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HomeMy WebLinkAbout_Healthy Neighborhood Initiative WorkshopOYHKOIH ON THE WATEA TO: Mark Rohloff City Manager FROM: Darryn Burich Planning Director DATE: May 4, 2012 RE: Healthy Neighborhood Initiative Workshop Enclosed please find materials related to the Council's workshop on May 9th regarding the Healthy Neighborhood Initiative that staff is currently developing. In a nutshell, the healthy neighborhoods approach is a market based approach to revitalization that relies on the empowering residents of neighborhoods to effect change by taking effective control of their neighborhoods and investing their time, effort, and money to improve their neighborhoods. These actions create positive momentum in the neighborhood to increase property values and attract and retain homeowners creating a market and positive image for the neighborhood. In this approach the City's role is to help identify neighborhoods and nurture and support the energy of the residents of the neighborhood and provide tools to allow the change to occur based on their desires and needs. In the more traditional model of neighborhood revitalization we as the City look at the neighborhood from what we can do as an outside change agent to improve the neighborhood and often select the neighborhood based on some preconceived set of conditions or priorities. For discussion next week I am enclosing the following documents: • Healthy Neighborhood Initiative ■ This is basic outline for the initiative which will be subject to further development and approval by Council. Also included are the program's association with local plans. • "Curb Appeal" Improvement Projects ■ Listing of potential neighborhood improvements. • Healthy Neighborhood Approach ■ Comparison between traditional and Healthy Neighborhood approaches to neighborhood revitalization. • Great Neighborhoods Great City ■ This document was written by David Boehlke that discusses the healthy neighborhood approach to revitalization and is also what we have used to model the proposed Healthy Neighborhood Initiative, Mr. Boehlke actually visited Oshkosh in 2010, through NeighborWorks and the Foundation, to look at neighborhoods and revitalization efforts and prepared a document identified as Options for Neighborhood Revitalization in Oshkosh which is also enclosed. Please contact me if you have any questions or need additional information prior to the workshop. Healthy Neighborhood Initiative Vision: That all neighborhoods throughout the community are attractive, hell maintainer, and desirable places to live that inspire and create competition within the local real estate market. Mission: Strengthen neighborhoods throughout the community for the benefit of all residents and income levels. Program: Concentrate resources (public and private) into program neighborhoods to achieve revitalization. The goal is to attract homeowners and private investment back into the participating neighborhoods, It is an asset based/market approach that treats the "neighborhood" as the customer and seeks to strengthen neighborhood components to achieve success, Purpose: The purpose of the program is to spur investment and home ownership into participating neighborhoods to generate momentum to spur further investment to ultimately increase property values in the neighborhood and City as a whole. Objectives: Establish a Healthy Neighhorhoods Endowment to promote the following neighborhood stabilization objectives: • Facilitate Neighborhood Organizational Development and Identity • Increase Resident Involvement • Increase Home Investment • Improve the Existing Housing Stock • Increase Home Ownership • Create Higher Standards of Property Improvement and Maintenance • Enhance the Public Realm • Create Confidence in the Neighborhood Funding: Using a combination of finding sources that would include funds such as Capital Improvement (for public realm improvements), CDBG and HUD grants, and the last year of increment from terminating Tax Increment Distract. Uses: • Homeowner Rehabilitation Loans and Grants • Homebuyer Programs • Property acquisition and clearance to remove deteriorated housing stock • Public realm improvements such as terrace tree planting, decorative lighting, neighborhood signage, etc. • Design and Rehab Services that add value and "curb appeal" to properties in participating neighborhoods • Developing partnerships with lenders, building contractors, home improvement centers, and local housing and neighborhood improvement organizations such as Habitat for Humanity, NeighborWorks, and Advocap to concentrate service delivery in participating neighborhoods. Consistency with Local Plans Creating strong and healthy neighborhoods is a key objective in the City's planning documents and in particular the City's Strategic Plan (20 10) and the Comprehensive Plan (2005). City of Oshkosh Strategic PIan Goals • Support strong, safe neighborhoods • Create a public /private partnership to foster grassroots neighborhood organizations • Provide public and private funding for incentives directed toward home purchases and home improvements such as down payment assistance, low or no interest loans, forgivable loans, and grants • Update codes regarding context- sensitive architectural requirements for exterior improvements throughout the City • Help create neighborhood associations throughout the City that will help create a neighborhood sense of place and belonging • Encourage neighborhood interaction through park activities, block parties/potlucks, clean -up days, and community gardens, etc. • Improve city infrastructure such as streets, utility systems and park facilities • Create a neighborhood report card program and consider expansion to include the participation of other departments. City of Oshkosh Comprehensive Plan Goals and Objectives Housing Element • Maintain or rehabilitate the City's existing housing stock and the surrounding areas containing this housing. Develop tools and programs to protect the city's older housing stock. • Continue housing rehabilitation programming which provides assistance to LMI persons in upgrading their housing and in purchasing and improving properties in older neighborhoods. • Develop design standards for infill development. • Implement' Neighborhood Improvement Strategies" in specific geographic areas for neighborhood and housing issues. • Develop programs that encourage owners to convert non- competitive rental property back to owner - occupied structures. • Create a rehabilitation code for pre - existing conditions on historic properties. Enhance environmental quality, promote good design, and eliminate and lessen land use conflicts through the community. ■ Promote design that increase neighborhood aesthetics and environmental quality. • Develop design standards for repair and replacement of large garages with second floors that are found in many older neighborhoods. • Implement a strectscaping, street lighting, and terrace planting program. • Undertake redevelopment projects to create opportunities for a variety of appropriate housing types in Central City areas. • Coordinate with utility providers and property owners to place overhead lines underground during street reconstruction projects. Cultural Resources Element • Encourage preservation and protection of the historic built environment. ■ Develop programs that identify and promote local historic resources. • Create a rehabilitation code for pre - existing conditions on historic properties. • Promote identification of existing and survey potential historic districts and neighborhood boundaries. Continue to improve the city's overall aesthetic quality. ■ Develop programs that update and create standards to address the aesthetic duality of new and existing development. • Develop design standards for infill development. City of Oshkosh Strategic Plan Goals • Support strong, safe neighborhoods • Create a public /private partnership to foster grassroots neighborhood organizations • Provide public and private funding for incentives directed toward home purchases and home improvements such as down payment assistance, low or no interest loans, forgivable loans, and grants • Update codes regarding context- sensitive architectural requirements for exterior improvements throughout the City • Help create neighborhood associations throughout the City that will help create a neighborhood sense of place and belonging • Encourage neighborhood interaction through park activities, block parties /potlucks, cleanup days, and community gardens, etc. • Improve city infrastructure such as streets, utility systems and park facilities • Create a neighborhood report card program and consider expansion to include the participation of other departments. City Environment Program Need: • Oshkosh lags behind the nation, state and region in: • Home Ownership Rates • Median Value of Housing • Median Household Income • Per Capita Income • Oshkosh homes are generally older than the nationwide average. = Approximately 50% of the City's Housing stock is over 50 years • Older homes have more code issues and many components have exceeded their useful life requiring rehabilitation ■ Approximately 31.6% of housing was built prior to 1940 • Compared with 18% nation-wide, • Approximately 50% of the area of the Oshkosh central city is in low to moderate income census tracts and blocks. ■ City has been an entitlement CDBG community since 1976 = City's poverty rate of 16.1% is above Wisconsin's rate of 11.6% Central City Characteristics and Opportunities • Contains oldest housing and infrastructure • Contains highest population densities • Contains most low to moderate income households • Contains highest concentration of non -owner occupied dwellings • Contains lowest median value of homes • Contains the highest concentration of dwelling units • Contains the smallest average residential lot sizes. QuickFacts from Census Oshkosh Wisconsin Appleton Fond du Lac Winnebago Homeownership Rate 59.1% 69.5% 70.2% 59.2% 68.4% Median Value of Housing $118,400 $169,000 $138,300 $122,900 $140,500 Median Household Income $42,435 $51,598 $51,275 $44,128 $50,974 Per Capita Income $21,768 $26,624 $26,223 $23,845 $26,383 Persons Below Poverty level 16.1% 11.6% 10.8% 12.4% 10.5% 9 rw O IV, rl 4J 0 •ri N x X O a o u O O ��Z,z . A lu �-1 v bbl.) o w v 4� o Q o O bO boa� 0 . o, -,°'; tO c O Q-' O O cd l M Cd U O � � V © Q V Q bjD O m v U) bO .5 V U3 o O NO O b bD 4-1 bo .,� a� S u o ©,� °4 V ct ��--••�� bo ct O ;-4 i---I bA Q . O v O ',q a� cn U-4-j W In O ct g Q O P ct P o a� u bA Q . v v ',q ' W In O P P V O Healthy Neighborhood Approach "The four elements of neighborhood stability are a positive image, a viable real estate market, goad physical conditions, and strong social connections." Issue Conventional Healthy Neighborhoods Purpose Make houses safe and code- Restore real estate market values compliant. so people can invest confidently. Strategy Repair as many houses as possible in as large an area as Select properties for maximum possible. visual market impact. Respond to severe problems, but focus on houses and diverse Consumer Focus on houses and homeowners with good potential households with greatest needs. for strengthening prices and raising housing maintenance standards. Use government subsidies to Develop a variety of flexible create standardized programs incentives for residents to Programs and to distribute grant dollars achieve specific outcomes and to by regulation. serve the desired market segment. Standards Enforce minimum standards. Create expectations of quality rehabilitation and pod design. Provide all needed consumer Assist borrowers with debt support services; market the Support problems, affordability, and neighborhood; and encourage subsidy needs; provide classes block projects, pride in on budgeting and home repair. community, and resident leadership. �iouree: David Boehlke's "Great Neighborhoods Great City" "Each home is a billboard for the image of the neighborhood." Written by David Soehlke For the Goldseker Foundation P [DEFACE The Healthy Neighborhoods strategy to revitalize Baltimore's communities focuses on reinvigorating stagnant real estate markets and building stronger connections among residents. This is an update of an occasional paper of the same title published by the Goldseker Foundation in 2ooi. That publication offered a different, market - oriented way of looking at how neigh- borhoods in Baltimore might more effectively approach physical and social revitalization. We asked neighborhood strategist and Foundation consultant, David Boehlke, to describe the Healthy Neighborhoods approach to revitaliza- tion in neighborhoods elsewhere that were threatened by disinvestment, but not yet deeply distressed, and to explain how a local pilot project was attempting to adapt this model to similar communities in Baltimore. Since the first version of "Great Neighborhoods, Great City ", much has happened: • The paper and the successes of the pilot phase of Healthy Neighborhoods have helped attract significant private funding for the effort and allowed it to expand front its original six neighbor- hoods to ten. • The publication spurred an ongoing community -wide discussion about the performance and capacity of the city's community development organizations and how they are funded. • Healthy Neighborhoods, Inc., was created as a permanent entity to raise significant private and public capital and to follow the program's pilot phase with a sustained effort to extend this approach to neighborhoods across Baltimore. • The paper has emerged as a focus for setting community development agendas in a number of cities across the country. While the early returns are encourag- ing, distinct and difficult challenges remain. As Boehlke argues, to ultimately succeed, Healthy Neighborhoods must counter years of disinvestment, by re- energizing neighborhood real estate markets and, as important, by convincing current and prospective residents to become directly involved in strengthening and promoting the positive aspects —the assets —of their communities. We recognize this work is anything but easy, not least because it seeks to replace conventional deficit and subsidy - oriented strategies with a more positive, asset and investment - based approach that brings with it increased accountability for results. We are under no illusion that foundations can substitute either for public investment by cities and states or for private capital from financial institutions. And foundation funding cannot begin to have the enormous impact of everyday decisions by residents of our neighborhoods to invest their energies and dollars in the promise of a brighter future. What we can do, and what we hope this publication will accomplish, is support new thinking, new language, and new expectations for what is possible in moving Baltimore to more sustainable community renewal. Timothy D, Armbruster President and Chief Executive officer Goldseker Foundation d 0 { 4 O z 4 O E a L a fi q O 0. a a c° 0 x a x INTRODUCTION Baltimore is beginning to deploy an innovative strategy for "in the middle" communities —the neighborhoods that do not grab head- lines for high rates of crime and vacancy but that also do not get much community attention and attract only limited investment. Baltimore City has long been an inno- vator in neighborhood development. In the 19701, the City's urban home- steading programs received national recognition as a result of local govern- ment's imaginative policies, hard work by City and nonprofit staffs, and a unique low - interest loan program. During the 198os, high - profile harbor neighborhoods, notably Federal Hill and Canton, began to revitalize because the City facilitated large -scale private development of new homes and renovation of historic rowhouses. More recently, in the tggos, Baltimore again won national acclaim by aggres- sively renewing decayed high -rise public- housing complexes through the concentrated use of public subsidies. Over the past three decades, Baltimore has developed imaginative strategies for transforming a city under stress. Now Baltimore is beginning to deploy an innovative strategy for "in the middle" communities —the neighborhoods that do not grab head- lines for high rates of crime and vacancy but that also do not get much commu- nity attention and attract only limited investment. Overall, neighborhoods in the middle are attractive and in good repair. They usually consist of long blocks of modest but well-maintained rowhouses or clusters of single - family frame houses on tree - shaded lots. Unfortunately, these neighborhoods are too often remembered for problem properties on the busiest streets or for the odd over- sized or poorly built dwellings. Such troubled properties often are slow to sell, are readily converted to marginal rental units, and are the first to he abandoned. Moreover, even when sales prices are stable, too many houses are so undervalued that it doesn't make economic sense for homeowners to upgrade them significantly. The resulting disinvestment erodes conf €- dence, discourages neighborhood leaders, and undermines even simple acts of neighborliness and cooperation among residents. There may be dozens of reasons for this disinvestment— including poor schools, high crime, limited city services, high taxes —but there are just as many compelling reasons for people to stay and invest. Most houses in the neighborhoods in the middle were built to last. Prices are truly afford- able, and rooms are spacious, with high ceilings and distinctive features. For many current and prospective residents, these neighborhoods offer racial and economic diversity, historic architecture, and proximity to arts and entertainment in a revitaliz €ng urban core. Neighborhoods in the middle are vital to Baltimore's future. Given the City's loss of population and physical decay over the past thirty years, it is absolutely clear that the City needs the social and financial investment that residents of such neighborhoods can offer. If Baltimore is to continue as a unique, viable, diverse urban center, it must preserve, promote, and celebrate these neighborhoods. To test these ideas, a pilot project -the Healthy Neighborhoods Initiative —began in a000 to demonstrate how vulnerable City neighborhoods could become vibrant again. The results were so heartening that residents and civic leaders are now collaborating in a second step that will take this work to a greater scale through a newly formed organization, Healthy Neighborhoods, Inc This partnership nonprofit will collaborate with existing community development groups throughout the City to advance the Healthy Neighborhoods approach to revitaliza- tion. The partners will look beyond neighborhoods as collections of prob- lems and deficiencies, and concentrate instead on leveraging neighborhood assets and on innuencing people to invest in their homes and blocks. This approach contends that neighborhoods decline when people stop Investing not only their money and resources, but also their time and energy. Healthy Neighborhoods responds to the funda- mental problem of disinvestment by using tested, feasible strategies that stress building home equity and strengthening social fabric. The over- arching goal is to help neighborhoods become places where it makes sense for residents to Invest their time, effort, and money and where neighbors are willing and able to manage every- day community issues. Neighborhoods in the middle are vital to Baltimore's future. Given the City's loss of population and physical decay over the past thirty years, it is absolutely clear that the City needs the social and financial investment that residents of such neighborhoods can offer. 