VOLUME 23
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ISSUE 1 2016
OPPORTUNITY FINANCE: ATTRACTING THE NEXT GENERATION OF DIVERSE LEADERS
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FEATURES A PRIMER ON THE CDFI................................................................ 6
UNPARALLELED OPPORTUNITIES IN THE OPPORTUNITY FINANCE INDUSTRY......................................... 8 by Jim Peffley
MAKING A POSITIVE IMPACT..................................................... 10
DIVERSITY, INCLUSION & EQUITY AS STRATEGY................14 by Deb Toby
26 STRATEGIES FOR CREATING YOUNG DIVERSE LEADERSHIP IN THE CDFI INDUSTRY.................................... 20
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DEPARTMENTS
CEO’s MESSAGE.............................................................................. 5 by Mark McDaniel
UPCOMING EVENTS....................................................................... 7
CINNAIRE NEWS............................................................................24
ADVERTISER INDEX......................................................................30
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NEW CONSTRUCTION RENOVATIONS HISTORIC REHAB MULTI-FAMILY COMMERCIAL MIXED USE
CEO’s MESSAGE
GOVERNING BOARD Wendell Johns, Chair Retired, Fannie Mae James W. Stretz, Vice-Chair George K. Baum & Company Michael J. Taylor, Secretary/Treasurer PNC Bank Catherine A. Cawthon Fifth Third CDC Derrick K. Collins Chicago State University Christine R. Hobbs Retired, Freddie Mac Multifamily Brett Macleod JP Morgan Chase William C. Perkins Retired, WPHD Carl Riedy State Street Global Advisors Sheldon Schreiberg Pepper Hamilton LLP Donald F. Tucker Don Tucker Consulting Paul J. Weaver Retired, FHLBI
CORPORATE OFFICERS Mark S. McDaniel, President & CEO Christopher C. Cox, CFO James L. Logue III, COO Kevin Crawley, Executive Vice President Jennifer A. Everhart, Executive Vice President Rick Laber, Executive Vice President Marge Novak, Executive Vice President Jim Peffley, Executive Vice President
LOCATIONS Lansing Headquarters 1118 S. Washington Avenue Lansing, MI 48910 Phone 517.482.8555 Detroit Office 2111 Woodward Avenue, Suite 600 Detroit, MI 48201 Phone 313.841.3751 Illinois Office 225 West Washington, Suite 1350 C Chicago, IL 60606 Phone 708.781.9603 Indianapolis Office 320 N. Meridian, Suite 516 Indianapolis, IN 46204 Phone 317.423.8880 Wisconsin Office 2 E. Mifflin Street, Suite 403 Madison, WI 53703 Phone 608.234.5291 Delaware Office 100 W. 10th Street, Suite 302 Wilmington, DE 19801
BY MARK McDANIEL PRESIDENT & CEO CINNAIRE
Welcome to 2016’s first edition of Avenues! This year we are approaching Avenues differently as part of our focus on Community Development Finance Institutions (CDFI). In 2014 our board of directors laid out a plan to become one of the top CDFIs in the United States. One of the first steps in that strategy was the branding process we completed in 2016. This strategy will not change the core work that is Cinnaire. We will continue to grow and strengthen our tax credit investing, lending, real estate investment funds, and Title Company. As part of the CDFI growth, we will be developing more opportunities for social impact investing and building our position in the social impact movement. These efforts will provide new growth but also support the existing programs and services we have developed over the last 23 years. As part of this effort, we are focusing our 2016 editions on the work of CDFIs and how that work is complimentary to Cinnaire. Our Executive Vice President, Jim Peffley, will guide our editor on these issues. Jim is a highly knowledgeable expert in the CDFI movement and is one of the key leaders tasked with strengthening Cinnaire’s presence in the CDFI industry. This year’s first edition is focused on the issue of diversity and CDFIs. CDFIs provide great employment and other growth opportunities. The focus on social impact investments brings many creative ways for people to engage in community development work. As many of you are aware, Cinnaire has always been focused on building a culture that our employees find invigorating and fulfilling. We have concentrated on this not only to attract and retain talent, but to give each of our employees the ability to find their passion in life. We are seeing the fruits of that focus. The staff survey’s we do every year have shown a steady increase in employee satisfaction ratings. This was highlighted this month as Cinnaire was recognized as one of the top 50 best nonprofits in the country. We ranked 21 out of 50 and 8th in the medium size organization category. We are very honored for the recognition and are striving to become even better. I hope you enjoy this year’s editions of Avenues. We feel these will be some of the best publications we have produced. We are always open to suggestions for topics you would find beneficial. Any comments or ideas can be emailed to capmac@cinnaire.com or jpeffley@cinnaire.com. 5
FEATURE
A PRIMER ON THE CDFI A community development financial institution (CDFI) is a financial institution that provides credit and financial services to underserved markets and populations. A CDFI is defined as a financial institution that has a primary mission of community development, serves a target market, is a financing entity, provides development services, remains accountable to its community, and is a non-governmental entity. A CDFI may be a community development bank, a community development credit union, a community development loan fund, a community development venture capital fund, a microenterprise development loan fund, or a community development corporation. The Opportunity Finance Network (OFN), the leading national network of CDFIs, describes its members as performance-oriented, responsible investors that finance community businesses, spark job growth in the areas that need it most, and develop both sound and financial returns and real changes for people and communities. OFN describes a CDFI as private financial institutions that are 100 percent dedicated to delivering responsible, affordable lending to help low-income, low-wealth, and other disadvantaged people and communities join the economic mainstream. By financing community businesses—
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including small businesses, microenterprises, nonprofit organizations, commercial real estate, and affordable housing—CDFIs spark job growth and retention in hard-to serve markets across the nation.
CDFIs through a variety of programs.
CDFIs are profitable but not profitmaximizing. They put community first, not the shareholder. For more than 30 years, they have had a proven track record of making an impact in those areas of America that need it most.
CDFIs are related to, but not identical with, Community Development Entities (CDEs). CDEs are also certified by the CDFI Fund at the U.S. Department of Treasury, but have slightly different qualifications. Many CDFIs have also been certified as CDEs. The primary purpose of CDEs is to utilize the New Markets Tax Credit Program (NMTCs). NMTCs were created to induce equity investments in low-income communities.
CDFIs are certified by the Community Development Financial Institutions Fund at the U.S. Department of the Treasury, which provides funds to
The Housing and Economic Recovery Act of 2008 (HERA) authorized certified CDFIs to become members of the Federal Home Loan Banks.
Opportunity Finance Network (OFN) is an association that represents CDFIs. OFN has formed a Racial Equity Working Group formed to develop and onboarding toolkit that would ideally be used by CDFIs to broach the conversation of racial equity. Over the past few years, diversity, equity, and inclusion have been one of OFN’s strategic initiatives, and the group thought it would be beneficial to build on OFN’s work to develop a resource guide that would be adopted by organizations. Cinnaire has embraced these efforts and one of our staff members is actively involved with this group. This issue of Avenues will cover the various aspects of diversity and how it affects CDFIs, including Cinnaire, moving forward.
