How Non Profits Can Survive Recession La Course BlumPresentation Transcript
HOW NON-PROFITS CAN SURVIVE THE RECESSION ADAPTING WITH A NEW BUSINESS MODEL COMMUNITY LAND TRUST OF PALM BEACH COUNTY, INC.
COMMUNITY LAND TRUST OF PALM BEACH COUNTY, INC (CLT of PBC) Spearheaded by Palm Beach County in 2005 as one of the tools in their “affordable housing toolbox” Incorporated as a non-profit organization in 2006 A devoted all volunteer Board of Directors ran the organization until the funding agreement with PBC was ironed out in December 2007 First staff person hired in January 2008 Things can change dramatically over a 3 yr period…
PALM BEACH COUNTY HOUSING MARKET The 2007 Palm Beach County Workforce Housing Market Update found that the inventory of unsold single family homes tripled from 2006-07.
The CLT Model Being Employed in PBC Acquire Land – Preferably through a donation Build the unit Resell the unit only maintaining ownership of the underlying land It was anticipated from early on that this would be the business model for the CLT of PBC. However, the market in 2008 no longer supported this approach….
Shift to Acquisition of Existing Units Acquisition was already a strategy in the Strategic Plan Submitted an unsolicited request to the County for CDBG funds to acquire and resell three existing vacant homes under CLT model Submitted grant application for SHIP funds to acquire and resell two existing vacant homes Lesson learned – do not be afraid to ask. SHIP did not have a specific strategy for this activity. We applied for funding under the RFP for new construction.
New Model Opportunities:
Generates program income creating a capital fund for the organization.
Units were acquired for less than the cost to build them.
Helps stabilize communities.
Fits well with NSP Acquisition and Rehab.
Does not generate operating revenue .
Requires scattered site property maintenance.
One of the houses declined in value before it was resold.
Other ways we have adapted Went out with a RFP to partner with a for-profit to develop our 7.29 acre piece of property. Have now partnered with another non-profit in submitting a HOME application with the State to develop 34 rental units in Phase I of our development “Davis Landings.”
Key Ingredients in Our Success Critical support of Palm Beach County from very early on. Expanding our products, investments, and activities while still maintaining a lean organization. Strong Board participation provided us the ability to expand activities while maintaining a small staff. Built and maintained collaborative partnerships
Questions?? Community Land Trust of Palm Beach County, Inc. 100 Australian Avenue, Suite 410 West Palm Beach, Florida 33406 Ph: 561.233.3682 Fax: 561.656.7551 http://cltofpbc.org Cindee LaCourse-Blum, Executive Director Clacoursefirstname.lastname@example.org