In January, PathStone’s Farmworker Housing Developer in New York, Emily Hamilton, started researching the need for on farm farmworker housing rehabilitation in Niagara, Orleans, and Wayne Counties. These three counties along the shores of Lake Ontario have many apple orchards, and according to the USDA, approximately 9000 farmworkers are working in these counties during the harvest season. Through County Planning Departments, County Farm Bureaus, Cornell Cooperative Extension offices, and the New York State Horticultural Society, Emily distributed farmworker housing rehabilitation surveys in all three counties.

The greatest feedback from the survey came from Wayne County.  Emily will use the information garnered from the survey to help the county apply for grand funds this summer. The grant, if received by Wayne County, will pay for 60% of the costs of rehabilitation of the farmworker housing units; the farm will bear the responsibility of the remaining costs of housing rehabilitation.

Within the last 12 years, counties in the Hudson Valley successfully received similar funding for farmworker housing rehabilitation. If Wayne County receives this funding, it will set a precedent for Western New York.  These grant funds will not only help the farmer with their bottom line and help them to retain their employees, but it will help to improve the living conditions for many farmworkers during apple harvest season.

Migrant Farmworker Housing in Indiana

PathStone’s office in Indiana is also exploring new ways to increase quality migrant farmworker housing units. The Indiana Office of Community and Rural Affairs and Indiana Housing and Community Development Authority recently announced the draft of its 2012 Consolidated Plan for Funding. A new objective for 2012 is Community Development Block Grant (CDBG) funding for the support of construction and rehab of migrant farmworker housing units. The outcome/goal for 2012 is 40 beds.

To this end, PathStone’s office in Indiana is currently organizing a “comment campaign” to encourage growers, migrant service providers, and others to attend one of the public hearings, or to submit written comments in support of funding for migrant farmworker housing.The new objective will hopefully open the door for a migrant housing co-op being considered by growers in the Vincennes area of Knox County. The three growers interested in the housing co-op collectively employ more than 300 migrant workers at their growing operations.  PathStone is currently meeting with the growers and a local commercial contractor to discuss farmworker housing designs.

The key objective is to prepare young children for success in kindergarten by meeting their physical, social, emotional, and cognitive needs in a safe and healthy environment.  PathStone MSHS staff remains committed to assisting parents as they strive to provide for their families.  Staff helps them locate medical and dental homes; works closely with families to set goals and offer resources to achieve those goals; and provides educational activities for the parents about nutrition, budgeting, parenting, accessing community services, and much more. The program is designed to involve the parents in the development of their children and identifying the program that is best for their child. Parents learn the importance of being involved in the process and often become volunteers for the program.

PathStone provides multi-cultural education in individualized child development programming, while proudly employing at least one bi-lingual teacher in each classroom.  Within the past year, many staff members have received their Child Development Associate credential, associate degree, or even master’s degree. Staff conducts health and developmental screenings to access progress and to determine if there are delays that may necessitate further testing and referral to community agencies.

PathStone CFDS also has a Head Start program and an Early Head Start program, both in Pennsylvania.  The only difference between those programs and the MSHS program is the eligibility requirement.  All three programs have an age requirement and an income requirement (below the Federal Income Poverty Guidelines).  MSHS has two additional requirements - migration (within the preceding 24 months) and work in agriculture (row and field crops).

Without MSHS programs, farmworker parents would be forced to take their children with them to the fields, putting their health and safety at risk.

Participants working on the design charrette. Click on the image to see more photos from the planning session.

On February 21^st, 2012, Enterprise Community Partners hosted a housing design charrette for the Community Housing Development Organizations (CHDO) in Puerto Rico. Enterprise selected four organizations with projects in schematic design phase to participate as part of the design charrette. PathStone was chosen as one of the participating organizations, to look at the design of the recently awarded HUD 202 Housing for the Elderly project in Utuado. The project will consist of 32 independent living accessible units for seniors on a site which is located walking-distance from the town center and a senior center.

The charrette participants included the development teams, architects from the Enterprise Rose Architectural Fellowship, financial consultants, and local architects facilitating design discussions for each participating team. During the charrette, the teams were able to find viable solutions to improve the originally proposed scheme.

