2008 Report to Investors
The Northwest affiliate of Local Initiatives Support Corporation
A Letter from the Chair 2007 was a building year for Impact Capital in the Northwest. I am pleased to report that the organization is strong and getting stronger. Some highlights from the year: • Impact Capital Board approved its new three-year Business Plan, which grew out of conversations held with groups of stakeholders and partners across Washington State about ways to become more innovative in lending, creating leverage partnerships and engaging in community development policy discussions. • Impact Capital exceeded our Impact Washington Capital Campaign goal of $17.5 million with a commitment for a $5 million low interest loan from Bank of America. • Impact Capital revamped its lending and underwriting guidelines in order to provide more flexible and competitive loan products to its partners.
This year, Impact Capital embarked on a new direction which is the embodiment of both “community” and “development”. Comprehensive community development will create vibrant communities which foster the development of neighborhoods where people are able to live, work and play in a sustainable fashion. Community Development over the past few years has changed because of significant shifts in local real estate markets and in the community development policy environment. These changes have created new opportunities and challenges for our partners. Impact Capital looks to continue its efforts investing in Community Development through our partners, resulting in the transformation of these communities and their ability to create sustainability for the future. On behalf of the entire Board of Directors and staff of Impact Capital, I would like to personally thank the many investors and partners without whose support our success would not be possible.
Sincerely,
Michael Brown, Chair, Board of Directors
2007 Investors and Donors Private Investors
Donors
The Annie E. Casey Foundation
Ann Melone
Bank of America
Bank of America
Banner Bank
Banner Bank
Boeing Employees’ Credit Union (BECU)
The Boeing Company
Columbia State Bank
Boeing Employees’ Credit Union (BECU)
The Erich and Hannah Sachs Foundation
Fannie Mae Foundation
Fannie Mae
HSBC Bank USA
Key Bank NA
Living Cities
Northern Trust Bank
Local Initiatives Support Corporation
US Bancorp
National Equity Fund
Washington Mutual
Olympia Federal Savings and Loan Association
Wells Fargo
The Paul G. Allen Family Foundation The Seattle Foundation
Public Investors City of Seattle, Office of Economic Development
Sterling Savings Bank Summit Leasing, Inc. Sundquist Foundation
City of Seattle, Office of Housing
US Bank
City of Spokane City of Tacoma
Washington Community Reinvestment Association (WCRA)
King County
Washington Mutual
Snohomish County
White Center Community Development Association
US Department of Housing and Urban Development
Verity Credit Union
Yakima Valley Memorial Hospital
Washington State Department of Community, Trade & Economic Development Washington State Housing Finance Commission
2008 Report to Investors
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2007 Loan Commitments as of 12/31/07 Impact Capital provides access to financing to nonprofit developers across the State of Washington. Since 2000, Impact Capital has invested more than $71 million to provide Washington families, elders, veterans, children and the very poor with safe, decent and affordable housing, community centers, community clinics, child care, cultural and retail space in neighborhoods and rural communities.
Total loans committed:
33
Total loan amount:
$11,477,971
Leveraged development cost:
$176,958,592
Affordable housing units produced:
1,012
Commercial & community facilities financed:
51,968 square feet
lending by Region 3% $391,962
78% $8,931,813
19% $2,154,196
King & Pierce Counties
Eastern Washington Western Washington
TOTAL: $11,477,971
“I personally believe the predevelopment funding and the associated vote of confidence we have received from Impact Capital has triggered and promoted our growth as the largest provider of special needs housing in Eastern Washington… I really mean it when I say we could not have done it without you.” — John Mifsud, Executive Director Next Step Housing in Yakima, WA
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Impact Capital
2007 Projects Financed as of 12/31/07 Predevelopment Loans - $1,068,199 Zero interest financing of up to $75,000 for early project feasibility costs associated with the development of affordable housing and community development projects. Greater Lakes Mental Health Care
Alesek Institute
Archdiocesan Housing Authority
Affordable Community Environments (ACE)
Opal Community Land Trust
Columbia Non-Profit Housing
Northwest Association for Housing Affordability
Lopez Community Land Trust
Catholic Charities Housing Services Diocese of Yakima
Casa Latina
Housing Authority of Chelan County/ City of Wenatchee Spokane Baptist Association Homes (SBAH) Community Frameworks Housing Authority of Snohomish County (HASCO)
Metropolitan Development Council (MDC) YWCA of Seattle- King County Snohomish County SouthEast Effective Development (SEED) Vision House Northwest Association for Housing Affordability (NAHA)
Community Investment Loans - $10,409,772 Interim financing for project costs, including predevelopment, acquisition, and construction costs associated with the development of affordable housing and community development projects. The Vera Project
Artspace Projects Inc.