CINNAIRE
UPCOMING EVENTS BUILDING MICHIGAN COMMUNITIES CONFERENCE April 25 – 27, 2016 Lansing Center Lansing, MI CINNAIRE RECEPTION DURING BUILDING COMMUNITIES CONFERENCE April 25, 2016 Cinnaire Offices Lansing, MI CINNAIRE BOARD RETREAT May 3 – 4, 2016 Wilmington, DE UNIVERSITY OF AFFORDABILITY CONFERENCE May 17 - 18, 2016 Blue Chip Casino, Michigan City, IN
At Maner Costerisan, we understand the complexity of the affordable housing industry, and we have the experience and resources necessary to provide personalized support in multiple areas of your business. For more information on how we can assist you, please contact: Keith Pfeifle, CPA Phone: (517) 886-9524 Email: kpfeifle@manercpa.com
2425 E. Grand River Ave., Ste 1 Lansing, MI 48912 www.manercpa.com www.manersolutions.com
CHILDREN’S TRUST FUND FUND RAISING EVENT May 18, 2016 Lansing, MI
MICHIGAN BANKER’S ASSOCIATION EVENTS WOMEN IN BANKING DAY MAY 11, 2016 The program will feature a panel of women executives, including Marge Novak from Cinnaire, discussing how to develop, engage and retain women leaders and a networking lunch that will encourage an exchange of ideas and solutions sure to result in valuable takeaways. THE CRA REQUIREMENTS: IT’S ALL ABOUT THE QUESTIONS! MAY 5, 2016 What’s going on in the environment? Has the paradigm shifted regarding the objectives of CRA? How are industry developments influencing the basics of CRA? Is today’s CRA exam essentially a fair lending review? For more information, visit www.mibankers.com. AVENUES TO AFFORDABILITY
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CAREER PLANNING
UNPARALLELED OPPORTUNITIES IN THE OPPORTUNITY FINANCE INDUSTRY LOOKING BACK OVER 25 YEARS BY JIM PEFFLEY, EXECUTIVE VICE PRESIDENT, CINNAIRE
Are you a young professional, recent college graduate, or student considering a career in the finance industry? If so, have you considered exploring the part of the finance industry that provides access to capital designed to provide opportunities for low-income, low-wealth, and other disadvantaged communities across America? If you answered “YES!”, the Opportunity Finance industry would be the perfect career choice for you. Twentyfive years ago I joined the Opportunity Finance industry, and I am confident that I made the right decision. Like many others, I entered this industry without knowing it even existed. I was raised in an underserved community named Brookview Apartments, which was considered by many to be a blight in the suburbs of northern Delaware. I was the first in my family to attend college. When I graduated, my plan was simply to make money and leave Brookview. With very little perspective or direction in regards to my career options, I entered the banking industry. At the time, Delaware was the center of the credit card industry and it seemed to be a good opportunity. However, after three years, I devel-
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oped a strong sense that I did not want to spend a career in banking. Fortunately, an opportunity arose with Delaware’s state housing finance agency. Without any idea of what my future career path would look like, I accepted a position as the Assistant Cash/Debt Manager. It turns out that this was the beginning of a career that has provided numerous opportunities and countless rewards, not only professionally, but also personally. The Opportunity Finance industry offers a variety of unique opportunities for young professionals, recent college graduates, and/or students who are interested in finance, as well as making a difference in the lives of others. OPPORTUNITIES TO DEVELOP SOPHISTICATED FINANCIAL SKILLS This industry uses highly sophisticated financing tools and/or complex financing structures to meet its mission- including tax credit investing/syndication, bonds, and multi-layered capital structures. Member organizations are typically small, with the larger organizations rarely exceeding a staff of 100. When I first joined the HFA, I was given the op-
portunity to learn the inner workings of tax-exempt bonds, and later to model, structure and market those bonds. This involved a level of responsibility that would rarely be provided to a young professional in the banking industry. These skills learned early in my career proved to be critical during the financial crisis of 2008/9. By choosing the right employer in this industry, you can learn valuable financing skills early in your career. OPPORTUNITIES FOR CREATIVITY Working in the Opportunity Finance field involves trying to solve persistent community and economic challenges with limited financial resources. To be effective, practitioners need to stretch existing resources, leverage those resources with others, and develop innovative strategies to maximize the impact of available resources. Creativity is critical. I have had the privilege of working for three excellent organizations in the Opportunity Finance sector, and working with hundreds more as partners or customers. The vast majority of those organizations seek and reward creativity on the part of their entire teams- not just senior leadership, and they are highly entrepreneurial entities. Entry level staff have opportunities to show initiative, enjoy visibility with senior management,
CINNAIRE
think creatively and improve the impact of the organization. This is a critical way in which the next generation of leaders are identified. If you are seeking an opportunity to think creatively, the Opportunity Finance industry is a place where you will likely be warmly received and encouraged. OPPORTUNITIES TO COLLABORATE It is common for organizations within a certain geography to forge informal alliances and meet on a periodic basis to share their priorities, new strategies and other information. I work in Delaware, and the three CDFIs based here gather several times each year to discuss opportunities, funding, new activities and other matters. In Detroit, Cinnaire is part of a 16 member CDFI coalition working to revitalize communities. On paper we are competitors, but in reality we are partners with a shared mission. This type of collaboration within a market is typical. It is how creative ideas are shared and maximization of mission impact is achieved. There is also large-scale collaboration across the country, typically through trade associations and other membership organizations. For example, when I worked for a state HFA, the National Council of State Housing Associations (www.ncsha.org) was a critical forum through which HFAs shared insights, ideas and information. In my current role, the Opportunity Finance Network (www.ofn.org) is one of the leading associations. These trade associations host several conferences each year,
AVENUES TO AFFORDABILITY
where panel discussions are held and other informal meetings take place. Major issues are discussed, and critical relationships with other individuals are established. Imagine being able to establish relationships with dozens of people across the country who have your role in a different organization, with whom you can discuss challenges, new approaches and new ideas. This is extremely helpful. It is often how innovation takes place and creativity is sparked. OPPORTUNITIES TO GROW In my twenty-five year career in this industry, I have had many life changing experiences. As I mentioned earlier, I started my career with very little perspective. There were no professionals in my life who could provide advice and counsel. I needed a great deal of refining. I benefitted greatly from having a series of excellent mentors and coaches. At each of the organizations where I have been employed, there has been a culture that encourages mentoring. Young leaders with potential were identified and provided with assistance to maximize their potential. I attribute this to the mission commitment of the organizations involved in the Opportunity Finance industry. It is also due to the fact that most of the organizations in the Opportunity Finance industry are small enough to allow management to directly see the potential of younger staff members. Advancing in your career is never guaranteed—it requires hard work and at times some level of risk taking -- but I see this industry as having a unique focus on providing potential leaders with valuable assistance.
OPPORTUNITIES TO SEE IMPACT This is the aspect of the Opportunity Finance industry that provides me with the greatest level of satisfaction. The work I have done in my career has positively impacted many individuals and families who needed a helping hand to improve their lives. I will never get the chance to meet all of the people whose lives have been improved as a result of my work, but I have been fortunate to meet some of these individuals. Those individuals, those moments, stick with you, and motivate you to work harder and be even more creative. Some of these individuals come from communities that are similar to where I grew up, which makes it even more personal. In addition to the impact on individuals and families, I have been able to see how my work has helped other organizations in the industry. The clearest example of that occurred during the financial crisis of 2008/9, when the tax-exempt mortgage revenue bond market essentially ceased to function. I used the bond finance skills I acquired at the start of my career to help develop and implement a US Treasury program that provided a temporary market for HFA bonds, which provided critical capital for first time homebuyers and others. The Opportunity Finance industry is rewarding in a variety of ways, and certainly offers excellent career opportunities to young professionals who are interested in using their talents to benefit others. I have never regretted my decision, and I doubt you will. IF YOU WOULD LIKE ADDITIONAL INFORMATION REGARDING A CAREER IN THE OPPORTUNITY FINANCE INDUSTRY, FEEL FREE TO CONTACT JIM AT JPEFFLEY@CINNAIRE.COM.
