Duluth Fund for Neighborhood Development (DFND)
The goal of the DFND is to build the capacity of local community development corporations (CDCs) to generate affordable housing, commercial district revitalization, child care facilities/programs and new jobs.
Goals for the CDCs:
- Increase production and effective management of affordable housing.
- Increase economic development and job creation activities.
- Maintain fiscally, organizationally and programmatically sound operations with long-term stability.
- Promote leadership development and community empowerment.
- Strengthen the partnerships and accountability between CDCs and their constituencies.
Outcomes for the CDCs:
- Evidence of sound business practices in management of the organization.
- Evidence of funding diversification and financial stability.
- Production of new or rehabilitated housing units, and child care facilities.
- Commercial district improvements, business retention and recruitment, and new job creation.
Phase I of the DFND - 1998-2001
Funding was provided for organizational assessments, strategic and neighborhood planning and operating support. Expected output was the production of housing units and commercial corridor revitalization. Assistance was customized to the targeted CDCs stage of development and:
- Identified critical issues, policies and procedures which were created or addressed to attain the organizational structure to support staff and increase production.
- Created and implemented a plan of action that set these standards into place.
- Created and implemented a two to three year strategic plan with targets and milestones to achieve housing or commercial production
Technical assistance and training in the areas of organizational development, production planning and management was offered by LISC staff, consultants, and other training organizations (e.g., Development Training Institute, Neighborhood Reinvestment Training Institute, among others). All Duluth CDCs are eligible to participate.
Phase II of the DFND – 2001-2003
In 2001, Phase II of the DFND provided intensive real estate development training for CDC staff and boards. Duluth LISC hired a consultant who coached the CDCs on specific projects and development related issues. Duluth LISC also increased its use of National LISC resources using four divisions whose staff members worked closely with Duluth CDCs on real estate development, business district development, housing issues and organizational development.
The support of CDCs technical, organizational and operating needs also continued to be a priority through the continued operation of the DFND. LISC developed a project intern grant program to assist CDCs with the hiring of temporary staff. This program generated opportunities for young people to enter the community development field and/or provide leadership development opportunities for neighborhood residents.
Duluth LISC assisted nine CDCs with a total of 22 Internship Grants totaling $50,000 through The McKnight Foundation’s resources.
Phase III of the DFND – 2004-2006
Our goals in 2004 include addressing the affordable housing shortage, expanding homeownership opportunities, investing in commercial corridors and making Duluth neighborhoods places of choice. Based on our experience over the past six years with CDCs, Duluth LISC identified the need to intensify and systematize our DFND capacity building program to meet CDC needs. This also coincides with funders requests for more rigorous measurement of CDCs “added value” in the community. Recognizing the need to strengthen local capacity building and to better measure LISC investments with achieving tangible community outcomes, national LISC’s Organizational Development Initiative and LISC Operating Support Collaboratives developed CapMap®, an organizational investment tool to measure CDC capacity and a path for growth in nine key areas of organizational capacity critical for organizational success:
- Board Governance
- Community Connections
- Executive Director
- Financial Management
- Fund Development
- Human Resources and Staff Development
- Management Information Systems
- Real Estate Asset Management
- Real Estate Development
Duluth LISC initiated the use of CapMap® with seven CDCs. While much progress has been made in assisting Duluth CDCs in securing training, staff, achievable work plans and real estate development competencies, they continue to struggle to maintain staff, secure adequate financial support and the ability “to get to the next level” needed to help transform Duluth’s neighborhoods and address the severe housing shortage.
By incorporating CapMap® into the DFND, Duluth LISC increased its effectiveness to help CDCs achieve their goals. CDC and LISC outcomes are set for progression along the competency curve. LISC staff assist the CDCs to set clear, understandable, measurable goals for improvement. CDCs will be “remapped” by LISC staff and consultants to track measurable successes. Based on the aggregate picture of CDC capacity in Duluth, LISC trainings, technical assistance and scholarships are designed and delivered more effectively. CDCs will also play an active role in charting their own organizational growth and performance measurement.