Community Economic Development Organization

1. Community Economic Development Organization Established in 1985, as a Latina nonprofit economic development corporation. Two vital principals: First address the needs of women and children; and, Customer input and community support are the most fundamental elements of success in building wealth.

2. Currently owns and operates : • 10 multi-family housing developments – 635 units • 2 charter schools – 640 students • 2 Community Economic Development Centers: Business Growth Center, Center for Creating NEW Knowledge, Health Clinic, and Wellness Center, • Residential & Community Services

3. Minimum wage to Sustainable Wage: • Affordable rent (30-60% of income) • Subsidized child care, afterschool programs • Extensive case management - economic outcomes not crisis counseling (financial literacy, access to affordable health care (healthy families) • Long-term transition career path for higher wage job or business (goal $20-$30 hr.)

4. From Sustainable Wage ($ 40,000 – $60,000) to a Thriving Wage ($ 75,000+) • Access to capital for starting a business & training • Rent subsidy still provided • Child care subsidy - smaller to zero • Case Management (Asset building opportunities) • Retirement savings program, College fund for children • Good health benefits

5. WHAT DO WE MEAN BY ASSET DEVELOPMENT • Tangible: accumulation and protection of physical assets (bank accounts-savings and checking, investments, own your home/business, legal documents in place) • Intangible: support system, wealth knowledge, access to social services, education

6. NEW’s Unique Comprehensive Approach • Affordable housing- 30% to 60% AMI • Focus on economic outcomes after extensive assessment and goal setting based on resident dreams and aspirations (values) • Business Growth Center – One-on-One counseling, whole family educational workshops, access to capital • Linkages/referrals to social services • All residents complete basic financial literacy workshops (Adelante Program)

7. NEW’s Unique Comprehensive Approach … Asset Development: • Smart Consumer Education consists of basic financial literacy, banking, credit card usage and budgeting • 1st Time homebuyer program with workshop (12 hrs) and 1 on 1 counseling. Under counseling access subsidy programs for down payment assistance from $50k to $100K • Individual Development Accounts (IDA’s) on homeownership, micro-enterprise and post secondary education • Business Assistance workshops linked with IDA program, access to capital & credit

8. NEW’s Unique Comprehensive Approach… Asset Protection • Credit counseling referrals • Foreclosure Prevention consisting of counseling and clinics • Immigrant Asset Initiative-Emergency Family Plan-power of attorney, guardianship, and will/living trust, business protection strategies

9. Asset Building Results • Over $2.5 million of revenue increases – Business Growth Center • 114 families bought homes = $31.9 million • 4,500 families received asset building programs & services = $1.9 million in family savings & EITC benefits • 2 separate IDA programs assisted 83 participants with a total savings of $72,738 for the year (1 to 3 match and 1 to 2 match) & business start up match

10. Business Growth Center - Outcomes Margarita young new single parent on welfare attended “How to Start a Business”. She started by selling whole fruit on the street → mixed fruit at a swap meet → owns a store selling smoothies Rodeo Grill – small fast foods restaurant expanded to 2 other locations after attending workshops, assistance in marketing plan and NEW creating their employee manual

11. Economic Ladder….Outcomes Sustaining: Two-parent family with 2 children • 2005 income of $24,918 and current income is $35,420 because of Smart Consumer Education and created monthly budget and savings program Thriving: Welfare Mother with 4 children • Initial $17,232 income but moved out with a $80,000 annual income. Obtained Bus Driver training and license • Completed Smart Consumer Education, Homeownership Workshop, and participated in IDA Savings Program • Purchased a home within four years. Received 1st time homeownership subsidy program

12. Policy Recommendations • Increase access to capital • Treasury Department should require foundations to report how much giving is made to communities with 20% more of poverty • Poverty programs should be linked to asset development where ever possible. • Closing the Digital Divide helps close the access to information on asset protection. • Provide tax incentives for microloans

13. Policy Recommendations • Stop penalizing TANIF regulations that prohibit wealth creation • Basic financial planning services for medium & low-income immigrant families • Certification of Financial Literacy programs is needed to address the needs of immigrants and first generation families

14. Awards AWARDS • NSP II: Awarded Over $25.7 Million in HUD Funds (2010) • Bring IT Home California “21st Century Community” (2009) Recognized for leadership in “realizing the power of technology to build a better future” in the West-Lake Pico Union district • National Council of La Raza (NCLR) National Housing Network Conference (2009) Highest performing agency in foreclosure counseling out of 50 affiliates nationwide • Wachovia Bank Credit Smart (2009) Highest performing agency in the state of California for curriculum in Smart Consumer Program • Bank of America Charitable Foundation Neighborhood Excellence Initiative Award(2009, 2008) As one of four Neighborhood Builders selected in Greater Los Angeles CountyCalifornia

15. Maggie CervantesExecutive Directorwww.neweconomicsforwomen.org(213) 483-2060