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EMERGING LEADERS
MAKING A POSITIVE IMPACT The Community Development Finance Industry (CDFI) provides an excellent opportunity for individuals who aspire to use their skills and knowledge to make a positive impact on communities. CDFI’s cultivate creativity, growth, and advancement within the workplace, as well as within the communities that are served. Three CDFI emerging leaders discuss what drew them to a career in this growing field, as well as how their lives have been impacted by working in this industry. ASHLEE BARKER
Age: 30 Title: Community Development Initiatives Manager Education: Bachelor of Science in Urban and Regional Planning (BSURP), Michigan State University Hobbies/Interests: Volunteering as a CASA; Trail Running, Hiking/Backpacking and Kayaking; Traveling Favorite quote/saying: “Whatever you are, be a good one.” – William Makepeace Thackeray (often misattributed to Abraham Lincoln) WHAT DID YOU STUDY IN SCHOOL? I studied Urban and Regional Planning at Michigan State University (MSU). While completing my degree, I interned at Cinnaire (known as Great Lakes Capital Fund at the time). I attended MSU in the midst of the great recession and the mantra for my graduating class was, “May God or [Former Treasury Secretary] Geithner help you.” WHAT IMPACT HAS THIS HAD ON YOUR LIFE? ON OTHERS? Several years ago, I met a family of six that was living in a dilapidated twobedroom duplex. The roof leaked, mold had formed, trash was piled high
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due to inconsistent service and, unless rent was late, the landlord was often unreachable. In spite of the disrepair, the family paid market rent (they were severely cost-burdened). Speaking with that family really drove home why I do this work. It’s for families that deserve to have an affordable, safe home. It’s for children that deserve a stable home, with food on the table, their minds able to be focused on the most important things: going to school and being a kid. I think of this particular family often and they motivate me to continue the important work of fighting poverty and fostering opportunities for people to have better lives. That’s my life’s work. WHAT CHARACTERISTICS OF THIS INDUSTRY WOULD CATCH THE ATTENTION OF YOUNG PROFESSIONALS? The CDFI industry is focused on serving disadvantaged and underserved communities (and individuals) by expanding access to capital. The industry is also often referred to as the opportunity finance industry. Inherent in this field is purpose, which is very important to young professionals. Also, while community needs are growing and demand for CDFI products increasing, capital is limited. This tension forces practitioners to think creatively and innovate. The opportunity to chart new territory and creatively address some of society’s most press-
ing problems is undoubtedly attractive to young professionals. WHAT ADVICE WOULD YOU GIVE TO SOMEONE TRYING TO BREAK IN TO THE FIELD? There are many ways to help people. There are many different ways CDFIs uniquely help people and impact communities. In fact, I’ve heard it said, “If you’ve met one CDFI...you’ve met one CDFI.” So, my advice would be to understand who you want to serve, how you want to serve them, assess your unique set of skills and experiences to see where you add value. Get involved on the local level, make as many connections as you can and work diligently to address a need (or needs) that you are passionate about. There is no single degree or pathway to take to be successful in the CDFI industry. Diversity of skills and backgrounds is key to continuing to elevate and advance the field. WHAT DO YOU REALLY LIKE ABOUT YOUR JOB? I love working with an incredibly talented team that is wholly dedicated to positively impacting communities and improving people’s lives. I love the variety of responsibilities I hold. This industry, and my company, is dynamic. There’s always more to learn, a new puzzle to piece together, a new way to collaborate. My job is challenging, exhilarating and, above all, fulfilling. CINNAIRE
PETER GILES
Age: 34 Title: Vice President, Business Development Education: Masters of Science, Accounting, Michigan State University Hobbies/Interests: Share life outside with my wife and children, sail, hike Favorite quote/saying: “But seek first his kingdom and his righteousness, and all these things shall be yours as well.” – Matthew 6:33 WHAT DID YOU STUDY IN SCHOOL? I studied Accounting in the College of Business at Michigan State University. Most of my focus was on how businesses incorporated internships and opportunities within their accounting departments. After graduation, I accepted a position at PwC, and worked specifically in a merger and acquisition consulting group in Detroit. I really enjoyed the challenge, pace and sophistication of the international accounting firm. During my time at Michigan State, I was fortunate to have various experiences that prepared me for a career in the CDFI industry. As a part of the programming through my family’s Christian prayer group, I had the opportunity to participate in two mission trips, one to central Mexico and the other to San Pedro Sula, Honduras. Then during college, I took an entire year away from school and moved to Belfast Northern Ireland, volunteering full-time for a youth focused outreach. Ultimately, the experiences I had while at Michigan State changed my heart and inclined me toward a life of serving others. WHAT DREW YOU TO THE FIELD? HOW DID YOU ARRIVE HERE? Honestly, I first came into contact with the CDFI field through a desire to move my family back to Lansing, my hometown. I was introduced to Cinnaire through a classmate from Michigan State. In looking for a landing place AVENUES TO AFFORDABILITY
CDFIs ARE CLOSELY CONNECTED WITH ORGANIZATIONS PROVIDING SERVICES AND OPPORTUNITIES TO THOSE IN NEED. BEING INVOLVED WITH THOSE SERVICE ORGANIZATIONS WILL LEAD YOU TO THE FINANCING NEEDS BEING DELIVERED BY CDFIs. after PwC, I wanted to find an opportunity that would continue to push and challenge me. As I explored, this whole new world opened up to me, of both real estate finance and new mechanisms of accumulating capital, that I had never been exposed to previously. WHAT IMPACT HAS THIS HAD ON YOUR LIFE? ON OTHERS? As a regionally focused CDFI, Cinnaire works in communities we are intimately familiar with. One aspect of my work that I really appreciate is the ability to have impact on the communities I live in and care about, as well as those that other people call home. To see tangible evidence that our investments are
benefiting children in need or adults asking for a second chance, which I can point out to my kids, is really amazing. Exactly how the loan is made can be quite complicated, especially in the case of New Markets Tax Credits, but the results are plain for anyone to see, which is great! WHAT CHARACTERISTICS OF THIS INDUSTRY WOULD CATCH THE ATTENTION OF YOUNG PROFESSIONALS? Many of my peers in Detroit, when I worked at PwC, were excited about the City’s rebirth. As such, once their dayjob concluded, they would spend nights and weekends contributing to non-prof-
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EMERGING LEADERS
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its around the City. Working at a CDFI allows you to spend your work-day at an effort, which is both interesting and impactful. On another note, leaving the public accounting field, I feared I might take a step-down in terms of sophisticated systems and high caliber coworkers. Nothing could be further from the truth from my experience of Cinnaire and other upper-echelon CDFIs. The complexity and effectiveness, both in accumulating and managing capital, but also within the project level capital stack, is extremely high. WHAT ADVICE WOULD YOU GIVE TO SOMEONE TRYING TO BREAK IN TO THE FIELD? Be active in your local community! CDFIs are connected with organizations providing opportunities to those in need. Being involved with those service organizations will lead you to the financing needs being delivered by CDFIs. Also, be flexible. Many CDFIs are not as structured as the typical financial institution, and those people willing to step-up to the task at hand, are extremely valued. Last, there are numerous opportunities in this field. The CDFI industry has grown at a tremendous rate leading to openings for the younger generation to take on significant responsibility. If you are able, you will be given room to lay the way forward, which is quite a privilege for a generation desiring to have impact! WHAT DO YOU REALLY LIKE ABOUT YOUR JOB? Like all great places to work, I appreciate the people I work with. I get to work with people who are concerned not only with themselves, but also for those in need. They are a pleasure to share life with. I am also excited about the nature of the work. My job forces me to overcome difficult problems, to grow, and develop. Not only are there technical problems to solve, but the landscape continues to change and evolve. The constant change has made me a well-rounded professional, able to tackle the mission at hand.
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CINNAIRE
DIONNA SARGENT
Age: 34 Title: Manager, Business Development Education: Master of Public Administration, University of Delaware Bachelor of Business Administration, Temple University Hobbies/Interests: Painting/Anything related to creative expression Favorite quote/saying: “If you let your fears keep you from flying, you will never reach your height.” – India Arie WHAT DID YOU STUDY IN SCHOOL? I earned my Bachelor of Business Administration from the Fox School of Business at Temple University (Philadelphia, PA) where I majored in Real Estate and Finance. I obtained my Master of Administration from the School of Public Policy and Administration at the University of Delaware (Newark, DE) and my studies centered on housing policy, affordable housing, and homelessness. WHAT DREW YOU TO THE FIELD? HOW DID YOU ARRIVE HERE? My purposeful sense to be of service to others and make an impact in communities ultimately led me to the CDFI industry. Ever since my first volunteer experience as a young adult where I volunteered to help serve the homeless, I always had a felt sense to work in a field that equips people with resources that will improve their quality of life. After several years of working in the private sector, I decided to make a career change that would allow me to engage in more meaningful work in housing and community development financing. I knew I wanted to work for an organization with a mission to serve as a vehicle for creating affordable housing opportunities. This decision prompted me to pursue a Masters deAVENUES TO AFFORDABILITY
gree in Public Administration. From that point forward I intentionally sought out research and development opportunities that would deepen my knowledge and understanding of the industry and position myself for career in housing and community development. WHAT IMPACT HAS THIS HAD ON YOUR LIFE? ON OTHERS? Working in this industry has profoundly affected my outlook on the importance of community development lending. CDFIs fund initiatives that are vital to improving the quality of life for underserved urban, rural, and native communities. We provide access to capital to help create economic opportunities, provide access to healthy foods, and develop affordable housing and community facilities (such as charter schools and daycare facilities). Often times, these projects would not be realized “but for” CDFIs. Growing up in Philadelphia, I am aware of the impact our industry can have on cities with pockets of poverty and blight. However, working in the CDFI industry has also helped me understand the needs of non-urban areas as well. This inspires my commitment to advocate for social and economic justice in housing and community development and engage in initiatives where I can serve as a catalyst for effective community change. WHAT CHARACTERISTICS OF THIS INDUSTRY WOULD CATCH THE ATTENTION OF YOUNG PROFESSIONALS? Making a Difference: People engaged in the CDFI industry have the opportunity to do meaningful work and can truly make a difference in underserved communities by creating opportunities that enhance social and economic impact. Developing Practical and Transferrable Skills: You will have the opportunity to develop and hone analytical, critical thinking, and communication skills that will enable your success at any organization.
