1. Recommended Tactics for Concentrated Housing Redevelopment Housing Redevelopment Tactics Work Group

2. Work Group Mission
Make tactical recommendations on how to structure, implement, and fund concentrated housing redevelopment. Recommendations can become a “Toolbox” of ideas for targeted neighborhoods.

3. 25 Neighborhood Redevelopment Experts from For-Profit and Non-Profit Sectors
4 Meetings since December 08, 3 Major Focus Areas

4. 1. Barriers to Doing Single-family Rehab at a Large Scale
Need an overall plan for neighborhood
Need to avoid unnecessary demolition
Need to strategically acquire high percentage of properties
Carefully select target areas based on marketability
Negotiate clear neighborhood-specific development standards
For-profits need reassurance surrounding improvements will occur
Need to attract for-profit partners for neighborhood CDCs to increase scale
Need a mix of owner and renter occupied housing
Incentivize a mix of developer and individual activity
Need holistic approach: include infrastructure, public safety, amenities
Need to improve project management techniques for scattered rehab

5. 2. Financing Barriers to Accomplishing Concentrated Redevelopment
General Recommendations
Acquisition and Development capital very tight, especially for spec development
Guarantees for developer financing needed
Rapidly-accessible property acquisition funding needed.

6. Financing support for quality rental housing
LIHTC tax credit market needs to be repaired
Federal legislative LIHTC changes should be supported
Need equity bridge financing, possibly with New Market Credits
Need addition subsidy sources
Keep rents affordable for working poor (not solely Section 8)
Build with no debt
Multi-family buildings work best
Need to develop workable re-use for doubles
Strong property management critical
Tenant accountability/support critical

7. Financing for Homeownership
Need resources to repair homes of existing owners
Invest in long-term buyer development through financial counseling/CWF
Utilize subsidies for public employees such as police, teachers
Explore buyer equity preservation insurance
All incomes will need downpayment assistance given current market
Developers will need guarantee to limit holding costs on spec homes
Need additional subsidy for “green” development
Create loan products for “sweat equity” buyers

8. 3. Marketability Issues for Concentrated Redevelopment
Efforts should address both:
Promoting “Urban/downtown Living”
Marketing specific housing products to buyers and renters

9. Promoting Urban/Downtown Living
Do market analysis to clearly identify likely buyers
By income (include market-rate buyers)
By family characteristics
By preferred amenities
Reach targeted market through collaborative promotion between neighborhoods
Use technology and informal networks
Craft message about neighborhood to feature assets attractive to targeted buyers
Market wide range of educational alternatives in urban neighborhoods
Create visible entries into neighborhoods promoting areas
Include existing residents in shaping campaign and informal promotion
All levels of City government must be a “cheerleader” in promoting urban living
Feed positive stories on target areas to media to counter negative reporting

10. Promote Redevelopment Projects to Buyers/Renters
Do some kind of high-profile concept like “dollar house” to create buzz
Create attractive and staffed “welcome centers” that make it attractive and simple to buy
Start buyer development early to assist renters in repairing credit and being ready
Concentrate initial redevelopment in one block to show end result to buyers
Ramp up public safety and community policing in target areas
Offer financial incentives to individual buyers…not just developers
Promote excitement of “this old house” to sweat equity buyers
Promote sustainability/green aspects of housing as alternative
Design quality is critical