1. HOW NON-PROFITS CAN SURVIVE THE RECESSION<br />ADAPTING WITH A NEW BUSINESS MODEL<br />COMMUNITY LAND TRUST OF PALM BEACH COUNTY, INC.<br />
2. COMMUNITY LAND TRUST OF PALM BEACH COUNTY, INC (CLT of PBC)<br />Spearheaded by Palm Beach County in 2005 as one of the tools in their “affordable housing toolbox”<br />Incorporated as a non-profit organization in 2006 <br />A devoted all volunteer Board of Directors ran the organization until the funding agreement with PBC was ironed out in December 2007 <br />First staff person hired in January 2008<br />Things can change dramatically over a 3 yr period…<br />
3. PALM BEACH COUNTY HOUSING MARKET<br />The 2007 Palm Beach County Workforce Housing Market Update found that the inventory of unsold single family homes tripled from 2006-07. <br />
4. The CLT Model Being Employed in PBC<br />Acquire Land – Preferably through a donation<br />Build the unit<br />Resell the unit only maintaining ownership of the underlying land<br />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….<br />
5. Shift to Acquisition of Existing Units<br />Acquisition was already a strategy in the Strategic Plan<br />Submitted an unsolicited request to the County for CDBG funds to acquire and resell three existing vacant homes under CLT model<br />Submitted grant application for SHIP funds to acquire and resell two existing vacant homes<br />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.<br />
6. New Model<br />Opportunities:<br /><ul><li>Generates program income creating a capital fund for the organization.
7. Units were acquired for less than the cost to build them.
8. Helps stabilize communities.
9. Fits well with NSP Acquisition and Rehab.</li></ul>Challenges:<br /><ul><li>Does not generate operating revenue .
10. Requires scattered site property maintenance.
11. One of the houses declined in value before it was resold.</li></li></ul><li>Other ways we have adapted<br />Went out with a RFP to partner with a for-profit to develop our 7.29 acre piece of property. <br />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.”<br />
12. Key Ingredients in Our Success<br />Critical support of Palm Beach County from very early on.<br />Expanding our products, investments, and activities while still maintaining a lean organization.<br />Strong Board participation provided us the ability to expand activities while maintaining a small staff.<br />Built and maintained collaborative partnerships <br />
13. Questions??<br />Community Land Trust of Palm Beach County, Inc.<br />100 Australian Avenue, Suite 410<br />West Palm Beach, Florida 33406<br />Ph: 561.233.3682<br />Fax: 561.656.7551<br />http://cltofpbc.org<br />Cindee LaCourse-Blum, Executive Director<br />Clacourseemail@example.com<br />