Creativity and innovation: In the CDFI industry, we are always searching for new concepts and approaches to capitalize on resources and maximize efficiencies. This always creates the space for innovative and “out of the box” thinking, that can also help you to distinguish yourself as a leader in the industry. Diverse Career Options: The are approximately 1000 CDFIs, which offer a variety of career opportunities from small business lending, healthy food finance, consumer financing, and housing and community development. Growth and Advancement: Opportunities to move laterally and vertically throughout organizations. WHAT ADVICE WOULD YOU GIVE TO SOMEONE TRYING TO BREAK IN TO THE FIELD? • Network, Network, Network. Join membership organizations and attend industry events where you can meet people currently working in the industry and build relationships. • Informational interviews are an effective tool for acquiring information about job functions, organizational operations, and developing relationships within an organization. If you meet a professional and you are interested in learning more about their organization and/or their profession, ask to meet them for coffee or tea for an informational interview. • Take advantage of internships, paid or unpaid. It is a great way to gain experience and could potentially evolve into an employment opportunity. • Stay current on news and events that impact the CDFI industry. WHAT DO YOU REALLY LIKE ABOUT YOUR JOB? My position within my organization enables me to collaborate with developers, investors, community leaders, and housing finance agencies to advocate for necessary changes in business practices and formulate creative and impactful approaches to development. 13
FEATURE
INCLUSION & EQUITY AS STRATEGY
BY DEB TOBY, VICE PRESIDENT, CINNAIRE
AT CINNAIRE, WE VALUE THE CONTRIBUTIONS MADE BY OUR STAFF AND PARTNERS TOWARD ACHIEVING EXCELLENCE. WE STRONGLY ENCOURAGE COLLABORATION AND RECOGNIZE THAT INNOVATION IN THE COMMUNITY DEVELOPMENT FINANCE INDUSTRY IS MORE LIKELY TO OCCUR WHEN PEOPLE WITH DIVERSE VIEWPOINTS AND BACKGROUNDS WORK TOGETHER TO SOLVE PROBLEMS. THUS, DIVERSITY AND INCLUSION ADD VALUE TO OUR COLLECTIVE EFFORTS TOWARD OUR MISSION OF ENHANCING COMMUNITY STABILIZATION AND ECONOMIC DEVELOPMENT. 14
CINNAIRE
BROAD SPECTRUM OF DIVERSITY Cinnaire believes that diversity is an environment where the talents and differences of all individuals are respected and valued, enabling us to reap the full performance potential and competitive advantages of all of our constituents. Our broad spectrum of diversity includes race, color, ethnicity, national origin, gender, age religion, culture, language, disability, sexual orientation, gender identity, socioeconomic status, family structure, geographic differences, diversity of thought, technical expertise, and life experience. We see inclusion as a process that cultivates an environment; connects each individual to our organization, encourages collaboration, flexibility, and fairness, and leverages diversity. Individuals are enabled and encouraged to participate to their full potential. As we strive for excellence, and in order to maintain our competitive advantage, we recognize the need to attract, hire, develop, and retain the best available talent. We support this level of excellence by fostering a culture that values the various perspectives of a diverse group of individuals. We maintain policies and practices that encourage participation and inclusion at all levels of our organization. MORE THAN POLICY We’re committed to this value beyond the standard communication of “policy.” For the 2016 fiscal year, the leadership has made a bold statement of its commitment to diversity and inclusion by developing and incorporating it as a formal corporate strategy. THE BUSINESS CASE Embarking on this strategy requires support from the leadership team. The leadership understands that in today’s marketplace, people represent the only compelling competitive advantage, and that it is in the best interest of our organization to head this strategy, and make all employees aware of the importance of diversity. Our leaders know they AVENUES TO AFFORDABILITY
CINNAIRE IS COMMITTED TO FOSTERING, CULTIVATING, AND PRESERVING A CULTURE OF DIVERSITY AND INCLUSION. OUR HUMAN CAPITAL IS THE MOST VALUABLE ASSET WE HAVE. THE COLLECTIVE SUM OF THE INDIVIDUAL DIFFERENCES, LIFE EXPERIENCES, KNOWLEDGE, INVENTIVENESS, INNOVATION, SELFEXPRESSION, UNIQUE CAPABILITIES AND TALENT THAT OUR EMPLOYEES INVEST IN THEIR WORK REPRESENTS A SIGNIFICANT PART OF OUR CULTURE, REPUTATION AND COMPANY ACHIEVEMENTS. FROM CINNAIRE DIVERSITY & INCLUSION POLICY need to model what’s expected, provide a clear vision, and hold themselves and other accountable. By the end of the first quarter, we will obtain a clearly stated commitment and understanding of personal responsibilities in the creation of our diversity and inclusion strategy from the leadership team. Each member will participate in the development of a communication plan that provides a clear understanding of the difference between diversity and inclusion. THE NEXT STEPS Assess our needs and formulate a specific diversity plan: We will look at specific problems and address them directly. Define “what’s in it for me?” to all staff: Educate staff on the true meaning of diversity with the emphasis on supporting the development of all employees. No blaming or shaming: Foster shared responsibility for increasing understanding and improving relationships. We aim to mobilize, not polarize. Set Clear Expectations: Create an accountability system. Standards and
expectations will be clearly communicated and everyone will share responsibility for success. Create measures for assessing progress: Set specific goals and assessments. Our strategy will be treated with a clearly stated starting point and a means for tracking progress over time. Create a broad ranging initiative: We will avoid placing too much emphasis on recruitment, and will focus on issues of retention, development, mentoring, and advancement. Provide resources and infrastructure: Develop a company-specific approach to ensure future business success. The right practices, employee development activities, and reward systems will be put in place in alignment with business objectives. OUR PARTNERSHIP WITH THE OPPORTUNITY FINANCE NETWORK As we recognize the necessity for employing this strategy, our leadership’s commitment has been strengthened by an even deeper understanding of the concept of equity, which is the result of “…actions taken to ensure that advantages and disadvantages are 15
FEATURE
DIVERSITY DESCRIBES AN ENVIRONMENT WHERE THE TALENTS AND DIFFERENCES OF ALL EMPLOYEES ARE RESPECTED AND VALUED. INCLUSION IS A PROCESS THAT CULTIVATES A WORK ENVIRONMENT THAT CONNECTS EACH EMPLOYEE TO THE ORGANIZATION. not distributed on the basis of race and ethnicity, and that Cinnaire’s strategies that produce equity must be targeted to address the unequal needs, conditions, and positions of people and communities that are created by institutional and structural barriers. Equity requires a set of informed policies and practices that are intentionally designed to rectify disparities, as well as informed people positioned to implement them effectively. Where equity exists, diversity and inclusion will also be present.” (from OFN’s Race Matters Institution)
opment in our Delaware office, has been actively engaged with this group. The goal of the group is to develop an onboarding toolkit that would ideally be used by CDFIs (and hopefully, beyond) to broach the conversation of racial equity. Over the past few years, diversity, equity, and inclusion have been one of OFN’s strategic initiatives, and the group thought it would be beneficial to build on OFN’s work to develop a resource guide that would be adopted by organizations. The group’s goal is to have a toolkit ready for presentation this year.
The recognition of equity as a necessary component of our strategy was achieved through our partnership with leadership of Opportunity Finance Network, a critical partner in the goal of achieving excellence in our industry. “Opportunity Finance Network (OFN) is the leading national network of community development financial institutions (CDFIs), investing in opportunities that benefit low-income, low-wealth, and other disadvantaged communities across America.” http://ofn.org/aboutopportunity-finance-network.
