs.Since �00�, the City of Corpus Christihas provided ACCION, Texas funds toreduceinterestratesfrom��to�.�percent.Thishelpstoreducelocalclients’ interestpaymentsbyup to$�,000,allowing themto strengthen their businesses with thismoney.TheyhopetoextendthisprograminHoustonandDallasthroughpartnershipswith the United Way of Greater Houstonand the Rees-Jones Foundation. Withoutthis external assistance, these reductionswouldnothavebeenpossibleforclients.

TheSummitonMicrofinanceintheU.S.thatACCION,Texashostedin�007,whichincluded a keynote address by Federal

Norma and Marly Payan show off their designer dresses.

Table 25. Housing and Economic Development Services Offered by CDCs and CDFIs, 2006

Services No.ofCDCsManage Construction 76Provide Direct Loans to Home buyers 41Provide Home Purchase Financing Assistance 38Administer Loan Funds for Housing Development 29Package/Originate Home Mortgages for Other Lenders 16Service Mortgage Loans for Other Lenders 12Administer Loan Funds for Business Development 7Provide Direct Loans for Small Business Owners 6Provide TA to Small Business Owners 5Provide Equity Investments to Small Businesses 1

Total Number of Housing and Economic Development Services 231Total number of CDCs Providing Housing and Economic Development Services 120

�7 BuildingaFuture

ReserveChairmanBenBernanke,hasalsoextended their visibility on the nationalstagewhilebroadeningtheirpartnerships.

Partnerships have also helped to dealwiththeissuesofprovidingloanstoruralcommunities and the colonias. Due togeographical inaccessibility, high-creditrisk,andlowloanvolume,itistoocostlyfor ACCION, Texas to operate therewithoutexternalassistance.Theyareableto deal with these issues somewhat bycollaboratingwithagenciesintheseregionssuch as Small Business DevelopmentCenters, local banks, and local ChambersofCommerce.

Microloan Management ServicesOne particularly successful program

ACCION, Texas has developed is theMicroloan Management Services (MMS)system, which uses �� years of data toprovide their automated credit scorecardand internet loan applications. Throughthis program, they have helped micro-lenders all across the US improve theirportfolios,makingthemtheloan-servicinghub across the country. It is through thissystem that ACCION, Texas developeda tailored credit scoring system that usesa statistical payoff probability model toreduceitsdelinquencyrates,whichwereatanall-timehighin�00�.Theyalsoallowedloan officers to have more control overtheir individual portfolios. This systemhas helped to reduce delinquent loans by�0 percent, the lowest delinquency ratein their history. This system would notbe possible without their Wachovia NextAwardwinnings,which funded the initialstagesofthisproject.

ConclusionACCION, Texas has helped thousands

ofsmallbusinessownerslivetheirdreamsand improve their lives, as well as theircommunities. This organization’s workhelps to increase creative, innovated, andsuccessfulbusinessesinTexasthatwithouttheirhelpwouldnotbeabletoqualifyfora conventional loan and operate. Thesesuccesses have provided Texas witheconomic and job growth, while alsobringing more hard-working individualslike Norma and Marly Payan, Arga,AlejandroPerez,andErnestoandGuadalupeRodriguez into the mainstream businesscommunity. ACCION, Texas’ growth intheloanbusinesshasresultedinanumber

of awards for their service in advancingcommunity development. In December�007, theybecame the firstwinnerof theWachovia Next Award of $�.7� million(sponsored by the Opportunity FinanceNetwork and MacArthur Foundation) outofover�00otherCDFIwithlessthan$�0million in assets. In �00�, they were theErnst & Young Entrepreneur of the Yearas a Social Finalist in the Central TexasRegion.

ACCION, Texas could continue toexpand its services if more funding wasavailable. With additional funding theycouldprovidemoreloanstoruralareasthatarecurrentlyunreachable.Inaddition,theycould provide more technical assistanceto their clients. This would help theirclientsdevelopmoresuccessfulandlong-lasting businesses improving economicdevelopment and creating more jobs allacrossthestate.

For more information about ACCION,TexasPleaseContact:

JanieBarreraPresident&[email protected]

www.acciontexas.org�0��S.HackberrySanAntonio,TX78��0Phone:��0.��.��Fax:��0.��.�9�0

Arga creates nutritional dishes she will showcase at her store, Sunfired Foods

in Houston.


Five years ago Josephina Lopezneeded aplace to stay.Unable toafford her own home, Josephinaand her daughters bounced

between the homes of friends and familyuntil a friend told her about AffordableHomesofSouthTexas,Inc.(AHSTI).Byusingher salary as a nursing assistant, aswell as selling tamales and enchiladas,

Ms.Lopezwasabletoraise$�,�00fortherequireddownpayment.Sheisnowaproudhomeowner,paying$��amonthforhermortgage,propertytaxes,andhomeowner’sinsurance.Sheconsidershernewhome-awhitebrick,three-bedroom,two-bathroomhouseinaLosEncinosNeighborhood–a“dreamcometrue”andanopportunityforabetterlifeforherselfandherdaughters.

Anita Aleman, who has diabetes andosteoporosis,usedtoliveinasmallframehousewithbadplumbing,leakingceilings,and rotting walls and floors. The housewassosmallthatshecouldnotmaneuverher wheelchair around. Through theAHSTINewBeginningsProgram,Alemanreceivedasafe,accessiblehomewhereshecoulduseherwheelchair.

Jose Cruz Jr. received a VAMOSscholarship to attend college at YaleUniversity. However, he was unable toattend because his family needed himto work and support his parents and six

brothers and sisters at home. Although atthetimethefamily’sincomewastoolowtoqualifyforahome,throughthesupportofAHSTItheCruzfamilywasabletorentahome thatwascurrentlyvacant for fiveyears at a low monthly rent so Jose Jr.couldattendcollege.FiveyearssinceandJose Jr. is a Yale graduate with a degreeinBiomedicalEngineeringandisattendinggraduateschoolatTexasA&MSchoolofRuralPublicHealthandmayattendmedicalschool in the near future. In addition Mr.Jose Cruz Sr. is now working with anoffshore oil rig company and the familyclosedonandnowownstheirhome.

Lopez, Aleman, and the Cruz familybenefited from Affordable Home ofSouth Texas Inc., whose mission is toenhancethequalityoflifeforresidentsinHidalgoCounty, the cityofMcAllen andthe surrounding rural areas. Since theirfounding in �97�, AHSTI has providedhousingtoover�,800low-income,workingfamilieslikeJosephinaLopezandtheCruzfamily who otherwise could not qualifyfor a conventional home loan. The NewBeginningsProgramhasalsoprovided��new 800 square feet accessible homes tolow-income elderly residents of McAllenwhoarephysicallyandormentallydisabledsuchasAnitaAleman.

AHSTI provides construction services,which include residential subdivisiondevelopments,newhomeconstruction,andrehabilitationofsubstandardhomeswithinthe City of McAllen using federal, state,local,andprivatefunds. In�007alonetheyproduced�00newowner-occupiedhomesandrehabilitated7owner-occupiedhomes.They plan to produce and rehabilitate asimilarnumberofunitsbetween�008and�009.

In addition to construction, AHSTIprovides home purchase financingassistanceusingCommunityDevelopmentBlock Grants (CDBG) and HOME fundsfor units within residential subdivisiondevelopments as well as for single siteconstruction and rehabilitations. Underthese grants they have administered over�,�00 mortgages estimated at over $��

Affordable Homes of South Texas, Inc.

One of the three bedroom, two bath homes from AHSTI. This home is in the Encinos Los IV subdivision.


million.Overthelast��yearsAHSTIhasonlyforeclosedonthreehomes.Inaddition,AHSTIprovidesanumberofotherfinancialservices, which includes homebuyereducation and counseling assistanceprograms,individualdevelopmentaccounts,andfinancialliteracyeducation.AHSTIisabletoprovidetheseservicesbecausetheyarecertifiedasbothaCommunityHousingDevelopmentOrganization(CHDO)bytheStateofTexasandtheCityofMcAllenandas a Community Development FinancialInstitution(CDFI)bytheU.S.DepartmentofTreasury.

