1. Economic Opportunity Initiative City of Portland, Oregon Bureau of Housing & Community Development NCDA ANNUAL CONFERENCE Howard Cutler June 20, 2007

2. Evolution of the Initiative Historic CDBG focus was a place-based strategy to revitalize blighted areas 2003 Strategic Plan conclusion: Move to people-based strategies, Reduce # of activities, & Focus on those most in need By a deliberative and inclusive process, able to significantly change City’s community development focus

3. Economic Opp Initiative Snapshot Goal: Increase the incomes and assets of low income Portland residents by a minimum of 25% within 3 years. Strategy: Build a poverty reduction system that builds on the assets of discrete low-income populations –Programs in the system follow proven best practices –Programs provide training, supports, tools and evaluation –System uses economy of scale as a leverage to attain added benefits on behalf of participants System of 29 projects today serves about 2000 participants –12 adult workforce, 9 youth workforce, 8 microenterprise

4. The challenge in 2004... 50,000 disadvantaged households in City regardless of how strong the economy. “Nothing works” malaise; no improvement despite affordable housing; revitalization had not improved many residents’ living situations; no first rung on the ladder Local & national research in poverty reduction best practices: isolated cases, no scale CDBG challenging core funding source

5. Poverty Reduction Best Practices Workforce Development: Build on population skills or sectoral opportunities Comprehensive support services Early employer involvement Peer support Long-term program relationship Sectoral projects develop niches Key elements are length & comprehensiveness of support. “Give me a real shot at success!”

6. Poverty Reduction Best Practices Microenterprise Development: All Workforce elements/personal supports Screen out/redirect some dreamers Business training and mentoring Multiple financial tools Credit repair Key elements are length & comprehensiveness of support.

7. Not Your Ordinary RFP Directive Outreach & Education Intense Pre-Proposal Technical Assistance Outcome-Driven Designs

8. What did we fund? Homeless adults/multiple barriers Homeless and at-risk youth Ex-Offenders Chronically Mentally Ill Sectoral Workforce & Microenterprise Women/minorities in the trades

9. What did we fund - cont. Refugees and immigrants Underserved & home-based businesses Struggling craftswomen using recycled goods

10. Project Examples Microenterprise Childcare Improvement Project 110 home-based bus. Unite for support, C.C. improvement, Bus. Ed, purchasing, marketing Workforce Development Corporate Connections Standard Ins., Bar Assoc., Comcast Pre & post training & support services for high risk youth

11. Maria Castillo - CCIP Immigrant with limited English; disabled abusive husband; 2 kids Women in family don’t work outside home, care for children with little or no pay Finances became desperate, took in more children but collected little, isolation compounded problems Saw notice at church about provider support group & joined CCIP, building skills and confidence Small grants improved quality of space and educational program; now attracting higher paying clients Emerged as business woman and educator, triple bottom line New confidence helped her end abuse, her own kids doing better in school & now buying a home

12. Christie Haynes – Open Meadow Corporate Connections Seriously troubled teen Enrolled at Open Meadow, but no motivation Heard presentations about Corporate Connections & took tours Preston Gates Law Firm had such a calm,warm but professional environment with staff that clearly want to help - “I was hooked”. Didn't believe that had anything to offer, but through Corporate Connections trainings, individual counseling and an internship, she began to believe in herself Now is firm's receptionist making $17/hr. with full benefits; "I can't believe they trust me to be their clients first impression” Preston Gates is paying for her training as paralegal so she can make $25.hr. and contribute even more to the firm’s work

13. Local HUD Implementation: Contract Management Best Practices IT IS ABOUT RELATIONSHIPS Recognition of contractors as allies Continuous Quality Improvement; outcome- driven We work for them BHCD Community Based Organization Participant

14. 2007 Program Revenue Portland CDBG $2,398,281 Portland General Fund $1,560.362 NW Area Foundation$200,000 United Way$200,000 TOTAL * $4,358,643 *Multiple grants/City increase pending

15. System Leverage & Coordination Portland Family of Funds (loan fund) $850,000 Workforce Investment Bd (WIA) $200,000 State & Federal IDA funds (approx.) $32,000 Lewis & Clark Law School $150,000 OR Employment Department $500,000 Kaiser Permanente (health care for formerly homeless) $500,000 TANF extensions (approx.) $72,000 Banking Services (Albina Bank) $35,000 TOTAL from Leveraged Sources $2.339 Mil.

16. 2006 Portfolio 2,000 participants 389 microenterprises 1,476 workers on the job or in training 75% At or below 30% of MFI. 25% Between 30% and 50% of MFI.

17. Year Two Results: Microenterprise Startup Businesses Average Revenues by number of years enrolled. Enrollment1 Year 2 Years

18. Year Two Results: Microenterprise Enrollment1 Year 2 Years Existing Businesses Average Revenues by number of years enrolled.

19. Year Two Results : Workforce Workforce Goal: To increase participant income by at least 25% in three years. The average hourly wage for youth at 6 months was $8.03 and at 12 months $8.83. For adults, the average hourly wage at 6 months was $10.57 and at 12 months $11.49. Percentage of participants meeting Workforce Goal by amount of time enrolled in the Initiative. MEETING WORKFORCE GOAL

20. Return on Investment Average cost per participant: –$5,500 in Year 1 –$1,000 in Year 2 –$1,000 in Year 3 Year 1 income gains for workforce participants average $15,059 Average business revenue gains: $25,300 for start-ups, $23,900 for existing businesses

21. CDBG ELIGIBILITY Microenterprise assistance: 570.201(o) For workforce: A) Maximize use of CBDO designations (570.204) for non- profits undertaking Community Economic Development activities. B) Utilize 570.203(c) with LMC for the National Objective, for non-CBDO projects that train, place, and retain L/M clients

22. Replication NW Area Foundation has contracted with City to provide technical assistance to interested Minnesota communities Duluth is on track to introduce an increasing incomes program next April Meetings with other CDBG entitlements in Minn. are scheduled for July

23. Innovations of Economic Opportunity Initiative Intensive technical assistance to each project before and after the contract period. City choosing to allocate its CDBG monies solely for those at 50% MFI Figuring out how to use CDBG for people-based poverty reduction Making adherence to best practice models a primary selection criterion Leveraging system for participants benefit, i.e. health care, legal, TANF extensions, IDA’s...

24. Lessons Learned We can do this! Pushing the envelope pays dividends Intensive technical assistance + joint problem-solving strengthens programs Early tracking & evaluation is key Clear outcomes sell the program One size does not fit all

25. Lessons Learned cont. Best practices work. Scale it up!! Use expertise of community partners Not all projects, not all clients succeed Leverage, coordinate, advocate, innovate ! Set moderate expectations, then beat them