Dionna notes that, “The discussion around diversity, equity, and inclusion is important and necessary in this industry. Having diverse groups creates the space for varying perspectives that can positively impact the effectiveness of resources deployed and program developed to improve the communities we serve. Equity and inclusion are equally important because it ensures that all parties who have a vested interest and may ultimately be impacted by the outcome of an intervention are engaged in the decision making process by having a seat at the table and have a voice.”
OFN RACIAL EQUITY INITIATIVE An outcome of the OFN 2015 Citi Leadership program was the formation of a Racial Equity Working Group. Dionna Sargent, Manager of Business Devel16
Dionna’s engagement is a strategic advantage as she brings to us her passion and learnings from the group to
help advance Cinnaire’s diversity and inclusion strategy. OFN’S TALENT STRATEGY… OUR GAIN We recognize the need to attract, hire, develop, and retain the best talent. We have learned much to develop an effective method of diversifying our talent pool through our staff’s interaction with OFN’s leadership. OFN recognizes that, “In order for the opportunity finance industry to build on its success and develop the next generation of leaders, it must identify innovative ways to attract diverse, talented students from higher education institutions.” (from OFN’s “Bridging the Talent Divide”) Lauren Stebbins, OFN’s Senior Associate for Strategic Initiatives, tells us that OFN is collaborating with New York University Leonard N. Stern School of Business to design and implement a talent development program known as the “Opportunity Finance Program” for undergraduate business students who are interested in learning about careers in the opportunity finance industry. This program is the first of its kind, and its three primary goals are to: inform and educate undergraduate business students about careers with the opportunity finance industry; identify best practices to connect Community Development Financial Institutions (CDFIs) with talented and diverse business students from high education institutions; and, develop a scalable model to prepare undergraduate students to succeed in the opportunity finance industry. Since 2013, we’ve increased efforts to expand access to diverse talent pools by reaching out to candidate sources such as the job boards of the National Association of Black Accountants (NABA), National Black MBA Association (NBMBAA), and Racing Toward Diversity. Though we continue this outreach, it has not resulted in a substantive increase in applicants from diverse populations, most likely because our industry is not CINNAIRE
well known or understood. Cinnaire sees OFN’s program as an outstanding resource to help expand the pool of diverse talent, leading to access to talent development platforms that have not been historically available to us. As is the case with most CDFIs, Cinnaire does not have unlimited financial and human capital resources to create a talent development platform and recruitment program, or a formalized structured internship program leading to full-time employment opportunities. OFN is filling a critical talent gap. DIVERSITY OF THOUGHT = INCLUSION Inclusion is a lynchpin of our culture. President & CEO Mark McDaniel is adamant in maintaining an open door, where staff at all levels, are free to reach out to him to discuss issues. Over the last two years, Mark has implemented a “Lunch with the CEO” program, where the newest staff is invited to talk about observations of the organization and its leadership and pose questions on his approaches and actions in his role as President and CEO. The luncheons have recently included staff who have been with Cinnaire for a longer period.
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These lunches are a platform to be heard, providing unrestrained access to the CEO, something that is traditionally inaccessible in other organizations. The lunches have yielded information that helps leadership continue to build on our culture of diversity and inclusion. Observations and suggestions learned are frequently acted upon, and our people learn that they have as much skin in the game as the President & CEO. INCLUSION = LEADERSHIP EVERYWHERE Fostering this culture includes making a large initial investment in our staff’s development as leaders. Within one AVENUES TO AFFORDABILITY
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FEATURE
Several Cinnaire staff attended the Martin Luther King Jr. Holiday Commission and are photographed here with Ambassador Andrew Young, who was the keynote speaker.
year of hire, new staff participates in a “Leadership Academy,” facilitated by Denise Stein, Art of Leadership Foundation. The primary message of the academy is that “everyone is a leader,” regardless of title or position within the company hierarchy. The academy is presented over two days, and provides an opportunity for introspection and identification of the synergies between personal value systems and Cinnaire’s Mission. Primary Objectives provide a powerful and useful view of the current reality and explore the results of a collection of data that expands the participants’ perceptions of the current realities in many aspects of their lives. Increase the participant’s capacity to produce unpredictable results by designing and declaring a vision for the future that is practical and useful as a leadership tool as well as on a personal level. Learn skills and gain tools to assist in achieving specific quantifiable results, design actions that support big commitments, and create methods and practices which support the attainment of goals. Cinnaire’s practice is to provide an op18
portunity for each academy cohort to act as coaches for the ensuing academies, which allows for each staff member to hone their leadership skills and actively participate in the development of our newest staff members. EQUITY = CINNAIRE IN THE COMMUNITY In 2012, Cinnaire began partnering with the Greater Lansing Area Dr. Martin Luther King Jr. Holiday Commission after the Commission approached Cinnaire about being a general sponsor of the annual Martin Luther King luncheon celebration. The luncheon is a long-standing tradition, as local legislation observed an MLK holiday one year in advance of the federal enactment. It’s a time of unification, reflection, and a call to action to continue Dr. King’s quest to a social and economic injustice and bring equity to communities throughout the country. Keynote speakers of the luncheon have included some prominent civil rights leaders such as Dr. Juanita Abernathy, United States Congressman Elijah Cummings, Judge Joe Brown, Journalist Jacque Reid, Ernest Green, Henry “Hank” Thomas, and most recently, Ambassador Andrew Young. To date, Cinnaire has pledged almost $100,000 in support to the Commis-
sion. The Commission’s higher education scholarship program is premier, with a $5,000 prize for the top recipient. Cinnaire has evolved into a Monumental Partner of the Commission, with Mark McDaniel, President & CEO, serving as the honorary chair and luncheon emcee at the 2016 luncheon. Our dedication to diversity, inclusion, and equity goes beyond corporate giving; it is an ideal woven into the fabric of the organization on a daily basis. Contributions are supported by the passion and dedication of staff members like Anthony Winston, executive assistant, who proudly serves on the Commission. CINNAIRE = ADVANCING COMMUNITIES Cinnaire’s diversity and inclusion strategy requires that we deal with it as an important business objective beyond awareness exercises or acknowledgements that it’s “the right thing to do.” By understanding the full scope of diversity, inclusion, and equity, providing an infrastructure to support the initiative, and intentionally forming a company-specific initiative, Cinnaire will create an organizational environment that ensures future business success and continues its mission of supporting community stabilization and economic development throughout its footprint. CINNAIRE
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LEADERSHIP
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YOUNG DIVERSE LEADERSHIP IN THE CDFI INDUSTRY
Cinnaire interviewed three credit unions, the National Federation of Community Development Credit Union, Latino Community Credit Union and Hope Credit Union to gain an overall knowledge of how this industry is focusing and developing their diversity efforts. NATIONAL FEDERATION OF COMMUNITY DEVELOPMENT CREDIT UNIONS The average age of a bank customer is late 20’s/early 30’s; the average credit union member is 40’s. This is especially true for the community development credit union (CDCU). CDCUs serve low-income communities across the country and most people living in these communities are people of color. The National Federation of Community Development Credit Unions (Federation) wanted to attract younger, diverse people who reflect the communities being served. Increased interest credit union after 2008 and the Occupy Wall Street movement brought the Federation daily inquiries from young professionals seeking information on what was necessary to secure employment or volunteer at credit unions. The impending retirement of many CEOs from the baby boomer generation created the 20
perfect opportunity to capitalize on this rising interest and recruit young, diverse talent. We created a program called the Cooperative Finance Leaders for America (CFLA) that looked to engage the new thought-leaders for CDCUs. This sixmonth fellowship helped new/emerging leaders put their passion for cooperative finance to work. It also provided access to a pool of talented staff that share similar interests. Fellows could be new to credit unions or existing employees poised to move into management. Fellows are required to participate in a week of training in New York. The Federation partnered with experts in community development finance and credit union management. The weeklong training was followed up with webinars, group workshops and individual calls throughout the sixmonths. The CFLA program started in 2013 and the 3rd class completed in February 2016. The training proved to be extremely effective. Participants received a new and deeper understanding of credit unions, CDCUs, community development finance and CDFIs. The training helped them to understand the role credit unions play in the cooperative movement NS connecting their work
to the communities being served. To date there are 36 alumni. Most are still employed where they completed their fellowship. CFLA is funded by Citi Community Development. LATINO COMMUNITY CREDIT UNION At Latino Community Credit Union (LCCU) it is important to capture the member’s perspective of the direction the organization is headed. The more diverse and inclusive workforce, including management and directors, the better perspective we have as an organization creating growth and maintaining membership satisfaction. Strategies for increasing diversity, equity, and inclusion begin at hiring and are further implemented through training. Our Human Resources department work with different partners in the community that have sent us referrals which include members. Our CEO and the recruiting committee have always maintained a balance in the representation of the community we serve. Management has also worked internally to make sure we promote from within. We deliver training to potential leaders in our organization, from different backgrounds, to encourage diversity, inclusion and equity to increase our impact. This allows us to get to know CINNAIRE
