For a Brooklyn Haitian nonprofit, new property signals strides in building collective wealth

BROOKLYN — This time last year, Porez Luxama was sure he would be cutting the ribbon on a gleaming, newly-renovated property in East Flatbush with much fanfare by this summer. But months after Life of Hope closed on the property in June 2024, the executive director began extending a ‘take it slow’ approach about the larger development he hopes to build out.

The same mentality he says allowed the 19-year-old nonprofit to actually raise enough funds to buy the $12 million, 18,000-square-foot warehouse at 4123 Avenue D. 

“If you believe you want to be here, if you want to be in the community, to serve the community, don’t go too fast in programming,” Luxama said in an interview from the cavernous space. “Buy, and let the next generation develop it.”

Luxama envisions a more grandiose version of current Haitian community centers, to hear him tell it. He sees a multi-use facility that will provide relief from volatile rental markets, primarily, and offer a range of services.  To fit everything from health and dental clinics to cultural programs, childcare and after-school, and even banking services, the idea is to build floors on the existing property — actual construction. It’s the type of community center seen in more well-established Jewish, Latino, Chinese and African American neighborhoods than those serving primarily Haitian areas.

Experts in real estate development dealings and other nonprofit leaders say such large capital projects can be frustratingly slow and expensive for even well-funded groups. Still, Luxama is convinced that such projects are worth pursuing if the Haitian community is to build collective wealth and institutions to ensure its longevity in America.

Among Haitian-led nonprofits in New York, the purchase is a singular achievement others have yet to claim. To encourage others to follow suit, Luxama is enthusiastic about telling the story of what it took Life of Hope to go from wishing for a home to actually owning one.

“For the rest of my life, if there’s anything I can say, to share knowledge with my community,” he began in his emphatic, halting speaking style, “it would be: ‘Try to buy. Do whatever you can to buy.”

MAKING THE CASE FOR BUYING

From its start in 2006, Life of Hope was stymied by rent, Luxama says. In between providing services, such as the English classes that drew 200 to 300 students each night, Life of Hope moved four times in 18 years. Each year, rent took up a large chunk of the nonprofit’s budget, according to Luxama and Life of Hope’s tax records. In 2022, the documents show, more than $92,000 of the nonprofit’s $527,000 operating budget went to occupancy expenses.

“Sometimes, the [programs] money wouldn’t come in on time since it’s public money,” Luxama said. “And then they want you to pay this lease first. Or they said, ‘Give me 10 percent. Give me $25,000 for the rent.’ The next year, they want to see our budget.

“How can I function like that,” said Luxama, shrugging his shoulders. 

Each time they moved, the organization appeared shaky, Luxama said. People would forget them. 

Meanwhile, government entities would offer funds for Life of Hope to run more programs. During the recent migrant crisis, for example, the city asked the group to run a shelter program that would have provided $10 million in programming. Luxama refused.

“First of all, it’s not cash money,” Luxama explained. “You need to do the program and then get audited. Then, they decide if they want to pay you back. Why should I put myself in that situation?

“Say, after three years, boom – we don’t have this program anymore,” he continued. “We don’t have the money, the grant. Then the community looks at me like maybe I’m doing something wrong.”

Over the years, Life of Hope says it has served 65,000 people around Brooklyn, home to an estimated 90,000 Haitians. In 2022 and 2021, the latest years on file, the organization operated with about $530,000, the tax records show. Luxama says they have four full-time and 17 part-time employees. 

Each time Life of Hope packed up to move into more affordable space, Luxama’s determination to secure a permanent home grew stronger.

“When you have a permanent home, you can plan today, mid-term and long-term,” he realized. 

He shared this view with his board and network, telling them that buying a building would go a long way to making the community feel confident that “we’re here to stay.” 

It would take years of planning, building relationships and complex financing. But in March, the organization began moving into its own location, choosing to tough out renovations and construction to come instead of renewing yet another lease while waiting for the development’s completion. 

In between organizing its annual cultural parade and Mother’s Day celebrations in May, staffers had also begun receiving clients. 

“We have to have a community where we not only just exist,” Luxama said, “but we develop it — from one generation and then pass it to another generation.” 

BUILDING THE DEAL TEAM 

Luxama credits Vaughn Toney, a board member who has since passed away, with teaching him to plant deep roots in communities, like the Catholic church does. Toney advised creating a capital campaign, specifically used for nonprofits to raise money for physical spaces, showed Luxama how to budget and advocate, and advised Luxama to seek funding from partners who believe in the vision and mission. Such large funds would not come from a typical gala that might yield $20,000, a common avenue for many Haitian-led organizations.