0 0 c `o a G, z 0 s a n 0 4 0. Q b O O 4 O G, G z a d NEIGHBORHOODS CONSTANTLY CHANGE: MANAGING CHANGE IS _[HE CHALLENGE Neighborhoods are always in transition. People move in and out, capital is invested or withdrawn, patterns of good property maintenance become stronger or weaker. Such changes define and redefine the market niche and social cohesion for any neighborhood. Who stays and who decides to leave? Who is attracted and who chooses to look elsewhere? Answers to such indi- vidual investment decisions are the driving forces in determining neighbor- hood health or deterioration. These investments need to be under- stood in several ways. Most people think of money first. Every property owner decides whether an improve- ment makes sense in light of local housing values. In neighborhoods where the cost of upgrading a kitchen and bath exceeds the total value of the property, there is a strong disincentive for homeowners to make improve- ments, In fact, the disincentive can be so powerful that even necessary repairs are delayed or done at a minimal level. The second aspect of investment Is less obvious, although it is just as Important. When a neighborhood can no longer retain stable households and can't attract solid replacement house- holds, there is a fundamental change in the investment of "social capital" — the time and effort residents take to connect with each other. Residents are less willing to support formal efforts, such as a kids' sports team or a block association, and they begin to limit the time they spend in everyday neighborly activities. Such subtle disinvestment does not go unnoticed, either outside the community or from within. A lack of social investment confirms the perception that a neighborhood is not a place where people choose to be. Whether investments are financial or social, individual decisions are based on the issues of choice, competi- tion, confidence, and predictability. Taken together, these aspects of any household's decision - making shape investment patterns that strongly influence a neighborhood's prospects. Each provides a different way to understand how reinvestment can be triggered. Choice: America is a country defined by consumer choice in every aspect of its national life —Front autos to toothpaste and from fast food to neighborhoods. People make choices every day about where to live, what to own, how much to invest in a house, and even whether it is time to paint the back bedroom. Although it is true that people need shelter, most deci- sions about housing are not based on needs but on wants, and a massive real estate and mortgage industry has emerged to meet those wants. Indeed, the federal government has structured tax codes, highway projects, and national housing programs primarily to increase customer options by making suburban housing more affordable, by facilitating easy automobile access, and by creating large capital markets. Competition: Every neighborhood faces constantly changing competi- tion in attracting and retaining good neighbors. Competitors include new suburbs and new apartment complexes, but the strongest competition comes from other older communities that are being transformed and thereby opening up new opportunities to attract rest- dents. in many central cities where populations are static or even declining, this competition results in some neigh- borhoods becoming virtually empty. In a competitive context, it isn't enough for a neighborhood to be a good place to live, the neighborhood must be able to attract residents even as its com- petitors change every year. Confidence: Real estate markets shift rapidly in America. Jobs and people are highly mobile, so there are strong forces undermining neighbor- hood stability. older neighborhoods are often a confusing mixture of per- ceptions and behavior. To make sense of this, residents seek more stability, especially in terms of their confidence about the value of their homes. Confidence weakens when "for sale" signs proliferate, and it can erode completely when those signs stay up month after month. Residents want the confidence gained when others affirm that their neighborhood is an attrac- tive place to live —when current resi- dents choose to stay and invest, or when newcomers with sufficient finances choose to move in. Predictability: Even though America is one of the world's most rapidly changing places, many people want things to stay the same, or at least to be easily understood. But Andy Griffith's slow- moving Mayberry has been replaced by Bart Simpson's wildly unpredictable Springfield. In response, residents try to manage the conse- quences of rapid transition through spoken and unspoken agreements. Such agreements help provide order by setting standards of behavior (no loud music after to:oo p.mJ or standards of upkeep (no trash out the day before collection). New neighbors are considered good neighbors if they notice and abide by the prevailing norms. of course, differences in language, culture, and experience can undermine the agreements, resulting in less predictability and potentially in more transition. The Healthy Neighborhoods approach views these aspects of neighborhood dynamics— choice, competition, confidence and predictability— as fundamental to any coherent and effective strategy for neighborhood revitalization. If a revitalization strategy does not take into account that any neighborhood, like much of America, is subject to consumer decision making, then that strategy (no matter how good it looks on paper) will run into trouble when It encounters the realities of the residential marketplace. Remarkably, too many older neighbor- hoods are being "revitalized' as though these four dynamics didn't apply. Indeed, many cities attempt to influ- ence investment decisions by drafting community plans that primarily Identify and address physical problems. Few plans even consider restoring housing value as a community goal, and resi- dent leadership is usually presented more as a way to manage neighbor- hood problems than as a revitalization goal in itself. In typical government- Individual investment decisions are based on the issues of choice, competition, confidence, and predictability that are fundamental to any coherent and effective strategy for neighbor- food revitalization. 0 0 0 A G a x i `o e e N s a a 0 c A a fi 0 x q x sponsored plans, managing problems — reducing negative conditions —is considered a major thrust of neighbor- hood renewal. The inherent assumption is that buyers and renters will return to a community because something bad has been removed. That approach hasn't worked in other aspects of American life that are driven by competition and choice, and it won't work in neighbor- hoods. The necessary ingredient in any neighborhood revitalization strategy must be to create good reasons for people to make decisions that benefit themselves while producing results that serve the whole community. For many Baltimore neighborhoods in the middle, the desired outcomes are clear: build home equity (raise sales prices, Increase appraised values, expand investment in home Improve- ments) and strengthen the social fabric (broaden civic participation, change the language used to describe neigh- borhoods, promote neighborhoods as neighborly places). Conventional plans and projects may produce desirable outputs, like repaired streets, improved houses, and reduced crime. But they ultimately fail unless the central outcome of all that work is increased home values and expanded civic involvement. Obviously, there are fundamental dif- ferences between conventional revital- ization and the philosophy of Healthy Neighborhoods. The following table illustrates how different neighborhood investment frameworks handle key revital €nation issues. The chart makes clear that the Healthy Neighborhoods approach targets equity growth and social connectedness by paying atten- tion to choice, competition, confi- dence, and predictability. if a project doesn't significantly address these areas and doesn't substantially increase financial equity and social connections, then the project isn't a Healthy Neighborhoods investment. The necessary ingredient in any neighborhood revitalization strategy must be to create good reasons for people to make decisions that benefit themselves while producing results that serve the whole community. COMPARISON OF APPROACHES TO REVITALIZATION. CONVENTIONAL AND HEAL_ -l"Hy NEIGHBORHOODS Issue Purpose Strategy ................... Consumer Programs Standards Conventional Make houses safe and code - compliant. Repair as many houses as possible in as large an area as possible. Focus on houses and households with greatest needs. Use government subsidies to create standardized programs and to distribute grant dollars by regulation. Enforce minimum standards. Healthy neighborhoods Restore real estate market values so people can invest confidently. Select properties for maximum visual market impact. Respond to severe problems, but focus on houses and diverse homeowners with good potential for strengthening prices and raising housing maintenance standards. Develop a variety of flexible incentives for residents to achieve specific outcomes and to serve the desired market segment. Create expectations of quality rehabilitation and good design. Support Assist borrowers with debt problems, Provide all needed consumer support affordability, and subsidy needs; provide services; market the neighborhood; and classes on budgeting and home repair. encourage block projects, pride in community, and resident leadership. b O 0 C C C �+1 z` 4 0 Q a e N s s a` M u �s a c� e 0 0 �s u 0 s� n eA m z u I a 0 a R K a 0 0 fi 0 G z x x HEALTHY NEIGHBORHOODS PKINCIPLL.S: A FRANUWOKK FOR KF.SU LJ_S The four elements of neighborhood stability are a positive image, a viable real estate market, good physical conditions, and strong social connections. The most effective revitalization strategies target four elements that profoundly affect neighborhood stability: the positive or negative image that defines the neighborhood, the viability and particular characteristics of the neighborhood's real estate market, the quantity and quality of improvement to and maintenance of the physical conditions of individual houses and public spaces, and the strength of the social connections among neighbors and with local institutions. The specific programs, policies, and strategies in