To see our current Progamming and Events click here.

Strategic Restructuring of the Community Development System in Cleveland 2009

Background:

Neighborhoods in Cleveland are facing unprecedented change on a scale not seen since the community development movement arose in the late 1970s. Then the challenges were insurance and mortgage redlining, concentrated poverty, disinvestment and substandard housing. Cleveland CDCs were created and responded with housing rehabilitation and new affordable and market rate homes, retail and commercial investments, strategies to keep industrial jobs in neighborhoods and by bringing amenities to neighborhoods like parks, trails, theatres, community gardens and dog parks to attract and retain residents. Today we face the challenges of foreclosure and abandonment, severe economic downturns, and fewer resources with which to work. However, the new vision of hope and policy changes in the Obama administration may hold opportunities for neighborhoods going forward. Now, more than ever, community development corporations are needed to help communities respond to both the crises and new opportunities.

The current context and environment for this assessment and exploration of restructuring includes:
  • Anticipated significant decrease in funding from Enterprise/Living Cities in FY 2010 (July 2009-June 2010); and most likely zero funding beyond that.
  • Possible decreased funding in the future from foundations because of their financial investment losses.
  • Cleveland City Council ward boundary changes and a reduction of 2 council positions (unclear what will happen with $400K in ward allocation for each)
  • Recent decreases in CDBG funds to CDCs.
  • Changing housing market, economic environment and needs in neighborhoods which may require different services/programs from CDCs (e.g. more foreclosure outreach/intervention and community organizing and less housing development may be needed)
  • Some existing CDC collaboration around staff sharing, joint projects, etc.
  • A stated interest in exploring CDC mergers by several city council people.
  • Weakened financial position and program status in some CDCs

The Process:

The Cleveland Neighborhood Development Coalition, the City’s Department of Community Development, Cleveland City Council and Neighborhood Progress, with guidance from the George Gund and Cleveland Foundation, are embarking on a process to assess current capacity and explore the restructuring of the community development system in Cleveland. These partners are the Restructuring Advisory Team which has collectively designed the process which will include these 3 steps in the following timeline:

  1. Capacity building around strategic restructuring options – April-June 2009
  2. Capacity mapping and assessment and identifying strategic restructuring opportunities April – July 2009
  3. Follow up consulting with clusters of CDCs to define and move forward on the selected model of restructuring – July – December 2009.

Phase I – Capacity Building - April to June 2009

The first step is a capacity building series that is engaging Cleveland CDCs in training and dialogue on how to best meet these challenges, respond to new opportunities and create an efficient delivery system for services. The spectrum of strategic restructuring options that are being covered range from simple collaboration to strategic alliance to corporate integration/merger. NPI has engaged consultant Jo DeBolt, Senior Associate with La Piana and Associates, to lead three workshop sessions and help organizations carry out a self-assessment. All grantees of the Community Development Department and NPI were strongly urged to attend and the response has been significant. 28 CDCs were invited and 25 are participating, in addition to 4 city-wide housing organizations. Mandatory Board President and Executive Director participation is critical.

CDCs will be asked to do an analysis of their strengths and capacities, weaknesses, and initial thoughts on potential opportunities for restructuring.

Phase I Deliverables: Common understanding of future funding picture and range of strategic restructuring options, initial self-assessment of organizational capacity.

Phase II – Capacity Mapping and Assessment and Identification of Restructuring Opportunities - April to July 2009

The second step is to identify current CDC capacity and map it to allow CDCs and funders to graphically understand CDC capacity (both quantity and quality), community needs and real estate development opportunities to facilitate future planning for collaboration, partnerships, mergers, etc.


Quantitative Measures:

With the intentions of identifying natural patterns that might emerge for CDC service delivery and restructuring, we will gather data and map the following quantitative data:

  • CDC and other community development organization’s capacity represented by real estate development production, volume of services to community, financial position and staffing (July 2006 – present)
  • Neighborhood market conditions and real estate development opportunities (the pipeline of projects)
  • Community needs for services as measured by foreclosures, vacancy, code enforcement data, CD Dept. Neighborhood Typology

These will be looked at in relationship to:
  • Current CDC Service Area boundaries
  • New Ward Boundaries
  • SPAs
  • Planning Districts
  • Trade areas for retail
  • Safety/police districts
  • Art and cultural districts locations

Qualitative Measures:

A self-assessment tool will be developed by a consultant evaluator with input from the CDCs and other community development organizations. CDCs will be trained on the metrics and then carry out a self-assessment.

Using this information and the CDC self-assessments, CDCs and funders will seek to reach consensus on baseline neighborhood stabilization services needed for the next period, and will look at options of how best to deliver them. CDCs will then be asked to identify areas of potential collaboration, alliance or mergers.

Phase II Deliverables: Analysis and mapping of CDC capacity, community needs and development opportunities; agreement on baseline neighborhood stabilization activities; identification of clusters for follow-up.

Phase III – Individualized Restructuring TA - July 2009 to Spring 2010

The third step will involve follow-up work with pairs or clusters of CDCs and other community development organizations that are interested in exploring strategic restructuring. Technical assistance will be provided to facilitate/structure/negotiate strategic restructuring with identified partners that have identified partners and are actively considering formal strategic restructuring (e.g., joint programming, administrative consolidation, or merger). The specific services provided will be determined in consultation with the Restructuring Advisory Team and the proposing partners. These may include support in facilitating negotiating sessions to develop an agreement or targeted technical assistance to the partners in structuring an agreement that works for all parties.

Phase III Deliverables :Clusters of CDCs and other community development organizations complete the follow up work with a consultant(s) and are ready to carry out the restructuring.

CDC Service area Maps

Population changes