Economic development initiatives of African-American churches in Treme: the oldest African-American neighborhood in the United States.
Lacho, Kenneth J. ; Parker, Tammy ; Carter, Kristie 等
ABSTRACT
The economic condition of inner cities in the United States is one
of the most important issues facing us as a nation. The inner city is
now a frontier of growth and entrepreneurship. One influence in
promoting economic development in the inner-city is the African-American
church. This study examines the nature and extent of economic
development activities of African-American churches in Treme an
inner-city neighborhood in New Orleans, Louisiana. Treme is black, low
income, 71% rental and is the oldest African-American neighborhood in
the U.S. dating back to the early 1800s. Six of 16 churches in Treme
were studied. Churches were more likely to take part in social service
activities than entrepreneurial activities (job training, housing,
supporting small business start-ups). Two churches (both Catholic)
followed different approaches to economic development. St. Peter Claver
targets a weakness in Treme, housing and lack of home ownership. St.
Augustine's efforts are directed towards tourism and related
cottage industries. This strategy plays to Treme's history and the
growth of cultural tourism. Further study should be oriented toward
church strategy used given the strength and weaknesses of congregations
in light of community threats and opportunities.
INTRODUCTION
The economic condition of inner cities in the United States is one
of the most important issues facing us as a nation. The lack of
business, jobs, and private investment in these disadvantaged urban
areas not only perpetuates poverty, but also contributes to other social
problems such as crime and drug abuse. (Porter, 1995).
Largely abandoned during an era of industrial restructuring, the
inner city is now a frontier of business growth and entrepreneurship.
From Harlem in New York City to Los Angeles, blighted inner cities have
begun to improve (McNatt, September 20, 2004). According to a recent
study by the Initiative for a Competitive Inner City (ICIC), ghettos and
surrounding neighborhoods actually outpaced the U.S. as a whole in such
factors as median household income increases, poverty rate decline, home
ownership, and high school graduates (Bernstein, Pameria, & Crocket,
2003). Growth in the inner city and a major market potential reflect
renewed interest by the public sector, bankers and developers, large
corporations, and the influx of young professionals. Despite the
improving picture, too many inner city neighborhoods remain untouched.
Another influence in promoting economic growth and entrepreneurship
in the inner city is the African-American Church. There are
50,000-75,000 black churches in the U.S. with 19 million members. Church
deposits total $2.6 billion per year. Ten percent of the churches
underwrite business enterprises (Wilson, n.d.). Twenty eight percent of
urban churches implement economic development programs (Jackson, et.
al., 1997).
This project examines the nature and extent of economic development
activities in African-American churches in Faubourg Treme, a poor inner
city neighborhood in New Orleans, Louisiana. Treme is the oldest
African-American neighborhood in the United States dating back to the
early 1800's. It has a long tradition of African-American history,
culture, and small business ownership as well as music (jazz), food, and
architecture.
BACKGROUND
Inner City U.S.A.
U.S. inner cities represent the largest emerging market in the
world. They represent $85 billion in annual retail spending excluding
unrecorded income from legal activities that could add another $15
billion. That amounts to nearly 7% of total U.S. spending per year
(Porter & Blaxill, 1997). In addition, inner cities in the 100
largest central cities of the U.S. are a substantial part of the
economy. They account for 8% of the U.S. population (21 million people),
8% of private employment (9 million employees) and 814,000 business
establishments (Initiative for a Competitive Inner City, June, 2004).
The interest of the private sector in expanding into the inner city
is motivated by the recognition of the market potential offered by the
inner city. These markets are attractive because they are large and
densely populated. Despite lower per household annual median income
($24,900 versus $42,000 for the U.S.) the high population density
results in the concentration of more buying power into a square mile in
the inner city than suburbs.
Inner cities can possess up to six times as much buying power per
square mile as surrounding areas. For example, the average consumer
demand per square mile is twice as great in Chicago's inner city
than in the suburbs ($57 million versus $27 million). In Boston,
inner-city buying power is about six times higher per square mile than
in more affluent suburbs ($71 million vs $12 million) (Stegman, 1998).
Many inner cities suffer from significant outshopping. The ICIC
estimates that 25% of inner city retail demand is not met by retailers
in the inner city (ICIC, n.d.).