Find expert guidance  

Right away, board members wondered how Luxuma would actually raise the to buy property in a neighborhood already facing gentrification. In time and after many questions, Life of Hope’s lawyer and board advised Luxama to bid on the Avenue D property. 

“The price was right and the location was good,” he said. “The plan was to buy the land,” he said. “Not the building. The building was in such bad shape.” 

Luxama realized quickly he needed a lawyer able to deal with complex real estate transactions. Not having $250,000 for the annual retainer fees some quoted, Larry S. Blackmon, a city power broker, connected Luxama with Steven Polivy of Akerman LLP. The Am Law 100 firm is well-versed in complex real estate transactions and government grants, among its numerous offerings.

Polivy, who specializes in helping organizations buy property, said he worked pro bono because of the grassroots nature of what Life of Hope does.

“This wasn’t another large corporate client – this was someone that was making a direct impact on the Haitian and Caribbean community in central Brooklyn,” he said. “It’s really a unique organization.”

To move forward with construction, Life of Hope needed a firm that could both design and engineer a new building. After initially working with a general licensed architect, Luxama realized they needed one with expertise in government contracts as well. 

“Somebody who understands lenders,” he said. “It’s not like you’re buying a house.”

Seek funds beyond traditional banks

For the purchase, Life of Hope obtained $1.5 million in federal funds through its relationship with Sen. Chuck Schumer. The senator had visited Life of Hope in 2022 when New York City Public Advocate Jumaane Williams invited him along. Schumer helped secure the funds from the Infrastructure Investment and Jobs Act (IIJA), passed in 2021, to help lift the country out of the pandemic. Brooklyn Borough President Antonio Reynoso committed $3 million and other local officials extended support to cover the purchase, renovations and buildout expenses. 

Government allocations are typically not disbursed quickly nor in lump sums, however. Line items must also be applied per appropriations rules. They could not, for example, cover the interests incurred.

To afford the down payment, finding a lender that understood their needs also proved to be a learning experience too. A large retail bank, Luxama said, produced loan terms with interest at the same level as they might give a corporation. So he turned to a bridge loan for the purchase while waiting for government disbursements, borrowing $3.5 million from the Foundation for Philanthropic Funds. 

In addition, an anonymous friend contributed $322,000 to help Life of Hope cover the 10% interest on the property’s down payment, according to Luxama.

In all, Luxama said, Life of Hope raised $12.4 million and still hopes to raise another $5 million to finish the renovation and construction. 

Communicate the vision with enthusiasm

Throughout the deal, Luxama’s backers say he’s the one who ultimately made funders believe in the vision, a critical component in reaching the milestone. 

Carolann Johns, director of operations for Life of Hope, helped secure funding through grant writing from city and state officials. However, she said, it was Luxama who ultimately persuaded funders. 

“I may have helped him write the grants, [but] he was the one who was certainly able to secure those through his personality, his commitment,” Johns said. “He was able to open those doors.”

IMAGINING THE ‘HUB OF HOPE’ 

When purchasing, Luxama initially envisioned having new construction from the ground up, culminating with a gleaming spade poking out of freshly tilled brown soil — staged for an opening ceremony. Polivy advised otherwise, saying it would be better to gut the one-story 18,000-square feet building, which once housed a chain pharmacy. 

By using the existing structure, they would have more time to figure out future programming. “You know, Porez’s enthusiasm is wonderful,” Polivy said. “And sometimes, [he] needs a little structure to what he’s doing. And he’s got a board that is doing that as well. But, yes, I certainly am one of the people who said, ‘Let’s get a plan going first.”

Luxama has since invited city evaluation committee development members for further discussions about building up vertically. “They want to put like, you know, maybe 20 floors over here,” he said. “That would be great for the community.”

Luxama sees spaces for health centers, child care, dental care, a bank and a pharmacy— “a place where you have people come and get services and their needs are met daily.” The property may also serve as an incubation site that stimulates small business growth.

“I think we have to move from that little mentality of a community center. We have to move to a community development [model], a community hub. One spot where there’s like 2,000 programs or 20,000 people who work there,” he said. “My goal over here is in the next 5, 6, 7 years, we have at least 250 employees working, taking care of their families.”

