Community-Wealth City: Houston, TX
 Spurred on by industry from its bustling port and railroad connections, a 20th century oil boom, and later from diversification into aerospace (the Lyndon B. Johnson Space Center) and healthcare and biotechnology (the MD Anderson Cancer Center), the City of Houston has grown rapidly in population and economic output. Today, Houston is the fourth largest city in nation with a population of 2.1 million people and one of the youngest cities in the country. If measured as an independent nation, the size of its economy would rank as the world's 30th largest.
Houston has also steadily become more diverse. According to the U.S. Census, the city is 25 percent White, 44 percent Hispanic/Latino, 24 percent African American, and 7 percent Asian. The city has the third-largest Hispanic and third-largest Mexican population in the United States and more than 20 percent of the Houston metro area population were born outside the country. Of the foreign born population, one-fifth are originally from Asia. The city elected Lee Brown its first African American mayor in 1998 and elected Annise M. Parker in 2010 as only the city's second female mayor and as the first LGBT mayor of a major American city.
The city is also home to numerous wealth building initiatives and organizations. Since taking office in 2010, Mayor Parker has worked to repair the city's previously strained relationship with the U.S. Department of Housing and Urban Development (HUD) and transform Houston's Housing and Community Development Department. Utilizing joint technical assistance and capacity-building engagement, Houston and HUD will combine knowledge and resources to maximize the use of federal funds to revitalize neighborhoods, help the homeless, and produce more affordable housing.
Bank On Houston is another city led effort to help build assets for low-income families. An offshoot of the Bank On America program, Bank On Houston started when the City of Houston became the first city in Texas to sign up in May 2008. With an estimated 10 percent of the city unbanked, Bank on Houston is a collaborative effort that offers low-cost starter checking accounts to the unbanked, helping them begin the process of wealth and asset building. Setting a goal of 10,000 new checking accounts for the year of 2009, the effort surpassed that number in just three months. By June 2010, 40,000 had signed up. Individuals who signed up for accounts are also encouraged to take free financial literacy courses from non-profits, CDCs and credit unions such as People's Trust Federal Credit Union, the Credit Coalition, the Fifth Ward Community Redevelopment Corporation, the Alliance for Multicultural Community Services and the Houston Area Urban League.
Another collaborative wealth building initiative is Covenant Community Capital's "Smart Savers Program." Initially funded by a grant from the federal government in 2001, the partnership has expanded to include the City of Houston, the Houston Credit Coalition, several private banks, and a network of other community partners. To date, more than 600 low to moderate-income individuals have enrolled and 300 others have completed the program, purchasing a home or financing their education or a small business. Covenant has disbursed more than $1.2 million in match money at a 2:1 match rate.
An overview of community wealth building efforts follows:
Anchor Institutions
CDC Association of Greater Houston
www.cdcagh.org
Founded in 1996 as a membership organization to benefit low-income families and individuals by promoting affordable housing development, the CDC Association of Greater Houston today has 85 members. Having positively impacted more than 49 communities in the Greater Houston area, the members of the association have developed over 544 affordable single-family homes, with 492 more underway; 2,704 affordable apartments; and 243,944 square feet of commercial and community space. The total value of this development is estimated at more than $146 million.
Houston Endowment
www.houstonendowment.org
Established in 1937 by Jesse and Mary Gibbs Jones to help the greater Houston community prosper and thrive, the Houston Endowment grew rapidly and has granted more than $1.4 billion ($2.5 billion in current dollars) to date. Providing more than $67 million in 2011 grants to support a wide variety of initiatives in education, human services (including economic development and affordable housing), health, arts and culture, and the environment, the foundation focuses on a creating stronger communities through a multi-faceted approach.
Rockwell Fund
www.rockfund.org
Rockwell Fund was founded in 1931 after the death of James Rockwell in the mold of a traditional responsive grant maker for the greater Houston area. Beginning in the early 2000s, the Fund decided to reduce its number of grants, increase their size and focus primarily on community health, education, employment and supportive housing (affordable housing with on-site services). Since its inception, the endowment has grown to more than $125 million with more than $3.7 million and $2.8 million in grants in 2009 and 2010, respectively.
