Minnesota Homeownership Center Annual Report 2011

Annual Report 2011

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Helping to turn on porch lights and build foundations in the lives of Minnesotans

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We recognize that owning a home is the dream of many Minnesotans.

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e are committed to being the state’s leading independent, nonprofit provider of homeownership education and resources.

We are here for all Minnesotans who need help pursuing the dream of owning and maintaining a home of their own. Overall, we helped over XX,XXX Minnesotans in 2011 find and maintain their home, through our homebuying and foreclosure prevention services.

We believe that with the right resources and education, homeownership can be a reality and we focus much of our support on low- and moderate- income households in Minnesota. We also focus services on

“We make lasting change in the lives of those with the greatest barriers and challenges.”

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Many of the people we help never thought that they could own a home of their own.

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OUR MISSION

The Minnesota Homeownership Center’s mission is to promote and advance successful homeownership in Minnesota, with a focus on serving the needs of low- and moderate-income families and emerging markets.

At the core of this mission is the belief that lower income households can achieve and recognize the benefits of long-term homeownership if they enter homeownership through the right door—prepared to make wise, informed decisions for their families.

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communities of color that have historically experienced limited access to assistance programs. We know that investing in longterm, sustainable homeownership is good for both the homeowners (and their families) and our community as a whole.

Many of the people we help never thought that they could own a home of their own and we make lasting change in the lives of those with the greatest barriers and challenges to homeownership. Advocacy and ongoing education is key to what we do, and helping the clients we serve become their own advocates ensures that they remain in their homes for the long-term.

Since 1993, we have served over 100,000 Minnesotans through our range of home ownership services, from pre-purchase education to foreclosure prevention counseling.

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How we do what we do Partnering with others to ensure access and success for all

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trength lies in numbers and our greatest asset is the connections we have made.

Through our partnerships, we provide the entire state with homebuyer education and foreclosure counseling.

We manage the Homeownership Advisors Network, comprised of 50 communityfocused non-profit, government, tribal and for-profit organizations that educate and counsel new homebuyers and those facing foreclosure.

The ultimate goal of the Minnesota Homeownership Center and the Homeownership Advisors Network is successful homeownership for all.

2011 highlights of the network: • The African Families Development

Network joined the network, opening our services to African immigrant families.

• The Hmong American Partnership

expanded to include homebuyer services to the Hmong community.

• The network adopted national

standards for homeownership counseling and standardized counseling practices have helped ensure efficiency and quality across all providers.

• We’ve increased the availability of

continuing education, improving the quality of services offered by the network.

2011 Homeownership Advisors Network 1st Homes Network African Development Center African Families Development Network Albert Lea Housing Authority American Dream Services American Indian Community Development Corporation Anoka County Community Action Program Arrowhead Economic Opportunity Agency Austin Housing and Redevelopment Authority Bi-County Community Action Programs Carver County Community Development Agency CCCS of The Village Family Service Center Central Minnesota Housing Partnership City of Owatonna Community Action Duluth Community Action Partnership of Suburban Hennepin Community Neighborhood Housing Services Dakota County Community Development Agency Family Life Credit Services Headwaters Regional Development Commission Hmong American Partnership InterCounty Community Council KOOTASCA Community Action, Inc. Lao Assistance Center of Minnesota LSS Financial Counseling Mankato Ecomonic Development Agency MCASA c/o Model Cities Community Development Corporation Neighborhood Development Alliance Neighborhood Housing Services of Minneapolis, Inc. Northwest Community Action Program One Roof Housing (FKA Neighborhood Housing Services of Duluth, Inc.) Otter Tail-Wadena Community Action Council PRG, Inc. Reverse Mortgage Counselors, Inc. Rochester Olmsted Community Housing Partnership RW Media, Inc Scott County Community Development Agency Southwest Minnesota Housing Partnership St. Paul Planning and Economic Development Strickland and Associates Three Rivers Community Action Tri-Valley Opportunity Council Twin Cities Habitat for Humanity Washington County Housing and Redevelopment Authority West Central Minnesota Communities Action White Earth Investment Initiative Wright County Community Action, Inc.