AHSTI provides these services toclientele that range from �0 to 8�-years-old,�8percentofwhomaresingleparents.In �007 alone, over �00 individuals and�00 families,who typically learnedaboutAHSTI through word of mouth, wereserved. In �007, AHSTI’s clients madesalariesthatputthemat�0percentorbelowthe area median family income (AMFI),whichiscurrentlysetat$��,000.

A large part of AHSTI’s success inmaintaining affordable housing is due tosupport fromtheCityofMcAllen,whoseleaders understand that it is an importanteconomic development tool and canprovide significant revenue for the citythroughtaxes.IthasbeenthiseagersupportfromtheMcAllencommunitythathasbeencrucialinhelpingtheorganizationgrowanddevelop geographically. The organizationhasalsoreceivedfinancialsupportthroughfederalandstateavenues.

Several years ago AHSTI receiveda forgivable $800,000 loan from theTexas Housing Trust Fund to construct aresidentialdevelopmentcalledLosEncinosDelNorteinnorthwestMcAllen.JosephinaLopez is now one of the residents in thissubdivision of �8� homes. In addition tothisloan,AHSTIreceivedmoneythroughtheCityofMcAllen,theMcAllenHousingFinance Corporation, and the Rio GrandeValleyMultibankforatotalof$8.�milliondollars for the Los Encinos Del Norteproject.However,itwastheHousingTrustFundloanwhichallowedthemtoleverageadditionalmoneyfromfurthersources.

AHSTI’s other program, the NewBeginnings Program, is made possiblethrough a collaboration of communityleaderswhofeltaprogramwasneededtohelp establish safe and decent homes forlowincomeelderlyanddisabledresidentsofthecity.Thesenewresidencesreplaced

their old homes, which were typicallyin disrepair. New Beginnings residentsareonly required topay$80 amonth fortheir property taxes and home insurancebecause they typically live on a smallfixed income.AsMs.Alemansays, “Thebedroomsarebigger.Theshowerisbiggertoo. I can put my shower sitter in therenow.Icantakemybatheasiernow.”LikeMs.Aleman, thelow-incomeelderlyanddisabled residentswhohave takenpart inthisprogramareabletohavethepeaceofmind,knowingtheynowliveinasafeanddecent,affordablehome.Inadditiontotheresidents’ benefits, the City of McAllenand all the community’s residents alsobenefitfromtherevitalizationoftheseoldrundownhomesintoattractivenewhomes.AHSTIwouldnotbe able toprovide thissuccessful program without communitysupport, as well as the CDBG funds thatfinanceit.

Unfortunately,lackoffundingisamajorproblem for AHSTI. In fact, since theiroriginalHousingTrustFundloan,AHSTIhas been unable to secure any additionalHTF loans or grants due to limited fundsavailable through the Trust Fund and acompetitive application process. Not onlyhaveHousingTrustFundloansandgrantsbeenhardertoreceive,buttherehasbeena gradual decline in all forms of fundingin the last few years. This has hamperedAHSTI’sabilitynotonlytodevelopmoreresidentialhousingdevelopments,butalsoleverageHTFloansforadditionalfunding.Duetothissituation,manyresidentshave

This home is also in the Encinos Los IV subdivision.


been put on a waiting list, which hasreachedashighas�00.

AffordableHomesofSouthTexasInc.’sservice to the community of McAllen forthepast��yearshasresultedinthousandsof families receiving badly neededaffordable homes and financial services.The work of this organization is crucialto improving the lives of Texans such asJosephina Lopez, Anita Aleman and theCruzfamily.It isthestronginfrastructureandstablecapacitythathashelpedAHSTIgrowintothesuccessfulorganizationthatitistodayandhasallowedittoprovidenewservices.

Theirdeterminationtoprovideaffordablehousingandfinancialserviceshasresultedin significant recognition by nationalhousingfoundations.Forexample,AHSTIhasreceivedtheFannieMaeFoundation’sMaxwell Award for Excellence and andwasanHonoreeintheBuilderCategoryforProjectoftheYearundertheHOPE(HomeOwnership Participation for Everyone)awards by the National Association ofRealtors.

With additional and more permanentfunding sources, such as the HousingTrust Fund, Affordable Homes of SouthTexas, Inc. and other similar communitydevelopment corporations can continueto expand and provide more affordablehousing and comprehensive services

benefitingallofTexas.Itisalsoimportantthatmorepartnershipsarecreated,suchasthe relationship between AHSTI and theCityofMcAllen, tobetter leverage fundsanddevelopcreativeprograms toprovidemore services with available resources.These actions are crucial in order toprovide hard working families in TexastheopportunitytolivetheAmericandreamandownone’sownhome.

For more information about AffordableHomes of South Texas, Inc. PleaseContact:

RobertCalvillo,[email protected]

www.ahsti.org��0ErieAvenueMcAllen,Texas78�0�Phone:9��/�87-��Fax:9��/�8�-97��


Mike and Kelly Smith wererenting a trailer home andliving with their threechildrenandKelly’smother

in Navasota, Texas. Then, with the helpof the Brazos Valley Affordable HousingCorporationtheywereabletobuyathree-bedroom, two-bath home. The Smithfamilyisthrilledwiththeirnewhomeandtheirfutureinit.

Brazos Valley Affordable HousingCorporation (BVAHC), a non-profitcommunity development organizationcreated to deliver safe, decent, andaffordable housing, was founded in �99�by the Board of Directors at the BrazosValley Council of Governments. Alongwith affordable housing, they providecommercial development and financialcounseling to over �00 low-incomeindividualsandfamiliesannually.Between�00� and �007, BVAHC constructed �0new homes and since their founding theyhave produced approximately ��0 units.TheyalsoprovidemajorandminorhomerepairswiththeAreaAgencyonAgingforthe elderly and disabled. They encouragecommunity development, economicgrowth, and general improvement to thestandard of living for all the residents ofthe areas they serve through networking

and/or formingof partnershipswithothernon-profits, for-profits, and governmentalentities.BVAHCservesthesevencountiesof Brazos, Burleson, Grimes, Leon,Madison,Robertson,andWashington.

When BVAHC first started buildinghomes in Navasota, they had troubleselling them due to affordability issuesand a limited group of qualified buyers.In addition, families did not want to bethefirsttomoveintothesubdivisionnowknownasWashingtonPark.However,onceafewfamiliesbeganmovingin,othersdidaswellandcurrently��homeshavebeencompleted. One such person who tookthe lead in cultivating a community atWashington Park was Latishia Polk whoboughtthesecondhomeintheneighborhoodwiththeassistanceofBVAHC.Itisagreatsuccessstoryofatrueeconomicdriverthatwouldnotbepossiblewithoutthesubsidiesthatwereavailable.

Brazos Valley Affordable HousingCorporation created the Washington ParksubdivisionthroughapartnershipwiththeCityofNavasota,theTexasOfficeofRuralCommunityAffairs(ORCA),andtheGulfCoast Trades Center. Funding includeda$�00,000grant fromORCAto theCityof Navasota for street and infrastructureinstallation,constructionfinancingfromthe

Brazos Valley Affordable Housing Corporation

Mike and Kelly Smith get their new home with the help of BVAHC.


Brazos Valley Community DevelopmentCorporation(theCDFIandfor-profitmulti-bankCDC)toBVAHC,andaYouthBuildgrantthroughHUDandtheBrazosValleyWorkforce Development Board to theGulf Coast Trades Center to finance thelabor. This funding resulted in completedthree and four bedroom, two-bath, ��-��00-square-foothomesthatbeliewhatisnormallythoughttofallunderthecategoryof “affordable housing.” Without thesepartnerships, and CHDO funding fromthe Brazos Valley HOME Consortia, thissubdivisionwouldnothavebeenpossible.

BVAHC also assisted in creating theBrazos Valley Community DevelopmentCorporation(aCDFIandfor-profitCDC)in �00� in which six banks invested,

providing capital for mortgages andconstruction financing. This partnershiphasallowedforgreaterleveragingofpublicfundsforprogramssuchasthisone.

