MINORITY DEVELOPER PROGRAM (MDP)
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PHDC is introducing a new initiative to address the lack of diversity in the Philadelphia real estate development and construction industry. The Minority Developer Program (MDP) has been developed to:
- Aggressively expand opportunities for small developers and contractors in Philadelphia
- Create sustainable construction jobs
- Develop a more inclusive construction workforce through training and hands on experience
What is the MDP?
- MDP is a hands-on, business assistance program for small developers and contractors in Philadelphia to promote wealth creation and business growth.
- Specific efforts will be made to market firms that are owned and controlled at least 51% by minority developers and contractors doing business in Philadelphia as these firms are currently under represented in the marketplace.
- MDP leverages public land and funding to create opportunities for small developers and contractors to obtain contracts for real estate development projects, gain experience and improve their balance sheets.
What are the benefits of the MDP?
- Give Philadelphia based small developers and contractors, particularly minority firms, the framework to grow into established firms that support and fuel Philadelphia’s local economy.
- Gain access to development projects consisting of publicly owned land.
- To meet the housing production goals set by the Philadelphia Land Bank Strategic Plan, which is supported by local legislators.
- PHDC’s Land Management will leverage vacant land to support affordable housing development opportunities to produce new affordable homes.
- Gain access to financing opportunities.
- Receive tailored business training, one-on-one business consulting, marketing assistance and mentoring from established developers.
- Provide foundational Excel pro forma training including financial modeling and step-by-step instructions for building the components of a financial model, including uses and sources of funds, mortgage amortization, cash flow projections and property reversion based on accurate, supportable cost and revenue inputs.
- A comprehensive review of PHDC specific agreements and requirements including regulatory requirements and other City entitlements will be provided.
- Receive training on applying for publicly-owned and available vacant properties.
- Produce workforce and affordable housing.
- Assist with back office support through third-party professional accounting, legal, finance and administrative service providers.
- Facilitate workforce development by providing a variety of training solutions to find, grow and retain employees.
- Participants from various apprentice preparatory programs (focused on local, minority recruitment) will be given employment opportunities to work with contractors taking part in the program.
- Seek to achieve 50% Economic Opportunity Plan (EOP) goals for all program participants. Businesses that are certified or undertaking the certification process shall count towards EOP goals.
Goals of the MDP
The goal is to grow the pool of qualified small contractors and developers, particularly minority firms, in Philadelphia to provide more equitable access to the development and construction economy.
Who should apply to participate in the MDP?
- Minority developers looking to expand their business and increase their bottom line
- An established business entity, minimum 1-3 years
- Local development and construction businesses that operate in areas of high unemployment or low-income
- Firms that have proven development experience, minimum project size $250,000
- Developers that have established financial capacity: minimum annual gross revenue $100,000, track record with debt financing, minimum $250,000
For more information contact Todd Hestand at firstname.lastname@example.org
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