Minnesota Homeownership Center Annual Report 2011

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CLIENT PROFILE: A neighborhood helps make a new home for Maggie and Lucia

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aggie and her four-year-old daughter, Lucia, are spending their first summer in their new home on the east side of St. Paul. She’s a busy single working mother, with her days spent as the America Indian Student Services Coordinator at Metro State University, where she also received her B.A in Psychology in 2010. Her evenings are spent settling into the one-and-a-half story, recently remodeled home that she purchased and moved into with Lucia. “I love everything about it. It’s the perfect size, with room to grow.”

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Buying a home is one of the biggest life decisions a person will make.

We counsel on making the best possible decisions to ensure success in homeownership.

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Growing up in both St. Paul and Minneapolis, bouncing around a bit, Maggie never thought of herself as a potential homeowner. “My mom was always a renter.” Packing up and moving often as a child and teen, also meant changing schools frequently throughout the years. “When I was in my early 20s, I never saw myself in a house. I thought I was going to travel around.” When “When I first started her daughter came along in her thinking about buying a mid-20s, Maggie knew that she wanted to give her a sense of house, I wasn’t even sure stability that wasn’t always there of what the steps were. I when she was little.

needed to learn them.”

“When I first started thinking about buying a house, I wasn’t even sure of what the steps were. I needed to learn them.” Help came from an Introductory Homebuyer Workshop from The American Indian Community Development Corporation. The AICDC is a member of the Homeownership Advisors Network and the workshop introduced Maggie to three key elements of securing her first home: resources, funding-sources, and support.

“I learned about all the resources available to me. I discovered the HUD 184 program, which is a great program.” The Section 184 Indian Home Loan Guarantee “My daughter just loves the Program is a home mortgage specifically designed for house. And I just love the American Indian and Alaska neighborhood.”

Native families, Alaska Villages, Tribes, or Tribally Designated Housing Entities. “They showed me the grants available for first-time homebuyers. I was also referred to the Woodlands National Bank, which is a native-owned bank.”

The network of counselors and advisors also helped Maggie understand who all the players in the process were, which can be quite confusing to a first-time homebuyer. “I learned how everyone was connected and that my realtor had my best interest in mind.”

“My daughter just loves the house. And I just love the neighborhood and how my daughter loves playing with the neighbors. It’s awesome.”

Maggie and Lucia’s neighborhood is the final piece in making their house a home and Maggie is looking forward to many years of homeownership and stability for her family on the east side of St. Paul.

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Homebuying education and advocacy: Helping make homeownership a reality to all Minnesotans

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uying a home is one of the biggest life decisions a person will make, as well as one of the largest financial moves in one’s lifetime. We help people get started out on the right foot and stay with them to make the journey easier and more successful.

Through Home Stretch, our home buyer preparedness workshops, we help homebuyers determine ow much home they can afford, what their barriers may be and how they can overcome them. We “We focus on the individual, educate on the types of mort- assessing the specific needs gages, the loan closing process, of each household.” and special programs for firsttime homebuyers. Overall, we counsel on making the best possible decisions to ensure success in homeownership. Many of our clients come to us through the Neighborhood Stabilization Program.

Throughout the process, we focus on the individual, assessing the specific needs of each household. Many clients are ready for purchase after an eight hour workshop, while others need more intense counseling in areas such as financial literacy and credit. Our counselors are available for one-on-one sessions, to help homebuyers navigate what can sometimes be a confusing process.

Our 2011 Funders $100,000 and above

City of Minneapolis, Community Planning and Economic Development Hennepin County Minnesota Housing Target Foundation The McKnight Foundation U.S. Bancorp Foundation and U.S. Bank Wells Fargo

$50,000 to 99,000

2011 highlights of home-buying education and advocacy: • Homebuyer counseling services were made available by phone to help increase access for all.

• We’ve created interactive info-

graphics, explaining the steps to successful homeownership in an easy-to-understand, userfriendly way.