African-American Churches and Economic Development
Historically, the African-American community has used the church as
a means for spiritual, social, and economic development. Churches
founded insurance companies and banks during the early part of the 20th
century. Economic development is considered by many black church leaders
to be the new frontier of civil rights (Klump, n.d.). To others, the
black church must itself become an economic development institution
(Shultz, 2001).
Many urban churches (African-American, white, and mixed) initially
focused their efforts on community development activities such as
housing, job training, daycare and social services. Some churches now
include job and entrepreneurial training, business incubators,
consulting support, credit unions, and commercial loans among their
activities (Reese & Shields, 1999; Reese, 2004). Churches also
include business incubators, consulting support, credit unions, and
commercial loans among their economic development activities (Heim,
1995; Hodgkinson, Weitzman & Kirsch, 1988; La Berbera, 1992; Mares,
1994). Entrepreneurial efforts of churches in central cities include
cooperative restaurants, recycling operations, daycare centers,
construction cooperatives, the rehabilitation of former crack houses,
auto shops, credit unions, job information centers and restaurant
franchises such as McDonald's and Kentucky Fried Chicken, (Heim,
1995; Sherman, 1995; Gordon & Frame, 1995; Lincoln & Mamiya,
1990; Thomas & Blake, 1996). According to Cisneros (1996) programs
have included low and middle income housing developments, credit unions
to provide start-up financing to minority businesses and a community
supermarket.
Reese and Shield (1999) studied the economic development activities
of 15 faith-based churches in Detroit, Michigan. Six of the responding
churches were African-American, two mostly white, one Hispanic, and six
mostly mixed. Economic development activities carried out by these
churches included job training, mixed social services and training,
financial activities, housing, citizenship, training/relocation,
CDC's, and cultural activities. Five of the churches operated
free-standing businesses. These included a Coffee Beanery franchise, a
cathedral restoration company, a food cooperative, a parking lot and an
Hispanic Women's Center.
Reese (2000) surveyed 183 faith-based churches in Detroit about
their economic development activities. Of these churches, 62% were
African-American. Overall, very little economic development activity
seems to be carried out by the responding churches in Detroit. Most
commonly, respondents described shelter, clothing and hunger programs as
their economic development activities. Those providing more explicit
economic development programs were smaller in number. Six percent
supported adult education that stressed computer training or home
maintenance, 5% provided job skills training or job search assistance
and 4% have started businesses (Reese, 2000).
In closing, another example is Auburn Avenue in the heart of
Atlanta, Georgia. The development is the result of the efforts by the
Wheat Street Charitable Foundation, a nonprofit that serves as the
development arm of the Wheat Street Baptist Church (DePriest &
Jones, 1997). As of 2004 the development includes two strip malls which
house ten small businesses. (Personal interview, staff member, Wheat
Street Baptist Church, August 4, 2004.)
Faubourg Treme
Faubourg is a French term that means suburb. Faubourg Treme (or as
it is commonly referred, Treme) is not only America's oldest black
neighborhood, but was the site of significant economic, cultural,
political, and legal events that have literally shaped the course of
events in Black America for the past 200 years. Treme is adjacent to the
French Quarter and near the Central Business District (CBD) of the City
of New Orleans.
From its earliest settlement in the early 1700's and its
incorporation in 1812, free persons of color played an important role
within the entire geographic region of Treme. The most remarkable aspect
of Treme is that its residents, free people of color and African slaves
who acquired, bought, or bargained for their freedom, were able to
acquire and own property in Treme. The ability to acquire, purchase, and
own real estate during a time when the U.S. was still immersed in
slavery and was very unique and only in New Orleans did this occur
regularly and consistently.
Until 1927, Treme experienced urban development typical of its day
including: extensive, dense residential settlement and important
religious and commercial developments (Brooks & Wagner, 1995). Once
a vibrant community in the 20th century, Treme became the site of many
public infrastructure projects such as the municipal auditorium, a
theater for performing arts, a public housing project, Louis Armstrong
Park (which contains Congo Square, the origin of much African-American
music and culture) and in the 1960's an elevated Interstate Highway
(I-10) over North Claiborne Avenue, a major thoroughfare which cuts
through the heart of Treme.
