building a future (vol. 5): the contributions of community development corporations in texas

7/31/2019 Building a Future (Vol. 5): The Contributions of Community Development Corporations in Texas

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funding for thisstudy provided by:

Texas Association of Community Development Corporations

Building a FutureThe Contributions of CommunityDevelopment Corporations in TexasVolume 5


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About the Texas Association of Community DevelopmentCorporations (TACDC). The Texas Association of Community Development Corporations (TACDC) is a non-prot, statewidemembership association of Community Development Corporations(CDCs) and related non-prot, government and for-prot entitiesengaged in producing affordable housing and promoting community economic development.

Building a Future:The Contributions of Community DevelopmentCorporations in Texas

Findings from the 2000, 2002, 2004 and 2006CDC Accomplishments Survey

volume 5


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Mission Statement

TACDCs mission is to enhance community developmentt roughout Texas. We accomplish this through the implementationof strategic initiatives including: supporting a network of experiencedcommunity development professionals, offering comprehensivmembership services, and conducting programs designed to build thecapacity and improve the productivity of Texas CDCs. We also striveto improve communications among our own network and between theCDC industry and the rest of Texas.

Cover: New Hope HousingInc. in Houston is at theforefront of providinghousing that incorporatesaward-winning modernarchitecture designedto enhance the livingexperience for extremely low-income people.

This Page: Residents relaxand study at New HopeHousings Canal Street

Apartments.


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Membership Categoriesand Benets

Regular MembersCommunity Development Corporations CDCs , Community Housing

evelopment Organizations (CHDOs), Community Developmentinancial Institutions CDFIs and related non-prots.

Associate MembersIndividuals or organizations that support TACDC and its work, such aseligious, governmental, academic, corporate, business, foundations andon-prots.

All TACDC members enjoy the following:

Discounted products and services including professional developmenttraining programs and offi ce administration programs such as QuickBooks andother accounting products from Intuit.

TACDC monthly updates giving industry insights into late-breaking legislative,agency, and industry news; tracking relevant bills; and providing listings of grantsand upcoming training events.

Full listing in TACDCs membership directory ncluding a description of

member programs. TACDC provides this information to statewide and nationalfunders, as well as policymakers.

Access to regional and quarterly meetings, providing your organization withthe opportunity to network with funders active in community developmentaround the state, as well as opportunities to meet with your legislators andother agencies.

401k Retirement Program enrollment for your organization at an affordablerate and with exible plan design and easy administration.

Reduced fees for special events and conferences addressing not only housing and community economic development, but also broader issues such asoverall human services policy and the small business environment.


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TACDC Events

TACDC sponsors two annual events which provide excellenteducational and networking opportunities: the Texas Community Economic Development CED Policy Summit and the Annual TexasCommunity Development Conference.

The Annual Texas Community Development Conference is held in earlyspring and is organized around plenary, training and breakout sessions which focus on CDC productivity and access to the capital resourcesthat CDCs must have in order to accomplish their community-building objectives.

The Texas CED Policy Summit, scheduled for September each year,encourages conversation around the most pressing public policy issueaffecting affordable housing and community economic developmenacross Texas.


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Governance Structure

TACDC is governed by a member-elected, volunteer boardof 15. All board members represent non-prot or governmentorganizations deeply involved in community development.

The TACDC Roundtable, which discusses and suggests policy forthe boards consideration, includes these board members as well asepresentatives of national nancial intermediaries, private lending nstitutions and businesses who support TACDCs work with their

nancial and staff resources.

2006 TACDC Board of DirectorsTom Wilkinson, President, Brazos Valley Affordable Housing CorporationSandra Williams, Vice President and Secretary, Alamo Area Mutual Housing AssociationNorman Henry, Treasurer, Builders of Hope CDCPaul Charles, Past President, Neighborhood Recovery CDCNick Mitchell-Bennett, CDC of BrownsvilleRobert Calvillo, McAllen Affordable Homes, Inc.Rodolfo Cantu, Nueces County Community Action Agency Gerald Carlton, East Dallas Community OrganizationStephan Faireld, Covenant Community CapitalDavid Diaz, Midland CDC

Richard Farias, Tejano Center for Community ConcernsRobin German Curtis, Greater Houston Urban Redevelopment CorporationMadlyn Bowen, Center on Independent Living CDCSylvia Ford, Corpus Christi CDC

2006 TACDC Roundtable MembersBank of America, Valerie WilliamsCHASE Bank, Lisa RodriguezCitibank North America, Paula SullivanComerica Bank, Irvin AshfordEnterprise Community Partners, Mark McDermottFannie Mae, Aurora GeisFranklin Bank, Robert RhoadesGuaranty Federal Bank, George Aguirre

ISC, Gloria Sandersonocke, Liddell & Sapp, LLP, Cynthia Bast

National Equity Fund, Inc., Sharon Baranofsky NeighborWorks America, Ernesto de la Garza Texas Interfaith Housing, J.O.T. CouchTexas Mezzanine Fund, Inc., Theresa Acosta LeeWachovia, J. Reymundo OcaasWashington Mutual, Joni BairdWells Fargo Bank, Jana Teis

o learn more about TACDC or to download a membership application, please visit www.tacdc.org


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Acknowledgements

Principal Research Funding Provided by Bank of America Enterprise Community Partners, Inc.Wachovia Washington Mutual

Report AuthorsMatt HullKelly Robinson-SchaunPeachy Myers

Original Survey Design and Report Author

Michael Oden, Ph.D.

ContributorSteven A. Carriker

Research Project Managed by Matt Hull

Design Provided by Leslie Williams

P otos Provi e y ACCION TexasCommunity Development Corporation of South TexasEast Dallas Community OrganizationEl Paso Project Vida El Paso CollaborativeFoundation CommunitiesGuadalupe Neighborhood Development CorporationHabitat for Humanity of TexasNeighborWorks WacoNew Hope Housing NHS of San Antonio

For Additional Copies, Please ContactTexas Association of Community Development Corporations1524 S. IH 35, Suite 310Austin, TX 78704(512) 916-0508(512) [email protected] www.tacdc.org

2007, Texas Association of Community Development Corporations


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Table 24. Repaid Principal in Outstanding Loans Redirected to Lending,2005Table 25. Housing and Economic Development Services Offered by CDCsTable 26. Community Services Offered by CDCs

List of Figures

Figure 1. CDCs and CDFIs by Year of InceptionFigure 2. CDCs and CDFIs by Number Employed, 2006Figure 3. Location of Year 2006 Survey RespondentsFigure 4. Housing Acquisition and Development by CDCs, 2002-2005

List of MapsMap 1. CDC Locations StatewideMap 2. CDC Housing Production by County, 2004-2005Map 3. CDFI Number of Loans by County, 2004-2005Maps 4-16. CDC Housing Production by State Service Region, 2004-2005

Success Stories

New Hope Housing Project Vida Community Development Corporation of South TexasACCION Texas

NeighborWorks WacoNHS of San Antonio

Contents (continued)

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Authors Notes

The authors wish to thank the following individuals fortheir many contributions to the success of the 2006 survey: EduardoMagaloni, Antonetta Roybal-Arias, Suzanne Russo, Helen Nyugen, Dr.Michael Oden and the authors of earlier volumes who developed thebasic methodology, design and research principles that shape this work.In addition, we would like to thank the organizations that contributedphotographs and stories for inclusion in the report. Finally, we wouldlike to express our sincere thanks to the CDC staffs who took thetime to complete the survey. This report would not have been possible without their help.

Matt HullMatt Hull is the Director of Policy and Research at the Texas Association of CDCs. Matt works withCDCs to develop their policy priorities and serves as an advocate on behalf of CDCs to the TexasLegislature and the Texas Congressional delegation. Matt earned a Masters of Regional Planning atthe University of North Carolina at Chapel Hill and holds a B.A. in International Studies from theUniversity of Southern Mississippi.