Additional BVAHC homes, includingsome built in the Washington Parksubdivision,werebuiltthroughpartnershipswith eight local high schools includingBrenham, Bryan, Buffalo, Calvert,Madisonville, Navasota, North Zulch,Somerville in their Construction TradesandAgMechanicsEducationalprograms.Workingcloselywiththeschools,aswellas the cities, BVAHC finds city-ownedproprietiesthatfittheneedsoftheprogramandprovidesinterimfinancing,constructionexpertise forstudents,and locatesbuyers.This program has been very rewardingfor the students, homeowners, and thecommunitiesatlarge,producingaffordablehousing and increasing the Texas baselocalworkforcewhileprovidingaffordablehousing.

NickSearcy,arecentBryanHighSchoolgraduate, heard about this program at alocal community college. The processteachesthestudentshowtoworktogetherand complete a substantial project. Aftertwo weeks of classroom instruction,Nick and �� other students and recentgraduatesbeganconstructionwiththehelpof licensed workers. Within two monthsthey had completed a �,�00-square-foot,three-bedroomhouseframeforaqualifiedlow-income family in the area. Duringtheprocess,manyofthestudentsactuallyreceivedjoboffersfromotherareabuilders.Searcy may consider a future career as a

builder after he finishescollege.

This program wouldnot be successful withoutthe support of the HOMEConsortia for the BrazosValley. The support ofthe HOME Consortia,which budgets annuallythe use of HOME fundsin the region, has enabledBVAHC to partner withlocal governments andschools,aswellasprisons.The HOME Consortia isalsocrucialforanumberofBVAHC’s other programssuchasmajorhomerepairs,mortgage loans, and thecreation of affordablesubdivisions such as

Table 13. Sources of CDC Housing and Commercial Development Funds, 2005

Development Capital Source Amount ShareSale of Low-Income Housing Tax Credits $86,098,768 41.1%Banks $40,656,511 19.4%Federal Programs $27,064,909 12.9%Private Activity Bonds $13,600,000 6.5%501(c) (3) Bonds $13,600,000 6.5%Other $12,308,155 5.9%Equity $8,319,219 4.0%Local Governments $5,353,697 2.6%Intermediaries $1,735,322 0.8%State of Texas Housing Trust Fund $321,200 0.2%CHDO Property Tax Exemption $266,311 0.1%Total All Projects

Includes year 2006 survey respondents.Note: Some sources of funds may have been awarded over one or more prior years and used for development in 2005.


WashingtonPark.SinceHOMEfundsaredesignatedinfiveyearplans,ithashelpedprovideconsistencyinBVAHC’sfunding.This allows BVAHC more flexibly andcreativity because they do not have toworry about funding annually; therefore,they can implement and assist more low-and moderate-income citizens throughaffordablehousing.

BVAHCalsoprovidesassistancethroughhome ownership counseling and financialliterary classes. They have counseled anaverageof�,�00peopleviaclassesandthephone annually. This is a crucial servicebecauseBVAHChasfoundeducationtobethelargestbarriertohomeownershipintheirservicearea.Inaddition,they have providedover �80 familieswith down paymentassistanceandmortgageloans. BVAHC alsoprovides commercialdevelopment in theirservice region. Theyproducedapproximately70,97� square unitsof commercial spacebetween �99�-�00� inparking lots and drives.From�00�to�007,theyrehabilitated ��,�00squareunits.

Brazos ValleyAffordable HousingCorporation providesthese services to both

their clients as well as the communityat large and they do not have a waitinglist. In �007 alone, BVAHC assistedapproximately ��0 individuals andfamilies. The area median family income(AMFI)is$��,800andin�0079�percentoftheirclientsmadesalariesof80percentMFI,whilefivepercentmadesalariesof�0percentMFI.

BVAHC receives most of their fundingthroughHUD’sHOMEprogram.However,theyalsoreceivefundingthroughanumberof grants from the CITI Foundation, OneStar Foundation, TACDC, TDHCA, USTreasuryCDFIfund,aswellassevenlocalbanks, and city and county government.

Table 4, 5, 6. Housing Acquisition and Development by CDCs, through 2005

Housing Type Prior to 1994 1994-2003 2004-2005

Number of Units

Percent of Total

Number of Units

Percent of Total

Number of Units

Percent of Total

New Rental Units 1,143 15.8%

6,161 14.8%

2,550 39.5%

Acquired or Rehabilitated Units

2,264 31.3%

23,958 57.3%

1,171 18.1%

New Owner-Occupied Units

2,370 32.8%

8,477 20.3%

1,473 22.8%

Rehabilitated Owner-Occupied Units

1,451 20.1%

3,168 7.6%

1,269 19.6%

Total New or Rehabilitated Units

7,228 100.0%

41,764 100.0%

6,463 100.0%

Prior to 1994 to 2003: Includes years 2000, 2002, 2004 and 2006 survey respondents, 2004-2005: Includes year 2006

This house was constructed in partnership with the Texas

Department of Criminal Justice-Holiday Unit. The house is partially construct-

ed, then the home is moved to a lot where the finish out is completed.


Finally BVAHC receives supplementaryfundingfrompurchasingtheCarterCreekCenter retail development and�0units attheOakCreekCondocomplex.

ConclusionBrazos Valley Affordable Housing

Corporation’s service to the communityofBryanfor thepast��yearshashelpedimprovedthelivesofmanyofitsresidentssuch as Mike and Kelly Smith, NickSearcy, and Latishia Polk. Cooperativepartnerships with local municipalities,counties,theGulfCoastTradeCenter,theState Prison, and Regional High Schoolshave alsoprovidedmanyopportunities tohelp low-income individuals and familiesin the region.This servicehas resulted insignificantrecognitionthroughawardssuchastheTexasAssociationofLocalHousingFinance Agencies’ Special AchievementAward in �00� as well as the NationalAssociation of Development Agencies’InnovationAwardin�00�.

However,BVAHChashadtoovercomea number of challenges throughout theirhistory. For example, due to the lack ofavailable funding, Brazos Valley CDChas only been able to provide �8 homemortgages (of which only one has beenforeclosed). They are currently waitingon a grant from the US Treasury’s CDFIfunds in order to increase the number ofloans. However, they will not currentlybe increasing the types of services theyprovide. Another concern of BVAHCis that they are unable to provide morefor special needs populations because ofrestrictionsonHOMEfundsaswellaslargenumbers of low-income residents in need

ofaffordablehousingintheirservicearea.BVAHC suggests the need for a mediumpriority ranking for special populationssuchasthehomeless,elderly,anddisabledbecause these groups have unique needsthattendtobeexpensivetoaddress.

BVAHC also states that the biggestbarriers for commercial development byCDC’sisalackoffederalandstatefunding,alackofpartnershipsbetweennon-profitsand the private sector, and the financialrequirements and regulations thatmake itmoreriskythanresidentialconstruction.

Withadditionalfundingandpartnerships,Brazos Valley Affordable HousingCorporation can continue to expand andprovide more affordable housing andcomprehensive services benefiting all ofTexas.TheHOMEConsortiaiscrucialforthis to be successful. By providing somestabilityintheirfundingsources,BVAHCis able to be more flexible and creativein their programs and other sources offunding.

For more information about BrazosValley Affordable Housing CorporationPleaseContact:

[email protected]

www.bvahc.org�00�Suite�80,E.�9thStreetBryan,Texas7780�Phone:979.�9�.�809Fax:979.�9�.�8��


Clarence Lee Jimmie droppedout of high school in the ��thgrade and soon realized itwas amistake. Then he discovered the

Community Development Corporationof Brownsville’s (CDCB) YouthBuildprogram,adropoutrecoveryandaffordablelow-incomehousingconstructionprogram.ThroughCDCB,Jimmiewasable toearnhisGEDandisnowenrolledinclassesattheUniversityofTexasatBrownsvilleandTexas Southmost College while lookingfora job.HedescribesYouthBuildashis“secondchance.”