Sustaining communities with services 

Community centers have long been a staple in immigrant enclaves, providing a range of critical services, from one location. According to CauseIQ, a company providing a database on nonprofits, has found there are 132,884 arts, culture, and humanities nonprofits in the United States. They employ 880,976 people, earn more than $58 billion in revenue each year and have assets of $207 billion.

Culture-based community centers, defined as those focused on cultural awareness, number 12,418, employ 109,209 people, earn more than $2 billion in revenue each year and have assets of $4 billion.

Supported primarily with government funding, community centers like Life of Hope often serve as intermediaries between officials and residents, relying on such centers to promote or execute programs.

In Haitian communities, centers that stand out for providing services consistently include HAUP in nearby Little Haiti, South Florida’s Sant La and, among those emerging in heartland locales, Haitian Support Center in Springfield, Ohio. None is close in physical size to the facility Luxama envisages. 

His vision is closer to centers seen in larger communities, such as the YMCA or YWCA centers. Among established immigrant groups, centers cater to local residents by affiliation or shared interests. In Manhattan, for example, the Marlene Meyerson JCC in Harlem operates a multi-story facility with a pool, cultural events, and activities. El Puente in Williamsburg champions the arts, environmental justice and leadership for social justice serving mostly Latino, Black and Spanish-speaking residents. 

In fall 2023, the city broke ground on a center closer to Luxama’s vision – the $141 million Shirley Chisholm Recreation Center at the Nostrand Playground – about 10 blocks from Life of Hope. The city says when completed, the 65,000-gross square foot center will have a gymnasium, walking track, indoor swimming pool, various exercise rooms, a media Lab and a teaching kitchen.

One that caters specifically to Haitians, with unique language and cultural experiences, is what Luxama hopes to establish with the “hub of hope.” 

Lifting up culture and immigrant experiences

That model is closer to Mixteca, a community center in Sunset Park that recently bought its own building after renting the same space for 25 years. Lorena Kourousias, its executive director, said gentrification had spread across the neighborhood, though Mixteca’s clientele of Mexican and Latin American immigrants still live there. Besides programs, its cultural center provides validation that recognizes the hard work, taxes paid, and vibrancy newcomers bring to the lifeblood of the city.

 “If you just walk into our office, you’re going to see signs that say ‘You deserve respect. You deserve education.’ Kourousias said. “It’s not something that somebody is giving you as a charity. It’s something that you deserve.”

“Something that they don’t get in other places is dignity and respect,” Kourousias explained. “What we wanted to provide is this space that [is] a healing experience, not this experience [where] you get traumatized again and again, over and over.”

Kourousias, who moved here from Mexico City 15 years ago, also recognized funders might react differently if Mixteca owned their facility.

“[Owning] also has a lot to do with the trust that we can get from foundations that can give us more money and more projects can be developed from there,” she said. “In order to do this in a sustainable way, you have to be ready. It’s painful and it requires a lot of work.”

Building with caution 

Some caution that the model Luxama hopes others emulate may not be feasible for everyone.

Polivy, of Akerman, said ownership can be a stabilizing force that removes rent increases as a concern. Chair of his firm’s Economic Development and Incentives Practice, Polivy warned that many groups have had problems paying back loans for purchases. That’s why he advises nonprofits not to take on obligations that will put them in debt they are not able to repay or that keep them from operating well.

In a digital era, brick-and-mortar locations are not a requirement for building community when online channels can be substituted for some services and guidance. Among organizations reducing their physical footprints are nonprofits that serve undocumented immigrants virtually to avoid ICE raids on the street or their offices. Like many churches such as St. Jerome Roman Catholic Church, a former location for Life of Hope coincidentally, has added livestreaming to mass when covid safety concerns arose. St. Jerome also asked a group of ministers to bring communion directly to parishioners at home. 

For Luxama, the financial risks and changes in tech make his vision a necessity even more. Ultimately, he learned intimately that fighting for money and land in a city dominated by real estate moguls and powerful political lobbyists takes help. By keeping an open mind and reaching out, he discovered valuable information, indispensable advisors and a desire to help other Haitians find a way to wealth. 

“Now we know that, and I’m sharing because it has to be known by the community for the community to excel,” he said. “We have to keep the faith and share the hope.”

This story aims to highlight entities involved in solving a problem, even when those solutions aren’t perfect, to inspire positive change. To learn more about solutions-focused storytelling, visit the Solutions Journalism Network.

Special Projects Editor Macollvie J. Neel contributed to this report. 

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