Kelly Robinson SchaunKelly Robinson Schaun is pursuing a masters degree from the Community and Regional Planning Programat the University of Texas at Austin. Numerous years of experience in sustainable development in theCaribbean region have led her to focus her coursework in the area of regional economic development,seeking strategies for poverty alleviation, social equity and environmental preservation. As the ResearchSpecialist charged with data analysis for the survey report, Kelly spent signicant time collecting andmanaging information related to CDCs in Texas.

Peachy MyersPeachy Myers is a rst year graduate student at the LBJ School of Public Affairs. Peachy has spent her

professional career working as a direct service provider and community advocate with the homelesselderly population in San Francisco and with Hurricane Katrina evacuees in Austin, Texas. Peachy alsoserved as a staff eld organizer in the 2004 Presidential election. As a TACDC Policy and ResearchSpecialist, Peachy contributed countless hours in analysis and drafting of this report. Peachy holds a B.A. in Sociology from Vanderbilt University.

Original Survey Design and Report AuthorMichael Oden, Ph.DMichael Oden, Associate Professor in the Community and Regional Planning Program at the University of Texas at Austin, focuses his research on local and regional development issues. His work on economicdevelopment, affordable housing, and growth and development in high technology regions had led himto collaboration with such diverse entities as the State of Michigan, the Offi ce of Economic Cooperationand Development in Paris and the Appalachian Regional Commission.

Authors Biographies


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Introduction

In recent years, some have questionedthe need for community-based non-prots, arguing times have changed andCDCs are no longer necessary to servethe community landscape. They suggestthat the private sector can now assumethe job because previously underservedcommunities are now in the economicmainstream and housing subsidies areunneeded in a booming housing market.

How wrong they are!

The unfortunate fact is that between2002 and 2005 median family incomes inTexas declined by an ination-adjusted6.2 percent. And to make matters worse,the median cost of an owner-occupiedhouse increased by 36.3% from 2000to 2005, while median monthly rentsincreased 16.9% during the same period.The Texas Housing Affordability Index as calculated and published by the TexasA&M Real Estate Center shows a steady decline in affordability from an index rating of 1.81 in 2003, to 1.77 in 2004, and1.68 in 2005. Now in many Texas cities, a family making the median income cannotqualify for a mortgage to purchase a median-priced house. This is particularly true of rst-time homebuyers.

Statistics based on median family income tell a compelling story about theincreasing challenges facing the typicalfamily in the workforce in regard tohousing. But what about those nearerthe bottom of the scale, those living at orbelow the poverty line?

The story there is even more desperate.From 2000 until 2005 the percentageof American families living in povertincreased from 8.7% to 9.9%, an additionof 257,000 U.S. families. The number oindividuals living in poverty is even morastounding: 37 million people, or 12.6of the entire U.S. population. The Texasnumbers are even worse: 3,600,000 peopleor 16.2% of all Texans live in poverty.

As the statistics in this publication will reveal, Community DevelopmenCorporations and similar non-protorganizations continue to serve not onlythe Texas workforce, but address themuch more challenging issue of povertyin Texas. CDCs continue to developaffordable owner-occupied housingdecent, safe, and sanitary rental unitsand specialized housing for homelespopulations and people with disabilitiesCDCs create job opportunities throughthe technical assistance and nancing ofcommunity-based entrepreneurs, whileCDFIs provide the nancing necessaryto create new jobs, businesses, and

community infrastructure.Community Development Corporationsserve populations and communitiesthat cannot be fully served by thefree market alone. The missiondriven community non-prots havedemonstrated their willingness andability to serve communities that no oneelse is prepared to serve. And in doingso, they plow their prots, or marginsback into their mission, creating moreaffordable housing, jobs, and essentia

community facilities.

The Community Development industry has been aroundquite some time. Many of the neighborhood CDCs which operate inthis state trace their roots back to the 1960s and the Great Society programs of the Johnson administration. Even those CDCs that havebeen established more recently were built on the framework created inthose years and carried forward through evolving programs to addresthe needs of underserved communities jobs, housing, and communityeconomic infrastructure.

Now, More Than EverBy Steven A. Carriker


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Executive Summary

This report documents the results from TACDCs 2006Accomplishments Survey and includes information from the 2000,2002 and 2004 surveys. The surveys aim to capture the important work being done by Community Development Corporations (CDCs)and Community Development Financial Institutions CDFIs inTexas. CDCs in Texas continue to improve the lives of families of modest means and build safe communities for all Texans. Based onsurvey results, CDCs in Texas will have produced over 61,000 units of affordable housing and made loans worth over $238 million in Texas by the end of 2007. The organizations captured in this report continueto produce much needed affordable housing for low-income Texans andprovide loans to small businesses and entrepreneurs.

Among the respondents to the 2006 survey are 106 CDCs and 14 CDFIs. The reportincludes information on organizationaldata, housing production, commercialproperty development, business andmortgage lending, and community andeconomic service delivery.

CDC and CDFIOrganizational DataTexas CDCs continue to grow in sizeand complexity. Surveyed CDCs staffsrange in size from small, all-volunteerorganizations to large, professionalstaffs, with one reporting organizationhaving 500 employees. In total, survey respondents in 2006 employed 1,319 full-time workers and 466 part-time workers.

The median staff size for CDCs in Texasis four employees.

As with number of employees, CDCs vary greatly in the size of their budgets.2004-2005 operating budgets includeda purely volunteer organization with a $6,000 budget to 22 organizations withbudgets over $1 million. The medianbudget for all organizations in 2004-2005 was $265,771, a slight increase from2002-2003.

Housing DevelopmentCDCs have become a critical producerof affordable housing in Texas. In 2004and 2005, Texas CDCs produced 6,463new or rehabilitated housing units. Over60% of these units are the result of new construction. Making sure that housing isaffordable for low-income residents is animportant goal for CDCs, as evidencedby the 84% of CDC housing targetedfor households earning less than 50% of Median Family Income.

Number of 2006 Survey Respondents 106 CDCs 14 CDFIs

Number of Employees 1,319Full-Time466Part-Time

Average Year o Inception 1993

otal Housing Production, 20042005,Number of Units 6,463

otal Commercial Development, 20042005,Square Feet 95,100

otal Value New CDFI Loans, 20042005 $33,284,566

otal Number o New CDFI Loans, 20042005 2,185

Key Statistics 2006Accomplishments Survey


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Guadalupe NeighborhoodDevelopment Corporationprovides homeownershipopportunities and single-family rental for workingfamilies in East Austin.

Commercial PropertyDevelopmentIn an effort to create new spaces forbusiness in their communities, TexasCDCs built or rehabilitated 95,100square feet of commercial property in 2004-2005. Thirty-nine percent of CDCs in the survey saw a need forcommercial property development intheir communities.

In fact, an additional 467,812 squarefeet of new or rehabilitated offi ce andindustrial space is planned for productionduring 2006-2007.

Financial DevelopmentCDFIs seek to increase access tocapital in traditionally underservedareas. In 2004-2005, CDFIs provided$23,069,195 in loans to new and existing businesses and micro-enterprises. This

money augmented previous CDFI loansin creating and sustaining 3,203 jobacross Texas. Additionally, CDFIs loanedTexans $4,127,775 toward mortgages 2004-2005.

Service DeliveryCDCs also work to build theircommunities by providing services thamight otherwise not exist. Seventy-fourpercent of 2006 CDC survey respondentssaid they provide at least one service inhousing and economic developmentThe three most commonly listed services were construction management, homenancing assistance and home buyeloans. Nearly 83% of CDCs listed othecritical services offered to communitymembers, including legal servicechild care, home buyer counseling, anadvocacy work.

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Methodology

This report is based on information gathered from foursurveys of CDCs and CDFIs conducted in 2000, 2002, 2004 and 2006.The purpose of the surveys is to better understand the work of CDCsand CDFIs working to improve housing and economic opportunitiesin the communities they serve. The organizations surveyed areprimarily involved in the provision of affordable housing, commercialdevelopment and business lending in underserved communities. Thesurvey did not target organizations primarily involved in social servicesprovision.