North Claiborne had been the centerpiece of an African-American
neighborhood. The street and its wide median was a place of cultural
expression and celebration, and recreation and social interactions. The
street served as a place of commerce along North Claiborne and provided
residents a broad range of products and services (Samuels, 2000). There
were pharmacies and drugstores, barbershops and shoeshine stands,
restaurants, bakeries, hat stores, saloons, repair shops, banks, and
markets that supplied the needs of everyday life (Samuels, 2000). With
the coming of the Interstate, North Claiborne declined. The number of
business along an eight block stretch declined from 132 in. 1960 to 35
in 2000 (Samuels, 2000). Today, North Claiborne is populated by bars,
nights clubs, convenience stores, vacant lots, and abandoned buildings.
Like many inner-city neighborhoods in the U.S., Treme has declined.
Treme is unique, however. The housing stock is historic. Many structures
were built in the early 1800's. In addition to historic buildings,
Treme has a tradition of Creole food and music (jazz). Last, Treme has
been designated by the National Register of Historic Places as an
historic district.
Treme Demographics: A Picture of Poverty
Treme is made up of poor, blacks and those who rent. The population
of Treme is declining. Between 1980 and 2000 the population declined by
2,745 residents, a decline of 30 %. For the period 1990-2001, the
decline in population was 12%. The loss reflects the flight of whites to
other parts of the Metropolitan area, (Treme was 27% white in 1970 in
contrast to 7.5% in 2001) and middle-class blacks to Eastern New Orleans and outlying parishes.
The number of households declined eight percent during 1990-2001.
Some 88% of the housing units are occupied. Of these, 71% are occupied
by renters, the rest by owners. An estimated 31% of vacant houses are
abandoned or blighted. Over 55% of the buildings were built prior to
1939; some date back to the early 1800's. Some 34% of
owner-occupied houses were valued at less than $50,000 each in 2000.
Household size has declined to fewer than 3 persons per household
in 2001. By the year 2006 it is predicted that 47% of all households in
Treme will consist of one person (Easy Analytic Software, Inc. 2001).
Treme is 89% black and 7.5% white. Twenty-five percent of those
residents over 25 years of age have less than a high school education.
Employment is not the best as 43% of those 17-65 years of age were not
employed in 2000.
The lack of employment is reflected in the income of Treme
residents. Treme is poor. The median household income for Treme in 2000
was $20,500 in contrast to $27,503 for Orleans Parish. Sixty-six percent
of Treme's households each earn less than $24,999 per year in
household income; 40% live below a poverty-level income of $15,000 per
year. Household income density in 2001 was $91,866 per square mile
compared to $55,771 in Orleans Parish.
Treme has the weaknesses that are common to poverty-stricken
neighborhoods. Surveys by the University of New Orleans College of Urban
and Public Affairs have found that resident concerns center around: 1)
housing including abandoned buildings, vacant lots, absentee landlords
and the need to rehabilitate occupied buildings, 2) crime consisting of
murders, drug dealing, prostitution and a lack of police presence, and
3) the lack of infrastructure such as sanitation, abandoned vehicles,
trash, poor drainage, insufficient street lighting, potholed streets and
bad sidewalks (Dufour, W., Bordelon, B., Hamilton, A., & Keeler, T.,
1999). The current mayor (Mr. Nagin) found similar concerns of Treme
residents in a recent community forum (Knabb, May 25, 2003).
Treme does have strengths, however. It is close to the New Orleans
Central Business District and the French Quarter, has an historic past,
community pride, and two very community-active churches. Other signs of
recent economic development in Treme are listed below:
1. A $25 million initiative to promote home ownership in seven key
areas in Orleans Parish including Treme (Eggler, April 8, 2004).
2. Gentrification of certain areas in Treme.
3. The founding of Urban Routes, a nonprofit neighborhood-based
organization focusing on the preservation and promotion of historic
Treme's culture. A walking tour is part of the Urban Routes effort.
4. The conversion of several property sites into church-sponsored
low-income housing for the elderly (Thomas G., October 12, 2000).
5. The development of a jazz music complex by the National Park
Service in nearby Armstrong Park.