Community Development Corporations
Acres Home CDC
www.acreshomescdc.org
Formed in 1990 by community residents, business owners, educators and ministers, the Acres Home CDC is focused on revitalizing the Acres Homes community, serving more than 1,500 clients each year. In addition to providing an educational program on home ownership and foreclosure prevention, Acres Home has successfully completed 18 single-family affordable homes to date.
Avenue CDC
www.avenuecdc.org
Originally founded as the Old Sixth Ward CDC in 1991, the Avenue CDC is committed to developing affordable housing and economic opportunities in the Near Northside and Washington Avenue communities, while preserving the area's cultural, economic and historic diversity. Striving to fight against the increasing home prices and gentrification of these neighborhoods, the Avenue CDC recently completed its 100th affordable home in June 2011.
Fifth Ward Community Redevelopment Corporation
www.fifthwardcrc.org
The Fifth Ward Community Redevelopment Corporation strives to revitalize Fifth Ward neighborhood through a holistic approach, focusing on affordable housing construction and management, homebuyer and foreclosure prevention education, and social services. Since its inception in 1989, the organization has built more than 300 new homes, two multifamily complexes of 336 units, and two commercial developments (along with re-habilitating two more) with more than 40,000 square feet. Additionally, it has finished smaller projects including four public art installations, community gateway monuments, and has partnered with the city of Houston to redevelop the historic Deluxe Theater.
Guiding Light CDC
www.guidinglightcdchomes.com
Formed in 1998 by concerned residents, the Guiding Light CDC is dedicated to revitalizing the Third Ward by restoring investment to the neighborhood and by constructing single-family affordable housing and multi-family residential units. To date, Guiding Light has completed five homes, is constructing a sixth, and has acquired two acres tract of land to construct approximately seventeen homes in the South Park area.
MacGregor Area Community Development Corporation
www.riversidedistricthouston.org
The MacGregor Area Community Development Corporation is a not-for-profit founded in 1992 dedicated to improving the quality of life in the Riverside District. Focused on constructing single-family housing for low- to moderate-income families, the organization has constructed four communities and multiple other homes throughout the area. In addition, MacGregor Area CDC was partner to the construction of the Renaissance Center, a 93,000 square foot retail/office space that houses a medical clinic and helped create over a 100 jobs in the community.
Pyramid CDC
www.pyramidcdc.com
Founded as a faith-based organization in 1992, the Pyramid CDC is focused on improving the standard of living in Southwest Houston. Its first project - The Power Center, a 104,000 square foot complex - currently provides employment for more than 270 people and generates $15.5 million in the community annually. Sixty-five percent of these jobs were targeted to low-income individuals. In addition, the Pyramid CDC developed the Corinthian Pointe subdivision - a 220-acre, 462 single-family home project that cost $173 million. Considered the largest such project by a non-profit in Houston, 80 percent of the subdivision's homes are classified as affordable by the City of Houston and one-third were sold to low-income families who received down-payment assistance from the city.
Row House CDC
www.rowhousecdc.org
Spun off from Project Row Houses in 2003, Row House CDC focuses exclusively on housing challenges and economic development initiatives in this collaborative effort to help revitalize the Northern Third Ward. Row House's Hannah Project, aided by funding from the Houston Endowment, will include the construction of sixteen new affordable housing units. In addition, the non-profit is working to acquire and rehabilitate 38 rental units for families who earn half of the Harris County median income. The Row House Duplex Project, consisting of four duplexes along the Third Ward's historic Division Street, marked the first project fully completed by the organization.
WOMAN, Inc.
www.womaninc.us
WOMAN, Inc. strives to be an affordable housing and supportive services resource for women leaving abusive situations and other at risk populations. Operating three housing sites, consisting of 47 apartments and 10 townhouses, women and their children can stay and start a new life at the cost of 30 percent of their income. Since its inception in 1993, WOMAN, Inc. has provided affordable housing opportunities for more than 1,300 women.