The 2006 Survey updates and expandson information collected in the previoussurveys. For the 2006 Survey, four survey instruments were used:

1. An instrument for CDCs whoresponded to the 2004 Survey;

2. An instrument for CDCs who didnot respond to the 2004 Survey;

3. An instrument for CDFIs who

responded to the 2004 Survey;4. An instrument for CDFIs who did

not respond to the 2004 Survey.

The instruments designed for CDCs were distinct from the instrumentsdesigned for CDFIs, each reecting theunique business lines that these typesof organizations typically focus on. Theinstruments for both CDCs and CDFIsthat did not respond to the 2004 Survey collected a full set of historic, current,

and planned production data, as well asorganizational data. The organizationsthat did respond to the 2004 Survey received an abbreviated form of the fullsurvey, updating the information thathad already been provided with current year and planned production data.

The 2006 Survey started in March 2006, with data collection taking place throughSeptember 2006. Potential respondents

were identied from TACDCs databaseof previous survey respondents andcurrent members, as well as the U.S.Department of Housing and UrbanDevelopments list of registeredCommunity Housing DevelopmentOrganizations (CHDOs) in Texas. In aneffort to capture a more complete data set of CDC production in Texas, theinstrument was initially distributed to551 organizations, compared with 386

organizations in the 2004 survey. Among these 551 groups, 44 were identied asinactive or not currently involved incommunity development activities. Of the remaining 507 organizations, 120responded to the 2006 survey, resulting in a 24% response rate. It is importantto note that the information providedin this report therefore only captures a portion of CDC and CDFI activities inTexas. The statistics presented in thisreport cannot be generalized for theindustry in Texas as a whole.

This report draws on the results of the2000, 2002, 2004 and 2006 surveys.A total of 253 organizations haveresponded to at least one of the surveys.The 2006 report distinguishes betweenseveral distinct cohorts within thesurvey respondents. The Full Cohortincludes all 253 respondents to the2000, 2002, 2004 and 2006 Surveys.Historic production data through 2001

and some general organizational dataare reported using data from the FullCohort. The 2006 Cohort includes all120 respondents to the 2006 survey, andall completed 2004-2005 and planned2006-2007 data are drawn from this setThe 2006 Cohort is broken down into a CDC subset and a CDFI subset and mostdata are reported separately for thesetwo groups. In addition, a Trend Cohortof 61 CDCs was identied from those

organizations that responded to boththe 2004 and 2006 surveys, and four years of individual year data, 2002-200are reported for those groups. Finally, itshould be noted that not all respondentsprovided data for all questions. Theactual number of respondents capturedin all data tables and charts is indicatedfor each item when available.


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CDC and CDFIOrganizational Data

Community Development Corporations (CDCs) are sometimesknown as neighborhood development corporations, community-basedorganizations or community housing development organizations. CDCs vary in size, organizational structure and in primary mission. Howevermost CDCs have a few distinguishing characteristics. A CDC is acommunity-based organization whose mission is to serve low-incomfamilies and underserved neighborhoods. CDC boards of directors arecomprised of member representatives of the communities they serve, with community residents and stakeholders serving on each board.

CDCs develop real estate for housing andcommercial properties, offer economicdevelopment services such as businessloans to small businesses in low-incomeareas, and operate other programs andservices that help improve the quality of life in their communities. CDCs are ableto accomplish their goals and mission by partnering with other non-prots, banks,private corporations and other privatesector institutions.

CDCs that provide direct loans andtechnical assistance to small businesseare known as Community DevelopmentFinancial Institutions. These organizationsmay generally be considered CDC whose primary focus is business lendingThroughout this report, organizationsthat are primarily housing developers wilbe identied as CDCs, and CommunityDevelopment Financial Institutions willbe identied as CDFIs.

History of Community EconomicDevelopmentIn 1965, President Lyndon Johnsondeclared war on poverty in a nationallytelevised, prime-time address to a joinsession of Congress. At the same timemany local organizations had been formedto ght for civil rights, for helping thosein need, and for inclusion in local, stateand national affairs.

Originally, many community-base

organizations, neighborhood associationsand other groups working to improveconditions in low-income neighborhoodsfocused on education, counselingimprovement of the housing stock andcrime control. While this effort waseffective in the beginning, it becameincreasingly diffi cult for organizations tdo this without signicant governmentsupport.

East Dallas Community Organization provideshomeownership opportunitiesfor families that want to liveclose to downtown Dallas.


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EmploymentThe 119 organizations providing employment data employed 1,319 full-time employees and 466 part-timeemployees in 2005, for a total of 1,785employees. According to TACDCs2004 CDC Salary Survey, typicalCDC positions include executivedirectors, housing coordinators, loanoffi cers, home buyer counselors andadministrative staffers.

Responding organizations rangedin employment size from purely volunteer organizations with no paidemployees, to the largest with 500employees. Organizations with largnumbers of employees tend to beolder organizations often engaged ina variety of social services in additioto housing and lending activities. Themedian number of persons employed bysurvey respondents is four. Fifty-threeorganizations, or 45% of the total, havebetween one and ve employees.

Operating BudgetNinety-eight of the 2006 surveyrespondents included information abouttheir organizations annual operatingbudgets. Annual operating budgets variedfrom a purely volunteer organization with an operating budget of $6,000, toan organization with an operating budgetof over $13 million. The median budgefor all organizations was $265,771. Thirtthree percent of CDCs and CDFIs whoreported operating budget data hadbudgets in the $100,000 to $499,999range.

Figure 2. CDCs and CDFIs byNumber Employed, 2006

Includes Year 2006 Survey Respondents. One organization did not provide employment data.

For Perry Weaver, a disabled Vietnam veteran who cannot work andlives on a very limited income, living at New Hope Housings Canal StreetApartments has transformed his life. Before moving to Canal Street inFebruary of 2006, Mr. Weaver lived in an old, shabby apartment with noheat or air conditioning and his health was deteriorating. Since movinginto Canal Street, Mr. Weavers health is better and he enjoys being partof a community. Living here is so much healthier for me, and so muchmore comfortable. It has lifted my spirits and changed my life for the

better.New Hope Housing, Inc. in Houston is part of a growing effort within thecommunity development and affordable housing industry to serve theextremely poor. New Hope Housing develops and operates single roomoccupancy (SRO) housing with the purpose of creating life-stabilizingaffordable homes with a sense of dignity for adults who live on extremelylow incomes. The organization has developed a proven model for buildingand operating debt-free SRO properties that operate in the black.

Founded with the conviction that a crisp, clean external environmentfacilitates internal change, New Hope Housing began in 1993 to developand operate effi ciency apartment housing stock and is widely recognizedas having established the model for SRO housing in the state of Texas.Today, New Hope is an award-winning organization and the pioneer inthe effort to build affordable SRO housing in Houston. New Hope is fully

dedicated to offering more thanresidents might expect from aSRO dwelling that leases for lessthan $350 per month, includingutilities.

Since its inception, New Hopehas offered quality supportive

housing to more than 3,800people, many who ultimatelytransition to market-rate housingor reconnect with family.

New Hope serves adults who live individually on extremely low income.If employed, many earn no more than the minimum wage of $5.15per hour. The population served by New Hope nds it diffi cult, if notimpossible, to cover market-rate housing costs and other basic livingexpenses. Residents include veterans, the elderly, students, those withminor disabilities, and individuals who are clients of area social serviceagencies.

For individuals like Mr. Weaver, New Hope Housing, Inc. has provided notonly a safe and decent place to live, but is has also provided him with anopportunity to be a part of a community.

s u c c e s s s

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Modern architectureand furnishings increasefunction and livability at New Hope HousingsCanal Street Apartments.