Some of the goals identified for PathStone’s project from the charrette were: to create a public corner courtyard at the entry; to relocate the parking area to the back of the site with its own separate entry; to provide better pedestrian access to the surrounding services; to include a storm water retention pond to capture water from the site slopes; and to provide landscape areas in the front of the property to serve as gathering spaces for the senior residents.

PathStone will incorporate these ideas explored during the charrette to guarantee that it continues to develop successful affordable housing in Puerto Rico.  

The event is being hosted by The Rochester Police Department, members of Chief Sheppard’s Police and Citizens Interaction Committee (PCIC) and PathStone. It is intended to attract youth in our community who are interested in a career in law enforcement.

Numerous law enforcement agencies in the Rochester area will be represented at this event including:

• Rochester Police Department
• Department of Homeland Security
• FBI
• Emergency Communications Department (911)
• Greece Police Department
• Irondequoit Police Department
• Monroe County Sheriff
• NYS Department of Corrections/Parole
• New York State Police
• United States Marshals Service
• U.S. Border Patrol
• U.S. Customs
• U.S. Secret Service

There are no fee or registration requirements for this event. Youth from the City as well as the suburbs are encouraged to attend.

Rochester, NY (February 23, 2012)  - PathStone Corporation, a member of the national NeighborWorks network, today joined with many of its NeighborWorks network colleagues to commemorate 25 years of successful homeownership through homebuyer clubs and homebuyer education. PathStone is spreading the word about the consumer benefits of learning with peers, neighbors and homeownership advice professionals and how to navigate the increasingly complex home buying process.

Despite record low mortgage rates, many consumers are wary of pursuing homeownership. By joining a homebuyer club or seeking homeownership education sponsored by PathStone Corporation, consumers can learn the steps they need to take to obtain appropriate mortgages, find the right homes and grab hold of their piece of the American Dream. PathStone launched its homebuyer program in 1992, and has since helped more than 4200 people become homeowners.

“Many people are unprepared to purchase their first home and don’t know what the first step should be. Homebuyer clubs provide much needed education about the home purchase process and the chance to develop a savings pattern and start households off on the right path to sustainable homeownership.”

“Homeownership continues to be a goal for many low- and moderate-income families despite the turmoil in the housing markets,” said NeighborWorks America CEO, Eileen Fitzgerald. “By participating in homebuyer clubs like those from PathStone Corporation, consumers receive the information, professional coaching and peer exchange and support they need to cut through the noise in the marketplace and to make the right choices that lead to long-term, successful homeownership.”

PathStone along with over 200 NeighborWorks network nonprofits around the country helped more than 12,000 people become homeowners in 2011, many of whom had early doubts about whether or not they could safely obtain their piece of the American Dream.

Homebuyer clubs are just one kind of homebuyer education programs offered at PathStone to replace home buying doubts with a plan for homeownership success. The homebuyer club model:

1. Requires a commitment of time from the homebuyer club member, often commitments of many months as savings goals are set and credit strengthening takes place.
2. Helps members “see” themselves as homeowners, visiting neighborhoods where there are homes that they would eventually want to purchase, and set real and attainable goals that they can see and touch.
3. Establishes a strong peer-to-peer environment where each member helps reassure and support each other as they work towards homeownership.

“At PathStone, we’re excited about homeownership, and believe that with the right preparation, training, savings plan and support, everyone who wants to be a homeowner can reach their long-term goal,” said Susan Boss, director of homeownership programs.

Originally published on February 17, 2012 in the Rochester Business Journal.

PathStone Corp. has expanded its holding in the Prince Street and East Avenue area with the purchase of 15 Prince St.

The office building of roughly 10,000 square feet was part of a $1.5 million, two-building package acquired in October by Rochester Historic Structures LLC, part of Broadstone Real Estate LLC. The package included the landmark former Rochester Savings Bank headquarters on Franklin Street.

PathStone, a $60 million, locally based non-profit, has long housed its local weatherization unit on the top floor of the Prince Street building. It paid $500,000 to acquire it.

He purchase adds a third Prince Street structure to PathStone’s properties, creating a sort of campus of close but not contiguous structures. The organization also owns building at 6 and 7   Prince St. It’s headquarters is around the corner in a converted mansion at 400 East Ave.