Churches are a vital part of Treme and Treme residents value the
close proximity of churches to their homes. Some who have moved outside
of Treme still attend Sunday church service in Treme.
RESEARCH METHODOLOGY
It was determined that there were 16 churches in the Treme area.
Responsible individuals at six churches were personally interviewed.
Multiple interviews were conducted at two churches (St. Peter Claver and
St. Augustine). Ten churches declined interviews or the researchers just
couldn't get anyone to answer the telephone. The churches surveyed
are listed in Table 1.
One issue faced by the researchers was to define an economic
development activity. For the purpose of this study the definition used
by Reese and Shields (1999) was used. If an outreach activity did more
than provide emergency food, clothing, or shelter, it is related to an
activity which would return revenue to the church or to
encourage/promote economic development it was considered economic
development.
The survey instrument developed for this study consisted of five
categories. The categories included employment, entrepreneurship,
business operations, social services, and housing. Items included under
the category of employment were job training, job placement, and other.
For the category of entrepreneurship items included were business plan
counseling, youth entrepreneurship education, adult entrepreneurship
workshops, business incubator, and other. Similarly, business operations
included church-sponsored credit unions or bank, revolving loan funds,
food service, daycare center, elder care center, tutoring center, real
estate development/leasing, other church operated business, and other.
Social services included family and marriage counseling, parenting
workshops, educational tutoring, GED preparation workshops, after-school
programs, senior citizen activity programs, church-sponsored travel or
vacation packages, credit counseling, drug and alcohol counseling, study
skill counseling, health screening or wellness workshops, young adult
recreation programs, and other. The housing category included housing
rentals, and new housing developments such as apartments.
FINDINGS
The level of participation in each activity for the churches is
summarized in Table 2. Employment and entrepreneurship activities were
carried out by one church. Responding churches were most likely to take
part in social services activities such as family counseling, programs
for senior citizens and recreation programs for all ages. There was
little church activity in business operations, even less in housing. A
major exception in housing was St. Peter Claver. Its community and
economic development programs are described next.
St. Peter Claver Catholic Church
St. Peter Claver church and school was founded in 1852 and is a
leader in the Archdiocese and the City of New Orleans. It has 2,500
registered families and is the largest African-American Catholic church
in Louisiana.
Community/economic development programs conducted by St. Peter
Claver include a first-time buyers program which builds new houses in
the community. The church is also completing a new wellness center which
will house a church nurse, expanded food pantry, and a youth center. The
center will offer programs such as ACT/SAT prep, GRE training, and
computer classes. St. Peter Claver has sponsored with All Congregations
Together, The Treme Neighborhood Planning Project (Dufour, W., Bordelon,
B., Hamilton, A., & Keeler, T., 1999). The project was underwritten
by the City of New Orleans Division of Housing in Neighborhood
Development. Last, the church has been active in the City's Night
Out Against Crime Program as well as having church leaders taking to the
streets protesting against area night clubs and bars which have been
sources of problems.
St. Peter Claver has an 80 year history of community involvement in
service and leadership. Perhaps its most notable achievement has been
the initiative of church staff and volunteers to form Ujamaa.
Ujamaa
Ujamaa Community Development Corporation (UCDC) is a nonprofit
organization located in New Orleans. It is housed in the St. Peter
Claver church offices and the Ujamaa Executive Director works closely
with church leaders and staff.
UCDC has the primary function of addressing the concerns of
low-to-moderate income families in New Orleans, although a major
emphasis has been in Treme. UCDC's primary guiding principles are
the following: (1) provide education and training for job opportunities
and entrepreneurship, (2) develop decent, affordable housing for low and
moderate income individuals, (3) promote cultural enrichment.
UCDC was formed in 1996. It was the fruition of a dream long held
by Treme residents. A history of economic development activities by UCDC
is summarized in Figure 1. Future plans for UCDC are summarized in
Figure 2. A unique activity is the Treme Entrepreneurship Program. UCDC
has acquired control of a square block of city property in Treme. Plans
are to build a new building and construct a moderately-sized commercial
building. This building will house the Treme Entrepreneurship Program.