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Location of Survey RespondentsThe 120 respondents to the 2006 survey are located in 41 Texas counties, and all

13 of the Texas Department of Housing and Community Affairs (TDHCA) serviceregions. In total, the

organizations can be foundin 51 cities throughoutthe state. The majority of the respondents are

concentrated in urbancenters including Austin, Dallas,El Paso, Fort Worth, Houston and

San Antonio. Nine survey respondentsare located in counties designated asrural by the U.S. Census Bureau andseveral additional organizations, whileheadquartered in an urban area, includerural communities in their service area.In total, the 120 organizations responding o the survey provided affordable housing

or development nance products in 87counties across the state.

GovernanceEach CDC and CDFI is governed by board of directors, whose membershis drawn from the communities serve

by the organization. The average boarsize for CDCs and CDFIs is 12 memberSurvey results indicate that 50% or morof organizations board members residn their target communities. In this way

community members offered signicannput into governance and were directl

nvolved in ensuring that the staff an volunteers continued to work towareeting the organizations goals anissions.

Figure 3. Locationof Year 2006 SurveyRespondents

CDCs continue to lead the affordable housing industry in adaptinggreen and energy-eff icient design aspects into their communities.


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In Texas, part of the housing story is theincrease in land prices. Intense demandfor acreage is driving land prices to recordlevels. This increase in the value of landis a major concern for affordable housing providers because the subsidies todevelop the properties are not keeping up with the increasing cost of raw land. Theincrease in land prices comes at a time when the purchasing power of lower andmoderate income families is in decline,despite income growth nationally.

Since May 2004, the Federal Reservehas hiked the federal funds interest rate14 times, resulting in a certain degree of uncertainty in housing markets. How will changing interest rates impactTexas consistently growing housing market? While there is no consensus,many researchers believe it is likely thataffordability will be adversely affectedby rising interest rates. Affordability willbe further impacted if Texas continuesto experience signicant housing price

appreciation. The erosion of householdincome, coupled with higher interestrates and rising prices, will put even greater pressure on the states limitedstock of affordable housing.

All of these factors help explain why Texashas one of the highest rates of mortgageforeclosure in the country. As purchasing power erodes for many working families,Texas is experiencing higher than nationalrates of mortgages that are past due more

than 90 days. For families with FederalHousing Administration home loans thatallow for very small down payments,the rate of delinquency is twice thatof standard 30-year xed-rate loans.Decreasing affordability of market ratehousing and a lack of state investmentin affordable housing programs willeliminate homeownership opportunitiesfor many families over the rest of thedecade.

CDC Housing ProductionSurvey respondents reported levelsof production for: new constructionof rental housing units, acquisitionor rehabilitation of rental units, new construction of owner-occupied housing and acquisition or rehabilitation of owner-occupied housing. Table 4 showsthe housing acquired or producedby survey respondents prior to 1994.Housing developed during this period was fairly evenly divided between rentalunits and owner-occupied units, with

47% of production in the two rentalcategories, and 53% in the two owner-occupied categories.

The beginning of the decade saw record increases in homesales and prices both nationally and in Texas. However, by mid-decade, many states began to experience slower home sales, increasesin inventory, and stagnant or declining prices for housing. Texas hasmaintained a robust housing market with increasing housing startsthrough mid-decade and housing sales price appreciation acrossthe state. On the rental side of the market, many areas of the stateexperienced stagnant or declining rents and increased vacancies due toover-saturation of rental units.

Housing ProductionTexas Housing Market

Project Vida Life in Spanish began in as a partnership among community leadin an inner-city Hispanic low-income borneighborhood in El Paso, the PresbyteriChurch (USA), and the CumberlPresbyterian Church. It began with tassumption that the community needed set the organizations vision and its prioritiand that the program needed to responwith innovative and sustainable strategiThe community identied access to heacare, education, housing, gang preventand economic development as its prioritiRather than selecting one area, Project Videveloped interrelated responses. Childregathered for afterschool activities astudies, and helped teach health informatioto their parents. Parents identied areas fcommunity clean-up activities, and involtheir children in taking pride in their streeTenants learned how their housing affecttheir childrens health, and began organizingbetter living conditions in the neighborhooSmall businesses began to talk with another about safety in the neighborhood.

After seventeen years, this interconnecte

approach has resulted in the construction oover 100 low-and-moderate income housunits including a Low Income Housing Credit project; a Federally Qualied HeaCenter with three clinic sites staffed physicians; nurse practitioners and physicassistants as well as professional behaviohealth staff; a transitional living center homeless families; a licensed, four-star chcare center for over 70 children; a drop-afterschool program serving 6 through 18 yolds in three centers; technical assistance anloans to a group of over 45 microenterpriseand an expansion into a second communin Northeast El Paso. An annual CommuCongress meets to review, evaluate, and slong term strategies for Project Vida.

Life is complex, Communities are compComprehensive approaches to loccommunity issues allow clinics to addrproblems outside the clinic walls, beconomic support for social programs, astrengthen the communitys ability to moitself into the future it chooses.

success story | project vida


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Housing production grew signicantly over the period 1994-2003, with a totalof 41,764 units produced. This increasein production corresponds with thelarge increase in CDC formation thattook place during the 1990s (see Figure1). The majority (72%) of units producedduring this period were rental units. Thisrepresents a shift from production in theearlier period which was more evenly divided between rental and owner-occupied units.

The 2006 survey captured productiondata for 2004-2005, as well as productiothat CDCs have planned for 2006-2007combined. Table 6 shows individual yeadata for 2004-2005. During this period,survey respondents developed a total o6,463 units of housing. In both of these years, rental housing accounted for themajority of production. However, in2004 the number of new rental units andacquired or rehabilitated units was nearlythe same, while in 2005 the number ofnew rental units was nearly three timesthe number acquired or rehabilitated. Inaddition, the number of new rental unitsbuilt by CDCs in 2005 was almost fou

times the number built in 2004.Table 7 illustrates housing production foronly those CDCs that responded to the2004 and 2006 surveys. This groupingdemonstrates trends in production data that might be obscured by the changingmix of survey respondents in the overalsurvey pool. Within this group of CDCs,there was a signicant increase in totahousing production from 2002 to 2003but a steep decline from 2003 to 2004.Production increased again in 2005

Table 6. Housing Acquisition and Development, 20042005

Housing Type Year

otal No.

o Units,2004-2005

Percent

o Total,2004-2005

2004 2005

New Rental Units 69 2,081 2,550 39.5%

Acquired or Rehabilitated Rental Units 38 33 ,171 18.1%

New Owner-Occupied Units 92 681 1,473 22.8%

Rehabilitated Owner-Occupied Units 818 451 1,269 19.6%

Total New or Rehabilitated Units 2,517 3,946 6,463 100.0%

Includes year 2006 survey respondents.

Table 5. Housing Acquisitionand Development by CDCs,19942003

Housing Type Numbero UnitsPercento Total

New RentalUnits 6,161 14.8%

cquired orRehabilitatedRental Units

23,958 57.3%

New Owner-

Occupied Units,477 20.3%

RehabilitatedOwner-Occupied Units

,168 7.6%

otal New orRehabilitatedUnits

1,764 100.0%

ncludes year 2000, 2002, 2004 and 2006 surveyespondents.

Table 4. Housing Acquisitionand Development by CDCs,Prior to 1994

Housing Type Numbero UnitsPercento Total

New RentalUnits 1,143 5.8%

Acquired orRehabilitatedRental Units

2,264 1.3%

New Owner-

Occupied Units2,370 32.8%

RehabilitatedOwner-Occupied Units

1,451 20.1%

Total New orRehabilitatedUnits

,228 100.0%

ncludes year 2000, 2002, 2004 and 2006 surveyrespondents.


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nearly reaching the level achieved in2003. This trend may be a function of the multifamily housing developmentprocess, as a single development may take years to complete. Indeed, Table 7reveals signicant uctuation from yearto year in production of rental units, as well as rehabilitated owner-occupiedunits. Production of new owner-occupiedunits, however, remained constant forthe 2002-2005 period.