About 120 of PathStone’s 550 employees are housed in the Prince Street and East Avenue buildings, giving employees more opportunities for face-to-face contact, which PathStone CEO Stuart Mitchell sees as glue to bond workers into one unit.

“In person is better than email,” he said.

PathStone provides housing and economic development aid to low-income individuals in seven states and Puerto Rico.

The Franklin Street building and 15 Prince St. are among the few properties sold so far from a portfolio that was the object of one of the Rochester area’s largest foreclosures in 2009. Foreclosure actions by lenders and holders of mortgage-backed securities involved some 20 commercial and apartment buildings owned by Webster investor Jason Palmer and valued at more than $70 million. Most of the buildings are in the city of Rochester.

Besides being among the region’s biggest foreclosures in dollar value, the actions were arguably the Rochester area’s closest brush with the 2008 mortgage crisis.

PathStone was already a tenant in 15 Prince when Palmers Encore Yellowbreeze LLC acquired the building in 2007.

A deed recorded with the Monroe County clerk shows that in 2007, Encore Yellowbreeze acquired the Franklin Street bank building and 15 Prince from Stoner & Associates for $770,000. It then obtained an $800,000 mortgage on the Franklin Street bank building from Intervest National Bank and in 2008 took out a $250,000 mortgage on 15 Prince St. from local real estate investor Frank Perticone.

Encore Yellowbreeze deeded the two properties to another Palmer entity, Titan Property and Management Group of Rochester LLC. In 2008, Titan Property and Management used the Franklin Street bank and 15 Prince as collateral for a $5.1 million mortgage obtained from Column Financial Inc.

A unit of Credit Suisse Group AG, Colum Financial was a conduit lender, meaning it was created by Credit Suisse for the purpose of writing commercial real estate loans and packaging them into mortgage-backed securities.

In 2009, Credit Suisse shut down Column Financial’s operations, closing offices in Los Angeles, Dallas and Chicago. In the same year, Column Financial started a foreclosure proceeding in Monroe County against the Franklin and Prince Street properties. The action was still in progress last year when the locally based Broadstone bought the loan from Column Financial for an undisclosed sum.

Deeds filed with the Monroe County clerk last year record the Prince Street property being transferred in a foreclosure sale to Historic Rochester Ventures for $500,000 and the Franklin Street bank building being transferred in a foreclosure sale to Historic Rochester Ventures for $1 million.

Though the Prince Street and bank buildings were valued at higher sums under Encore Yellowbreeze’s and Titan Property and Management’s ownership, maintenance of 15 Prince slipped badly under their care, PathStone’s Mitchell said.

The most serious long-term maintenance problem at 15 Prince was the building’s badly leaking roof, which went unfixed for months and caused continuing damage to the space PathStone occupies.

In frustration, PathStone stopped paying rent, putting its monthly lease payments into an escrow account for many months. Location trumped convenience, keeping PathStone in the property until the site went into receivership in 2010, Mitchell said.

PathStone’s purchase of the property traces to a chance meeting last year between Mitchell and Broadstone CEO Amy Tait. Tait played host to an event at her East Avenue home, across from PathStone’s headquarters. Falling into conversation with Tait at the event, Mitchell learned that Broadstone was acquiring the properties but was not keen on keeping 15 Prince.

“It seemed like a perfect opportunity for us. We’ve been interested in 15 Prince for a long time,” Mitchell said.

Tait similarly saw a sale to PathStone as a perfect opportunity for Broadstone.

“Our interest was really in the bank all along,” she said.

Some local developers see the bank building as a white elephant. A 1920’s-era “temple of commerce,” lavishly appointed with marble columns, soaring frescoed ceilings reminiscent of a Renaissance cathedral’s arched dome and travertine and polished granite exterior, it is not easy to heat. And its landmark status limits a redeveloper’s options.

To Braodstone, the building looked like an opportunity, Tait said. The current first-floor tenant, RBS Citizen’s N.A., is ready to sign a long-term lease when its current agreement expires and also occupies some upstairs office space.

Other tenants are interested in unused space, Tait said. A surface lot behind the bank with more than 100 spaces is leased to a local parking company that does a healthy business.

Broadstone wanted the bank property to ensure the landmark building’s preservation it sees an opportunity to bring jobs back downtown, she said. But it has no immediate plans beyond stabilizing it. Ultimately, Tait hopes to sell the building to another developer.