This multifaceted program will provide job training and education,
cultural and social enrichment, and hands-on operations and business
development. The hands-on operation is yet to be identified. Students in
a Small Business Consulting class at the University of New Orleans
studied the feasibility of having a coffee shop or a sandwich shop at
that location. Ujamaa will partner with local nonprofits, schools,
social and civic group to provide an entrepreneurship program for youth
14-18 living in Treme.
The St. Augustine Catholic Church
St. Augustine church was built in 1842. It is the oldest existing
church in Treme and the first African-American Catholic church in New
Orleans. The staff at St. Augustine provides basic or traditional social
services such as marriage counseling, programs for seniors, drug and
alcohol counseling, health screening, and recreation programs for the
community and its members.
Under it current pastor, the church has evolved into a cultural and
community center. The church hosts literary readings, musical
performances, exhibits related to African-American history, parades,
jazz masses and jazz funerals. It is the site of a major jazz mass
during the Louis Armstrong Music Conference held each August, and
attended by jazz enthusiasts from throughout the world. The historical
significance of St. Augustine makes it an attraction for tourists
visiting New Orleans, especially African-Americans.
St. Augustine is partnering with the Historic Treme Cultural
Alliance and the International Project for Nonprofit Leadership, a joint
project of the University of New Orleans (UNO) College of Urban Studies
and Public Affairs and the UNO Metropolitan College. In 2001 IPNL established Urban Routes, a community-based learning project. One
activity of Urban Routes is to establish a walking tour of Treme. Urban
Routes has formed collaborations with cultural-based nonprofits,
museums, faith-based organizations (St. Augustine Church) small
businesses and Treme residents. Many residents recognize the economic
development potential of the cultural and ethnic diversity of the
neighborhood and would like to see an increase in both the promotion of
its cultural resources and positive publicity for the area. Assistance
and counsel have been received from the State of Louisiana Lt.
Governor's Office which is in charge of tourism for the state.
A recent addition has been the establishment of the St. Augustine
Parish Tour organization. Tours are conducted for tourists and New
Orleans residents of St. Augustine church and the church campus
(buildings on the church grounds). Cooperation is carried out with the
New Orleans Multicultural Tourism Network and the New Orleans
Metropolitan Convention & Visitors Bureau.
Cooperation with Urban Routes (described below) and stops on the
Urban Routes walking tour (Backstreet Museum, Armstrong Park, and the
African-American Museum and others) is a strong possibility.
The area adjacent to St. Augustine church has the potential to
develop small cooking/catering businesses, home-based businesses related
to skilled building trades, and gift shops.
Church of the Sanctified Vision
This responding church was only one of the six to provide job
training and placement. In addition, it was the only one to have a youth
entrepreneurship program. As in the case of the other churches no other
entrepreneurship-related activities were carried out. Sanctified Vision
provides the various social services such as St. Augustine and St Peter
Claver. There is no activity in housing except for assisting veterans.
DISCUSSION
The definition of economic development used in this study (and by
Reese & Shields, 1999) is broad. It includes employment,
entrepreneurship social services, business operations and housing. A
narrow definition of economic development activities includes only
employment (e.g., computer training) and entrepreneurship (youth
entrepreneurship education, business start ups and housing.)
Reese's (2000) survey of Detroit churches found that only a
minority of churches engaged in the narrow definition of economic
development activities. Five percent provided job training and/or job
search help, 6% adult education that focused on computer training, 4%
started small business, 8% helped in housing, and 7% provided health
care services such as a clinic. Overall, about one-third of the churches
engaged in some type of charity work or traditional church assistance
and less than one-third of that number in economic development
activities more narrowly defined (Reese, 2004). Similarly the majority
of the Treme-based churches were heavily involved in social services.
Only one provided employment training and help. It also had an
entrepreneurship training program for youth (Church of the Sanctified
Vision).
Next let us compare St. Peter Claver and St. Augustine. Both are
significant historically dating back to 1852 and 1842 respectively. St.
Augustine is noted for being the first African-American Catholic church
in the United States. Each church is led by a highly energetic pastor,
lay members and staff. Both have large congregations, many members
coming to church there each Sunday though having moved from Treme to
other parts of New Orleans. The churches provide similar social
services, however, that is where the similarity ends. St. Peter Claver
provides more activities in the business operations category such as a
credit union, elder care center, and real estate development. Also, as
noted in the findings, St. Peter Claver has been very aggressive in
providing housing, home ownership, and apartment development,
(especially for the elderly).