According to the affordability standardsset by the U.S. Department of Housing and Urban Development (HUD), housing expenses should not take up more than30% of a familys income. When housing costs exceed 30%, families are said to facean excess housing cost burden and, in themost extreme cases, a severe burden or

risk of homelessness. At the greatest riskare those with the lowest income levels.

Among Texas renter households earning 50% or less of Median Family Income(MFI, calculated yearly by HUD forcounties and Metropolitan StatisticalAreas), 75% have at least one housing problem. Most often the family paysmore than 30% of their income towardhousing costs, according to the TDHCAs2006 State of Texas Low-income Housing Plan and Annual Report. This translatesinto more than 740,000 households.In addition, more than 54% of ownerhouseholds earning between 31-50%of MFI, and 71% of owner householdsearning 30% or less of MFI, have anexcess housing cost burden.

Figure 4. Housing Acquisitionand Development by CDCs,20022005

Residents and neighborswork together to improvetheir community as partof Project Vidas CleanSweep Program.

Table 7. Housing Acquisition and Development by CDCs, 2002-2005

Housing Type No. of Units

2002 2003 2004 2005

New Rental Units 20 ,313 50 1,689

Acquired or Rehabilitated Rental Units 599 ,176 21 84

New Owner-Occupied Units 485 46 494 457

Rehabilitated Owner-Occupied Units 9 4 03 34

Total New or Rehabilitated Units ,593 ,019 2,068 2,964

Includes only those organizations that responded to years 2004 and year 2006 surveys.


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Survey respondents were asked tocategorize how many housing unitsproduced or managed by the CDC wereaffordable to families at different levelsof area MFI. As Table 8 illustrates, 84%of units managed or produced by CDCsin 2004-2005 are affordable to familiesearning 50% or less of MFI. Area MFIdiffers across Texas counties, but as anexample, these units would be affordableto a family of four in El Paso that earned$17,050 annually. An additional 13% of housing units are affordable to familiesearning between 50-80% of MFI, or anannual income of $27,300 in El Paso.

CDCs plan to add nearly 6,000 units of affordable housing to Texas communitiesover the period 2006-2007. As in earlierperiods, the majority of planned units will be rental units, while approximately one-third will be owner-occupied units.

CDCs in Texas are feeling the economiccrunch when trying to provide affordablehousing to working families in a stat with rapidly appreciating land values

The average CDC spends $11,433 oland for a single family developmenand almost $200,000 for a multifamilydevelopment.

Survey respondents represent a diversemix of CDCs with different scales oproduction and capacities to respondto the demand for affordable housingin their communities. Most surveyrespondents work on a small scaleconcentrating their efforts on buildinghousing in a few target neighborhoods

Sixty-ve percent of organizations thatproduce owner-occupied housing reportproducing fewer than 20 units per year in2004-2005. Sixty percent of respondentsdeveloping rental housing producedfewer than 50 units per year in 2004-2005As Tables 11 and 12 show, organization working at this scale produced 25% othe total number of owner-occupiedunits, and approximately 7% of rentaunits in 2004-2005. The median numberof employees is three for organizationsat this production level.

Table 9. Projected HousingAcquisition and Developmentby CDCs, 20062007

Housing Type No. oUnitsPercento Total

New Rental Units 2,348 40.0%

Acquired orRehabilitatedRental Units

1,560 26.6%

New Owner-Occupied Units 1,523 25.9%

RehabilitatedOwner-OccupiedUnits

443 7.5%

Total New orRehabilitatedUnits

5,874 100.0%

ncludes year 2006 survey respondents.

Table 8. Affordability of HousingManaged and Produced by CDCs,20042005

Housing UnitsAffordable To:

No. of Units

Percentof Total

Householdsearn ng030% o MFI

,866 29.9%

Householdsearning3050% of MFI

3,366 4.0%

Householdsearning5080% of MFI

36 3.4%

Householdsearning more than80% of MFI

169 2.7%

Total 6,237 100.0%ncludes year 2006 survey respondents.Note: the total number of units reported in Table 6is different from the total number of units in Table8 because not all organizations provided data onaffordability.

The majority of CDCs inTexas provide homeownershipopportunities for low-incomeworking Texans.


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CDC commercial developmenttypically takes place in underdevelopedneighborhoods. These developmentsmay not only bring a new store frontor offi ce space into an area, but alsoadditional jobs and capital. Through2003, survey respondents produced over1.8 million square feet of commercialor industrial space. During 2004-2005,

an additional 56,100 square feet of new offi ce/retail space was produced, as wellas 39,000 square feet of rehabilitatedoffi ce/retail space. In addition, a total of 467,812 square feet of new orrehabilitated offi ce and industrial spaceis planned for production during 2006-2007.

Commercial Development

For much of their history, CDCs have been primarily knownfor their signicant work in the development of affordable housing.Increasingly, commercial development has become an important CDCactivity as the development of retail and industrial spaces serve as animportant ingredient in a communitys economic growth.

Table 14. CDC Commercial Development Square Footage,through 2004

Development Type Prior to 1994 1994-2001 20012003 Total

New Offi ce/Retail 0,600 530,660 6,000 57,260

New Industrial 30,200 30,200

New Other 277,173 277,173

Acquired or Rehabilitated Offi ce/Retail 2,000 544,100 2,750 08,850

Acquired or Rehabilitated Industrial 0,000 0,000

Acquired or Rehabilitated Other 178,473 178,473

Total Square Footage 42,000 ,650,606 148,750 1,841,956Includes year 2000, 2002, 2004 and 2006 survey respondents.

Table 15. CDC Commercial Development Square Footage,20042005

Development Type 2004 2005 otal

New Offi ce/Retail 23,000 33,100 56,100

New Industrial 0

New Other 0Acquired or Rehabilitated O ce/Retail 9,000 39,000

Acquired or Rehabilitated Industrial 0

Acquired or Rehabilitated Other 0

otal Square Footage 2,000 33,100 5,100ncludes year 2006 survey respondents.


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According to a nationwide survey conducted by the National Congress for

Community Economic Development in1999, 31% of the 1,100 CDC respondentsto their survey were working on somecommercial or industrial project(s). Incontrast, only 9% of TACDCs survey respondents reported engaging in any commercial development activity,

despite the fact that 39% percent ofrespondents reported the need forcommercial development in theirservice area. In order to assess thisdiscrepancy, TACDCs 2006 surveyasked respondents to identify the majorimpediments to taking on a commercialdevelopment project. The impedimentsmost often listed by respondents aresummarized in Table 17.

The lack of funding specicallavailable for commercial developmenand the lack of expertise regardingthe commercial development process were the two most frequently citedimpediments. Partnerships withprivate-sector developers might helpto alleviate the lack of expertise withinCDCs, as such partnerships combinethe resources and knowledge of thecommercial development process of forprot developers with the communityknowledge of CDCs. However, 27 CDCcited a lack of partnership opportunitiesas the primary impediment fordevelopment. A nal impediment, citedby 30 organizations, is the fact thatcommercial development is perceivedas a riskier endeavor than housingdevelopment.

Table 17. Impediments to Commercial Development, 2006

Impediment to Development No. of CDCsReporting Percentage

Lack of federal or state funding specicallytargeted to CDC commercial development. 35 5.6%

Lack o expertise within our organizationregarding the commercial development

.31 49.2%

Financing requirements and developmentregulations that make commercialdevelopment more risky than residential orenterprise development.

30 47.6%

Lack of partnership opportunities forcommercial development with intermediariesand private developers.

27 2.9%

Other 2 19.0%

Table 16. CDC CommercialDevelopment Square FootageUnder Construction or in thePipeline, 20062007

Development Type 20062007

New Offi ce/Retail 176,500

New Industrial 0

New Other ,400

Acquired or RehabilitatedOffi ce/Retail 4,900

Acquired or RehabilitatedIndustrial 5,500

Acquired or RehabilitatedOther 242,512

Total Square Footage 467,812ncludes year 2006 survey respondents.