Community Development Financial Institutions
Southeast Texas Finance Corporation
www.sethfc.com
Created as public nonprofit corporation for the purpose of issuing revenue notes and bonds for multifamily rental residential developments for low and moderate income individuals, the Southeast Texas Housing Finance Corporation (SETH) also provides financial assistance to first time, low to moderate income homeowners. SETH offers several different low-interest mortgage loan programs and grant assistance for down payment and closing costs. Most of the funding for these initiatives come from the counties and cities located in southeast Texas.
Cooperatives
Central City Co-op
www.centralcityco-op.com
Formed in 2001, Central City Co-op was the idea of two women - Jennifer Georgantas and Patricia Greer. Through the hard work of numerous volunteers, the co-op is celebrating a decade of providing locally grown organic produce. Purchases can be made online after becoming a member and produce can be picked up on Wednesdays at Grace Lutheran church. The co-op offers six different tier levels of membership.
Patient Physician Cooperative
www.patientphysiciancoop.com
The Patient Physician Cooperative was established in 2005 in Houston as a non-profit with the goal of providing affordable primary to care to persons who need it. Starting as an organization of patients, physicians, and member representatives with just two clinics, the cooperative has grown to 36 clinics across the city. Now members are eligible for true group coverage as an optional benefit at one price, with no exclusions for pre-existing conditions or other restrictions. Additionally, other benefits include a drug plan that prices brand name and generics 15 to 50 percent below wholesale. The cooperative is serving as a model to other communities across the country for how to provide care to uninsured and low-income populations.
People's Trust Federal Credit Union
www.peoplestrustfcu.org
Beginning with just 196 Shell employees in 1935 and total assets of $980, the Shell Employees Federal Credit Union became People's Trust Federal Credit Union in 2005 when it open its doors to everyone living within the City of Houston. Today, People's Trust has more than $428 million in assets and more than 39,000 members. Additionally, People's Trust offers free financial education seminars to members and non-members alike.
Rawfully Organic Co-op
www.rawfullyorganic.com
Starting as an idea by Kristina Carrillo-Bucaram in September 2007, the Rawfully Organic Co-op has grown exponentially to more than 3,500 families today. The co-op is dedicated to providing only fresh fruits and vegetables from local, organic farmers and aims to increase awareness about health and environmental issues to all who are involved. Members can purchase half or full-shares (plus extras if desired) and pick up their produce from a different location in Houston on three days during the week or from neighborhood pick-up spots on Thursdays.
Cross Sectoral
The Alliance for Multicultural Community Services
www.allianceontheweb.org
Originally established in 1986 as an alliance of Vietnamese, Cambodian, Loatian, and Ethiopian community organizations in Harris County, the Alliance for Multicultural Community Services has grown from an organization focused on refugee resettlement to one that benefits members of all nationalities across a multitude of sectors. Its Asset Building Department maintains two Individual Development Account programs (one with 1:1 match rate and other with a 2:1) and a micro-lending program. The micro-lending program provides loans of $500 to $15,000 to help refugees start a business, along with requiring them to take a business development-training course. The Alliance is exploring the process of owning and operating affordable housing, provides social services, and has just started a community garden project to train refugees with farming skills.
Employee Ownership (ESOP)
Burnett Staffing Specialists
www.burnettstaffing.com
Founded in 1974 by current president Sue Burnett, Burnett Staffing Specialist has grown to be the 16th largest employee-owned firm in the country, the largest employee-owned business in the state, and the seventh largest woman-owned business in Texas. Focused on helping careers and companies grow, Burnett Staffing Specialist employs 98 full-time staff, serves more than 1,000 clients across 10 Texas offices and posted revenues of nearly $65 million in 2010.
Eggelhof, Inc.
www.eggelhof.com
Established in Dallas by Henry Eggelhof in 1926, Eggelhof, Inc. has been headquartered in Houston since 1938 and has expanded across the southwest and Louisiana. Specializing in engineering products including filtration and water treatment, piping and plant equipment, and steam specialties, Eggelhof, Inc. became a majority-owned employee owned company in 1996. To date, the company is financially sound, with more than $7 million invested in inventory.