The approach to economic development by St. Peter Claver has been
to provide liveable and affordable housing for the elderly and to
promote home ownership in a neighborhood that is 75% rental.
St. Augustine, perhaps reflecting its historical roots, has taken a
different approach by taking part in the Urban Roots Program. The
long-range economic development objective of this program is to foster
small business development in Treme as related to tourism.
How are the programs of the respective churches financed? Reese
(2004) Found that economic development activities of religious
congregations was enhanced by public sector funding. St. Peter Claver
taps into federal funding through Ujamaa, a community development
organization (See Figures 1 and 2). The source of funds for the Urban
Routes program has been a grant from the state of Louisiana through the
efforts of a state legislator representing the district.
Both churches have developed partnerships in furthering their
economic development efforts. For example, St. Peter Claver works with
Ujamaa and local public entities such as the City of New Orleans, Total
Community Action, the Housing Authority of New Orleans, the New Orleans
Redevelopment Authority, the city Department of Housing and Neighborhood
Development, as well as banks such as the Whitney.
St. Augustine has developed a partnership with Urban Routes which
in turn works with the Historic Treme Cultural Alliance and the State
Department of Culture, Recreation and Tourism.
In terms of economic development the two churches have taken
different approaches. St. Peter Claver addresses improving the living
accommodations of Treme residents (apartments) and furthering home
ownership. St. Augustine by working with Urban Routes is fostering small
business development related to cultural tourism. The latter approach
takes advantage of the history of Treme, especially as related
African-American history. Both churches have partnered with other
organizations and have sought out public funding through these agencies,
e.g. Ujamaa.
St. Peter Claver and St. Augustine have economic development
strategies which address Treme's weaknesses (housing) and strengths
(history, architecture, food, music). As pointed out by Reese (2000) the
connection to the neighborhood appears to be cultural to extent that
congregations are involved in both economic development and education
activities. This is especially true of these churches, especially given
their roles in Treme.
CONCLUSION
The churches surveyed took some part in social service activities
which come under the broad definition of economic development
activities.
The major churches in Treme follow different approaches to economic
development, St. Peter Claver targets a weakness in Treme, inadequate
housing and low home ownership. In the case of St. Augustine, economic
development activities are directed toward tourism and the development
of related cottage industries. This approach plays to a strength of
Treme, its history especially as related to African-American. Both
churches partner with public and private sector agencies, the former
being a source of funding.
As pointed out by Reese (2004) more research on faith-based
churches and economic development is warranted. Future research should
focus on congregational characteristics to determine patterns in local
factors that stimulate and promote economic development activities
(Reese, 2004). On the other hand, our research suggests that further
study should be oriented toward the strategy used given the strengths
and weaknesses of congregations in light of community threats and
opportunities. Inadequate housing and the historical significance of
Treme have brought about two different approaches to economic
development. In addition, what are the strategic planning processes
used, if any, by churches to foster economic development. The church and
state relationships issue raised by public funding of faith-based
activities make this a timely issue for additional study.
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Kenneth J. Lacho, University of New Orleans Tammy Parker,
University of Louisiana at Monroe Kristie Carter, Carter Memorial
Rehabilitation Center, Inc.
Figure 1
Ujamaa Community Development Corporation Executive Summary
Development History in Treme
St. Ann Apartments
In 2001, UCDC completed the $3MM dollar construction of a senior
apartment complex, St. Ann apartments, at 2117 Ursulines Avenue. The
rehabilitation of blighted property and a former church/school
accompanied the new construction. Today the St. Ann Apartments is a
project-based complex consisting of 44 units rented to eligible Section
8 residents that are selected through a partnership with the Housing
Authority of New Orleans (HANO). Sitting on Ujamaa Square, St. Ann
Apartments also features a senior activity center, St. Ann House, that
is utilized not only for activities of the residents, it is made
available for special event rental to the citizens of Treme. The second
floor of St. Ann House is designed for future use as office space for
Ujamma and area businesses.
