Four CitySquare Housing Projects Will Continue Operating After Nonprofit Shutters
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Last month’s news that the nonprofit CitySquare would be closing its doors at the end of the year is a devastating blow in the city’s fight against poverty and homelessness.
Local leaders say it’s the nature of the beast in the nonprofit space where numerous organizations are competing for the same grant funds and all have noble goals. CitySquare has addressed “hunger, health, housing, and hope” for Dallas residents since 1998. So what happens now to the more than 30,000 residents who are experiencing poverty in Dallas?
Signs of financial trouble at CitySquare became apparent in late 2022 when the nonprofit ended a partnership with the City of Dallas to renovate and manage permanent supportive housing at the former Hotel Miramar. At the time, CitySquare officials cited “changes in business scope.”
Director of Homeless Solutions Christine Crossley said during a May committee meeting that CitySquare and CitySquare Housing “broke apart” a while back so four housing developments previously associated with CitySquare will continue to operate under the Central Dallas Community Development Corporation.
CitySquare’s leadership team and board have said the best outcome for those who rely on CitySquare’s services was to go public with plans to cease operations and enlist partners to take over the work at year’s end.
From CitySquare Housing to Central Dallas Community Development Corporation
CitySquare Housing was founded in 2001 to act as the development and housing arm of CitySquare. Now known as Central Dallas CDC, it has its own tax-exempt status as a 501(c)(3) corporation, according to the CDC website.
Four communities formerly associated with CitySquare Housing that will continue to operate under the Central Dallas CDC include CityWalk at Akard, HighPoint Family, HighPoint Senior Living, and The Cottages at Hickory Crossing.
“The Cottages and CityWalk and some of the other permanent supportive housing projects are actually within a self-sustaining organization,” Crossley said. “They also broke off [the Transition Resource Action Center] — the youth organization — so those are not impacted at all. Now, the main campus, we don’t know what’s going to happen to that, but they are transitioning people to other structures.”
Although the CDC started with no assets, it has developed or constructed almost 1,000 residential units and 200,000 square feet of commercial space. It is “closing in on the $200 million mark” in assets developed and has a consolidated net worth of $30 million, the website states.
The Cottages are permanent tiny homes on pier-and-beam foundations. They’re in high demand for individuals transitioning out of homelessness. The development serves those who have histories of mental illness, joblessness, poverty, and substance abuse.
CitySquare And Its Funding Struggles
Dallas Morning News columnist Sharon Grigsby’s report on CitySquare’s closure includes an interview with CEO Annam Manthiram.
“We kept thinking fundraising would come back early this year and thought the brand was stronger than it was,” said Manthiram, who joined CItySquare in August to create a new identity for the nonprofit.
CitySquare’s long-time visionary Larry James grew the organization into a powerhouse, Grigsby writes, providing permanent and temporary housing, food resources, health care, and job creation.
“He also educated policymakers and led anti-poverty efforts at the behest of elected officials,” she wrote.
Cuts in operating costs, staff, and programming over the past year or so haven’t kept up with the “millions of dollars decline” in giving, board chair Lewis Weinger said in the DMN report.
“Weinger and Manthiram told me CitySquare’s prospects were further hurt by a lack of financial transparency to the board and donors after James’ retirement and by ‘culture-workplace issues.’ They said they could not provide details of those issues because of HR considerations,” Grigsby wrote.
Community leaders, including Better Block Foundation Executive Director Krista Nightengale, reacted immediately to the “devastating” news of CitySquare’s closing.
“I absolutely hate to see CitySquare dissolve,” Nightengale said. “This is the tough part of running a nonprofit. We’re in this work because of the community. We’re in this work because we want to do what’s needed. We’re in this work because we have big hearts. But we have to be able to pay staff. Pay insurance. Pay rent.”