The YouthBuild program links jobtraining, classroom instruction, andaffordable housing construction to helphigh school dropouts earn their GED.The program also includes child-care,transportation,atrainingstipend,andhighereducationfinancialassistance.Since�99�,ithasbeenawardednineHUDYouthBuildgrants for a total of $�.� million. Thisfunding has allowed �08 students toparticipateintheprogram.Ofthestudentswhoenrolled,��7graduatedafterbuilding99 homes (�8 percent). In addition,regardlessofwhethertheygraduatedfromtheprogramornot,��enrolled students(�8 percent) obtained their GED and ��enrolledstudents(�7percent)gotajoborwentontocollege.Studentsdonothaveto

graduatefromtheprogramorobtaintheirGED to benefit from participating; manygotjobsalongthewaythroughCDCB’sjobplacementprogram,whileothersincreasedtheireducationalplacement.

The Community DevelopmentCorporation of Brownsville (CDCB)was founded in �97� and has since beenproviding safe, decent, and affordablehousing, loans, and financial educationto residents of the City of Brownsville,southernCameronCounty,andsurroundingcommunities.Theyarecurrentlythelargestnon-profitsinglefamilyaffordablehousingprovider for homeownership in Texas.Since�997theyhavebuiltand/orfinanced�,�0� affordable homes in their servicearea. In �00� alone, CDCB provided 8�affordablehomesandsince�998theyhaveproducedninepercentofallnewhomesinthe area.They are located inBrownsville

Community Development Corporation of Brownsville

Houses in Brownsville before reconstruction.


and serveCameronandWillacyCountiesin South Texas along the US-Mexicoborder and the Gulf of Mexico. Theirmission is to assist low-income familiesearning as little as $8,000 per year inattaininghomeownership throughbelow-marketfinancing,qualityconstruction,theuseofefficienthomedesigns,andtargetedoutreach.CDCBisanon-profitdeveloper,aswellasanapprovedFHATitleIandTitleII Direct Endorsement lender, a FannieMaeapprovedseller/servicer,andaRuralDevelopment lender. CDCB’s currentdelinquencyratefor loans is less than .0�percentofallbalancesoutstanding.

CDC of Brownsville’s service area isone of the poorest, as is evident by thenumberofcoloniasintheregion.Ofloansoriginated by CDCB, almost all of themare for Hispanic families who earnedbelow 80 percent AMFI. However, theyserve clients each year whose incomesmostlyrangebetween�0-80percentAMFI($��,000 in this region) and whose agetypically ranges from mid �0’s to mid�0’s.In�007,theyserved�98individualsand8� families throughnew/rehabilitatedhomes,�7individualsandfamiliesthroughYouthBuild, and �,�� individuals andfamilies through homebuyer counseling.

They provide theseservices on a first-come,first-servebasis.

Mutual Self Help/Bootstrap Program

CDC of Brownsvillehas three main housingprograms, includinga Mutual Self- Help/Bootstrap Program whichhelpsfamiliesearninglessthan �0 percent AMFIreach homeownership.This program requires

familiestotakepartinbuildingtheirhomesaswellasothers’homes.Sixtotenfamiliesworkforoverayearbuildingeachfamily’shome,onlymovinginafterallarecomplete.Each family is required to contribute tobuilding �� percent of their home andthe others’ homes through sweat equity,whichreducestheloanamountforeachbyas much as $��,000. Seventeen self-helpgroups have completed �0� homes andhave six more under construction in bothCDCB’s affordable housing subdivisionsandinthecolonias.Nohomebuiltthroughthisprogramhasbeenforeclosedonsince�00�.

Marisela Guerrero, a mother of seven,took part in this program, working withfive other families and constructiontrainerstohelpbuildhomesforthemselvesandotherswhileworkingapart-time job.She described her home as her “Dreamcome true. Actually a dream come truefor all of our families.” In addition, thisprogram allowed the families to go fromnotknowingeachothertocountingoneachotherforsupport.

CDCB utilizes a number of differentfundingstreamsforthisprogram.Forruralareas in Cameron County this includesUSDA Rural Development �� grants

Table 20. CDFI Loan Number and Volume, through 2005Loan Type Prior to 2002 2002 2003 2004 2005

No. Volume No. Volume No. Volume No. Volume No. VolumeBusiness/ Existing 448 61 60 59 59Business/ Start-Up 22 6 35 18 61Housing 2 137,000 0 - 3 261,500 56 121Mortgages 252 234 152 170Micro-enterprise 997 783 706Total

Prior to 2002: Years 2002 and 2004 respondents, 2002-2003: Year 2004, 2006 respondents, 2004-2005: Years 2006 respondents.

House for one of the OCC clients.


for construction supervision and programmanagement totaling $809,000 and HUDSHOP loans totaling $7�0,000, and RD�0� loans with rates ranging from onepercent to �.7� percent based on incomeand adjusted annually. CDCB also usesTexasMRBandTexasBootstraploansinthe City of Brownsville to finance thesehomes, allowing families to pay under$��0PITIpermonth.

Housing Information and Education Center

CDCofBrownsvilleprovideseducationalclasses for the City of Brownsville andthe surrounding communities in additionto their affordable housing production.CDCB runs a Housing Information andEducation Center, a certified housingcounseling agency, which provideseducational classes for people who wantto become homeowners but don’t knowhow. This center provides counseling onhome repairs and home buying througha Comprehensive Housing CounselingProgram. This program helps peopleunderstand the homeownership process,mortgages, budgeting, and how to avoidforeclosures.CarlosandHortenciaAlvareztook this course tobetterunderstandhowto buy a home for their growing familyand avoid the pitfalls, learning about set-asides for taxes and house maintenance.They knew having this information wascrucialafterwatchingothersdealwiththeissuesandproblemsofbeingahomebuyer.Soon after the course they were able tofinalize the paperwork, which wouldenable them to own their own home.Other neighborhood-based workshopsand activities provided include first-timehomebuyer workshops, credit fairs, IDAprograms,EITCtaxpreparations,consumer

educationworkshops,andadown-paymentassistanceprogram.

However, an increase in technicalassistancefornon-profitstaff,particularlyforspecificallydesignedprogramssuchasthese,iscrucialtoimprovetheeffectivenessofthisorganizationandtheseprograms.

Rural & Colonia Loan ProgramOne of CDCB’s most successful loan

programs is their Rural & Colonia LoanProgram, a public private affordablehousing initiative for South Texas bordercolonias and rural areas in Cameron andWillacyCountieswhichprovidesaffordablehousing of long-term value, improvesgenerallivingconditions,meetsresidents’income and cultural needs, and expandsthe local tax base. This program is runthroughtheirpartnershipwithRioGrandeValley Multibank, a certified CommunityDevelopment Financial Institution(CDFI), through which nine stockholderinstitutions, area builders, and State,Federal and Private funders participate.ThankstoCDCB’sRural&ColoniaLoanProgram theRGVMultibankcanprovidelongtermmortgageloansatbelowmarketratestofamiliestheywouldnormallydenycredit for traditional mortgage programs.

University of Texas at Brownsville students construct new homes

through the CDC self-help program.


Colonia families earning less than �0percentAMFIcanreceiveasecure�0yearloanwitha�.�percentinterestrate,whichthe banks funds �0 percent, and CDCBfundingtherestwithzeropercentinterest.TheRuralandColoniaLoanProgramwiththeir Affordable Housing Loan Programs(AHLP) currently total �� loans with$��.� million in outstanding loans, withonlyadelinquencyrateof�.��percent.

This program receives funding fromHUD’s Rural Housing and EconomicDevelopment(RHED)grant,StateofTexasColonia Self Help Center, State HOMEFunds,andFHLBAHPFunds,toleverageprivatesectorfundsavailablethroughRioGrandeValleyMultibank(throughfourofitsmemberbanksJPMorganChase,WellsFargo,TexasStateBankandInternationalBankofCommerce)whichhascommittedtoproviding$�.�millionforbelowmarketinterest rate loans for colonias and ruralfamiliesunderRCLP.ThispartnershiphasallowedCDCBtoleverageprivatemoneyin an innovativeway, helping to improvethe program and the colonias it serves.However, an overall lack of creativityin funding requirements reduces thisinnovation and private sector investment,leadingtofrustrationforCDCBinmanyoftheotherprogramstheyareinvolvedwith.

