Community Development From the Ground Up: An Innovative Approach in Baltimore’s Oliver Neighborhood

Nov. 10, 2015

#caseychat

Our Panel

Ryan ChaoVice President for Civic Sites and Community ChangeThe Annie E. Casey Foundation

Bishop Douglas MilesPastor, Koinonia Baptist ChurchCo-Chair Emeritus, Baltimoreans United in Leadership Development (BUILD)

Sean CloskeyPresidentTRF Development Partners

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Questions?

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I. Background on Oliver

II. Working With the Community

III. A Diverse Partnership

IV. Results

V. Lessons

Webinar Overview

#caseychat

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The Oliver Neighborhood

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Oliver: Decades of Decline

1960s By 2000

• Jobs began disappearing

• Little if any investment flowing into community

• Middle-class residents left

• Some churches moved out of the area

• Businesses folded

• More than 1,100 abandoned homes or vacant lots

• Rampant drug dealing

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In Oliver:

• Engaged the community

• Surveyed residents

• Brought together churches

Working With the Community

Baltimoreans United in Leadership Development (BUILD):

• Long history of activism

• Success with West Baltimore homes

Rob English (second from right) and Terrell Williams (far left) of BUILD walk with residents in the Oliver community.

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Five churches:

• $1.2 million raised in the pews

Working With the Community

BUILD coordination:

• Churches purchased 200 properties (many through tax sale)

Memorial Baptist Church:

• 150 members raised $3,000 per month to acquire properties

• Total: $250,000/ 58 properties

Rev. Keene at Memorial Baptist Church.

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• BUILD: needed a partner

• The Reinvestment Fund:

CDFI with track record of

community development

• Joined forces to create

TRF Development Partners

A Diverse Partnership

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Strategy: Build on Strength

A Diverse Partnership

Penn Station to the west*

Johns Hopkins Medicalcampus and EBDI to the east

*Reprinted with permission from The Baltimore Sun. All rights reserved. 9

• Rebuild and create homes

• Develop a real estate market

A Diverse Partnership

TRF Development Partners strategy:

• Generate wealth for residents

• Spur new investment

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A Diverse Partnership

“The most diverse

group [of funders]

I’ve ever seen.”

Total: $9.3 million in investment capital

• TRF DP and Rouse CEO Anthony

Deering: Goal to raise $10 million

• Deering, BUILD and TRF worked

together

• Investments from 23 foundations,

banks, churches and other

philanthropic organizations

• Casey committed the final $500,000

Anthony Deering, an experienced real estate development leader.

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Training and Opportunity for Residents

A Diverse Partnership

A class at Jericho Reentry in East Baltimore.12

• 2008: First homes — modular

• Initial cost: $130,000

• Energy efficient

Results: New Homes

Preston Place, before and after.

“The first new houses in the Oliver neighborhood in half a century.”— The Baltimore Sun

• Affordable to average worker

• Row house rehabs continue

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The Reinvestment Fund (TRF) Development Project:

Results: New Homes

lots consolidated

for reuse

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vacancy rate reduced

61percent

formerly abandoned properties

redeveloped

231

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Results: New Residents

Median income of newcomers is $41,000, more than double the average income of community before the project

1/3 Preston Place residents moved into Baltimore City

2/3 relocated from within the city

1/2 Preston Place residents who relocated from city homes were from East Baltimore(including Hopkins

employees, teachers and

city and state employees)

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2006 and 2007: One home sold for more than $100,000

Results: A Stronger Real Estate Market

Since then, more than 80 properties have sold for prices higher than $100,000.

• Median price for home sales above $225,000

• Outlook strong for continued redevelopment 16

Results: Leveraging Investment

TRF DP: Rowhouse Rehabilitation on Broadway, before.

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Results: Leveraging Investment

TRF DP: Rowhouse Rehabilitation on Broadway, after.18

Results: Leveraging Investment

1256 Broadway, before.19

Results: Leveraging Investment

1256 Broadway, after. 20

• City Arts: 17 loft-style townhomes for artists

• City Arts Apartments: TRF DP, Homes for America

and Jubilee Baltimore: 69 energy-efficient apartments

• City Arts 2: 61-unit building two blocks north of the

original City Arts building

• TRF DP: Partnering with EBDI to rehab homes

• Come Home Baltimore: rehabbing and selling homes

• Lillian Jones Apartments: low- and moderate-income tenants

Results: Leveraging Investment

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City Arts: 17 Loft-style Townhomes for Artists

Results: Leveraging Investment

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Results: Leveraging Investment

City Arts Towns, before and after.

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Lesson 1: Community development requires patience and flexibility.

Lessons

First homesLaunch

1990sEarly 2002

Partnership developed

2008

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Lesson 2: Engaging the community is critical to earn buy-in.

Lessons

BUILD-TRF: An unusual partnership

Gary Crum, an Oliver resident.

Rob English of BUILD talks with an Oliver resident.

Sean Closkey of TRF DP with an Oliver resident.

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Funding:

• Baltimore City: property acquisition

• Maryland Department of Housing and Community Development: closing costs and purchase assistance

• Churches and nonprofit community: other capital

Lessons

Lesson 3: Identifying innovative financingfor affordable housing should be a priority.

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Economically struggling communities will not rebound through new construction or rehabilitation alone.

Lessons

Lesson 4: Creating new economic opportunities for residents should be part of community development.

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Building From the Ground Up: An Innovative Approach to Community Development in Baltimore’s Oliver Neighborhood

www.aecf.org/resources/building-from-the-ground-up

For more information:media@aecf.org

Discussion and Questions

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