Racine Housing and Neighborhood Partnership

Summary: The Racine Housing and Neighborhood Partnership (RHNP) is a targeted effort to revitalize central-city housing one neighborhood at a time. Launched in January 1998 as a result of recommendations from a steering committee staffed by the Partnership, the RHNP offers programs designed to increase the rate of owner-occupancy, provide new home ownership opportunities, improve the housing stock and raise property values. The Partnership supported the RHNP in various ways until 2006.

Staff contact: Bill Perkins, Kristin Silva

Wisconsin Partnership's role: Consultant /PJ TA provider/CHDO TA provider

Status of work: Completed in 2006

Efforts to improve housing conditions in central Racine neighborhoods began in 1995 when the City of Racine hired the Partnership as consultants to analyze central-city housing needs and the housing market, propose strategies and coordinate program design. That work resulted in formation of the RHNP, which was created by a Common Council resolution in January 1998. In August 1999 the RHNP Board of Directors contracted with the Partnership to manage the agency and operate its programs. We continued to support the RHNP in various ways until 2006.

The RHNP began its work in the West Sixth Street neighborhood. The City committed $2.3 million in CDBG funds, and private-sector support soon followed. A local financial institution secured a grant of $155,000 from the Affordable Housing Program of the Federal Home Loan Bank of Chicago, and the Johnson Wax Foundation made a $60,000 challenge commitment. The City later contributed an additional $85,000 in CDBG funds and $130,000 in HOME funds, and another AHP grant of $60,000 was received. A total of $60,000 in new private-sector support was also raised during work on the West Sixth Street neighborhood..

The RHNP's goals are to increase owner-occupancy, provide new home ownership opportunities, improve the housing stock and raise property values. Strategies for meeting those goals include the following:

• counseling and training for new home owners
• down payment assistance
• purchase and rehabilitation of existing homes and construction of new homes for sale to owner-occupants
• loans to help existing home owners and investor-owners rehabilitate their properties, including forgivable loans for owner-occupants

Since its inception, the RHNP has made significant progress toward its goals. By October 2002, owner-occupancy in the target West Sixth Street area had risen from 44% to 52%. Property values had risen by 27% as compared to 19% citywide. Down payment assistance totaling $240,000 had gone to 49 new buyers, 32 of whom bought properties that were formerly investor-owned. Home improvement loans totaling more than $1 million had been made on 79 properties, and 14 properties had been developed (new construction or gut rehabilitation) and sold to owner-occupants.

The RHNP moved into its second target area in early 2003, where progress continues with strong City and private-sector support.