Childcare Center-Headstart
UCDC is currently renovating and expanding its child development
center, leased and managed by Total Community Action (Headstart Program)
to include childcare for infants. Construction, estimated at $350,000 is
scheduled for completion in Spring 2005. The new site will consist of
three buildings connected via breezeways. The child development center
provides much needed daycare for the 75% female-headed households of
Treme. It is also located on Ujamaa Square.
Community Wellness Center
UCDC purchased two buildings on Prieur Street in 2002 for use as a
community wellness center. The buildings have been connected and are
undergoing complete rehabilitation ($200,000). Once complete (Spring
2005), the center will be leased and managed by St. Peter Claver Church.
The wellness center will house an on-site medical staff, a food
distribution program and other social services sorely needed by the
Treme community. Program of All-Inclusive Care for the Elderly (PACE)
UCDC had the unique opportunity of being the developer chosen to
complete Louisiana's first program of All-Inclusive Care for the
Elderly (PACE) Center. St. Cecilia, a former Catholic Church, that had
fallen into disrepair underwent a $3MM
Figure 2
Ujamaa Community Development Corporation Executive Summary
Solution
The UCDC has designed a Comprehensive Revitalization Plan for the
Treme Community, the first target area of UCDC. The two broad components
are "The Ujamaa Neighborhood Revitalization Initiative" and
the "Treme Entrepreneurship Program."
"The Ujamaa Neighborhood Revitalization Initiative"
The UCDC has identified blighted property made available by the
City of New Orleans. The UCDC will acquire these properties and newly
construct or rehabilitate homes for purchase by low- to moderate-income
individuals. The use of soft second funds, down payment assistance,
individual development accounts and home buyer education and financial
literacy will increase mortgage availability and sustainability to
traditionally under-served populations living in or relocating to the
Treme Community. UCDC has identified three initial phases of
development. Phase I will entail newly constructing ten (10) homes at
approximately 1300-1500 sq. ft.
As UCDC moves forward in its mission, it plans to develop (new
construction or rehabilitate) ten (10) affordable homes in the Treme
Community in 2005, while increasing that annual volume at a rate of five
(5) additional houses per year over the next five (5) years. Partners
are listed below.
"Catch the Dream, Treme"
UCDC announced a $25MM affordable home ownership partnership with
FreddieMac in April 2004.
Whitney CDC
Whitney CDC is partnering with UCDC to provide interim financing for new construction along with providing affordable mortgage products
for the consumers. NOCDF (New Orleans Community Development Fund)
NOCDF is partnering with UCDC to provide a line of credit for
acquisition of blighted and abandoned property from the New Orleans
Redevelopment Authority (NORA). DHND (Department of Housing and
Neighborhood Development)
DHND is partnering with UCDC to provide HOME funds for acquisition
and related costs along with an innovative "Soft-Second
Mortgage" that can provide subsidy
Table 1: Treme-Based Churches Surveyed
Name Year Founded Denomination
Church of the Sanctified Vision 1989 Non denominational
St. Davids 1937 Catholic
Nazarene -- Baptist
Mt. Zion -- Baptist
St. Peter Claver 1852 Catholic
St. Augustine 1841 Catholic
Table 2: Church Participation in Economic Development Activities (N=6)
Economic Development Activity Number of Churches Taking Part
Employment
Job Training 1
Job Placement 1
Other 0
Entrepreneurship
Business Plan Counseling 0
Youth Entrepreneurship Education 1
Adult Entrepreneurship Education 0
Business Incubator 0
Other 0
Social Services
Family/Marriage Counseling 3
Parenting Workshops 1
Educational Tutoring 2
GED Preparation Workshops 1
After-School Program 2
Senior Citizen Programs 3
Church Sponsored Travel 2
Credit Counseling 2
Drug/Alcohol Counseling 1
Study Skill Counseling 1
Health Screening/Wellness 1
Recreation Programs 4
Stress Reduction 1
Business Operations
Church Sponsored Credit Union 1
Revolving Loan Funds 1
Food Service 2
Day Care Center 1
Tutoring Center 0
Real Estate Development/Leasing 2
Other Church Business 0
Housing
Housing Renovation Project 1
New Housing Development 1
Housing Rentals 0
Veterans 1
Other 0