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CDFIs reported originating $145.5million in loans through 2001. CDFIslargest investments were in existing businesses, making up 45% of totalloan volume. In addition to providing resources for small businesses to grow,

CDFIs, like CDCs, are helping low- tomoderate-income individuals purchasehomes through mortgage lending.Mortgages made up 34.5% of the totalloan volume through 2001. Looking atlending by number, the most activity

CDFIs

CDFIs are specialized nancial institutions that work in market niches that have not been adequately served by traditional nancial institutions. These CDFIs provide a wide range of nancial products and services,including mortgage nancing for rst-time home-buyers, nancing for needed community facilities, commercial loans and investments to start or expand small businesses, loans to rehabilitate rental housing, and nancial services needed by low-income households and local businesses. In addition, these institutions provide services that help ensure that credit is used effectively, such as technical assistance to small businesses and credit counseling to consumers. CDFIs includecommunity development banks, credit unions, loan funds, venture capital funds, and micro-enterprise loan funds, among others.

United States Department of the TreasuryDFI Fund, www.cdfund.gov

A.R. Harveys Frenchquarter Art

Aaron Harvey moved to San Antonio after losing everything in Hur-ricane Katrina. His home was submerged in water up to the eight-foottall doorways and his art gallery and studio were completely destroyed.He was left with a knapsack and ve of his own art pieces all he couldcarry from his ooded house to the makeshift emergency helipad ontop of a grocery store. I brought what was important to me, he says.

A resident of New Orleans for 30 years and the owner of a small artgallery and studio, Mr. Harvey restarted his life from scratch. Originally

bound for Houston, he ended up in San Antonio with very little to showfor his entrepreneurial past. Fortunately, in October of 2005, he justhappened to pass by the ACCION Texas building. Seeing the signabout small business loans, he walked in.

Several days later, Mr. Harvey received a loan to restore his company:A.R. Harveys Frenchquarter Art. The loan was made possible throughthe ACCION Texas Bounce Back Fund established through a grantfrom the Meadows Foundation, CHRISTUS Health and other founda-tions to help Hurricane Katrina and Rita evacuees get back to theirtrades and businesses.

Mr. Harvey used the loan to buy frames, canvases, paints and otherbasic materials to get the company off the ground. Additionally, heinvested in a high-tech digital printer which helps him create gallery-quality prints. Through his new website, Mr. Harvey has been able to in-crease sales and further publicize his new company. This allows him toremain true to his motivation for painting, which he describes as, justgetting [his] work out there. With the success of his revived company,Mr. Harvey has moved into a house that doubles as his workspace. Hesupports his two children and makes contributions to the communitythrough the donation of his artwork.

And his plans for the future? Mr. Harvey continues to work on his craftand plans to convert his garage into a small gallery to further showcasehis pieces. There is no hesitation when discussing the passion and de-sire to continue his work, This is what I want to be. I want to paint.

With the help of a loan from ACCION Texas, A. R. Harvey was able to restart his businessafter being displaced by Hurricane Katrina.


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was in micro-enterprise loans, with3,379 loans or 54.6% of the total. Microloans are typically small, ranging from$500 to $25,000, and are orientedtoward assisting low-income individualsestablish or grow a small business. Secondto micro-business loans were mortgages,making up 37.8% of the total number

of loans. Through 2001, CDFIs reporteda total of 6,193 loans.

Survey respondents made a total ofnearly $33.3 million in loans in 2002005. The total loan amount is slightlylower than the loan volume from 20022003 and could reect some of themergers and consolidation in the TexasCDFI eld. Contraction in the CDFIeld is also evident in fewer loans beinmade, down from 2,907 in 2002-2003 t2,185 in 2004-2005. In earlier periodloans to existing businesses accountedfor the largest volume of CDFI loansHowever, during this 4-year periodloans to micro-enterprises surpassed alothers with $25 million (37% of the tota volume of loans), as well as the largetotal number of loans. Prior to 2001loans to micro-enterprises contributedonly 14% of the total volume. Followinloans to micro-enterprises in 2002-2005 were loans to existing businesses, whicaccounted for 34% of the total volume.

The other area of note in the CDFIdata is the increasing importanceof housing development nance inthe CDFI portfolio. In 2002, nohousing development nance activity was reported, but by 2005 theactivity generated 177 loans totalin6,087,596. The growing importanc

of housing nance in CDFI lendingmight be explained by new partnershipsbetween existing CDCs and CDFIs andthe relatively strong housing market

that remains in Texas as compared tothe rest of the country.

Table 18. CDFI Loan Number and Volume, through 2001

Loan Type Number olume

Business/Existing 448 $66,056,504Business/Start-Up 22 $8,703,935

Housing Development Finance 2 $137,000

Mortgages 2,342 $50,281,923

Micro-Enterprise 3,379 $20,392,898

Total ,193 $145,572,260

Includes year 2002 and 2004 respondents.

Table 19. CDFI Loan Number and Volume, 20022003

Loan Type2002 2003 20022003

No. Volume No. Volume otalNo.Total

Volume

Business/Existing 61 $6,926,250 60 $8,260,296 21 $15,186,546

Business/Start-Up 6 $401,800 35 $1,780,461 41 $2,182,261

HousingDevelopmentFinance

0 - 3 $261,500 3 $261,500

Mortgages 252 $2,232,837 234 $2,431,788 486 $4,664,625

Micro-enterpr se 97 $6,296,538 ,259 $6,9045,16 2,256 $13,201,054

Total 1,316 $15,857,425 ,591 $19,638,561 2,907 $35,495,986

Years 2004 and 2006 respondents.


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

ervices No. o CDCs

Manage Construction 6

Provide Direct Loans to Homebuyers 41

Provide Home Purchase Finance Assistance 38

dminister Loan Funds for Housing Development 29

Package/Originate Home Mortgages or Other Lenders 16

ervice Mortgage Loans for Other Lenders 2

dminister Loan Funds for Business Development 7

Provide Direct Loans for Small Business Owners 6Provide TA to Small Business Owners 5

Provide Equity Investments to Small Businesses 1

otal Number of Housing and EconomicDevelopment Services 231

otal Number of CDCs Providing Housing and EconomicDevelopment Services 120

Percent of CDCs Providing Housing and EconomicDevelopment Services 4.2%

In addition to producing affordable housing and makingloans, CDCs and CDFIs also provide many services to the residents of their properties, home buyers and clients receiving loans. In some cases,services are also offered to all residents of the communities served by an organization.

Services

Table 25 details the housing andeconomic development services mostoften offered by CDCs and CDFIs.Seventy-four percent of respondentsprovide one or more of these services

within their target communities. Theservices most commonly offered to homebuyers include direct loans for homepurchase and assisting home purchasenancing. Home buyer assistance isoften a critical component of making homeownership possible for many of Texas lower-income families. More than

half (76) of the CDCs responding to thesurvey manage the construction processfor their housing developments.

Many CDFI respondents provide

technical assistance to their clients.Such technical assistance includestraining in accounting software such asQuickbooks and assistance developing nancial projections and analyses. Theprovision of these services helps ensurethe success of the small businessesreceiving CDFI assistance.

Foundation Communitiesresidents have access to many community services onsiteincluding after-school programs for children.


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For Neighborhood Housing Services (NHS) of San Antonio, providinghomeownership opportunities for low-income families is only half ofthe mission. The other half is training families on how to take care oftheir homes once they move in. NHS San Antonio is leading the CDCeld in post purchase counseling and training.

For 17 years, NHS of San Antonio has been providing affordablehousing as a builder, developer, lender and homebuyer counselor.While all prospective homebuyers seeking lending assistance fromNHS-SA are required to take the organizations certied Pre-PurchaseHomebuyers Class, they are also given substantial incentives toparticipate in its Post-Purchase Homebuyers Class which providesinformation and strategies to help new homebuyers remain in theirhomes.