Healthy Neighborhoods reflect several basic principles: Healthy Neighborhoods builds assets. The Healthy Neighborhoods approach is an asset - oriented strategy that builds both household and neighbor- hood equity. A healthy neighborhood is one in which property values appre- ciate in a way that encourages continued resident investment - -those investments are financial (such as rehab and home- ownership) as well as social (such as participation in neighborhood associa- tions and in neighborly activities). For an older neighborhood to posi- tton itself to compete successfully for resident investment, it must recognize, enhance, and market its unique assets and amenities. It needs to draw atten- tion to the historic nature of housing, the unique "story" the neighborhood has to tell as part of the heritage of a city, the quality of local parks and greenways, and the presence of neigh- borly institutions such as garden clubs and conutiunity- serving churches. Neighborhood plans must position those assets as the defining features of a place and leverage them to achieve neighborhood revitalization. Healthy Neighborhoods focuses on markets. Every neighborhood, old or new, has a definable "market niche." Based on the type of housing and the relative mix of amenities, the Each home is a billboard For the image of the . neighborhood. neighborhood has a likely pool of customers to which -it can successfully market itself. All investments by new and current residents must reinforce the housing market —that is, investments should and can increase home values. Even small -scale rehabilitation projects by current homeowners should include exterior improvements that add to curb appeal and home value, because each home is a billboard for the image of the neighborhood. Larger scale home purchase and renovation loans should be encouraged at dollar levels and with design standards that raise property values ten or even twenty percent above current depressed prices. Each resident making an investment enhances the neighborhood's overall market prices. Loans to those who invest in the neighborhood are made attractive by low interest rates, the resulting projects are homeowner -led and do not require the large grant subsidies common to many homeown- ership programs. Conventional subsi- dized projects often result in sales prices that are much lower than the cost of the home and that quickly distort local real estate markets. In Healthy Neighborhoods, loans are used to encourage predictable and support- able increases in the market value of a neighborhood rather than as a way to artificially prop them up. Healthy Neighborhoods targets out- comes. Conventional neighborhood Improvement programs celebrate output numbers: the number of housing units completed, homes sold, or loans made, or the amount of counseling done. These data can be signs of progress but are not necessarily indicators of success. Healthy Neighborhoods outcomes measure whether the neigh- borhood is improving as a place for neighbors to invest and to build equity and neighborly connections. A laundry list of outputs can look productive, but it can easily divert efforts to achieve tite central outcome of neigh- borhood health. Healthy Neighborhoods values neigh- bors as investors and leaders. Prospective homeowners and current residents —not community development corporations, government agencies, or other funders —are the most important neighborhood decision - makers. Every investment by nonprofits and other outside Institutions, large or small, must be structured to encourage prop- erty owner investment with the great- est potential for raising home prices and maintenance standards. Traditional approaches often subsidize households with the greatest need and provide housing as an end in itself. Healthy Neighborhoods strategies encourage all households to invest in their homes and in other activities that secure the neighborhood's future. Recognizing neighbors as investors, community -based nonprofits must actively cultivate resident participation and leadership. Healthy Neighborhoods strategies include small -scale block improvements that engage new and current neighbors in "pride" projects that improve the image of the neighborhood, provide a vehicle for neighbors to form bonds, and encourage new leaders to emerge. Diversity and rapid change in older urban neighbor- hoods require attention to social cohesion. Unless people have positive ways to relate, effective means of communication, shared visions for the neighborhood, and the ability to manage everyday issues, the investment in physical change will not translate into long -term success. Healthy Neighborhoods builds assets, focuses on markets, targets outcomes, and values residents as investors and leaders. The key principles have been tested in real situations and have proven workable and effective as a framework for sustained community renewal. This is well demonstrated through a decade of implementation in Battle Creek, Michigan, and through the experience of more than two years of work in nearly a dozen very different Baltimore neighborhoods. The results of those efforts are detailed in the following pages to show how actual communities are achieving Healthy Neighborhoods outcomes. The best way to influence investment choices is not to get rid of problems but to identify what people want and provide it. 0 0 a z L a w a a 0 4 R cL 0 0 fi 0 G 4 z x SUCCESS IN BATTLE CKEEK, How CO /MMON SP,1SE RENEWID A CITY The first major test of Healthy Neighborhoods strategies started twelve years ago in Battle Creek, a small city with big city problems. In the ,99os the most extensive appli- cations of the Healthy Neighborhoods approach were In the Midwest, notably in Battle Creek, Michigan, where the principles were applied in a compre- hensive revitalization initiative. What was learned there can teach much about the approach and its effectiveness. Twelve years ago, Battle Creek was a small city with big -city problems. The litany of issues was familiar: drugs, unemployment, teen pregnancy, vacant houses, failing schools, and declining commercial areas. What made Battle Creek different from a big city was that the newer neighborhoods had desirable suburban -styte houses, good schools, convenient shopping, and great parks and takes, and were only minutes from downtown. Therefore, Battle Creek's older neighborhoods were not competitive sites for stable owners and renters. Those central areas had affordable and attractive houses on beautifully treed lots, but they also had negative images, sales prices that were too low to encourage investment, poor home improvement standards, and few residents willing to promote the neighborhoods or even cooperate with each other. Civic leaders worked hard to attract new industries and jobs, to rebuild the infrastructure and city services, and to upgrade downtown Battle Creek. Alt of this was at risk if the older neighbor - hoods continued to lose families and housing value while adding blighted rentals and vacant houses. Accepting this reality, civic leaders joined with residents to identify sections of the city that had potential to be "places of choice," which they defined as neigh- borhoods that could compete to retain and attract households with sufficient resources to keep the houses and blocks in good condition. Community leaders committed to an open process with broad community participation. The result was that a small local nonprofit organization — Neighborhoods Inc. of Battle Creek — was restructured as a Healthy Neighborhoods partnership. Residents, civic leaders, lenders, corporations, foundations, and the city government created a strong board of directors with the challenge to raise housing values, upgrade property maintenance standards, address blight, increase citizen participation, and involve community institutions in the renewal process. Because the board members knew that the first projects had to be sure winners, the hardest decision was selecting just three investment sites when so many places needed help. The answer was to choose areas with a variety of good housing options to serve the widest range of customers. Other criteria focused on site mar- ketability and visibility, the cost of upgrading houses relative to potential long -term value, and the willingness of the neighbors to take responsibility for their blocks. Local leaders took the risk of serving all income groups -- -not just the poor —by using incentives instead of subsidies to restore housing values. Furthermore, Neighborhoods Inc. decided that all customers should be served, not just low - income house- holds, and that, whenever possible, the program should use incentives rather than subsidies. The goals were ambitious: return the local real estate market to vitality, create positive neighborhood images, and set high standards for home repair and mainte- nance. And there was an absolute commitment to including residents who could market the houses, promote the blocks as neighborly places, and take responsibility for the neighbor- hoods in the future. The results have been substantial and effective. More than six hundred households purchased and improved houses. In excess of a hundred vacant houses were fully renovated or removed and replaced with landscaped yards, community green spaces, or parks. Other vacant sites were used for new construction --the first in these neighborhoods in decades. Through direct action, forty percent of all targeted - neighborhood houses were improved through the various programs, and over twenty percent of all houses were purchased by new homeowners. More than a thousand rehab loans were made in a 2800 -house area. Whole blocks were upgraded with three -color paint jobs, coordinated lighting, and property renovations. More than two hundred block projects were completed and celebrated. Over eight years, housing prices in the target neighborhoods nearly tripled and reached a level where ownership and quality improvements became good investments. Many of the earliest buyers have seen their equity