Part I
:: Trickle Down…
Issue 1
Volume 2
Definition of Terms
compiled by Suzanne Moniz
CDC
Community Development Corporation: As described by Frank Shea of
the Olneyville Housing Corporation (a CDC), it is “an organization where
people and residents of the neighborhood take responsibility for the development
decisions happening in their neighborhood.” (http://www.providenceri.com/
CityNews/CityNews.php?id=6). In Providence there are a number of these developing
to represent the concerns of specific neighborhoods.
CPC
City Plan Commission: If you want to develop land in Providence,
you need to take it to these folks. Before they put begin looking at a project,
it goes through the Department of Planning and Development. There are seven
people on the Commission; five volunteer city residents, the mayor and the
chair, Stephen Durkee. The CPC has their meetings once a month 400 Westminster
St. Information about the time and agenda can be accessed through their link
on the providence city website.
However, the information they receive is filtered through and recommended on or against by the Department of Planning and Development, who are also responsible for planning the agenda and maintaining notes on their sessions.
DRC
Downcity District Design Review Committee: This is exactly what it
sounds like. A Review Committee. It‘s meant to “encourage“
all things good and aesthetically pleasing downtown. It has design
review control over “exterior alterations, new construction, demolition,
and street and site improvements in an area bounded by Smith Street, the Moshassuck
and Providence Rivers, I-195, and I-95."
Having sway by way of committee must be nice.
EDC
The Economic Development Corporation is designed to provide assistance
to businesses within Providence and attract new business to the city. As a
corporation with a budget in the range of $18 million, they are “authorized
to acquire, contract and assist in the financing of its projects through the
issuance of industrial development revenue bonds, which do not constitute
any debt or liability of the state.” (source
here)
They are essentially a lobbyist group. Big business, small business, taxes and education. They have some influence. This is how things work…
HDC
Historic District Commission: Has design review powers over any exterior
change to a property (including repairs, alterations, site improvements, new
construction, demolition and moving of structures) in a local historic district.
These districts are: Armory, Broadway, College Hill, Downtown (Jewelry District),
Northern and Southern Elmwood, and Stimson Avenue. They plan for other district
designations by way of the City Council and the City Plan Commission. They
also concern themselves with zoning violations.
PNHC
The Providence Neighborhood Housing Corporation: This is an interesting
entity with a distinct purpose. Such distinct purposes are often best quoted:
“Housing rehabilitation and residential construction activities in the
city are funded through PNHC… CDC’s serve as the development arm/partner
of the City. PNHC coordinates this activity, encouraging collaboration amongst
CDC’s and increased production overall. The only development currently
undertaken by PNHC itself using HOME Funds is that necessary to liquidate
it’s substantially rehabilitated unsold existing housing stock. Once
the existing inventory is sold, PNHC will discontinue its own development
and work only through it’s CDC development partners or other qualified
developers.”
Mostly the PNHC works with non-profit housing agencies throughout the city to help create low to moderate income housing, as well as issues like the lead paint problems. By 2000, they had created almost 190 units that would be affordable to low or moderate income people, with about half going to low income residents. Funding is of course an issue, and where they have come up with almost $2.2 million the rest is raised through banks, tax credit syndicates, RI Housing and developers. Some of the organizations they work closely with are West Elmwood Neighborhood Housing Development, Smith Hill CDC, Olneyville Housing Corporation, OMNI Development Corporation (South Providence), AMEN (faith based).
Again, they work like a lobbyist - they put in $1 and try to raise $5 from other sources to complete these projects.
Inclusionary
Zoning
Zoning is interesting. Decisions on what exists in various “zones”
are changeable, though generally are pretty firm. Inclusionary zoning initiatives
speak to governmental efforts to force inclusion of affordable housing into
any development programs. Recently, East Providence instituted such an initiative
stating that 10% of new homes must be “affordable” though long
term effectives of such initiatives are unstudied. Nice effort though.
Abatements
Generally known as free rent or, more elusively early occupancy, and may run
outside the term of the lease. An abatement initiative would be a governmentally
sponsored use of abatements to lure investors into a spot in want of development.
PRA
The city touts the Providence Redevelopment Agency as “created
in 1947 to address the problems of slum and blight in Providence. The Agency’s
purpose is “to work toward the elimination and prevention of substandard
areas and their replacement through redevelopment by well planned, integrated,
stable, safe and healthful neighborhoods” (RIGL 45-31). Since its beginning,
the Agency has carried out many projects throughout the City. Today, the Agency
is working to stabilize the City’s neighborhoods through the development
of new owner-occupied housing and to create jobs with the development of industrial
parks.
Substandard and stabilize stick out as interesting words subject to multiple interpretations. Blight, anyone?
Affordable housing
Hard to find a firm definition of what affordable housing is in dollar terms,
so here’s a little math. The median household income in Providence is
$26,867.
When talking about paying rent, people should aim to use 25% of their income
to cover that expense - rent would need to be $560 (for a household, which
could be a single person or a family of 6) to satisfy the basic affordability
of the median.
Worthy to note that also in Providence, 24% of families live in poverty. The federal poverty threshold for a family of four in 2005 was $19,350; poverty threshold for an individual is $9,570.
Rent burden
When you are paying rent that is greater than 35% of your income.
Affordable Commercial
Space
Where affordable Live/Work space is concerned, the city has a website
that lists some opportunities to find such a spot. It also offers financial,
descriptive and contact information on The Smith Building, Atlantic Mills,
The Alice Building, AS220, Monohasset Mills, Ajay Land, etc.
VITA
Volunteer Income Tax Assistance: This is an organization in Providence
designed to help - yes, help, people with their taxes. They have a toll free
number - 866-780-6799 , but have a wealth of specific information about how
to contact them through the Providence city website, just search under VITA…
Seems rather helpful.
Tax Credits
One way for an individual to get money back through tax credits is the Earned
Income Tax Credit, which is basically designed for low income earners to reclaim
some of their tax burden. Some CDC’s, the Olneyville Housing Corp to
note, help educate residents in securing this.
On a larger scale of development, the Federal 20% Income Tax Credit is for the certified substantial rehabilitation of historic commercial, industrial, and residential buildings listed on a historic registry, or located in a designated local historic district and certified as being of historic significance to the district. All of these approvals go through the RI Historical Preservation Commission.
For individuals living in Providence, the State 10% Income Tax Credit is for restoration work on owner-occupied historic houses listed on the National or State Registers of Historic Places.
(Note: In Providence the historic districts are: College Hill (Stimson Avenue Historic District), Broadway, Armory, Southern Elmwood, Downtown and Northern Elmwood Historic Districts)
Again, for the individuals, there is the Homestead Tax Credit which reduces one’s property tax rate provided they live in their home for the year - the regulations say “as of December 31 of the previous year” but basically this is about people living in their homes and getting a percentage reduction on their property taxes for it.