For Maria Espinoza, taking the class saved her $80 because shewas recently able to repair a minor plumbing problem that normallywould have required calling a plumber. Ms. Espinoza may have savedconsiderably more, because she mentioned that she would have hadto wait until payday to call the plumber, by which time the problemmay have become more costly.

The programs objectives include assisting new homebuyers withhealth and safety issues related to the home; easy-to-do preventativemaintenance; simple repairs; knowing when to renance; how toavoid predatory lenders; being a good neighbor; saving for repairsand larger home improvements; building equity in a home; and manyother post-purchase issues, such as property taxes, insurance andfederal income tax breaks.

Since NHS of San Antonio is working with families of modest meansfor whom the home will most likely be their largest asset, the PostPurchase classes provide more than just t raining for the homeowner.They provide the basis for long-term sustainable communityrevitalization efforts. The purpose of Post-Purchase CounselingProgram is to help families maintain their assets. NHS-SAs newlyexpanded six-hour class covers standard maintenance issues, aswell as the importance of making regular payments, keeping up withproperty insurance and taxes, and the benets of homeownership,including income tax advantages, neighborhood associations, andasset and equity building.

In addition to the individual benets that the Post-Purchase Programprovides, it also has a positive impact on the community. Educatedhomeowners become better neighbors because they have a betterunderstanding of the value of their new asset. By understandingthat the maintenance of ones property helps sustain the propertyvalue, homeowners contribute to stable property values in theirneighborhoods. In cases where NHS-SA develops subdivisions,the organization requires that residents join their neighborhoodassociation. Additionally, studies have shown that children performbetter in school when they live in owner-occupied units as opposedto rental units. All of these factors contribute to better homeowners,better neighborhoods, and better communities.

Table 26 lists other critical servicesoffered by CDCs and CDFIs that may not be directly tied to either housing production or business lending. Nearly 83% of survey respondents providecommunity residents with one or moreof these services, which include nancialliteracy education, advocacy, community organizing, after-school programs, jobskills training, and programs for seniors.Legal assistance is the service mostcommonly offered by survey respondents

(58%). Next to legal assistance, child care

and home buyer counseling are the most widely offered CDC and CDFI servicesHome buyer counseling preparesfamilies for the home buying procesand may include credit counselingeducation on predatory lending andinformation on home maintenance andrepair. In many cases, services such achildcare and various classes are offerein the community centers of multifamilycomplexes.

successstory

nhsofsanantonio

NHS of San Antonioprovides homeownersmaintenance classes forthe families they serve.


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Table 26. Community Services Offered by CDCs and CDFIs, 2006Service No. of CDCs

Legal Services 9

Child Care 43

Home Buyer Counseling 9

Advocacy 32

Health Care 23

Financial Literacy Education 19

Community Organizing 18

Job Placement Assistance 18

Homeless Services 7

Emergency Food Assistance 2

Youth Services 1

Senior Programs 1

enant Counseling 0

Job Skills Training 2

otal Number of Community Services 324

otal Number of CDCs Providing Community Services 120

Percent o CDCs Providing Community Services 82.5%

CDCs help low-incomeresidents prepare tax returnsto make use of the earnedincome tax credit. Several CDCs are linking EITC andtax refunds with individual development accountprograms to help residentssave for homeownership oreducation.


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Conclusion

By the end of 2007, Community Development Corporations will have built or acquired over 61,000 units of affordable housing, thoverwhelming majority of which is affordable to families earning 50%or median family income and below. At the same time, CommunityDevelopment Financial Institutions will have lent out over $235 million tosmall businesses, entrepreneurs, and homeowners who would otherwisnot had access to capital for their ventures. The contributions of CDCsin Texas are remarkable and something everyone in the state can beproud of.

CDCs lead the affordable housing industry in creating diversied linesof business, providing economic andcommunity services to low-incomefamilies, and designing new policiesand programs to provide more units of housing and services to the communitiesthey serve. CDCs provide these services while maintaining a non-prot businessmodel where their margins are reinvestedback into the communities they serve.

The CDC industry in Texas continuesto grow. CDCs produced more housing units across the state in 2004-2005 thanin previous years. The major exceptionis in the Houston area (state service regionsix), where the federal government haltedthe administration of HOME funds by the City of Houston, severely curtailing affordable housing development. Inpart, the overall growth in productionis due to a return to normalcy after anindustry wide downturn following thetragedy of September 11th, but it is

also due to growing capacity within theCDC industry in Texas. In 2002 and2003, the overwhelming majority of housing was produced by a handful of highly skilled, large CDCs. Today, rentalhousing production remains dominatedby a few very skilled organizations,but homeownership production among CDCs has become diversied among CDCs of all capacity levels. This indicatesthat more organizations are developing the capacity to produce affordablehousing at higher levels than years past.

Community Development Corporationsremain sensitive to changes in thehousing market and general economicconditions of the country. CDCs onthe East and West Coasts have differentbusiness plans, including stand aloncommercial and mixed-use developmentthat help sustain them in economicdownturns. In Texas, most of the CDCshave not acquired the skills necessaryto have multiple product lines that will sustain the organizations in lean

times. Therefore, it will be importantto monitor the community developmenteld in Texas as land prices and interestrates will likely rise in the near future andas the housing market continues to coolacross the county.

CDCs in Texas will continue to providemuch needed capital, resources, andknow-how to develop the productsand services needed to enhance thequality of life for working families ithe state. Texas CDCs and CDFIs are

providing community-driven, marketbased solutions to the problems facingeconomically challenged neighborhoodsWhen non-prots, private sectornancial institutions, and governmentcombine resources the results prove tobe both an effi cient and equitable wayto provide capital and affordable housin where none existed before.

Congratulations Texas CDCs and CDFIs.Your work makes us proud to livein Texas.

El Paso Collaborativemakes home loans and small business loans available tolow-income families throughtheir revolving loan fund.


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Maps CDC and CDFI Locations

Source: 2000, 2002, 2004 and 2006 CDC Accomplishments Survey 2007, Texas Association of Community Development Corporations

CDC and CDFI Accomplishments

total number of respondents to 2000, 2002, 2004 and 2006 surveys: 250


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Maps CDC Housing Production 20042005


Note: Number of units includes new construction, acquisition and rehabilitation of rental and owner-occupied housing.

total number of units: 6,463

0

120

2150

51100

101500

5011000

1001+

Number of Units


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CDFI Originated Loans 20042005


Note: Number of loans includes the following types of loans: existing businesses, start-upbusinesses, micro-enterprises, housing development nance and mortgages.

Mapstotal number of Loans: 2,185

0

120

2150

51100

101500

5011000

1001+

Number of Units


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CDC Accomplishments By State Service Region

High Plains | Region 1

Region DescriptionState Service Region 1 encompasses the 41counties that comprise Texas panhandleregion. Region 1s population is primarily

concentrated in two cities: Lubbock andAmarillo. Lubbock is home to Texas TechUniversity. Most of the areas economy istied to agribusiness and tourism.

TACDC Survey Summary20042005

Number of CDC SurveyRespondents 1

CDC Housing Production 143 Units

Total Number o CDCEmployees 3Number of CDFI SurveyRespondents 0

Number of CDC OriginatedLoans 10

Amount of CDFI Loans $58,036*

Jobs created/sustainedthrough CDFI activity n/a**

Number of CDCs producingCommercial Development 0

Total square footage of CDC

Commercial Development0

* The CDFI making loans in this region is locatedin another state service region.

* /A indicates data is unavailable.

Region 1 Total CDC HousingProduction for 20042005: 143 Units

State Service Region 1High PlainsNo. of Counties in Region: 41Total 2000 Population: 780,733

1

Source: 2006 CDC Accomplishments Survey

2007, Texas Association of CommunityDevelopment Corporations

Uniform State Service Regions are designated

by the state o Texas, and are used here to

highlight CDC activity on a regional basis,

as well as to analyze state agency e orts

compared with local activity.