positions climb quickly, and longtime homeowners once again count on their properties having real value. Through a multiyear effort, Battle Creek repositioned itself in terms of employment, educational options, and health care services as well as increased ]sousing values and improved neighborhood stability. By z000, there was truly a sense of pride and celebration about the community's renewal and its future. Unfortunately, even those successes can't negate national economic disrup- tions, and today Battle Creek mirrors the rest of the nation as jobs move across the borders, enrollment in public schools declines, and fewer households have health insurance. The city and its older neighborhoods are under enormous stress. Yet even with such fundamental challenges, the neighborhoods have been able to sustain themselves. More houses are on the market, but housing values are stable. Fewer major home improvement projects are under way, but good home maintenance is practiced. Marketing efforts continue to promote older neighborhoods as good choices, and residents consistently reaffirm their leadership on their blocks and in the city. Innovative programs have been introduced as older initiatives have been scaled back in light of new economic realities. What characterizes the new actions is that they are proactive instead of reactive. Rather than being over- whelmed by the problems associated with rapid change, Battle Creek's neigh- borhoods and civic leaders are managing change through the basic principles of the Healthy Neighborhoods approach. Neighbors are agents of change who respond to new problems through shared values and proac- tive language. 0 0 0 A A z S O s a z N 4 4 O S 4 4 b O O 4 0 G. 4 t d G THE FLITLIKE IN BALTIMORE: THEE STEPS TO NLlGHBO Z.HOOD KENEWAL Baltimore is constructing a new future For its neighborhoods, based on the commitment to "build From strength," which is at the heart of both City policy and the Healthy Neighborhoods initiative. Battle Creek offers a realistic story of positive change and renewed stability. Cities and neighborhoods can't return to past glories; the focus must be on creating a better future. New programs and policies, innovative approaches and careful research won't result in meaningful outcomes without consensus about the context for change. For Baltimore that context has three elements. There Is a commitment to move away from primarily treating problems. 'There Is a willingness to value neighborhoods "in the middle." Finally, there is recognition that both a broad -based partnership and organiza- tional capacity are necessary to achieve measurable success. Looking Beyond Problems Baltimore is constructing a new future for its neighborhoods, based on the commitment to build from strength," which is at the heart of both City policy and the Healthy Neighborhoods initiative. Although the idea of building from strength seems simple, it actually is quite complex. Building from strength isn't limited to finding a successful business or institution to anchor renewal, and it doesn't mean simply extending a program that works. Building from strength means looking carefully at each neighborhood's assets and leveraging those assets to change people's investment choices. What are strengths with the potential to influence choices? Many obvious ones come to mind: an employment center, like a hospital, university, or an active commercial area; a desirable geographic feature, such as an attrac- tive park or a harbor view; a solid housing stock, perhaps architecturally or historically important or affordable and easily maintained; or even an adjacent neighborhood that has never declined or has already renewed. A strength also could be the crucial but less visible impact of active resi- dents. Baltimore neighborhoods as diverse as Glen, Ashburton, Greektown, Mayfield, and Lauraville might not have much in common, but each is resilient because its residents consis- tently reaffirm their confidence in their blocks and neighborhood. In Healthy Neighborhoods termi- nology, strengths can be found in the positive identity of a neighborhood, in the stability of its real estate market, in the desirability of its physical condi- tions, and in the mutual actions of Its residents. Location, amenities, employ- ment, and institutional life are all strengths, but more critical are the ways a neighborhood presents itself, how it is positioned in the real estate market, the level of maintenance and home improvement, and the day -to -day actions of neighbors. Seeking Out Sites with Potential Nearly eighty percent of Baltimore's homeowners live In neighborhoods that are neither greatly distressed nor obviously thriving —good places that could be great neighborhoods. Their images aren't overwhelmingly negative, but they also aren't very positive. The real estate market is functioning, but it is not actively attracting new buyers with enough resources to make signifi- cant home improvements. The physical conditions of public and private structures and spaces are usually just acceptable. And although many neigh- bors are involved in the community, there aren't enough of them who are willing to deal with the growing number of issues. Those characteristics describe most of Baltimore's neighbor- hoods, and it is here that the most innovative efforts have been tested over the past three years. In z000, six neighborhoods were chosen for the pilot Healthy Neighbor- hoods program and four more were added later. The sites varied greatly In property size and prices, nearby amenities, and the extent of resident and staff capacity to support the new initiative. Each community served a different market niche, and each faced different challenges in attracting and retaining stable households. What evolved was a remarkable mix of strategies and tactics to jumpstart financial and social asset building. The available resources were quite modest: limited funding for staff, small grants for block -based self -help projects, various loans for home purchase or improvement, resources for neighbor- hood marketing, and training support for staff and residents. From this conventional list of tools, the target neighborhoods crafted innovative strategies for proactive revitalization initiatives. Creating Capacity that Works It is not enough to have a good strategy, success also requires coordination and cooperation among supporters and enough organizational capacity to deliver the tools that make the strategies work. Over the past three years Baltimore has created the needed partnerships. All levels of government, foundations, lenders, corporate givers, and other leaders are involved, as are nearly a dozen nonprofits. The non- profits often work in tandem to provide unique services outside their traditional service areas to ensure that each com- muntty is assisted appropriately. This spirit of cooperation touches every aspect of the implementation effort. Staff cross traditional boundaries to advise other communities. Some nonprofits contract to serve other groups. This is not a zero -sum game where only one place can be the winner. Those in participating neighborhoods realize that they serve different market niches and that success for one com- munity can translate into success for the whole City. Of course, for the City to truly prosper, the interventions need to be at a scale that makes a difference. There must be professionalism in the delivery of customer services, lending products that people want, and block projects that produce visible change. Leaders in the Healthy Neighborhoods movement recognized that a pilot project is not enough. For the concept to be an effective tool in Baltimore, there must be an organization responsible for institutionalizing the programs. The answer to that challenge is Healthy Neighborhoods, Inc., which will be fully operational early in 2004. it is not enough to have a good strategy; success also requires coordination and cooperation among supporters and enough organizational capacity to deliver the tools that make the strategies work. 0 0 z .y 0 s 9 c s a` 0 a a a v 4 O A G, 4 z 4 m LESSONS KELEA KN ED. 13ALTh\ /MK.E'S OUTCONUS REAFFIRM NATIONAL EXPERIENCES Actions that value neighborhoods and neighbors can reverse the cycle of decline and revitalize communities as places of choice. Healthy Neighborhoods principles are based on a common sense approach to rebuilding real estate values and strengthening social fabric. Outcomes in Baltimore neighborhoods parallel results elsewhere. What follows are eight lessons that are shaping the progress of local Healthy Neighborhoods revitalization initiatives. First, a Healthy Neighborhoods initiative raises property values. This acknowledges that the costs of purchase and high- quality renovation exceed the sales prices of properties in depressed markets and that subsidies are ineffective tools to correct that problem. if substantial subsidies are needed, the real estate market recognizes that purchase and rehabili- tation do not snake sense without those subsidies, and that too often government programs are underfunded and restricted to low-income buyers. Conventional subsidies often signal trouble in the market and further depress sales. To convince strong buyers to invest well ahead of the market, Patterson Park Community Development Corporation uses an imaginative mix of attractive interest rates, highly skilled architectural and rehab advice, personal attention to customers, and exciting promotional events. Property values have increased without the appearance of subsidies as a driving force. Second, a Healthy Neighborhoods initiative emphasizes high standards of property improvement and main- tenance. Every house conveys mes- sages about the neighborhood. Neighbors and homebuyers observe what is valued and how much people are willing to commit. Large frame houses are a defining element of the Garwyn Oaks neighborhood, so poor maintenance sends a loud message. The Garrison Boulevard United Neighbors Association offers low- inter- est loans, community standard - setting