Community Economic Development OrganizationCommunity 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.

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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

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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.)

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From Sustainable Wage ($ 40,000 – $60,000) to a Thriving Wage ($ 75,000+)

Access to capital for starting a business & training

Rent subsidy still providedChild care subsidy - smaller to zeroCase Management (Asset building

opportunities)Retirement savings program, College fund for

childrenGood health benefits

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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

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NEW’s Unique Comprehensive Approach

Affordable housing- 30% to 60% AMIFocus 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 servicesAll residents complete basic financial literacy

workshops(Adelante Program)

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NEW’s Unique Comprehensive Approach …

Asset Development:Smart Consumer Education consists of basic financial

literacy, banking, credit card usage and budgeting1st 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

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NEW’s Unique Comprehensive Approach…

Asset ProtectionCredit counseling referralsForeclosure Prevention consisting of counseling and

clinics Immigrant Asset Initiative-Emergency Family Plan-

power of attorney, guardianship, and will/living trust, business protection strategies

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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

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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

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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

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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

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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

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AwardsAwards

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 County California

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Maggie CervantesMaggie CervantesExecutive DirectorExecutive Director

www.neweconomicsforwomen.orgwww.neweconomicsforwomen.org(213) 483-2060(213) 483-2060

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