future leaders and allows employees to flourish in areas where they may not have had the opportunity in other employment settings. Additionally, LCCU actively recruits young members of the community. Through Deferred Action for Childhood Arrivals (DACA), new employment opportunities started to arise for new immigrants. LCCU supported members who needed financing to apply for the program and hired several program participants. LCCU also works closely with universities and community colleges for recruiting and focusing its efforts on diversity. Young employees have the opportunity to advance their careers with training and benefits that help them complete studies. Experience and education obtained outside the United States that enriches and advances the organization is always taken into consideration as well. When organizations see diversity as a priority, and develop a culture in which different points of view are valued, young and diverse leaders will come naturally. A diverse workforce makes the organization more competitive, creative and in touch with what is happening in the communities that they serve. HOPE CREDIT UNION Like the rest of the nation, the states in Hope Credit Union’s (HOPE) region (AR, LA, MS, TN) are slowly becoming more black and brown. By 2025, every demographic category below the age of 20 in Mississippi, where HOPE is headquartered, will be majority minority. Recognizing these trends, the development of an organization that reflects the changing face of the region remains one of the most critical strategies for embracing our mission and achieving sustainability. HOPE is a member owned community development credit union with over 30,000 members. Notably, 81 percent of members are people of color and AVENUES TO AFFORDABILITY
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LEADERSHIP
over 1/3 were unbanked when they joined. From an organizational perspective, the recruitment and retention of a diverse team remains essential for building trust and maintaining credibility with our members. Commitment to diversity begins at the top. Over half of HOPE’s Directors are people of color – including the organization’s CEO. The leadership sets the tone, example and expectation for other senior leaders and hiring managers that selection pools are to be heterogeneous. Such expectations create an environment where we work to build diverse and talented pools of candidates in hiring – even if multiple rounds of recruitment are required. Similar intentional efforts occur in the procurement of outside vendors. The process proved to be particularly effective in the selection of the firm to implement a retail marketing campaign. HOPE identified a minority-owned firm in Little Rock with deep and relevant experience that has helped take its marketing and outreach efforts to new levels of effectiveness and impact. Through recruitment efforts, we have a long history of working with Historically Black Colleges and Universities (HBCU) and alumni networks. Approximately half of the 160 team members have a college degree. Of those, 20 percent attended an HBCU. This strategy has been particularly effective in attracting talent.
Finally, we maintain an ongoing commitment to learning about equity and inclusion and to broaden the understanding of diversity. Over the last year, we have been working closely with Coopera, a Hispanic run consulting company that works with credit unions to expand their membership base among the Hispanic population. Since bringing Coopera on board, the workforce has significantly diversified to include more Hispanics and is in the process of expanding its product base and outreach efforts. ABOUT THE CONTRIBUTORS AND CREDIT UNIONS CONTRIBUTED BY PAMELA OWENS, VICE PRESIDENT, PROGRAMS
The Federation is a dynamic, growthoriented association of credit unions that provide safe and responsible financial services to underserved communities. Since 1974, it has been promoting financial inclusion by organizing, supporting, and investing in these community development credit unions (CDCUs), which specialize in serving populations with limited access to affordable financial services, including low-income wage earners, recent immigrants, and people with disabilities. The mission is to help low- and moderate-income people and communities achieve financial independence through credit
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unions. For more information on CFLA, please visit www.cdcu.coop/initiatives/ credit-union-leadership-development/ cooperative-finance-leaders-foramerica/2015-cfla-blog/. CONTRIBUTED BY VICKY GARCIA, SENIOR VICE PRESIDENT, STRATEGY AND RISK MANAGEMENT
LCCU is the ideal option for anyone searching for a great value, a solid and ethical financial institution, as well as an opportunity to support their communities. Employees, with origins from 16 countries, are proud to serve a diverse membership from the U.S. and 110 other countries around the world. Our primary mission is to integrate newcomers and the underserved into the U.S. financial system, providing economic opportunity for all. CONTRIBUTED FROM ED SIVAK, CHIEF POLICY AND COMMUNICATIONS OFFICER AND ELAINA JACKSON, COMMUNICATIONS DIRECTOR
HOPE is a family of development organizations dedicated to strengthening communities, build assets and improve lives in the Delta and other economically distressed parts of Arkansas, Louisiana, Mississippi and Tennessee. Comprised of a regional credit union (Hope Credit Union), loan fund (Hope Enterprise Corporation) and policy center (Hope Policy Institute), HOPE has provided financial services, leveraged private and public resources, and shaped policies that have benefited more than 650,000 residents in one of the nation’s most persistently poor regions. CINNAIRE
CINNAIRE NEWS
CINNAIRE CONTINUES TO STRIVE FOR EXCELLENCE New Unlimited Time off Benefit for Employees; Recognized as Best Nonprofit At Cinnaire, we recognize that our most valuable asset are our employees. We are privileged to have highly skilled professional staff committed to their professional role within the community development industry. Many devote personal time volunteering with causes that improve the lives of others within their personal communities. As such, we are pleased to celebrate and honor our staff by announcing an unlimited paid time off policy. We believe in providing a work environment that delivers a well-balanced life. In order to achieve that, a person needs time off for rest, relaxation, rejuvenation and attending to personal business. Unlimited Paid Time Off policies are designed to provide work-life balance and to maximize teamwork and collaboration. To that end, our hard-working, committed staff will take responsibility to manage their own time and collaborate and communicate openly with colleagues to support
one another with workload. Cinnaire is committed to providing our top notch employees with an environment that supports peak performance and this policy promotes that. “We have developed a culture of highly skilled, hard working professionals passionate and committed to our mission.” said Mark McDaniel, President & CEO. “We believe we should demonstrate trust and value their contributions. This policy goes right to the heart of that message. It’s our desire to have high retention of professionals that are part of this culture and attract new professionals. Our people are our most important asset and this is one more step to demonstrate how essential they are to our success.” CINNAIRE RECEIVES RECOGNITION AS BEST NONPROFIT The NonProfit Times (NPT), the leading business publication for Nonprofit Management, recently released the Best Nonprofits to work for in 2016. Cinnaire is honored to once again receive this highly coveted recognition, with a ranking of #21 on the top 50 Best Nonprofits overall and #8, out of 27, on the Best Medium Nonprofits (50-249 employees). The sixth annual report is compiled with the help of Best Companies Group, Inc. (BCG). The firm conducts a thorough organizational assessment. The multi-part process is designed to gather detailed data about each participat-
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ing nonprofit. Cinnaire completed a questionnaire and all staff were invited to complete a confidential survey. Partners and board members outside of our organization were also contacted. The comprehensive process provides analysts a set of data which is used to determine the strengths and opportunities of participating organizations. Results are analyzed and categorized according to eight core focus areas: leadership and planning; corporate culture and communications; role satisfaction; work environment; relationship with supervisor; training, development and resources; pay and benefits; and, overall engagement. Cinnaire was mentioned several times throughout the NonProfit Times publication, being recognized particularly for rewarding quality work at year end with a two week holiday period, employee’s full access to our on-site gym at the Lansing headquarters as well as gym memberships for staff in all other offices, weekly pick-up and drop-off dry cleaning services, our annual Staff Summit promoting employee personal growth, and our recently announced unlimited paid time off policy. “Cinnaire staff are dedicated to the mission of our organization and are the true heart beat that represents the impact our organization has on the communities we invest in,” said Mark McDaniel, Cinnaire President & CEO. “We are honored to receive this recognition, an accomplishment which wouldn’t be possible without the hard work and long hours our staff puts in to fulfill our commitment to providing our partners and those we serve with bestin-class services. Cinnaire extends our gratitude and thanks to the NonProfit Times for the valuable work they do in recognizing and advocating for nonprofit organizations.” CINNAIRE
CINNAIRE CONTINUES TO GROW AND CHANGE Although the branding of Cinnaire is complete, our work of growing the organization is not. We provide many opportunities for staff to continue their education through seminars and conferences. We expose them to new experiences out of their comfort zone. Our efforts in this area allow us a greater chance to promote within the organization, giving our staff the ability to grow and advance in their careers. Several staff members were recently promoted and we’ve hired a few new staff as well. Susan Frank was recently promoted to Senior Vice President, Business Development. In this role, she is responsible for directing and implementing the company’s growth strategy in the Mid-Atlantic region, including debt, equity and community development lending.