projects, and one -on -one consulting services to households to create and reinforce high standards of repair and day -to -day maintenance. The improved appearance is attracting homebuyers and encouraging long -term residents to reinvest. Third, a Healthy Neighborhoods initiative markets a neighborhood as a good choice to call home. The mes- sage goes beyond houses and neigh- borhood amenities. Marketing must tell the positive stories of the owners, especially new buyers. Homebuyers seek assurance that others like them- selves value the neighborhood. Promotional campaigns, newspaper articles, and welcoming parties can spotlight a place as a good choice with great neighbors. Seven Healthy Neighborhoods sites collaborated to create high - quality promotional materials, in conjunction with Live Baltimore Home Center, an innovative nonprofit organization that promotes City neighborhoods. Combining this citywide marketing powerhouse with local hands -on efforts produces a clear message that those neighborhoods are places of choice. Fourth, a Healthy Neighborhoods initiative recognizes that Increasing real estate values won't change a neighborhood unless residents become personally involved in the community. To promote broad -based participation, long -term owners and new buyers need to collaborate around positive themes. If efforts focus only on what is not working, too many potential community leaders will lose Interest. Mount Vernon is a mix of commercial and institutional structures, apartment houses, and single - family properties. This is exactly the kind of neighborhood where residents usually are overlooked as agents of change. Nevertheless, Midtown Community Development Corporation employs resident - driven marketing and promo- tional efforts and homebuyer potluck dinners to both sell the houses and pro- mote Mount Vernon as the place to be. Fifth, a Healthy Neighborhoods initiative replaces negative terms with positive language. Any neighbor- hood could be described as having a crime watch program, but a healthy neighborhood is described as safe and neighborly. The facts are the same, but the message is different. Nonprofits, government staff, and residents need to agree on positive language that markets the neighborhood, Instead of negative words that label the place as deficient. The new language must be integrated into community events and projects. Belair- Edison had a long history of local leaders who identified prob- lems and worked hard to correct them. The result was a good community that was too often misunderstood as a very troubled place. Belair- Edison Neighborhoods Inc. used a series of meetings to re- identify the neighbor- hood's virtues. Festivals, community projects, new signs, promotional mate- rials, and media outreach reinforce the positive message. Today Belair- Edison is described in terms of its wonderful assets, the unique value of its houses, and its reputation for neighborliness. Sixth, a Healthy Neighborhoods initiative reaches diverse income groups. Too often, nonprofits serve only low - income households or first - time buyers, when what is needed is a full range of customers. A revitalizing community shouldn't deny services to households because they earn above eighty percent of median Income. A healthy community values everyone, including people with resources to move elsewhere. Loan applicants are approved because of their potential to improve the community and make consistent payments, not because they have a limited income. Rebuilding a neighborhood requires involving, not excluding, all stable households. Reservoir Hill is a place of extremes: parts are beautifully restored and other parts are mostly abandoned. Reservoir Hill Improvement Council has created a variety of strategies for distinct areas and for all ranges of incomes. The Council encourages programs that serve low - income residents, but It also reaches out to all income groups to join a viable, diverse neighborhood. Seventh, a Healthy Neighborhoods initiative includes all residents — renters, itomebuyers, and home - owners—to make sure they succeed as responsible residents and good neighbors. Budgeting classes should be open to everyone, because an evicted tenant and a homebuyer facing fore- closure reinforce the same negative story. Likewise, a resident group who can't manage a block cleanup or a youth team that can't find an adult coach reflect the same absence of leadership. Creating a healthy neigh- borhood requires a commitment to a comprehensive program that helps all residents succeed. All of the Healthy Neighborhoods groups recognize that renewal isn't limited to physical change. Substantial staff time and resources are devoted to supporting residents, borrowers, and new buyers to ensure that the social dynamics of change are as successful as physical revitalization. Eighth, a Healthy Neighborhoods initiative supports sustainable change. Good maintenance standards should be established and repeatedly reinforced. Loans should encourage increased Investment and high- quality improvements. Marketing programs and efforts that support resident involvement should be continuous. Neighborhoods don't decline in a year or two, and they don't recover overnight. The process must be long and conscious for the payoff to exceed the investment. That is why Baltimore's leaders have determined to move from a pilot program to the creation of Healthy Neighborhoods, Inc. This is the right action at the right time. 0 0 0 z E a 4 a c a `a 3! a` 1Z 4 c v 0 4 O G Z x c R THE LEADEKSHIP CHALLENGE FOR BALTIMORE. GRTA -r NEIGH �ORH OODS CAN CREATE A GREAT CITY Healthy Neighborhoods works in a range of Baltimore neighborhoods and in cities across the country, but the approach succeeds only when an open process produces city -wide support and sufficient flexible resources. The approach requires substantial invest- ment in neighborhood marketing and promotion as well as in helping resi- dents lead the way to positive changes in their communities. Finally, the approach is not a one -time fix; it commits to sustained investment in rebuilding both the housing market and the social fabric, In Baltimore, Healthy Neighborhoods is gaining acceptance as a powerful revitalization tool that deserves broad and energetic support. Now is the time to generate the commitment and resources necessary to make tangible, long -term improvements in a wide range of City neighborhoods. The tasks for Baltimore's leaders are clear if the City is to succeed in this challenge: • There must be a broad commitment to a reinvestment strategy. It will require leaders with vision and courage to manage this innovative process. Baltimore must literally reinvent the partnerships that built the City originally. • The commitment must be long -term, because neighborhoods recover only when the level of confidence is restored. Only then can residents make the decisions that will advance the neighborhood. Such confidence isn't gained quickly. Resources to achieve lasting community change must be substantial enough to make a difference, flexible enough to influence market decisions, and consistent enough to reinforce long -term investment. Limited capital with marry restrictions and unpredictable availability will undermine success. • Positive change must be conscious; it will not happen accidentally. Change demands an in -depth understanding of the real estate market, realistic work plans to foster reinvestment, and lots of good planning and hard work. Building from strength and promoting assets are only slogans unless the implementation strategies make sense. • There must be a coherent, collabora- tive system to deliver market incen- tives and community - building services. This requires expanding government programs and local nonprofits to serve Baltimore with the skills and capacities that make a substantial difference. Resources, agencies, programs, and strategies will succeed only if there are enough committed residents who are prepared and willing to invest themselves in the process of renewal. This is not about a few leaders attending monthly meetings or a crime watch group or a block club. This is about valuing and investing in all residents as customers who must make decisions to commit their financial resources, time, and effort. it is up to Baltimore's leaders to meet these challenges. Just as the City was developed by remarkable, risk - taking visionaries over its first two centuries, it must now be redeveloped by people working together, taking risks, and creating true communities of choice. The Healthy Neighborhoods approach provides a solid framework; the finished structure Is up to the citizens and leaders of Baltimore. The Healthy Neighborhoods approach provides a solid framework; the finished structure is up to the citizens and leaders of Baltimore. 0 Q HE�.TH� N most. rYpffy;itte City ,1f �PPi9ed to ali reetghoeiaods Goldseker F O U N D A T 1 0 N Symphony Center 1040 Park Avenue, Suite 310 Baltimore, Maryland 21201 410 -837 -5100 Fax 410 - 837-7927 www.goldsekerfoundatiori.org For more information on Healthy Neighborhoods, Inc., visit the Baltimore Community Foundation web site: www.bcf.org To: The Residents and Leadership of Oshkosh From: Dave Boehlke Re: Options for Neighborhood Revitalization in Oshkosh Last week I had the opportunity to learn about your city and its neighborhoods and a chance to speak with many of you. I left with the happy recognition that all of you are ready to make the critical decisions that will re- position your older neighborhoods for success. Further, it was clear that the local NeighborWorks affiliate -- Neighborhood Housing Services of Southeast Wisconsin, Inc.