Employee Owned Holdings, Inc.
www.hydraquip.com
Employee Owned Holdings, Inc. is a 100 percent employee-owned firm that specializes in distribution of fluid power components and accessories across Texas, Louisiana and Oklahoma. Founded in 1951, the company has 11 sales offices and seven distribution warehouses.
Hisco, Inc.
www.hiscoinc.com
An employee-owned company since 1971, Hisco has become a leader in supply chain solutions and distributor of electronic and industrial materials. Founded in Houston in the 1940's, today the Hisco branch network includes 30 stocking locations - 22 in the United States and 8 in Mexico - and just recently expanded into Canada.
Texan Floor Service
www.texanfloor.com
Founded in 1987 by co-owners Jeff Hill and Bob Collier, Texan Floor Service became an employee-owned company in 2007 when the two began preparing for retirement. This commercial flooring company has about $12 million in annual revenue and 35 employees. In 2009, it became Houston's first commercial flooring company to commit to a "No Carpet to Landfill" policy, partnering with Carpet America Recovery Effort to recycle hundreds of thousands of pounds of carpet to date.
Westbrook Manufacturing
www.westbrookmfg.com
Specializing in quality pipe fittings since 1965, Westbrook's business has grown from emergency and specialty manufacturing to include a full spectrum of pipe nipples, swage nipples, plugs, forged fittings, unions and welding outlets. In 2007, Westbrook became an employee-owned company when Sidney and Charlie Westbrook transferred ownership.
Individual Development Accounts
Covenant Community Capital
www.covenantcapital.org
A nonprofit focused on increasing the capacity of low-income communities to develop affordable housing, grow business enterprise and build family and community assets, Covenant Community Capital launched its "Smart Savers Program" in 2001 in partnership with the United Way of the Texas Gulf Coast. Initially funded by a grant from the federal government, the partnership has expanded to include the City of Houston, the Houston Credit Coalition, several private banks, and a network of other community partners. To date, more than 600 low to moderate-income individuals have enrolled and 300 others have completed the program, purchasing a home or financing their education or a small business. Covenant has disbursed more than $1.2 million in match money at a 2:1 match rate.
Individual Wealth Preservation
Credit Coalition
www.creditcoalition.org
The Credit Coalition is a nonprofit collaborative organization of financial institutions, community organizations and other related businesses. As a member of the Texas & Greater Houston Foreclosure Prevention Task Force, the Credit Coalition provides free foreclosure intervention counseling, financial and homebuyer counseling and education, reverse mortgage counseling, guidance, resources and outreachservices to community members in the greater Houston and Beaumont/Pt. Arthur areas. The Credit Coalition has also partnered with Bank On Houston and its classes meet the requirements for area Individual Development Account programs and city down payment provider programs.
Houston Area Urban League
www.haul.org
Affiliated with the United Way and National Urban League, Houston Area Urban League (HAUL) strives to enable African Americans and other minorities to secure economic self-reliance, parity, power and civil rights. As part of its efforts, HAUL offers first time homebuyer classes, foreclosure prevention counseling, credit counseling program, and one-on-one housing counseling. These different services enable area residents the opportunities to qualify for down payment assistance and Individual Development Account programs with other non-profits. In 2010, HAUL helped nearly 400 potential homebuyers with homebuyer education and more than 300 with one on one mortgage default counseling so that these families could stay in their homes.
Municipal Enterprise
George R. Brown Convention Center
www.houstonconventionctr.com
Opened in 1987, the George R. Brown Convention Center is owned, operated, and leased by the City of Houston through the Houston First Corporation. Later expanded in 2003, the Center ranks as one of the 10 largest convention centers in the nation with more than 1 million square feet of exhibition, meeting and registration space. For the fiscal year ending June 2011, the Center had hosted more than 244 conventions and other large-scale meetings.