Chris Laurent has been promoted to Senior Vice President, Business Development. In this role, Chris is responsible for directing and implementing the company’s growth strategy in the Mid-west and Wisconsin region, including debt, equity and community development lending.
Peter Giles was recently promoted to Vice President, Business Development. In this role, Peter manages our New Markets Tax Credits initiatives. Peter also assists with our CDFI and Develop Michigan Initiatives.
Kelly Martin has been promoted to Human Capital Manager. In this role, Kelly is the first HR point of contact for all Cinnaire staff, managing all generalist functions of human resources, including benefits, wellness, onboarding, and talent acquisition support. Kelly will also assist in the supervision of all administrative services team members.
Chris Guy has been promoted to Fund Manager. As Fund Manager, Chris is responsible for managing over 60 multi-investor funds, proprietary funds and guaranteed funds. In addition to investor reporting, Chris also oversees the reporting functions of the Asset Management Team. Andrew Holloway joined Cinnaire as an Asset Manager in our Delaware office in March. Andrew is responsible for overseeing a portfolio of real estate debt and equity investments. Andrew will work directly with owners and managements companies to ensure the financial success of Cinnaire investments.
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Leigh Middleton has been promoted to Closing Coordinator. In this role, Leigh will responsible for managing the closing process, assisting our underwriters and business development staff in moving deals to closing. Leigh is also responsible for the collection of due diligence. Luan Nguyen joined our Lansing office in November. Luan will manage a small portfolio of stabilized assets as well as dedicating half of his time to the dispositions department. In dispositions, he will be working on valuation models and assisting in the overall process.
Dionna Sargent has been promoted to Manager, Business Development. In this role, Dionna provides a critical link between our business development work in the East Region and our underwriting team. Dionna is responsible for helping to facilitate the structuring of transactions to provide maximum value for our customers, and managing the flow of transactions to ensure we offer our customers an efficient process. Don Schappacher has been promoted to Asset Manager. Don is responsible for overseeing real estate debt and equity investments. Don works with property owners and management companies to ensure the financial success of Cinnaire investments. Ben Stehouwer has been promoted to a new position as Vice President of Underwriting. Ben is a resource for the rest of the underwriting team and assists in managing the workflow for the underwriting team. Stephanie Stoll has been promoted to an Underwriter position. Stephanie will be responsible for underwriting loans for multifamily affordable housing developments.
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CINNAIRE NEWS
GREATER LANSING AREA MARTIN LUTHER KING JR. HOLIDAY COMMISSION Cinnaire donated $35,000 to the Greater Lansing Area Dr. Martin Luther King Jr. Holiday Commission. These funds will be used to help support the MLK Commission’s mission to promote equality, diversity and social justice in the Greater Lansing Community. Among its many accomplishments, the MLK Commission annually provides scholarships to graduating seniors, awards money to essay winners for local middle school students, and helps support a variety of community agencies. The funds are also used to support the Music of the Dream (MOTD) Gospel Music Celebration. This event, held in February, featured 10-time Stellar Award winner Anthony Brown and Group Therapy, Grammy-nominated Yolanda Adams and Grammy winner Israel Houghton and New Breed. MOTD was created to engage a younger, family-oriented demographic in the remembering and promoting of Dr. King Jr’s. ideals. The event also celebrated the 40th Anniversary of the creation of Black History Month. Residents from Edgewood Village, a Cinnaire investment, were thrilled to attend free of charge! Awna Awry, Edgewood Village’s Program Director, shared the sentiments of two of the residents that attended MOTD, “Two of our parents are from Sudan and one of them came in the next morning overjoyed at the opportunity and shared with me that in the 14 years that they have been in the country they have never been to a live concert. Even better, she says she watches gospel concerts on TV and couldn’t believe they actually got to go to one.” CINNAIRE made this possible!!! 26
Mark McDaniel with Ambassador Andrew Young, former aide to Dr. Martin Luther King, Kr.
Several Cinnaire staff at the Martin Luther King Jr. Holiday Commission with Ambassador Andrew Young. CINNAIRE
The MLK Commission hosts the annual Dr. Martin Luther King, Jr. Holiday Luncheon in tribute to the inspiring civil rights leader. Mark McDaniel had the honor of hosting the 2016 luncheon and serving as the program emcee. Mark presented $12,500 in scholarships to four students and had the honor of introducing Ambassador Andrew Young, Jr, a former aide to Dr. Martin Luther King, Jr. This was a very special moment for Mark, as Ambassador Young gave the commencement speech at Mark’s graduation from Michigan State University in 1977. Mark has already been asked to serve again
THE MLK COMMISSION ANNUALLY PROVIDES SCHOLARSHIPS TO GRADUATING SENIORS, AWARDS MONEY TO ESSAY WINNERS FOR LOCAL MIDDLE SCHOOL STUDENTS, AND HELPS SUPPORT A VARIETY OF COMMUNITY AGENCIES. as the honorary chair for the 2017 luncheon, an honor Mark considers a lifetime achievement. In addition to Mark’s service to the committee, Cinnaire staff member Anthony Winston was appointed to the Greater Lansing Area Dr. Martin
Luther King Jr. Holiday Commission in 2008 by Lansing Mayor Virg Bernero and has held an active role with the committee since being appointed. Cinnaire wishes to thank the MLK Commission for the important work they do in the Cities of Lansing and East Lansing!
HAVEN HOUSE PANCAKE CHAMPIONSHIP BREAKFAST In February, Mark McDaniel participated in the annual Haven House Pancake Championship Breakfast. Mark joined fellow celebrity waiters Tim Barron, Todd Duckett, Sister Pat Newhouse, Dawn Parker and Kerry E. Singh to raise over $20,000 for Haven House, a homeless shelter that provides emergency housing and support services for oneparent and two-parent families with children. The shelter helps families who are homeless prepare for permanent housing by developing and promoting self-sufficiency, stability, and financial responsibility. In addition to housing, residents receive meals, crisis counseling, assistance with goal setting and referrals to other agencies as needed. Thanks to the support of Cinnaire staff and partners, Mark exceeded his goal and raised over $11,000. He couldn’t have done it without their support. Mark wishes to thank each of you for joining him in supporting this incredible organization! In addition, Steve Smith organized a fundraising event with the CFT-Sinas Dramis Law Cycling team, which was held after the breakfast. The team set a goal to ride 2,000 miles and raise $2,000 for Haven House. We are happy to announce the team rode nine hours, cycling a total of 2,543 miles and raised a total of $3,600 for Haven House! We wish to thank the CFT-Sinas Dramis Law Cycling Team for joining us in supporting Haven House!
Once again, Mark received the coveted Pancake Championsip Trophy. Mark happily wore costumes, danced and sang his way to raising the most funds for the Haven House annual Pancake Championship Breakfast.