— is committed to a strong partnership with you. With this in mind, I determined to focus on three themes in this memo. First, let's make sure that everyone remembers the primary reasons for the initiative. What are the core outcomes of the proposed investments? Next, there must be a clear recognition of the options for neighborhood work. No one approach is the absolute best, you have to decide where to invest your efforts and at what scale. And that brings us to the third point: resources. No project should be undertaken without commitments of enough of the right resources. Let's consider each of these themes. What should be the goat of your work in neighborhoods? First, if Oshkosh wants healthier, thriving neighborhoods, what should be the outcomes of the work? To address this question, let me use an example from the neighborhood tour when I endorsed the planting of a thousand trees in Oshkosh. The dramatic tree canopies make Midwestern cities special. But in the case of this planting project, the trees will be added across the city. The trees won't give the target neighborhoods any special status, but those same trees can still provide a unique opportunity for the residents to work together. For example, the tree planting can be scheduled to coincide with block -based landscaping projects. That way the neighbors not only see the new trees but also see a link to their own efforts working together. We all agree that the neighborhoods need new trees and many houses need landscaping, but there is a more fundamental need. The neighbors must to get to know each other better and build a sense of neighborliness and trust. This is what is meant by an outcome. An outcome is very different from an output. Outputs are what you count when listing activities: how many roofs replaced, how many new homeowners, or how many properties brought up to code compliance. Frankly, unless these actions re- position the target neighborhoods, these outputs don't mean much, since those activities should happen in any viable neighborhood. On the other hand, an outcome speaks to systemic change. For example, one outcome could be significant change in equity value of houses. Another outcome is a substantial increase in the amount of home improvements by property owners. Yet, another Options for Neighborhood Revitalization in Oshkosh, November 11, 2010 / (first draft) Page 2 outcome is broad -based involvement by residents in oversight and management of neighborhood issues. Taken together, these outcomes can effectively achieve a healthy, thriving status for a community. What your target neighborhoods need to attain is a more positive image, increased housing values, higher standards of maintenance, and greater involvement by residents. These factors speak to your goals and they must be part of any plan to revitalize the Eastside neighborhoods. Where should you start and what should you do first? If Oshkosh wants to strengthen its older neighborhoods, you should start with those blocks that are closer to stable already. Remember Oshkosh has many highly desirable neighborhoods competing for good renters and strong buyers. If you focus on your least desirable sites first, you put your efforts at an enormous disadvantage. You will have to overcome too many obstacles: a poor reputation, years of disinvestment, low levels of homeownership, and fewer households with long -term occupancy. There are many older Oshkosh neighborhoods that already offer good location, well -built and well- maintained houses, solid levels of homeownership and long -term residents. Such communities are "neighborhoods of choice ". You need to recognize the competition right in your own city and make a tough decision. It might seem counterintuitive, but the best place to start is where there is the feast need for improvement. These are strong blocks with only few signs of disinvestment and a core of stable residents. These are the places that can achieve success with the least amount of resources and in the quickest timeframe. That will help your organization and it will set a high standard for future work. A way to think about this is to remember: if you can't sell a good house on a desirable block, don't try to sell a distressed property on a troubled block. The households you are seeking are all customers who have other options and they should make good decisions. Unless you are confident about improving the real estate market, then you shouldn't ask others to invest, either in improving their current property or in buying a new one. So, where should the NeighborWorks initiative start first? I wish I could give you a clear answer, but this decision is as much about intuition as it is about data. Fortunately, there are some perimeters that can give you guidance. In most communities the initial target area is made up of about 150 to 300 houses and at least half of those houses should be in good to excellent condition. It is also common that the target blocks consist almost totally of single - family houses, the majority of which are lived in by the owner. If there is a history of block clubs, neighborhood associations, or other groups, that is great, but if not, there must be a pattern of neighborliness and the willingness of a few residents to take more responsibility. It also helps if there is a sense of place, such as a shared history, clear boundaries, a park or public building, or another identifying Options for Neighborhood Revitalization in Oshkosh, November 11, 2010 /(first draft) Page 3 feature. Finally, if there is a highly visible facility or a well- traveled street, this can also help make the target area stand out. Most places don't meet all of these criteria, so the steering committee or a sub- committee should create a list of viable alternatives for the first site. Then there will need to be some data collection and some door -to -door outreach to make sure that the chosen site will succeed. What we already know is that there isn't one eastside neighborhood. Rather, there are the Neighborhoods of the Eastside. It is likely that a least one alternative site will be located east of the railroad tracks and near East New York Avenue. Another alternative might be blocks just north and south of East New York Avenue all the way from Main to Bowen. Those areas are still solid blocks of good homes and they all qualify for CDBG funding. Of course, another approach is to bridge Bowen and produce a mix of weaker blocks that quality for special lending and stronger blocks that can be leveraged as part of a marketing campaign. As someone who has worked in this field for over 30 years, I am confident that you will select an excellent candidate site and that the residents of that site will commit to their part of the renewal work. What will that work likely include? Because the initial site will be quite small, you can expect to assist in significantly improving 10% of the properties. Let's say that the target area has 200 properties. This means that about 20 will receive major improvements and perhaps 40 will undertake some upgrading, even if as minor as just new landscaping. At least one house will be purchased by the program, rehabbed and resold. Two others that are on the market will be sold to new homeowners who will receive counseling, rehab advice, and possibly even lending assistance. A dozen properties will get new roofs, new paint or siding, replacement windows, or new driveways. And perhaps three rental properties will be upgraded by the investor owners through the program's assistance. Just as important, there will be a series of block efforts in which neighbors will undertake small -scale projects, such as new porch lights, better house numbers, seasonal flags and re- planted flower beds, and fresh paint on railings and doors. Through these efforts an expanded core of involved residents will begin to set new goals, which will include a neighborhood name and identity campaign, joint efforts to improve property sales, and self -help techniques, like ladder and tool lending. In the long run, these neighborhood promotional initiatives will be the most important tools for community change and they will require significant investment by the organization, volunteers, and the residents. Of course, while the NeighborWorks program is facilitating these initiatives, that organization is also providing citywide homeownership training, strengthening or even starting neighborhood associations, rehabbing key houses in conjunction with the city government, and working on other community building projects. All of this means that it will take discipline in determining achievable goals and it will Options for Neighborhood Revitalization in Oshkosh, November 11, 2010 / (first draft) Page 4 require extensive volunteer efforts to compensate for a smaller staff and a limited budget. What resources will be needed to assure success? You aren't creating a houses repair.program, nor is your job to solve affordable housing problems. You are developing an innovative strategy to revitalize older neighborhoods. This strategy recognizes that the target neighborhoods are in competition with many other desirable places in Oshkosh. Therefore, your primary purpose is to build market demand for housing in the target areas. This will encourage more homeownership, more property improvements, and better everyday upkeep while simultaneously creating a strong core of trained and committed residents. Programs such as CDBG and Home primarily serve low - income households; these resources aren't really intended to build market demand and in some cases actually weaken the real estate market while helping specific households. You can't expect income restricted funding to change the real estate market and to build resident confidence. Subsidies carry the connotation that the residents need help; incentives are used when you are trying to encourage a change in market decisions. Automobile companies don't announce buyer subsidies; rather they promote incentives to buy certain brand and models. The same concepts should be used in marketing the Eastside communities as "neighborhoods of choice ". Incentives, such as free architectural advice, no -cost rehab assistance, and small exterior improvement grants, cause customers to consider purchasing or upgrading a property. It is the decisions of such customers that will reposition the neighborhoods as mixed income, stable, well- maintained communities that people