• With an eye on changing needs, we began the development of Framework, an online homebuyer education tool, available in the fall of 2012.

• Our agency has made up-to-

date information on affordable loan and down payment assistance programs for homebuyers readily available.

City of St. Paul Planning and Economic Development Fannie Mae Housing Partnership Network Minnesota Association of Realtors® Thrivent Financial for Lutherans Foundation USDA Rural Development

$10,000 to 49,000

Ameriprise Financial F.R. Bigelow Foundation Family Housing Fund Greater Minnesota Housing Fund M & I Bank Minnesota Department of Commerce Otto Bremer Foundation St. Paul Foundation TCF Foundation Western National Mutual Insurance Company

up to $9,999

Austin Mutual Insurance Company Bremer Bank Bank of the West Coldwell Banker Burnet Freddie Mac Minneapolis Area Association of Realtors® Nexus Community Partners St. Paul Area Association of Realtors® Valspar Foundation

Minnesota Homeownership Center Annual Report 2011

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CLIENT PROFILE: Barbara saves her home

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arbara’s life as a homeowner has made a complete about-face. Two years ago, she had called her mortgage company and said, “I can’t afford my $1,200 a month house payment. What can I do?”

Her lender suggested a mortgage modification, a process in which the terms of a mortgage are modified outside the original terms of the contract agreed to by the lender and borrower. Barbara said, “Above all else, I didn’t “Yes!” and they began the process to lower want to lose my house.” her payments, to save her Oakdale home she loved so much. “Above all else, I didn’t want to lose my house.”

After nearly a year, the modification was still not complete. At the time, Barbara was told that the only hope of her home not going to sheriff’s sale (a foreclosure on the property), was to put it up for short sale. In the meantime, her daughter suggested getting in touch with the Washington County Housing and Redevelopment Authority, part of the Homeownership Advisors Network.

As good fortune would have it, she was connected with Nicola Viana, a Senior Homeownership Specialist with the HRA.

“If you do the legwork, and have someone in your corner, and if you want it, you can succeed.”

Barbara received a purchase agreement for her home around the same time, but for a price far below the value of the property.

Nicola reviewed Barbara’s financial situation and layed out her options. Barbara decided to apply for a loan modification with the help and guidance of Nicola. “When a sheriff sale was set to take place, I requested that Barbara’s lender postpone the sale while her file was under review,” Nicola said. When Barbara’s mortgage had been sold to a new lender, Nicola assisted Barbara in starting the application for modification anew, with the goal of getting the monthly payment to $702. “This I knew I could do,” Barbara said.

“Barbara’s patience and perseverance served her well through this process; she became her own advocate.”

“If I hadn’t had Nicola and the HRA when I needed them, I would have lost my house. I did everything she told me.” Every time Barbara spoke with the lender, she connected with Nicola as well, and with Nicola’s help and advice, the modification was soon in place. “Nicola went above and beyond to make sure everything worked out. And I have my house.” Nicola says: “Barbara’s patience and perseverance served her well through this process; she became her own advocate.”

Barbara believes that if everyone had an organization like the Washington County HRA and a specialist like Nicola, they would most likely be able to keep their homes. “If you do the legwork, and have someone in your corner, and if you want it, you can succeed,” Barbara says.

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In 2011, over 12,000 homeowners facing the threat of foreclosure were counseled within our Homeownership Advisor’s Network and 50% avoided foreclosure. www.hocmn.org

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Board of Directors Officers President Michael Haley, Minnesota Housing Vice President Vicki Shipley, US Bank Treasurer David Lindstrom, M&I BMO / Harris Bank

Foreclosure Prevention:

Helping homeowners weather the reality of today’s home market

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e strive to be proactive throughout the current foreclosure crisis and our foreclosure prevention services extend throughout all 87 counties of Minnesota. Counselors work closely with clients, building trust as they assess each individual’s situation and work with them to move forward.

In 2011, over 12,000 homeowners facing the threat of foreclosure were counseled within our Homeownership Advisors Network and 50% avoided foreclosure.