ConclusionCDCofBrownsville’swork in theCity

ofBrownsvilleandCameronandWillacyCountiesforthepast��yearshasmadeitthelargestnon-profitproviderofsinglefamilyaffordable housing for homeownership.This has benefited these communitiesgreatly, especially for people such asClarence Lee Jimmie, Marisela Guerrero,and Carlos and Hortencia Alvarez. It isthrough their extensive funding sourcesthatCDCBisabletoprovidetheseservices.

CDCBachievementsinaffordablehousinghavemade themrecognizedforanumberofnationalhousingawards.Theseawardsinclude a �999 Recipient of the MaxwellAward of Excellence, a Maxwell Awardof Excellence Finalist, a recipient ofthe Federal Home Loan Bank SystemCommunity Partnership Award, and theState of Texas Housing Finance AgencySpecialAchievementAward.

However,CDCofBrownsvillehascomeacrossanumberofsituationswhichobstructtheir ability to provide services in themost efficient and affordable manner; forexample,thelackoffundingprovidedforentireprojects,suchastheirneighborhoodredevelopment/rehabilitation projects forthose earning less than �0 percent AMFIwhich are almost impossible to completewithasingleHOMEorHTFaward.Alsotheincreaseindocumentationrequiredbystate,federal,andlocalfunders,aswellasthe inconsistent interpretations and crosspurpose documentation requirementsby different entities for the same fundshas caused problems, all which increaseadministrative costs, duplication,slows production, and reduces funds tohomebuyers.WhiletheirMutualSelfHelp/Bootstrapprogramisverysuccessful,itisvery expensive administratively and it ishard to find conventional loans for thesefamilies.Therefore,ifitwasnotfortheseUSDA/RD��grants,HUDSHOPloans,USDA/RD �0� loans, Texas MRB loans,and Texas Bootstrap loans this programwouldnotbeabletoexistandthesehomeswouldnotbeaffordable.

It is CDCB’s ability to both producenewhousing,inanefficientandaffordablemanner, as well as to provide financingfor low income families to purchase thehousingproduced,thathasallowedthemtoreduce theirdependencyon federal, state,andlocalfundingsources,aswellasensurethat families receivemore“bang for theirbuck”whenbothpurchasingandfinancingthroughCDCB.

FormoreinformationaboutCommunityDevelopmentCorporationofBrownsvillePleaseContact:NickMitchell-BennettExecutiveDirectornmitchell@cdcb.orgwww.cdcb.org90�E.LeveeStreetBrownsville,TX78��0Phone:9��.��.�9��Fax:9��.��.�990


After living off and on at theSalvation Army and withfriends, Solomon* had nothingbut a backpack as his sole

possession.Hecouldnotmakeendsmeetwith his minimum wage jobs. He wasunabletofinddecentandsustainableworkin the restaurant management industry ashedesired.

Now he lives in housing provided byFoundation Communities, a CommunityDevelopment Corporation that empowerslow-income families and individuals toimprove their educational and economicstandingpermanently.ThroughFoundationCommunities, Solomon has succeeded inreachinghisgoalofoverseeinga teamofpeople for a catering company that doeseventsattheHiltonandAustinConventionCenter.HedescribeshistimeattheGardenTerraceasastepping-stonetoanewlife.

Since �99�, Foundation Communitieshas served over �7,000 clients in theAustinandDallas-ForthWorthareas.Theyoperate�0affordablehousingcommunitiesin Austin and three similar communitiesin the Dallas-Fort Worth area. However,FoundationCommunitiesbelievesservicesare as crucial as housing in improvingpeoples’livesandhelpingthemmoveoutofpoverty.

Oneofthecornerstonesoftheirprogramisthecasemanagementprovidedtoclients,which helps residents reach necessaryprogramsandassistancesuchashealthcare,counseling, and employment. Foundation

Communitiesalsooffersanumberofotherprograms for both adults and children,including after-school tutoring, structurededucationalsummerprograms,communityminded teen groups, money managementand financial literacy classes, EITC taxpreparations, computer training, Englishas a second language classes, communitygardening, GED classes, home-buyercounseling, and IDA accounts. In �007,theyserved�7,0��families.

FoundationCommunitieshasdevelopeda model, which allows their organizationto function with a business-like approachusing rent,management fees, and interestto cover their operating expenses.

After struggling with alcoholism and depression, Darrell has found

a home at Garden Terrace.


Table 26. Community Services Offered by CDCs and CDFIs, 2006

ServiceNo.ofCDCs

Legal Services 69Child Care 43Home Buyer Counseling 39Advocacy 32Health Care 23Financial Literacy Education 19Community Organizing 18Job Placement Assistance 18Homeless Services 17Emergency Food Assistance 12Youth Services 11Senior Programs 11Tenant Counseling 10Job Skills Training 2Total Number of Community Services 324Total Number of CDCs Providing Community Services 120Percent of CDCs Providing Community Services 82.5%

However, they also rely on grants fromcorporations,foundations,andindividualsaswellasfundingfromfederal,state,andlocal government. In �007, 79 percent oftheiroperatingrevenuecamefromrentandproperty income, while �� percent camefromdonationsandgrants.Ofthisrevenue,70percentwenttoaffordablehousing,��percent went to community services aswell as administration, and eight percentwenttosupportiveservices.

Supportive ServicesIn the process of developing their

efficiencyapartments, staffatFoundation

Communities discovered that a numberof their residents have issues withdrugs/alcohol, mental illness, or a “dualdiagnosis.” They have come to realizehow these issueshurt residents’ ability tokeephousingwhetheritisbecauseoftheirbehavior,alackoflong-termcare,ornon-paymentofrent.Infact,�0percentofthe��0residentsatSpringTerracehavesuchissues.

One such individual was Darrell,* whocame to Garden Terrace struggling withalcoholism and depression. With the helpof Foundation Communities, he was abletodealwithhishealthissues,takecollegeclasses and work again. He has sincemovedoutofGardenTerrace topursueajob managing a ranch. Darrell describesGarden Terrace as “a godsend” that gavehimasecondchanceatlife.

The Children’s HOME InitiativeAlicia, Manuel, and their two children

were able to apply for housing at SierraRidge through the Children’s HOMEInitiative, which provides �8 at-risk orhomeless families with reduced costhousinginoneofthesecommunitieswithasix-monthlease,notransitiondeadline,andsupportiveservices if theymakeaneffortto increase self-sufficiency. This programhelped them escape their deterioratingapartmentthatwasaffectingthechildren’shealthaswellascausingManueltofallintodepression.Theyarethrilledtobelivingina clean and well-maintained community.They have become very active in thiscommunity by taking English fluencyclasses,homebuyerseducation,andmoneymanagement classes, which have helpedthem double their household income.Throughthisprogram,AliciaandManuelhave been able to pursue long-term goalsand increase their self-sufficiency, familystability,andpersonalconfidence.

This program, in which the averagecost for a two-bedroom is $�00, wouldnot be possible without funding fromNeighborWorks America and their ELIPilot Program. This funding has helpedFoundation Communities pay downmortgagesforthreemultifamilypropertiesandpermanentset-asideunitsforextremelylow-incomefamilies.

Community Tax Center ProgramAnother successful program, which

has made significant improvementsover time, is the Community Tax Center

With an Individual Development Account offered through Foundation Communities, Laura Velasquez was able to save up enough money to buy a home and earn a BA in business management.


Program, which provides free incometax preparations by over ��0 IRS trainedvolunteers.Sincetakingovertheprogram,the number of tax returns prepared hasgrown from �,700 in �00� to �7,000 in�008, which resulted in $�� million inrefunds and tax credits via the EarnedIncome Tax Credit and Child Tax Creditfortheirlowandmoderate-incomeclients.These refunds are on average $�,�� andhaveincreasedfamilies’annualincomebyasmuchas�0percent.Duringthe�008taxseason, this program expanded to includetaxcenterclients’bankaccounts,financialcoaching, microenterprise workshops,Individual Development Accounts, andhelpwithfilingforanIndividualTaxpayerIdentificationNumber(ITIN)andFAFSAforms.Theyhavealsostartedtoofferyeararoundtaxassistance.