choose to live in as homeowners, homebuyers, and renters. All of this means that you need as many resources as possible that don't have income restrictions. When public or philanthropic dollars are invested in the Little League or a concert series or a library outreach effort, no one is required to ask each user if they are qualified as low income. Yet, when we deal with housing we have complicated approval procedures. If any household or property owner is willing to take a risk improving a property ahead of the real estate market, we should be incentivizing this to encourage even more investment. If a group of neighbors are willing to upgrade their yards or install dusk to dawn porch lights, we should helping with the minor costs. And if a neighborhood decides to create a name, a logo, and a promotional campaign to attract more strong households, we should be funding that effort. Therefore, you must push the use of all Federal funds to the most flexible standards possible and you must raise unrestricted dollars from as many sources as reasonable. That will include foundations, city general funds, individual gifts, Options for Neighborhood Revitalization in Oshkosh, November 11, 2010 / (first draft) Page 5 corporate grants, lenders, fundraisers, and every innovative source you can image. While conventional public dollars can fund much of the day -to -day operations of the NeighborWorks staff and certain Federal dollars can support some of the repair activities and capital investments, financial support for the truly creative work must be raised by the community. Past experience tells us that this must be at least $50,000 a year and the commitments should be for a minimum of three years with annual reports leading up to re- commitments as the program succeeds. Without this effort, you are only repairing housing but not changing neighborhoods. Next Steps Oshkosh is fortunate to have aligned with Neighborhood Housing Services of Southeast Wisconsin. That organization is one of a handful of groups that are experienced in re- building neighborhoods. It has a national reputation that promises to put Oshkosh on the leading edge of market -based neighborhood revitalization. Congratulations. Still the reality is that an organization can't change neighborhoods; neighbors and local leaders can. You must aggressively manage the process. The steering committee assignment is a serious job. Work on site selection and on resource development is demanding. Managing the process over the next few years is a critical community task. The likelihood of your success will be determined by you over the next few months. I am confident that you will be successful, but if there is anything that I can do to better inform this process, please feel free to contact me at any time. Error! Reference source not found. 3522 Yuma Street NW Washington, DC 20008 -4228 202 - 363 -1483 202 - 365 -2395 (cell) djboehike @starpower.net BE O O 0 O 00 0 O 0 O 7f 0 O 01 0 o 0 m O O 0 O 00 0 O 0 O 7f 0 O 01 0 a� �n cJ a z m 0 _ O 0 I � iI i tl r � I o cl E I � � a T 0 a� �n cJ a z m 2012 NeighborWorks Oshkosh Work Plan NeighborWorks Mission Statement: The purpose of NeighborWorks Oshkosh is to renew pride, restore confidence, promote reinvestment, and revitalize the Oshkosh neighborhoods through the efforts of local residents acting in concert, with financial institutions, corporate enterprise and the business community, foundations, and local government. Community Building and Organizing Community Level Goal 1: Objective: Actions: Responsible Timeframe: Outcome (CLO) 1: Committee /Staff: Increase resident Utilize existing Form partnership Draft a partnership Resident March 2012 involvement in resident agreements with a framework. Leadership neighborhood involvement to minimum of four Committee revitalization and direct neighborhood identity. community associations building, within the city. organizing, and rehab activities in each neighborhood. Create an annual Staff /Bill 1 Completed survey to be used for neighborhood self - evaluation. identify block level Resident Ongoing projects through an leadership ongoing dialogue Committee /Staff with neighborhood residents Provide Community Staff Ongoing Leadership training opportunities CLO 2: Goal 2: Objective: Actions: Responsible Timeframe: Committee /Staff: Build strong Increase Identify all Engage all residents, Resident Ongoing relationships and communication, community and business owners, Leadership collaboration among involvement, business leaders in property owners, Committee / Staff stakeholders and confidence the target area. local government, among institutions, and stakeholders, community groups in neighborhood activities. Encourage active Sponsor a minimum Resident Ongoing participation by all of five community Leadership neighborhood events which provide Committee / Staff residents in opportunities for neighborhood residents to meet meetings, and talk. planning, events, and projects. Operate in a Utilize new language NeighborWorks Ongoing manner that when discussing Oshkosh (all fosters hope for target committees, staff, positive neighborhoods. volunteers, and community residents). change in all Homeowner Services and Promotion CLO 4: Goal 1: Oshkosh Actions: Responsible residents. Committee /Staff: CLO 3: Goal 3: Objective: Actions: Responsible Timeframe: values and protect community of financing and Committee /Staff: Increase resident Create healthy, Attract new Identify and Steering Ongoing confidence in the sustainable capital to the implement attractive committee/ Real neighborhood and neighborhoods neighborhood. financing and Estate Committee/ willingness to invest of choice in incentive programs Staff in their homes. Oshkosh. for potential home buyers. Provide quality Continually make Steering Ongoing affordable housing programs and Committee /Real in our target resources available Estate Committee/ neighborhoods. to neighborhood Staff property owners to improve the housing Develop stock. Steering Committee Ongoing Increase property Develop a home Resident May 2012 maintenance maintenance award Leadership standards in the program. Committee / Staff neighborhood. Promote Create neighborhood Residents / Ongoing neighborhood identity based on Resident pride. assets. Leadership Committee / Staff Homeowner Services and Promotion CLO 4: Goal 1: Objective: Actions: Responsible Committee /Staff: Stabilize home Create a Provide attractive Steering Committee values and protect community of financing and / Real Estate homeowner equity. financially incentives for home Committee / Staff secure purchases and homeowners. rehabilitation projects within our target neighborhoods. Provide a wide Staff Ongoing variety of homeownership and financial counseling services to Oshkosh residents. Develop Identify and create Steering Committee Ongoing NeighborWorks strong relationships / Staff full cycle lending with selected local in Oshkosh. lenders. Real Estate Development Goal 2: Objective: Actions: Responsible Timeframe: Committee /Staff: Retain existing Maintain existing Design an incentive Real Estate Ongoing owner occupied quality resident program for owner Committee /Residen residences. tenure. occupancy. is /Staff Goal 3: Objective: Actions: Responsible Timeframe: appreciation Committee /Staff of home Attract new Provide incentives Steering Ongoing values. homeowners to for purchasing in our Committee /Staff our target areas. target Real Estate Ongoing neighborhoods, Committee /Staff Provide service to Promote the Public Relations and Ongoing 20 families NeighborWorks Fundraising through a -home. Oshkosh e -Home Committee / Staff Catalyze strategic America website. Real Estate Spring 2012 Real Estate Development Goal 1: Objective: Actions: Responsible Timeframe: Committee /Staff Increase Facilitate $1 million Establish a Real Estate Steering committee Completed wealth and of added value in Committee asset building our target through neighborhoods. appreciation of home values. Identify and Real Estate Ongoing implement strategic Committee /Staff real estate acquisition and rehabilitation methods. Catalyze strategic Identify one model Real Estate Spring 2012 reinvestment in block within each Committee our target areas. qualifying partner neighborhood for rehabilitation. Identify potential Residents / Staff Ongoing buyers for rehab properties. Compile a directory of Real Estate Ongoing qualified local Committee / Staff contractors. Marketing/Promotion/Corporate Fundraisin CLO 5: Goal 1: Objective: Actions: Responsible Timeframe: Committee / Staff: Create a positive Foster the Create a Public Steering Committee In Progress image of Oshkosh development of Relations and / Staff neighborhoods. new language Fundraising in reference to Committee, our target neighborhoods. Formulate a Public Relations and In Progress marketing and Fundraising promotional plan to Committee / Staff market each neighborhood as a worthwhile place for families to invest, based on each neighborhood's unique assets and characteristics. Provide professional Steering Committee As Needed graphic arts services / Public Relations to each partnering Committee / Staff neighborhood association to design a unique and identifiable logo. Promote Public Relations and Ongoing NeighborWorks Fundraising / Staff Oshkosh and each target neighborhood through multiple media outlets. Encourage neighbors Resident Ongoing to present the Leadership strengths of their Committee / Staff neighborhoods to / Residents others. Develop a Public Relations and Spring 2012 NeighborWorks Fundralsing Oshkosh e-mail Committee / Staff newsletter Goal 2: Objective: Actions: Responsible Timeframe: Committee /Staff: Obtain financial Ensure continued Identify and obtain Public Relations and Ongoing resources. funding for all grant resources on an Fundraising programs. ongoing basis. Committee / Staff Identify potential Public Relations and Ongoing corporate sponsors. Fundraising Committee / Staff Raise $65,000 through Public Relations and Sept. 2012 corporate Fundralsing Fundraising in 2012. Committee