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CINNAIRE NEWS
CINNAIRE AND THE ARC OF INDIANA CELEBRATE OPENING OF ERSKINE GREEN TRAINING INSTITUTE & TEACHING HOTEL In partnership with The Arc of Indiana Foundation, Cinnaire celebrated the Grand Opening of the Erskine Green Training Institute & Teaching Hotel in January. Cinnaire invested $11M in New Market Tax Credits to finance the Institute, the first hospitality and healthcare training institute for individuals with disabilities in the United States. In addition to Cinnaire, Chase, as New Markets Tax Credit investor, facilitated the financing of this project. Housed within a Courtyard by Marriot, the Institute will train all people with disabilities in a postsecondary education opportunity in hospitality, food service or healthcare. It will train an estimated 200 people from around the state of Indiana each year. Students will reside in the hotel for 9 – 13 weeks as they attend classes and gain valuable work experience through an internship. Upon completion of the program, students will receive valueable work experience in hospitality and healthcare through an internship credential. “Cinnaire is very excited to partner with The Arc of Indiana on this significant
First year students (L to R): Leslie, Brendan, Heather, Ethan, Zachary, Blake and Orlando
project, bringing much needed training resources to the disabled community throughout Indiana,” said Mark McDaniel, President & CEO. “Our mission at Cinnaire has long included promoting access to education and training opportunities. This project represents the first concept of its kind in the country and I am thrilled Cinnaire was able to
lend our expertise to see this vision become a reality.” “We are extremely grateful for the support of Cinnaire,” said Jill Vaught, The Arc of Indiana Foundation Executive Director. “Through their generosity, the Institute is able to provide a unique opportunity for individuals with disabilities.”
UNIVERSITY OF AFFORDABILITY CONFERENCE: MAY 17-18, INDIANA Cinnaire is set to host the 2016 University of Affordability Conference, to be held May 17-18 at the Blue Chip Casino in Michigan City, Indiana. This conference is planned with you in mind. We have sessions geared toward staff in Management, Development, Maintenance, Property Managers/Leasing and a special section all about Energy! We have teamed up with CEDAM this year to provide exceptional education at a very affordable price. To learn more and register for the conference, please visit www.cinnaire.com. 28
Thank you to our current sponsors: • Arthur J. Gallagher & Co. • Community Economic Development Association of Michigan (CEDAM) • Crestline Communitites • Dauby O’Connor & Zaleski • The Federal Home Loan Bank of Indianapolis • KMG Prestige • Layton & Richardson, P.C. • Loomis, Ewert, Parsley, Davis & Gotting, P.C. • Medallion Management • MHT Housing/Continental Mgmt. • Michigan Asset Group, LLC • Plante Moran • Sloniker & Woodgate
PRESENTING SPONSOR
A special thank you to our presenting sponsor, MHT Housing/Continental Management.
For available sponsorship opportunities, please contact Jennifer Calery at 517896-0873 or jcalery@cinnaire.com. CINNAIRE
CINNAIRE INVESTS OVER $10M IN SENIOR SUPPORTIVE LIVING FACILITY
Montclare Senior Will Provide 120 Quality, Affordable Homes to West-Side Chicago Residents Cinnaire recently invested over $10M to build Montclare Senior in the North Lawndale community area of Chicago. It will occupy approximately 4 acres of land, two miles south of the Eisenhower Freeway. The land is being donated by the City of Chicago. Montclare Senior, a mixed income affordable housing project, will be located on a site approved under the Illinois Supportive Living Program. The program provides elderly or persons with physical disabilities housing with services, depending on the population served by the facility. These services include laundry, house-keeping, transportation, health monitoring, and wellness programs. The goal of the Supportive Living Program is to preserve privacy and autonomy, while emphasizing health and wellness for persons who would otherwise need nursing facility care.
“This type of project gets to the heart of what Cinnaire is all about. We are making a positive impact in people’s lives, while helping to create a more stable, sustainable, and vibrant community.” Cinnaire President and CEO, Mark McDaniel, said. “We are fortunate to work with a top notch development team and I am thankful for the support this project has received from the City of Chicago and the Illinois Supportive Living Program.” The development team includes: developer, MR Properties, LLC; general contractor, Safeway-Brown-Duffing Joint Venture; architect, Worn Jerabek Wiltse Architects, P.C.; property management company, Gardant Management Solutions; accountant, FLS Group, LLC; developers council, Applegate & Thorne-Thomsen.
SOURCES & USE Cinnaire Development Loan.......... $630,000 Equity Bridge Loan......$10,500,000 LIHTC..............................$10,000,000 LOVE Funding Permanent Loan.......... $12,300,000 Midland State Bank Bridge Loan..................$12,000,000 City of Chicago HOME Funds................. $3,005,000 TIF Grant......................... $2,000,000 DCEO Grant......................... $191,036
Groundbreaking of Montclare Senior, February 26, 2016
ADVERTISER INDEX
MANAGING EDITOR Mary McDaniel, CMP Alternative Solutions, LLC 517.333.8217 mcdaniel64@comcast.net EDITORIAL Kelly Rogers Pixie Publishing, LLC 517.575.5051 pixiepublishing@gmail.com ADVERTISING Jennifer Calery Alternative Solutions, LLC 517.896.0873 jcalery@cinnaire.com GRAPHIC DESIGN Melissa Travis Ink Ideas Graphic Design, LLC 989.272.3101 www.inkideasgraphicdesign.com COVER ILLUSTRATION Matthew McDaniel Student matthewmcdaniel1294@gmail.com Avenues to Affordability magazine is published quarterly by Cinnaire. This publication is copyrighted. The reproduction of Avenues to Affordability is prohibited by law. For additional copies, comments, concerns or to be added to the mailing list, please contact the Cinnaire office at 517.482.8555 or visit www.cinnaire.com. INTERESTED IN ADVERTISING? Contact Jennifer Calery at 517.896.0873 or jcalery@cinnaire.com for more information. Since January 2015, Cinnaire’s online magazines have garnered 2,078 reads, made 49,168 impressions and were shared 32 times through the website. The Cinnaire website attracts an impressive 1,000 visitors to the homepage and over 6,000 page views on a monthly basis. DEADLINES Winter Mid-December Spring Mid-March Summer Mid-June Fall Mid-September
Baker Tilly..................................................................................................................................27 Blystone & Bailey.....................................................................................................................17 Chesapeake Community Advisors, Inc..............................................................................17 Clark Hill, PLC........................................................................................................................... 12 Community Economic Development Association of Michigan....................................17 Dauby O’Connor & Zaleski, LLC.......................................................................................... 21 Ginosko Development Company....................................................................................... 32 Keller Development..................................................................................................................11 Kincaid Henry............................................................................................................................31 KMG Prestige, Inc.................................................................................................................... 21 Loomis, Ewert, Parsley, Davis & Gotting, P.C................................................................... 19 Love Funding............................................................................................................................ 12 Maner Costerisan, P.C.............................................................................................................. 7 Medallion Management, Inc................................................................................................ 30 MHT Housing, Inc......................................................................................................................2 O’Brien Construction Company, Inc..................................................................................... 4 Occupancy Solutions, LLC................................................................................................... 22 Plante Moran............................................................................................................................ 19 PM Environmental, Inc............................................................................................................. 7 Rohde Construction............................................................................................................... 23
One step ahead. Within our full-service accounting and advisory firm, Baker Tilly’s nationally recognized affordable housing specialists can help you analyze options, overcome barriers, and uncover resources to make your project successful. Our strategic solutions go beyond the basics to help public and private development entities, managers, lenders, and investors make the right decisions with candid advice and clear industry insight. Connect with us: bakertilly.com Don Bernards, CPA, Partner 608 240 2643 | Donald.Bernards@bakertilly.com
Baker Tilly refers to Baker Tilly Virchow Krause, LLP, an independently owned and managed member of Baker Tilly International. © 2015 Baker Tilly Virchow Krause, LLP
CINNAIRE
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Ginosko Development Company “Creating a Brighter Community Today” Ginosko Development Company (GDC) is a real estate development company specializing in the creation and preservation of quality affordable housing. GDC has a successful track record meeting the financing challenges of these developments, from MSHDA and HUD loan programs, tax-exempt bond programs, rental subsidy programs, and Low-Income Housing Tax Credits; to historic tax credits, brownfield credits and other specialized financing programs unique to the affordable housing industry. GDC is also known for its success in meeting the design, planning and environmental challenges of these developments. GDC’s residential communities are recognized for careful and coordinated planning, an experienced development team of top architects, attorneys, contractors and engineers, attention to detail and design quality, and respect for the environment. Visit our website to get to know us better!
www.Ginosko.com 41800 West 11 Mile Road, Suite 209 | Novi MI 48375 office 248.513.4900 | fax 248.513.4904