Supportive HousingFoundation Communities is a growing

organization with an extensive networkwithin the affordable housing field, yetthey still encounter a number of setbacksthatlimitstheirabilitytoprovideadequateaffordable housing to the residents ofAustin,Dallas,andFortWorth.

One of the biggest issues they haveencountered is the high cost of newfamily properties in Austin. In order toprovidemulti-familyhousing,FoundationCommunities has to acquire property inthe Austin residential real estate market,buttheyhavetocompetewithout-of-stateinvestorswhoaretryingtotransformtheseproperties into high-end condominiums.This has led to grossly inflated pricesaveraging$8�,��perunitor$�7millionfora�00-unitproperty,whichisoutoftheirpricerange.Todealwiththisobstacle,theyfeelthebestapproachistopromotetheirnon-profitmission to thepropertyownersbeforetheygoonthemarketandareoutoftheirpricerange.

Foundation Communities currentlyhas a partnership with the City of Austinto rehabilitate old hotels into supportivehousingcommunities.Intotal,FoundationCommunitieshasprovided��efficiencyapartments at Garden Terrace, SpringTerrace, and Skyline Terrace, as well assupportive services to very low-incomeindividuals.TheCityhasbeen the largestdonor on all of these occupancy projectsthrough CDBG, HOME, and GO bondsand has provided support and assistance

throughout each development process.In addition, Foundation Communitieswas able to leverage Housing Trust FundmoneythroughtheStateforSpringTerraceandSkylineTerrace.

The most recent affordable unit is theSkyline Terrace in Austin, a �00 unitsupportive housing community, whichoffersmeetingspaces,acourtyard,andself-sufficiency programs. Rent ranges from$�7� to $�98 for individuals with annualincomesof$��,900orlesspercentofclientsinthesecommunitieshavemaintainedtheirhousing and more than �00 individualsat risk of homelessness have benefitedthrough this partnership between the cityand Foundation Communities and helpedfurthertheirgoalofendinghomelessness.

Of Foundation Communities’ �,0�0housingunits, theyhave redeveloped��rental homes in the past six years aloneand they plan to redevelop an additional�� rental homes in �008. FoundationCommunities provides some of thisaffordablehousinginduplexesandmulti-family communities for struggling lowand moderate-income families, such as

One of the many families that was able to save enough money to

buy their own home with the help of Foundation Communities.


at the ��8-unit Sierra Ridge community.Therestofthisaffordablehousingistheirthree supportive housing communities.The area median family income (AMFI)of Foundation Communities’ service areais $�9,�00. In �007, �0 percent of theirclients earned approximately �0 percentAMFI, �0 percent earned approximately80 percent AMFI, and �0 percent earnedapproximately�0percentAMFI.

PartnershipsIt is through a number of successful

partnerships around Austin, Dallas, andFort Worth that has helped FoundationCommunities develop their communityand supportive services. Without thesepartnerships, many necessary andbeneficial servicescouldnotbeprovided.Some partners that help provide services

to Foundation Communities’ clientsincludeHeartHouse,Caritas,FrontSteps,WorkforceSolutions,ArlingtonBoysandGirls Clubs, Goodwill, Travis CountyMHMR,TexasHomeofYourOwn,AnyBaby Can, Lifeworks, Family Eldercare,Capital Area Food Bank, AIDS Services,Passages, and Safe Place. Finally, UnitedWay Capital Area and NeighborWorksAmerica provide technical and financialassistance to Foundation Communities’residents, board, and staff to help theorganizationgrowandthrive.

Withouttheseprogramsandpartnerships,peoplelikeLauraVelasquezwouldnothavereached self-sufficiency. Ms. Velasquezstruggled with her family’s financialstability since her divorce, until, throughthe help of a Foundation Communities’Individual Development Account, shewas able to save up enough money tobuy a home and pay for school. Livingat Trails in the Park, one of FoundationCommunities’ properties, for two yearshelpedMs.VelazquezsaveenoughmoneytobuyahomeandearnherB.A.inbusinessmanagement. She says, “all of this waspossiblebecauseFoundationCommunitiestook the time and money to invest in myfamilyandme.”Norma,another resident,couldnotfindawell-paying jobuntilshetook free adult education and Englishclasses throughFoundationCommunities,which helped her improve her fluency,continue her education, and develop herself-confidence,enablinghertofindagood

Table 3. CDFI Operating Budget Sources, by Amount, 2005

Budget Source Amount Share

Interest and Fee Income $3,543,855 29.7%State and City Funding $2,569,983 21.5%Private Foundations $1,433,013 12.0%

Bank Donations$1,003,631 8.4%

Corporate Donations $159,600 1.3%Intermediaries $150,000 1.3%CDFI Fund, US Treasury $1,393,500 11.7%Other $1,694,962 14.2%Total 100.0%

Includes year 2006 survey respondents. Four organizations did not provide data.


Table 23. CDFI Capital Budget Sources, 2005Budget Source Amount ShareEarned Income $6,149,497 29.1%Banks $5,617,650 26.6%Federal Programs $4,041,331 19.1%CDFI Fund, US Treasury Grants or Equity Investments $1,950,000 9.2%Foundations $1,489,875 7.0%Religious Donations $1,245,000 5.9%Other $369,353 1.7%Corporate Donations $201,634 1.0%Bank Grants $50,000 0.2%Non-Cash In-Kind Contributions $37,464 0.2%State and Local Governments $0 0.0%Intermediaries $0 0.0%Total 100.0%

Includes year 2006 survey respondents.

job that will continue to help her familythrive.

ConclusionFoundation Communities has helped

thousandsofindividualsandfamiliesoverthepast��yearsimprovetheirlivesthroughaffordable housing as well as communityandsupportiveservices.Itisthroughtheseprograms and housing that individuals,suchasLauraVelasquez,Darrell,Norma,and Alicia and Manual, have been ableto enhance their lives educationally andeconomically. Foundation Communities’missionofintegratinghousingandservicestogetherallowpeopletohavestablehousingandimprovetheirliveswhilesavingenoughtopossibilityown theirownhomesorgotocollege.Theirdetermination toprovideaffordable housing and financial serviceshasresultedinsignificantrecognitionandapproximately �0 awards. These awardsinclude the Metropolitan Life FoundationAwardforExcellenceinPropertyandAssetManagementin�00�and�999,theSilverAwardforMunicipalExcellencefromtheNationalLeagueofCities,andtheAustinUnder �0 Awards Community Service/Nonprofit Winner in �00� (ExecutiveDirectorWalterMoreau).

However, Foundation Communitiescould be even more successful if theyhad additional funds and relationships tocompete with high-end investors whentrying to find affordable housing sites. In

addition, supportive services desperatelyneedsmorefundingsothattheirsupportivehousing sites can hire more staff andcreatemoreresourcestobetrulyeffectivein helping people meet self-sufficiency.Staffhasvisitedother supportivehousingprogramsinSeattle,AnnArbor,andNewYorkCitytounderstandbetterhowtogainfundsfortheirprograms.Whiletheylearnedthat the success of other programs comesfromabroadcoalitionofgovernmentalandprivatesupport,Texashasalongwaytogotomakethispossible.Issuesstillexist,suchasthelackofconnectionbetweenhousingandotherissuessuchasmentalhealthandchildren, as well as the inability of localauthorities to access federal funds. Thislack of funding has resulted in a waitinglist at all of Foundation Communities’proprieties.

*Nameshavebeenchanged.

Formore informationaboutFoundationCommunitiesPleaseContact:

[email protected]

www.foundcom.org

�0��S.�stSuite�00Austin,TX7870�Phone:��.��7.�0��Fax:��.��7.�0��


Julie*, a proud resident of BeaconPlace, once thought that she hadnowaytomakeitonherown.Shehad no employment, car, or family

supportandshehadtotakecareofherselfandherchildren.However,itwasthroughthe support ofBeaconPlace that shewasabletolivealifefreefromdomesticviolenceand ultimately improve her family’s life.WhileatBeaconPlace,shehasbeenabletofindajob,savemoney,ownacar,andstartclassesforanursingdegree.Shehasalsobeenable toparticipate in theSETHprogram, which helps first-time buyerswithadownpaymentonahome,aswellastakepartinparentingclasses.ThankstoBeaconPlaceshehasbeenabletostabilizeherlife.