“I don’t want to name anybody yet, but we are talking to a handful of (potential) buyers. We could redevelop it ourselves if we had to,” she said. “We have the capability, but right now we are concentrating on our national real estate business.”

Broadstone is a private real estate investment trust that buys commercial properties from companies that occupy them. Structured in arrangements known as triple net leasing, Broadstone’s deals are essentially sale-leasebacks.

Stopgap repairs done by the receiver at 15 Prince ended the roof leaks but were less than a permanent fix, Mitchell said. PathStone likely is looking at a complete roof replacement and might have to replace the building’s heating system. Still, he is happy with the deal PathStone made.

“Broadstone sold us the building for what they paid, and that’s a good deal,” Mitchell said.

Tenants on the building’s lower two floors are staying, and a new tenant might more in to space that could be subdivided, he added. And, Mitchell mused, PathStone might even be able to defray more of 15 Prince St.’s costs by renting out spaces in the building’s adjacent 40-space parking lot.

Two years later, the program has served 1,162 individuals through the program (Quarter ending on 9/30/2011), and was recently granted an extension to continue providing services to individuals with multiple barriers to employment by providing them with job training and helping them obtain jobs.  Of those served, 37% dropped out of school during or pre- High School and nearly 21% had criminal records. 96% of participants were unemployed and the remaining underemployed.

To date, PathStone has provided job training to over 900 individuals. This job training has enabled these individuals to obtain credentials that are both portable and noteworthy. In some cases, individuals have achieved multiple certificates-a tremendous asset to individuals seeking employment in the current economy.  Training to participants has included: High School Equivalency/GED, Occupational Skills Training, On-the-Job Training, and various classroom trainings in computer skills and green environmental training.

 Profile of Success- Green for Gold

Santos Irizarry Castillo joined PathStone’s Green for Gold program in November 2010.  Seeking a better future and greater opportunities for himself and his family, Santos began looking for a job, but quickly discovered that without a High School diploma, he needed more training.  Determined to succeed, Santos worked through the on-site training program and obtained the licenses needed to drive heavy vehicles as, well as his certification to manage hazardous materials.  Santos even obtained his High School diploma in June 2011.  As a result of his hard work, Santos is currently employed by Puerto Rico Wire.

ROCHESTER, NY (January 26, 2012) — 120 eager students showed up to the first day of classes last fall for the opening of Discovery Charter School in Rochester, NY.

The Discovery Charter School, an elementary school for at-risk children in Rochester, NY, opened its doors on August 15, 2011.

The idea for the school started in 2009, when a group of concerned individuals identified the need for an educational alternative for at-risk youth, particularly those living in poverty within the City of Rochester. Specifically, school organizers decided to focus on the Northeast quadrant of the city, one area in Rochester where PathStone has invested tremendous resources in developing affordable housing and focused its community revitalization efforts.

The need for educational alternatives for youth living in this area is exceptionally high. According to information from The Children’s Agenda, an independent Rochester-based non-profit focusing on the health and well-being of children in Monroe County, half of all students that enter Rochester City high schools do not graduate. Additionally, 88% of city elementary school students qualify for free or reduced price school meals.  

When asked about the reasons for starting the school, co-founder, Dave Vigren, said, “This effort is for the kids; the founders and I are determined to make a difference in the lives of a significant number of children. Discovery will teach real skills for the real world … it is an Expeditionary Learning school which blends real life experiences with fundamental learning.”

A lot of research, diligence and perseverance on the founders’ part made Discovery Charter School a reality.  Grants, along with financing from M&T Bank and a GAP loan from PathStone Enterprise Center, Inc., helped make the school a reality for many at-risk children in Rochester.

A lottery selected students from the more than 400 applicants, with two classes per grade: kindergarten, first and second.  Discovery will add a new grade each year, until it has reached its goal of serving children from kindergarten through sixth grade.  

Upon visiting the school, it is hard not to get excited about what is happening.  The teachers and staff are passionate and believe in what Discovery is trying to accomplish.  At Discovery, it is all hands on deck; everyone pitches in wherever there is a need. School Director, Joseph L. Saia, knows the students and truly believes that “Discovery will be a place where students, parents and teachers can make dreams a reality.”