Hilton Americas-Houston
www.hilton.com
Owned by the City of Houston through the Houston First Corporation and operated by Hilton Hotel Corporation, the Hilton Americas-Houston Hotel is Houston's largest convention hotel. A $285 million, 24-story facility with more than 1,200 guest rooms and over 91,000 square feet of meeting space, this hotel is also one of the most energy-efficient in the world, utilizing an innovative energy-saving guest room control sequence. In April 2009, the hotel became the first in the state to receive Green Seal certification for its environment friendly practices and remains one of only three to receive this certification to date.
Houston First Corporation
www.houstonfirst.com
Managing 10 city-owned buildings and plazas including day-to-day maintenance and operation of these properties, the Houston First Corporation came into effect in July 2011. Representing the consolidation of City of Houston Convention & Entertainment Facilities Department and the Houston Convention Center Hotel Corporation, Houston First is responsible for the Hilton Americas-Houston hotel, the George R. Brown Convention Center, Jones Hall, Wortham Theater Center, Houston Center for the Arts, Talento Bilingue de Houston, Jones Plaza, Miller Outdoor Theatre and other smaller venues.
State and Local Initiatives
Bank On Houston
www.bankonhouston.org
An offshoot of the Bank On America program, Bank On Houston started when the City of Houston became the first city in Texas to sign up in May 2008. With an estimated 10 percent of the city unbanked, Bank on Houston is a collaborative effort that offers low-cost starter checking accounts to the unbanked, helping them begin the process of wealth and asset building. Setting a goal of 10,000 new checking accounts for the year of 2009, the effort surpassed that number in just three months. By June 2010, 40,000 had signed up.
C40 Cities Climate Leadership Group Clinton Climate Initiative - Houston
live.c40cities.org
Houston is a member of the C40 Cities Climate Leadership Group, a collaborative effort by almost 60 cities globally to make meaningful and sustainable climate related changes locally that will impact climate change globally. As part of this effort and in partnership with the Clinton Climate Initiative, the city has begun on a project to retrofit and make more energy efficient all city buildings - 271 buildings, encompassing 11 million square feet - by 2014.
Urban Agriculture
The Alliance Community Garden Project
www.allianceontheweb.org/AMCS-Garden.html
As a program for the Alliance for Multicultural Community Services, the Alliance Community Garden Project began in October 2010 with the goal of training refugees in farming methods applicable in their new community. To date, 27 refugee growers from Bhutan have registered with the program; and in addition to farming training, they receive English classes from the Alliance. Currently utilizing two acres of land adjacent to a warehouse-style building for Amy Food, Inc., the goal is to expand the program onto 70 acres of land, develop refugee self-sufficiency, and provide organic produce to the City of Houston.
The Last Organic Outpost
www.lastorganicoutpost.com
Striving to create a sense of community, the Last Organic Outpost is an inner city urban farm project that uses regenerative agriculture to restore unused vacant lots. Beginning as an idea by Joe Nelson, six years and $17,000 later, the Outpost had expanded from a simple backyard garden to a teaching nonprofit on several adjacent abandoned lots that had been used for dumping. In 2009, Mayor Bill White asked the city to turn off another adjacent lot after seeing the success of a project that is striving to serve as an anchor for an urban farm belt across the city.
University & Community Partnerships
MD Anderson Cancer Center (University of Texas)
www.mdanderson.org
When the Texas Legislature authorized the construction of a hospital for cancer research and treatment somewhere in the state in 1941, the MD Anderson Foundation offered to match the appropriation if the hospital would be built in Houston. Today the MD Anderson Cancer Center at the University of Texas is the largest of its kind in the world with significant economic benefits for the greater Houston-area of $13.5 billion in total expenditures, $6.7 billion in gross product, $4.5 billion in earnings and more than 82,400 permanent jobs. Accounting for almost 2 percent of the city's economy, the Center has also made a commitment to identify and encourage minority, women and historically underrepresented small business to participate in the competitive bid process with the goal of increasing the number of contracts awarded to them.
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