Women’s Opting for More AffordableHousingNow,Inc.(WOMAN,Inc.)beganin �99� to provide supportive housingfor women, particularly those sufferingfromdomesticviolence,toempowertheirlives.Theirmissionisto“createaffordablehousing augmented by financial andemotional supportive services for womenand children leaving abusive situationsandotheratriskpopulations.”WOMAN,Inc.iscertifiedasastatewideCommunityand Housing Development Organization(CHDO). The organization is located inHouston, yet provides supportive housingand services to �� urban counties inSoutheast Texas including the Pasadena,

Beaumont, and Galveston areas as wellas all of Harris County. They work withpartners and social service organizationsin thearea to improveaffordablehousingopportunities,providesupportiveservices,and to educate the community. Theirresidents must earn less than �0 percentAMFI,haveanincome,andbeabletopayforrentandchildcareoncestableinordertoqualifyforoneofWOMAN,Inc.units.

WOMAN, Inc. has been the developer,lender, and builder for three permanentandtransitionalhousingprojectsformulti-family uses since their founding. TheseincludeDestinyVillage,whichwasbuiltin�99�inPasadenaandhas�0three-andtwo-bedroomunits;BeaconPlaceinGalveston,whichwasbuiltin�999andconsistsof�0three-bedroom townhouses; and SunshineCove Apartments in Beaumont, openedin �00� and is made up of �7 three- andtwo-bedroom units. WOMAN, Inc. alsorehabilitates all their units in order tokeep them safe and decent. They haveapproximately �� residents at a time intheirhousingandhavehousedandhelpedover ��0 women and children since theirfounding.Theyarealsointhedevelopmentstagestobuildanotheraffordablehousingcomplex within the next few years. Thismulti-familycomplexwillbeintheThirdWardofHouston,andwillrangebetween�0-��units.Itwillbedevelopedforabusedwomenaswellasforwomenveterans.

One of three transitional supportive homes provided by WOMAN, Inc., Bea-con Place is located in Galveston.


WOMAN, Inc receives its fundingfor its affordable housing constructionthrough a number of different grantsources including thefederalgovernment,privatefoundations,andlow-interestloans.Some of the past foundations that havesupported WOMAN, Inc.’s work includethe Swalm Foundation, the RockwellFund, the Houston Endowment, theWashingtonMutualFoundation,theHarrisandElizaKempnerFund,andtheSimmonsFoundation.

Supportive ServicesWOMAN, Inc. is particularly proud of

theirsupportiveservices.Theybelievethatthe best way to reach permanent housingis through self-sufficiency and they helpresidents work towards this goal throughextensive support services available attheir housing complexes. They believehaving services at all of their locations iscrucial to providing more comprehensiveand successful results.At their sites thereiscasemanagementcounseling,childcareassistance,rentalandhomebuyerassistance,parenting, job and life skills trainings,nutrition and medical intervention,transportation,homelessandyouthservices,IDAs, and advocacy. WOMAN, Inc. isable to provide these supportive servicesthrough a unique set of partnerships withlocalsocialserviceagencies.Theywouldalsoliketoimplementlegalservices.

Individual Development AccountsOneprogramthathasprovenextremely

successful for WOMAN, Inc.’s clients istheir Individual Development Accounts(IDA) program. WOMAN, Inc requires

thatallresidentsparticipateinthisprogramin order to improve their financial statusand reach a higher level of financialindependence. When a resident leavesWOMAN, Inc.’s program they typicallyhave approximately one to two thousanddollars in their account which they canuse to pay for a down payment on ahouse,utilities,orotherhousingfinances.This allows these individuals to becomefinanciallystablewhentheymightnothaveotherwise been able. This program is runthroughtheCovenantCommunityCapitalCorporation, a local CDFI. Throughthe federal CDFI Fund from the U.S.DepartmentofTreasury, thisorganizationisabletomatchresident’sdepositsona�:�basis.

This program has been particularlysuccessfulinhelpingwomenbegintosavemoneyagain.Another residentofBeacon

Making families feel more at home is one of the goals of WOMAN, Inc.

This placescape is at Destiny Village in Pasadena.

One of the 10 homes that make up Beacon Place.


Place has been able to budget her moneyand is doing a better job setting it asidethrough the help of this program. Beforecoming toBeaconPlace, shehadno ideathat therewereplaces formothers to fleefromdomesticviolence.Nowsheandherchildren are benefiting from participationthrough the IDA program, along with astablejobwithachanceforadvancement,andherowncar.

PartnershipsProgramssuchastheIDAaresuccessful

because WOMAN, Inc. has experiencedvarious opportunities for local, state, andnational recognition and has developedbeneficial partnerships. The exposure theorganizationhashadoverthepastfewyearsin magazines and TACDC publications;sitting on panels; awards bestowed uponthe organization; and participating ingovernmentaldiscussionshashelpedthemget out the word about what WOMAN,Inc. does.Thesedifferent forumsprovideopportunities to explain to the public theimportanceof theirmissionandhow it isbeneficial to the community while alsohighlightingthecriticalneedforadditionalfunding.Thistypeofexposureiscrucialtonon-profitstryingtoreceivemorefundingorsupportfortheirprograms.

As a developer of affordable housingunits,WOMAN,Inc. reachesout toothernon-profits looking to provide supportivehousinginanefforttoestablishpartnerships.There have been challenges, however, in

ensuringthatthesepartnersunderstandtheamountoftimeittakestodeveloppropertyduetothebureaucraticprocess.

Capacity BuildingTheopportunityforcapacitybuildinghas

beenparticularlyinstrumentalinimprovinghow their organization functions. For thelast three years WOMAN, Inc has beenin apartnershipwith theLocal InitiativesSupport Corporation (LISC). LISC hasbeen providing them with training onboardgovernanceandboardknowledge,aswellasinternalcapacityandgrowth.Thisfunding has been crucial in helping themimprove their organization’s functioningandhow theyprovide supportivehousingandiscrucialtohelpingat-riskwomenandchildren.

One resident came to Sunshine Covefeeling hopeless and depressed and didnotbelieveanythinggoodcouldhappentoher;however,afteronly��monthsshehascompletedanumberofhergoalsincludingmaintaining a checking and savingsaccount,gettingabetterpayingjob,buyingmorereliabletransportation,andreturningtoschool.WiththehelpofWOMAN,Inc.she now has a positive outlook on life,seeingtheskyaslimitless.

ConclusionWOMAN, Inc.’s mission to provide

affordablehousingandsupportiveservicestoat-riskwomanhasbeencriticalinhelpinga vulnerable population receive badlyneeded help in Southeast Texas. Theirworknotonlyprovidesaffordablehousing,butprovidesit toagroupthat is typicallyoverlooked. Their focus on supportiveserviceshavebeenthecatalysttoimprovingthelivesofabusedwomenbyhelpingthemfocusonstepstoself-sufficiencywiththesecurityofhavingaffordablehousing.

Unfortunately, finding funding forsupportive services can be extremelydifficult. Since these supportive services,which are connected to WOMAN, Inc’saffordable housing, are contracted tolocal social service agencies, funding isestablished through grants won by theseorganizationsforsuchpurposes.However,thereisanoveralllackofavailablefundingfor supportive services, which makesWOMAN,Inc.andtheotheragencieshavetoreallocatefundstoprovidetheseservices.In addition, the state has been unable tosupplement recent decreases in federal

This basketball court is one of the many amenities provided by Beacon Place in Galveston.


help, resulting in a larger gapin funding for these services.Instead,thefederalgovernmentis pushing mainstream-styleprograms that are meant to fiteveryone,whichcanbeharmfultoclientswhodonotfitintoonecategory.Ifthestateandfederalgovernment provided fundingopportunities specifically forsupportive services, the socialserviceagenciesWOMAN,Inc.contracts with could providemore services and would nothavetousefundssetasideforother needs to provide theircurrentservices.

