Patterson Park Community Development Corporation
Since 1996, the Patterson Park Community Development
Corporation led by Executive Director Ed Rutkowski has worked tirelessly
to stabilize and improve the neighborhoods of Patterson Park. The
neighborhoods north and east of Patterson Park were showing signs
of severe disinvestment by the mid-1990s. The values of houses were
stagnant or declining, homeowners were moving out, and the numbers
of vacant and foreclosed houses were increasing.
In 1995, the Abell Foundation learned of Ed Rutkowski’s
personal commitment to join with fellow neighborhood residents to
privately purchase vacant properties and renovate them for sale
to new buyers. Before the concept was fully tested, he created the
Patterson Park Neighborhood Initiative hiring organizers to join
neighbors together to define the issues affecting their neighborhoods
including crime, less than robust city services and nuisance issues.
Ed Rutkowski became a careful student of neighborhood dynamics affecting
Patterson Park, the increase in foreclosure and vacancy, the impact
of drug activity and the effects of rapid racial change writing
a book on his findings called the Urban Transition Zone.
Observing neighborhood conditions worsen, the Abell
Foundation provided a $40,000 start-up grant to form the Patterson
Park CDC and committed to guarantee a portion of private bank loans
for acquisition and renovation of houses. With community representation
on the board, the organization was intended to acquire, renovate
and sell houses to target neighborhoods north and east of the park.
In the first nine months of operations, the CDC completed in-house
architect-designed renovations on three houses.
Initially with a flat and declining market, sales
were slow and together with the Foundation, programs were developed
to draw buyers into the neighborhood and reassure existing homeowners.
The Foundation offered a grant of nine years of Catholic school
tuition to purchasers of CDC houses and created a Home Value Guarantee
program modeled on equity assurance programs in Chicago to guarantee
payment of losses due to declining property values for owner-occupants
living in their house for five years or more.
The Patterson Park CDC identified early on that one
critical key to neighborhood revival was to make people feel safe
in and fully utilize the park day and night. They recognized that
Patterson Park was undervalued and under-programmed and in turn,
they supported the development of the Friends of Patterson Park
nonprofit organization. The Friends has advocated for and raised
money for the redevelopment of the boat lake, the restoration of
the Pagoda and marble fountain, replacement of a dilapidated playground
and installation of perimeter lighting as well as developed and
supported programming of over 50 events each year held within the
park. The Friends have become stewards of the park, logging thousands
of volunteer hours each year to staff the pagoda and participate
in park clean-ups and develop, support and staff events.
Additionally with grants from the Abell Foundation,
the CDC pioneered the design concepts of combining tiny alley houses
into spacious, modern houses, worked with neighbors and the Police
on issues of crime, created a clean streets program to remove trash
and debris on streets and alleys, and supported the creation of
a charter school in the former St. Elizabeth’s parish school
building and a Montessori pre-school.
Over a period of ten years, to support the work of
the Patterson Park CDC, the Foundation provided a total of $1 million
in grants, $1 million in working capital loans that have been paid
in full, and $1.5 million in mortgage guarantees that leveraged
over $13 million in private acquisition and construction financing.
The organization received significant grant support from numerous
local and national foundations and financing by private lenders
and local and state government.
When the Foundation began working with the Patterson
Park CDC, the neighborhood was experiencing disinvestment and a
lack of a functioning housing market where the incidence of foreclosure
and vacant housing were increasing. Patterson Park CDC led the transformation
of the neighborhood into a community of choice with increased home
sales and homeowner investment and purchase and renovations by private
developers. The average sales price of houses increased from $71,000
in 2000 to $288,000 in 2005. Since its formation, the Patterson
Park CDC created stunning market-setting renovations of vacant houses
and sold over 150 houses to homeowners. In addition, the organization
renovated over 160 vacant houses to increase options for rental
housing within the neighborhood.
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