Economic Opportunity Initiative

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. 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!” Poverty Reduction Best Practices

6. 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. Poverty Reduction Best Practices

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. 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 Project Examples

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

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. 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. System Leverage & Coordination

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

17. Year Two Results: Microenterprise Startup Businesses Average Revenues by number of years enrolled. 2 Years Enrollment 1 Year

18. Year Two Results: Microenterprise Existing Businesses Average Revenues by number of years enrolled. 2 Years Enrollment 1 Year

19. Year Two Results : Workforce Workforce Goal: To increase participant income by at least 25% in three years. MEETING WORKFORCE GOAL Percentage of participants meeting Workforce Goal by amount of time enrolled in the Initiative. 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.

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. CDBGELIGIBILITY • 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