143

ote: Number of units includes new construction, acquisition and rehabilitation of rental and owner-occupiedousing. Number of loans includes the following types of loans: existing businesses, start-up businesses, micro-nterprises, housing development nance and mortgages.

0

120

2150

51100

101500

5011000

1001+

Number of Units


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Metroplex | Region 3

State Service Region 3MetroplexNo. of Counties in Region: 19Total 2000 Population: 5,487,477

Region DescriptionRegion 3 is home to the states largestmetropolitan area: the Dallas-Fort WorthMetroplex. The economy is diverse, with

manufacturing, high tech, commercial banking, tourism and agribusiness amongthe regions key sectors. Region 3 is hometo several of the states larger universitiesincluding Southern Methodist University,the University of Texas at Arlington, andthe University of North Texas in Denton



CDC Housing Production ,874 Units

Total Number o CDCEmployees 64

Number of CDFI SurveyRespondents


Amount of CDFI Loans $1,653,441*

Jobs created/sustainedthrough CDFI activity n/a **

Number of CDCs producingCommercial Development

Total square ootage o CDCCommercial Development ,000



Region 3 Total CDC HousingProduction for 20042005:1,874 Units*

* 54 units with undetermined location.

3

92

30

31 1

428 330

2 6








Note: Number of units includes new construction, acquisition and rehabilitation of rental and owner-occupiedhousing. Number of loans includes the following types of loans: existing businesses, start-up businesses, micro-enterprises, housing development nance and mortgages.

0120

2150

51100

101500

5011000

1001+

Number of Units


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Region DescriptionLocated in the northwest corner of Texas,Region 4 counties border Arkansas andLouisiana. Tyler, Longview, Marshall and

Texarkana are the major population centers.Businesses in the region include oil and

petroleum related industry, agribusiness,tourism, and livestock production.






Amount of CDFI Loans $159,574*








State Service Region 4Upper East TexasNo. of Counties in Region: 23Total 2000 Population: 1,015,648

Upper East Texas | Region 4

4

16Gregg

6









0120

2150

51100

101500

5011000

1001+

Number of Units


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Region DescriptionRegion 6 includes Harris County, the most

populous county in Texas. Accordingly, thisregion is a focal center for CDC production

and activity. Houston, the Harris Countyseat, is highly urbanized with severalnational and multinational corporate andmanufacturing headquarters. Harris Countyhas a signicant concentration of higher educational institutions; over 140,000students are enrolled in 28 colleges. Theareas economy is extremely diversied.


Number of CDC Survey

Respondents20


Total Number of CDCEmployees 187

Number o CDFI SurveyRespondents 2

Number o CDC OriginatedLoans 361

Amount of CDFI Loans $4,118,696

Jobs created/sustained

through CDFI activityN/A*


Total square footage of CDCCommercial Development 66,000

* N/A indicates data is unavailable.

Region 6 Total CDC HousingProduction for 20042005:430 Units

State Service Region 6Gulf CoastNo. of Counties in Region: 13Total 2000 Population: 4,854,454

Gulf Coast | Region 6

6

7

238

184

housing. Number of loans includes the following types of loans: existing businesses, start-up businesses, micro-enterprises, housing development nance and mortgages.

0

120

2150

51100

101500

5011000

1001+

Number of Units


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Capital | Region 7

State Service Region 7CapitalNo. of Counties in Region: 10Total 2000 Population: 1,346,833

Region DescriptionRegion 7 includes the 10 countiessurrounding the Austin-San Marcosmetropolitan area. Austin is the state capital

and state government is unsurprisingly asignicant employer. In more recent years,the region has experienced signicantemployment growth in the high-tech sector.







Jobs created/sustainedthrough CDFI activity 336




Region 7 Total CDC HousingProduction for 20042005: 87 Units*

* 46 units with undetermi ed location.








7

2

3

36


0

120

2150

51100101500

5011000

1001+

Number of Units


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State Service Region 8Central TexasNo. of Counties in Region: 20Total 2000 Population: 963,139

Central Texas | Region 8

Region DescriptionRegion 8 covers a 20-county area includingthe Waco, Killeen-Temple and Bryan-College Station metropolitan areas. Major

industries include wholesale and retailtrade, agriculture, local government andhealthcare. The region has a number of higher education institutions, includingTexas A&M in College Station and Baylor University in Waco.


Number o CDC SurveyRespondents 9



Number of CDFI SurveyRespondents 3



Jobs created/sustainedthrough CDFI activity N/A*

Number o CDCs producing


Total square footage of CDCCommercial Development 0

* N/A indicates data is unavailable.









8

1

62

85

5

34

3

12

5


0

120

2150

51100

101500

5011000

1001+

Number of Units


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Alamo | Region 9

State Service Region 9AlamoNo. of Counties in Region: 12Total 2000 Population: 1,807,868

Region DescriptionRegion 9 includes Bexar County, whosecounty seat, San Antonio, is the states thirdlargest city. The regions economy is varied,

but key sectors include communication,tourism and healthcare industries. Theregion also includes a number of countiessuch as Kerr and Kendall that have recently

become popular retirement locations.As evidenced, this region has a highconcentration of CDC activity.



CDC Housing Production ,676 Units




Amount of CDFI Loans 10,567,328



Total square ootage o CDCCommercial Development 23,100

Region 9 Total CDC HousingProduction for 20042005:1,676 Units

9








1546

6 104

20


0

120

2150

51100

101500

5011000

1001+

Number of Units


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age 47


Region DescriptionRegion 10 includes the 19-county areasurrounding the Corpus Christi andVictoria metropolitan areas. Employment is

concentrated in the areas of wholesale andretail trade, local government, healthcareand tourism. Due to its location on the Gulf of Mexico, the region is a popular vacationspot, particularly among winter Texans and

bird watchers.


Number o CDC SurveyRespondents 4



Number of CDFI SurveyRespondents 0


Amount of CDFI Loans $1,181,740*


Number o CDCs producing


Total square footage of CDCCommercial Development 0




Coastal Bend | Region 10

State Service Region 10Coastal BendNo. of Counties in Region: 19

Total 2000 Population: 732,91710








46

543

2

ote: Number of units includes new construction, acquisition and rehabilitation of rental and owner-occupiedhousing. Number of loans includes the following types of loans: existing businesses, start-up businesses, micro-enterprises, housing development nance and mortgages.

0

120

2150

51100

101500

5011000

1001+

Number of Units


50/56


51/56

age 49









12

West Texas | Region 12

State Service Region 12West TexasNo. of Counties in Region: 30Total 2000 Population: 524,884

Region DescriptionMuch of Region 12 is located in TexasGreat Plains region. Many counties inthis region have traditionally depended

upon oil production and agribusiness for their local economies. Ranching and woolmanufacturing have also been signicantcontributors in the past.












145

175

90

ote: Number of units includes new construction, acquisition and rehabilitation of rental and owner-occupiedhousing. Number of loans includes the following types of loans: existing businesses, start-up businesses, micro-enterprises, housing development nance and mortgages.

0

1202150

51100

101500

5011000

1001+

Number of Units


52/56

age 50

Upper Rio Grande | Region 13

State Service Region 13Upper Rio GrandeNo. of Counties in Region: 6Total 2000 Population: 704,318

Region DescriptionThis region includes part of the basin andrange area, which contains all of Texastrue mountains. The highest point in

Texas, at 8,749 feet, is Guadalupe Peak inthe Guadalupe Range. El Paso County inRegion 13 is a focal point for internationaltrade, wholesale distribution, manufacturingand food processing. Agribusiness, miningand tourism also contribute to the regionseconomy.


Number of CDC SurveyRespondents





Amoun

building a future (vol. 5): the contributions of community development corporations in texas

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