PATHWAY 1000: IM PATHWAY PATHWAY IMPLEMENTATION P LEMENTAT PNLA I ON PLAN PATHWAY PCRI PATHWAY 1 “Let us be those creative dissenters who will call our beloved nation to a higher destiny, a new plateau of compassion, to a more noble expression of humanness.” — Martin Luther King Jr. Portland Community – “We are the change we seek” – Barack H. Obama As I consider Pathway 1000 and its intentionality – income imbalances and wealth disparities that exist in our City and in our nation guide my reflections. I ponder these exacerbated imbalances that persist in Black communities and other minority and low income White communities. During his New Hampshire Primary Concession Speech, Barack Obama said “We’ve been asked to pause for a reality check. We’ve been warned against offering the people of this nation false hope. But in the unlikely story that is America, there has never been anything false about hope.” However, we cannot ignore the fact America is a country born with “ An individual has not slavery. In spite of the significant strides we have made as a nation, vestiges of this great nation’s negative history are pervasive. started living until If we think about the racial and economic vulnerabilities existing in he can rise above Portland, we can understand why the gentrification in NE Portland the narrow confines led to the rapid displacement of thousands of families, primarily of his individualistic Black families. The displacement occurred with little capacity in the community to challenge the changes. concerns to the We need only to examine the promises made and the apologies later broader concerns of received to know what’s needed now is more than promises and all humanity.” apologies can provide. Action is required. Pathway 1000 addresses the housing issues caused by income — Martin Luther King Jr. disparities in the City of Portland and the State of Oregon. We are proposing corrective measures and long term solutions. The Plan addresses unemployment, under employment, wage disparities and the unequitable treatment that led to these noted disparate outcomes. We welcome you to delve into our solutions, and hope when you are done reading our Plan, you will want to be a part of it. Kind regards, Maxine Fitzpatrick Executive Director 3 TABLE OF CONTENTS EXECUTIVE SUMMARY ........................................................... 6 Pathway 1000 Goals ....................................................................... 7 What is in the Plan ........................................................................... 7 A Community Created Plan ............................................................ 9 SECTION 1: OVERVIEW AND CONTEXT ................................................. 11 Historical Context ...................................................................... 11 Demographics of Displacement ............................................... 15 Community Impacts of Displacement ..................................... 16 Income, Poverty, Homeownership and Wealth ....................... 17 Alignment of PCRI’s Mission and Pathway 1000 .................... 23 Policy Context ............................................................................. 24 SECTION 2: COMMUNITY ECONOMIC BENEFITS ............................... 32 Pathway 1000 Community Benefits ........................................ 33 IMPLAN Economic Impact Analysis .......................................... 34 NAMC-OR/MCIP Contractor and Workforce Initiative ............ 36 Target Community Economic Impact Projections .................. 39 Contractor and Workforce Implementation Plan ................... 41 Access to Capital ........................................................................ 45 Workforce, Business Support and Contracting Policy Actions ..................................................... 47 SECTION 3: HOMEOWNERSHIP AND RESIDENT SERVICES .......... 48 PCRI’s Role/Experience in the Community .............................. 49 Linkage between Pathway 1000 Homeownership and PCRI Residents .................................................................. 50 Housing Affordability in N/NE Portland .................................. 52 Overcoming Barriers to Black Homeownership ...................... 55 Pathway 1000 Homeownership Options ................................. 56 PCRI’s Culturally Responsive Resident Services .................... 60 Pathway 1000 Homeownership Counseling/ Preparedness Process ............................................................ 62 4 PATHWAY 1000 IMPLEMENTATION PLAN SECTION 4: HOUSING SITE PLAN ............................................................ 64 PCRI’s Housing Portfolio and Development Capacity ............ 65 Pathway 1000 Community Housing Plan ................................ 66 PCRI Housing Site Plan ............................................................... 67 SECTION 5: FINANCE STRATEGY .............................................................. 76 Pathway 1000 Development Budget ....................................... 77 Homeownership Finance ........................................................... 78 Rental Housing Finance ............................................................. 81 Community Benefits Finance .................................................... 82 Services and Partners ................................................................ 83 Resource Development .............................................................. 83 SECTION 6: COMMUNICATION AND OUTREACH ............................... 88 Gentrification and Displacement ............................................. 89 Communication and Outreach Plan .......................................... 91 Race and Surroundings Policy Actions .................................... 94 SECTION 7: ACTION ITEMS .......................................................................... 96 Pathway 1000 Implementation Plan Five-Year Action Plan .... 96 PCRI - Pathway 1000 Displacement Mitigation and Community Benefits Policy Recommendations .........101 APPENDICES: Appendix A: Acknowledgements and Endorsements ........103 Appendix B: References ..........................................................108 Appendix C: Interstate Corridor Urban Renewal Area Housing Strategy ...............................................111 TABLE OF CONTENTS 5 EXECUTIVE SUMMARY hile Portland has evolved into a thriving, livable and sustainable city with world class restaurants, locavore W food carts, micro-roasted coffee perfection, bike lanes, public transportation and the hipster culture made famous by Portlandia, its transformation has once again disrupted the lives and livelihoods of its Black community. Progressive Portland, the whitest big city in the country (American Community Survey, 2013), has a long history of racialized displacement driven by redlining, urban renewal policies, gentrification and speculative real estate forces that have had devastating consequences for the Black community in Portland. “We cannot undo Formed twenty-five years ago due to a housing crisis created by redlining and predatory lending practices, Portland Community the harms done, but Reinvestment Initiatives, Inc. (PCRI) continues to be a solution to combat rather must focus involuntary displacement in North and Northeast (N/NE) Portland, long on restoring housing the center of the Black community. Today, PCRI envisions Pathway 1000, a bold and ambitious ten-year displacement mitigation initiative justice for those who to slow and reverse some of the involuntary displacement of long-term were harmed. PCRI’s residents forced to move out of N/NE Portland and current residents at goal is to support and risk of displacement. encourage displaced Pathway 1000 will build paths to stability and prosperity for Black and Black residents from other low-income households. Over the next decade, it will create a minimum of 1,000 affordable homes primarily in N/NE Portland, 800 of North and Northeast which will be sold to new homeowners, as well as thousands of living Portland to focus on wage jobs and business opportunities. Pathway 1000 will focus on the future.” homeownership, providing the nation’s most reliable form of security, stability and wealth creation, outcomes that have been historically denied to Black families in Portland. Pathway 1000 also reflects a — Maxine Fitzpatrick larger vision for the N/NE neighborhoods as an income inclusive, racially Executive Director, PCRI diverse and welcoming community that celebrates its history as the center of Black culture in Portland. 6 PATHWAY 1000 IMPLEMENTATION PLAN “ Maxine Fitzpatrick through PCRI has led a visionary, positive, Pathway 1000 Goals proactive, collaborative and strategic effort The overarching goal of Pathway 1000 is to address generational to concretely address poverty of Black residents and others displaced from N/NE Portland by economic and systemic providing homeownership and rental housing opportunities that create wealth and stabilize families as well as provide living wage jobs for cur- problems in the African rent and future residents of the community. In late 2014, PCRI prepared American and NE Portland a Pathway 1000 Framework Plan that sets forth the benchmarks against community. PCRI has which the success of Pathway 1000 will be measured (PCRI, 2014). included economic, technical and social Pathway 1000 Housing Goal: support components in Create a minimum of 1,000 new affordable units primarily in N/NE Pathway 1000. African Portland over the next ten years, of which 800 are planned