At the school, success is seen every day.

MARILLA, NY (January 6, 2012) - Homeowners in a Marilla manufactured home park face a more certain future after purchasing their community on December 29, 2011. The resident purchase of Bush Gardens Manufactured Home Park creates the first ever resident-owned manufactured home park in Erie County.

The 154 site park was purchased by a newly-formed resident co-op corporation from the current owner, Bush Gardens, MHC, LLC (managed by KDM Development Corp.).  PathStone Corporation, a community development organization based in Rochester, provided technical assistance and training to the residents to set up the co-op, secure financing, purchase their communities, make needed infrastructure improvements, and operate Bush Gardens  as an affordable, resident-owned community.

The $4.5 million purchase was financed by the New York State Housing Finance Agency and ROC USA^TM Capital, the finance arm of a non-profit social enterprise that finances resident ownership of manufactured home communities in 20 states.

With the purchase, which must still be approved by the New York State Attorney General’s office, Bush Garden residents will have an opportunity to buy a membership and become part owners of their community. The homes in the community will continue to be individually owned by the homeowners but the land, roads, and sewer systems and other infrastructure will be cooperatively owned by homeowner and operated on a non-profit basis.  This financing structure ensures continued affordable rents, adequate reserves for capital improvements and long-term security for homeowners.

“We’ve made the choice to become a resident-owned community to help all families in this community, especially the seniors on fixed incomes and the young families who are just starting out,” said Dennis Jakubowski, President of the Bush Gardens’ Homeowners Association.

“Our long-term objective is to provide tools for lower income families to build assets and gain stability,” said Stuart Mitchell, president and CEO of PathStone.  “Resident ownership of manufactured home communities is one way to do that while protecting the dwindling supply of affordable housing in this area.”

“Board members have volunteered hundreds of hours over the past few months to gain control of their community,” said Andrea Miller, Program Manager for PathStone.  “Their hard work and dedication to resident ownership have made this purchase possible.”

Bush Gardens Manufactured Home Park is situated on 89 acres  off Three Rod Road, south east of the Village of Alden in eastern Erie County.

The resident corporation was represented in this purchase by attorney George Parker out of Rochester.  The listing agent for the seller was Nick Malagisi of Sperry Van Ness out of Buffalo.

PathStone will provide ongoing technical assistance and training to the Bush Gardens community for at least the next 10 years.  PathStone is a regional non-profit community development and human services organization that provides technical assistance and training to manufactured home community residents interested in resident ownership.  PathStone is a ROC USA^TM Certified Technical Assistance Provider and a member of the national NeighborWorks® Network.

PathStone is currently working toward resident ownership of four other manufactured home communities across New York and also plans to expand the program into Pennsylvania and Ohio.  Resident ownership is a growing trend nationally as more homeowners seek protection against park closure and the inherent instability of owning their homes but not the land beneath them.  A recent study in New Hampshire found that manufactured homes in co-op communities sold for 12% more than comparable homes in investor-owned communities.

To learn more about the Marilla purchase: Residents buy Marilla mobile home park, originally published in the Buffalo News on January 6, 2011.

For more information, contact:

Andrea Miller by email or (585)340-3360

By Eli Goldfarb

MONTICELLO, NY (January 17, 2012)- Late last year, the Literacy Volunteers of Sullivan County held a training class for those who want to help tutor illiterate adults. The culmination was a graduation party for the 12 people taking the course.  It was held at the Literacy Center Bookstore in Monticello.

These dozen tutors have all been paired up with an adult student in need of aid, and will help each person learn the literacy skills needed to live-at no cost.

“These people have a chance to change a person’s life in such a drastic way,” said Literacy Volunteers President Connie Keller, one of the instructors for the course.

“Without the dedication of our tutors we wouldn’t have a program.  These are people who want to help people and give them the gift of literacy.”

At the same time as these tutors were learning to teach others, another group was also receiving a different kind of training. This one was put on by PathStone, an organization funded by US Department of Labor which helps elders learn work skills.  They take low income, unemployed seniors and give them part time jobs, while also giving them job training to help them work on their own.

Both the tutors and a group of ten seniors were recognized the same night.  The latter received certificates of job readiness, showing that they have completed all the training they need to be successful in the job market.