WOMAN,Inc.hasreceivedanumberofawardsfortheirworkinthepastfewyearsincludingthe �999 Maxwell Award forExcellence in Production ofLow-Income Housing fromFannieMaeandan award from theRGKFoundation. The Maxwell Award wasparticularly important to WOMAN, Inc.becauseitwastheirfirstnationalawardandrecognition,whichhasgiventhemasenseofpride for theiraccomplishmentsduringtheirfirstfiveyearsinbusiness.

Itiscrucialthattheseservicesarefundedso thatmore individuals canbenefit fromtheworkWOMAN,Inc.isalreadydoing.In addition, supportive housing programsneed tobegivenmoreexposure inTexassothattheseorganizationshavetheabilityto share their successes and benefit fromstate-widesupport.

For more information about WOMAN,Inc.,pleasecontact:

MichaelleWormly,[email protected]

www.womaninc.usP.O.Box�7�898Houston,TX77��7Phone:7��.8�9.97�7Fax:7��.8�9.7�78

Table 14, 15. CDC Commercial Development Square Footage, through 2005

DevelopmentType Priorto�99� �99�-�00� �00�-�00� �00� �00� Total

NewOffice/Retail 40,600 530,660 86,000 23,000 33,100 713,360NewIndustrial 0 30,200 0 0 0 30,200

NewOther 0 277,173 0 0 0 277,173AcquiredorRehabilitated

Office/Retail 2,000 544,100 62,750 39,000 0 647,850AcquiredorRehabilitated

Industrial 0 90,000 0 0 0 90,000AcquiredorRehabilitated

Other 0 178,473 0 0 0 178,473TotalSquareFootage 42,000 1,650,606 148,750 62,000 33,100 1,936,456

Prior to 1994-2003: Includes years 2000, 2002, 2004 and 2006 survey respondents. 2004-2005: Includes year 2006 survey respondents.

Entrance to Beacon Place.


Community DevelopmentCorporations and CommunityDevelopment FinancialInstitutions lead Texas in

providing affordable housing as well aseconomicandcommunityservicestolow-income families. The six organizationsshowcased in this publication highlightsome of the programs CDCs and CDFIsare currently providing. The diversity inavailable services allows organizationsto provide low-income families with amulti-facettedapproachtoimprovingtheirsituation.

Theseorganizationshavedevelopedthisdiversecollectionofprogramsusingawidearrayoffundingsources,includingfederal,state,andlocalgovernmentsourcesaswellasprivate investment, inorder toprovidethe most efficient and effective servicesto those who need them. However, theseorganizationshaveworkedhardtobecomesuccessful. They have faced numerouschallenges,whetheritisthelackoffundingavailable to provide their programs, thelack of creativity in program regulationswhichhurts innovationandprivatesectorinvestment, or a lack of awareness ofthe issues surrounding housing specialneed populations such as the elderly orhomeless.

TheCDCindustryiscontinuingtogrowand provide further resources, services,andfinancialsupporttotheircommunities.TheCDCindustryisastrengththatshouldbe expanded and supported during theseturbulenteconomictimes.Itisorganizationssuchastheoneshighlightedherethatareabletoprovideloansresponsiblyhelpingtostrengthenthehousingmarketforthelong-term. With more funding and flexibility,CDCsandCDFIscancontinue tobenefittheir communities and theStateofTexasinanefficient,responsibleandsupportiveway.Asummaryoftheprograms,funding,andchallengesoftheorganizationsinthepublicationcanbefoundinthefollowingparagraphs.ImportantProgramsandFunding:• AffordableHousing

• Affordablehousingconstruction

–singlefamilyandmultifamily• Commercialdevelopment• Elderlyhomerepairs• Supportivehousing• YouthBuilds• Rural&ColoniaLoanProgram• Bootstrap/SelfHelpprograms

• CommunityDevelopment• IndividualDevelopment

Accounts• CapacityBuildingorTechnical

Assistance• HomeBuyersCounseling• FinancialLiteracyCounseling• CommunityTaxCenters• Youthprograms-schooltutoring,

structurededucationalsummerprograms,communitymindedteengroups,GEDclasses

• Computertraining• Englishasasecondlanguage

classes• Communitygardening• Casemanagement

• CommunityRelationsandFunding• Partnershipswithcities,states,

corporations,othernon-profits• CDBGfunds• HOMEfunds• TexasHousingTrustFund• Bootstrap/SelfHelploans• CDFIs–downpayment

assistance,mortgageloans(originatingandservicing),smallbusinessloans

• MicroloanManagementServices• USDA/RD��grants• HUDSHOPloans• USDA/RD�0�loans• TexasMRBloans• HUD’sRuralHousingand

EconomicDevelopment(RHED)grant

• StateofTexasColoniaSelf-HelpCenter

• FHLBAHPFunds• RioGrandeValleyMultibank

ChallengesfortheCommunityDevelopmentCorporations:• Alackoffundingparticularly

Conclusion


• forsupportiveservices• forCDFIloans• forentireprojects• forcommercialdevelopment• forresourcesdedicatedtothe

mentallyill,homeless,orthoseatriskforhomelessness

• A lack of creativity in fundingrequirements (focus on mainstreamprograms) which leads to lessinnovationandprivateinvestment

• Anincreaseinrequireddocumentationand regulation when applying forgovernmentgrantsparticularly• forcommercialdevelopment

• Instable/lackofpartnershipsparticularly• forcommercialdevelopment• forsupportivehousing• withhighendinvestors

• Alackofspecializedsupportforspecialneeds groups such as the elderly andthehomeless

SourcesAllinformationusedinthispublicationwasreceivedfromthefollowingorganizations,includingthecitednewspaperarticles:

ACCION,TexasAffordableHomesofSouthTexasInc.BrazosValleyAffordableHousing CorporationCDCofBrownsvilleFoundationCommunitiesWOMAN,Inc.

Avison, April. “Program teaches studentstobuild,TeensconstructhomeinBryan.”The Bryan/College Station Eagle.

Levey,Kelli. “Project aims to addhomesin Navasota.” The Bryan/College Station Eagle.Long, Gary. “Wal-Mart gives $�0,000grant to YouthBuild.” The Brownsville Herald. ��August�008.

Nelsen, Aaron. “Before You Buy,Community Development Corporationeducates first-time homebuyers onforeclosurerisks.”The Brownsville Herald. ��,September�007.

Okuhara, Greg. “City, group helps bringhome dream.” The Bryan/College Station Eagle.��,June�00�

Shapiro,Julie.“APlacetoCallHome.”The Monitor. � July �007. Picture by JoshuaVince.

Ulloa, Jazmine. “From the Ground Up,Program offers families chance to buildtheirownhomes.”The Brownsville Herald. �7,June�008.

“Washington Park gains another newhomeowner.” The Bryan/College Station Eagle.


2008 TACDC Roundtable Members

BankofAmerica-ValerieWilliamsCapitalOneBank-JoyceCampbell

CHASEBank-LisaRodriguezCitibankNorthAmerica-MarkA.Nerio

ComericaBank-IrvinAshfordJr.EnterpriseCommunityPartners-MarkMcDermott

FannieMae-JasonHallFranklinBank-RobertRhoades

LISC-AmandaTimmLockeLordBissell&Sapp-CynthiaBast

NationalEquityFund,Inc.-SharonBaranofskyNeighborWorksAmerica-ErnestodelaGarza

TexasInterfaithHousing-J.O.T.CouchTexasMezzanineFund,Inc.-TheresaAcostaLee

Wachovia-DonGilbertWashingtonMutual-MariaGonzales

WellsFargoBank-JanaTeis

Texas Association of Community Development Corporations1524 South IH-35, Suite 310

Austin, Texas 78704 Phone (512) 916-0508, Fax (512) 916-0541

www.tacdc.org

building a future 2008

Documents

cdc of brownsville

case studiesaccion texas

city of bryan

tacdc policy priorities

bryan school district

history of cdcs

windwood subdivision

blinn college