Forming a CDC in Martinsville

1
Forming a CDC in Martinsville

• An Introductory Guide to Begin this Journey

2
What is a CDC

• The term CDC refers to a type of non-profit
  entity known as a Community Development
  Corporation. In some regions CDCs are also
  referred to as non-profit developers.

3
Key Characteristics of CDCs

• They are very focused on real estate development
  and in redeveloping communities.
• Their governance is characterized by their
  community based leadership
• They generally are formed by residents, small
  business owners, congregations and other key
  stakeholders.

4
Key Characteristics of CDCs

• They are committed to the revitalization of
  declining neighborhoods and commercial corridors.
• Primary focus is on serving low/moderate income
  residents.
• Capacity to create partnerships with the city,
  government, businesses, non-profit organizations,
  for-profit developers.
• Very skilled at using both public and private
  resources layering.

5
Range of Community Development Activities
Carried Out by CDCs
6
Why Form a CDC

• CDCs strive in a declining marketplace where the
  private sector is not willing or able to take the
  risk.
• CDCs are very opportunistic and mission driven
• Able to respond quickly to development
  opportunities than the government.
• Able to both leverage and mix and match all kinds
  of financial tools to make a project feasible.
• CDCs are more strategic than for-profit
  developers - more community focus vs project
  focus.

7
How Does a CDC Support Itself?

• A CDC operates like any other business.
• Must be bottom line oriented to be sustainable.
• Diversified income sources
• Private contributions from individuals,
  corporation and foundations
• Developer fees
• Fees from program administration (indirect cost)
• Public funding sources e.g. subsidies, fee for
  services
• In-kind contribution land donations
• Consultant fees

8
Examples of CDC Real Estate Projects

• Basic common elements in all of these projects
• Projects are built in low/moderate income
  neighborhoods or in declining commercial
  corridors.
• Serve primarily low/moderate income residents or
  support businesses that create jobs and provide
  needed goods and services in community lacking
  these amenities.
• Requires a mix and match of financing tools in
  some cases many layers of funds to ensure project
  feasibility.

9
Mixed-Use Development

• Eastside Cultural Center Eastside Art Alliance
• 149 affordable apartments two live/work space
  and a community center
• San Francisco, California

10
Mixed-Use Development

• Ogontz Hall
• 30 affordable apartments and 6 storefronts
• Philadelphia, PA

11
Mixed-Use Development

• Seven Directions Healthcare
• 36 affordable housing/healthcare center
• Oakland, CA

12
Mixed-Use Development

• St. Josephs Center Bridge Housing
• 149 affordable apartments, 15,000 sq. ft.
  commercial space
• San Francisco, CA

13
Housing

• 5th Street East Townhouse Condominiums
• 100 new homes for professionals downtown Kansas
  City

14
Housing

• Southmoreland Condominiums
• Historical Restoration
• Single-family Apartments
• Kansas City, KA

15
Housing

• Coral Street Art House
• Affordable housing/art space
• Philadelphia, PA

16
Community Facilities
17
Community Facilities
18
Community Facilities

• Good Shepherd Children Development Center
• State First Green Center
• Milford, CT

19
Open Space

• Waterway Park
• Kansas City

20
Pyramid Healthcare FacilityLynchburg, VA
21
Pyramid Health CenterLDNF Lynchburg
Neighborhood Development Community

• Total Budget
• Sources
• New Market Tax Credit
• Historic Tax Credit
• Bank (Sponsor) Loan
• LISC Loan
• VCC Loan
• IDA Loan

• 4,802,326
• 1,599,357
• 595,643
• 843,576
• 700,000
• 700,000
• 450,576
• 4,848,576

22
What will the CDC in Martinsville do?

• Help the City achieve the goals of the Uptown
  Vision
• Work in partnership with the City, MURA, EDC,
  other NPs stakeholders and for-profit
  owners/developers
• Develop/rehabilitate property for residential and
  commercial use targeting Uptown area
• Help build capacity of other organizations

23
Where would a CDC start in Martinsville?

• Housing both affordable and market rate
• Commercial development mixed-use developments
• Restoration of historic properties
• Development of community facilities
• Partners with other NPs and for-profits on
  development projects
• Supports/participates/leads community planning
  and organizing initiatives in partnership with
  the City and Uptown

24
Whats Next?

• Steering Committee 60 days
• Mission, Bylaws, Corporate Documents and 501c3
  application 60 days
• Board Recruitment and Training 90 days
• Set up Operations end of year
• Hire an Executive Director 1st quarter 2010
• Develop an initial business plan 1st quarter
  2010

25
Martinsville USAForming a CDC
CDC Steering Committee
Board of Directors
Transition