2011 highlights of foreclosure prevention services: • We developed an industry partnership with Fannie

Mae and Wells Fargo (through a national industry partner, Homeownership Partnership Network). This created a clearly-defined and streamlined process for consumers to apply for loss mitigation, as well as a single point of contact for counselors for all Fannie Mae cases. It also added a diversified funding source to support our programming.

• The Emergency Homeowner Loan Program (EHLP)

brought a successful outreach campaign and a call center and dedicated website to respond to thousands of inquiries. Pre-applications were received from hundreds of Minnesota households.

• We successfully leveraged local resources and

existing partnerships to preserve network capacity during a gap in federal funding.

• We received additional funding to support an

innovative program to help households obtain longterm stable housing after experiencing foreclosure.

87% of households remained continually housed one year later.

Secretary David Eide, Western National Mutual Insurance Company Members Jill Aleshire, Thrivent Financial Bank Jerry Boardman, Fannie Mae* Marilyn Bruin, University of Minnesota Joe Collins, City of Saint Paul, Planning and Economic Development Darielle Dannen, Metropolitan Consortium of Community Developers Jim Erchul, Dayton’s Bluff Neighborhood Housing Services Tom Fulton, Family Housing Fund Muffie Gabler, Wells Fargo Bank Karen Gajeski, Bremer Bank Chris Galler, Minnesota Association of Realtors® Jacqueline King, Federal Reserve Bank of Minneapolis Repa Mekha, Nexus Community Partners Robin Peterson, Coldwell Banker Burnet Elfric Porte, City of Minneapolis Community Planning & Economic Development Jim Roth, Metropolitan Consortium of Community Developers* Jorge Saavedra, The Saavedra Law Firm PLLC* Bill Sarvela, TCF National Bank Andy Schlack, Greater Minnesota Housing Fund Todd Sipe, Thrivent Financial Bank* Mary Thompson, Headwaters Regional Development Commission (Representing Minnesota Homeownership Center’s Advisory Council) Joan Trahan, USDA Rural Development* Nicola Viana, Washington County HRA (Representing Minnesota Homeownership Center’s Advisory Council)* Stephanie Vergin, USDA Rural Development Lowell Yost, Family Housing Fund* * Term ended March, 2011

Minnesota Homeownership Center Annual Report 2011

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Financial Statement Statement of Financial Position

Statement of Activities

Current assets

Support and revenue

Cash and cash equivalents $2,400,803 Accounts receivable 187,643 Contributions receivable 402,742 Prepaid expenses 3,119 Security deposit 700 Inventory 18,605 Total current assets 3,013,612

Contributions $1,225,885 Grants and contracts 1,804,997 Loan repayments 16,186 Sales of workshop manuals 31,278 In-kind contribution 59,194 Interest 7,460 Other 30,486

Property and equipment - net

Subtotal

Total assets

114,078

3,127,690

Current liabilities: Accounts payable Due to HECAT

Accrued expenses

Funds held for others Capital lease - short term

Total current liabilities

Net assets released from restrictions

236,123 250,000 46,992 13,655 3,623 550,393

Non-current liabilities: Capital lease - long term

1,886

Total liabilities

552,279

Unrestricted: Undesignated

Board designated: Mortgage foreclosure prevention loan pool

Reserves Total board designated

Total unrestricted

Program services

Management and general Fundraising

Total expenses

-0-

3,175,486

2,684,151 149,685 38,511

2,872,347

Change in net assets

303,139

Net assets - beginning of year

2,272,272

Net assets - end of year

2,575,411

Other 4.6%

Revenue

1,304,355 Contributions 38.6%

196,580 209,027 405,607 1,709,962

Temporarily restricted

865,449

Total net assets

2,575,411

Expenses

Net assets:

Total liabilities and net assets

3,175,486

Total support and revenue

Liabilities and Net Assets

3,127,690

Grants & Contracts 56.8%

Administration 5% Fundraising 1%

Expenses

Program Delivery 94%

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