White River Housing Association Capitol Hill Housing
Northwest Association for Housing Affordability
Community Frameworks
St. Andrew’s Housing Group
Washington Agricultural Families Assistance (WAFA)
SeaMar Community Heath Centers
Senior Services of Snohomish County
Tacoma/ Pierce County Habitat for Humanity
Lower Columbia Community Action Council
Vision House
2008 Report to Investors
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Capacity Building Impact Capital’s Capacity Program provides direct operating grants, tailored consulting, and targeted grants to nonprofit community development organizations throughout Washington State. These tools help maintain and improve the health of the region’s community development system by: •
Addressing issues of organizational effectiveness and efficiency.
•
Supporting efforts to create and implement strategies for comprehensive community revitalization, and
•
Preserving affordable housing portfolios through effective asset management.
Impact Capital’s capacity program is made possible through the support of government grants and private contributions.
Grants AWarded Operating Investment GRANTS $904,800 Impact Capital made possible more than $900,000 unrestricted grants to assist nine nonprofit community development organizations to achieve internal organizational improvement goals. These grants ensure the longterm sustainability of their recipients’ assets, and build their capacity to develop, construct and sustain affordable housing and community development projects. Capitol Hill Housing Central Area Development Association (CADA) Delridge Neighborhoods Development Association (DNDA) Diocese of Yakima Housing Services Interim Community Development Association (ICDA) HomeSight Housing Hope Seattle Chinatown International District Public Development Authority (SCIDPDA) SouthEast Effective Development (SEED)
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Impact Capital
Technical Assistance Grants $17,200
LISC Community safety Grants $66,500
Our targeted investments address organizational development and systems improvements to build and maintain highly functioning organizations.
In 2007, LISC provided $66,500 in funding to support the Community Safety Initiative, a national community-based model that makes grants to community-based nonprofits to promote safety by organizing the community, supporting community leadership, and fostering partnership with local law enforcement.
TRAINING PROGRAM $130,789 Impact Capital believes training is essential to building organizational and programmatic capacity. Each year a range of courses designed to augment the technical skills of housing and community development practitioners in Washington State to increase the ability of nonprofit organizations to efficiently deliver services to people and communities in need. For 2007, Impact Capital offered nine courses over 28 days for 214 attendees. Six of those courses were a partnership with the Consortium for Housing and Asset Management.
HomeSight Seattle Chinatown International District Public Development Authority (SCIDPDA) White Center Community Development Association
The Consortium for Housing and Asset Management (CHAM) provides a professional certification in Affordable Housing Asset Management. CHAM is a collaboration between LISC, Enterprise, and NeighborWorks to better enable community-based organizations and others in the nonprofit housing industry to responsibly own and professionally manage affordable rental housing. Impact Capital contracted with CHAM to offer all six Professional Certification courses in one location in one year 2007 — a first for CHAM since it’s inception.
2008 Report to Investors
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Financial Highlights revenue TOTAL: $2,146,054
$803,565
$263,152
Interest & Other Gains
Contributed Income $485,232 Program Contracts
$594,105 Loan Fees & Interest
expenses TOTAL: $2,379,603
$133,494 Fundraising $252,386 $1,993,723 Lending & Capacity
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Impact Capital
Management & General
Statement of Financial Position Assets Cash & Investments
$16,516,763
Loans receivable
$9,983,789
Accounts receivable & other assets Total Assets
$674,064 $27,174,616
Liabilities & Net Assets Accounts & other payables
$414,390
Loans payable
$22,450,000
Total Liabilities
$22,864,390
Net Assets
$4,310,226
Total Liabilities & Net Assets
$27,174,616
Statement of activities
Unrestricted
Temporarily Restricted
Revenues
$2,027,678
$118,376
$2,146,054
504,295
(504,295)
0
$2,531,973
(385,919)
$2,146,054
Expenses Change in net assets
$2,379,603 $152,370
0 (385,919)
$2,379,603 (233,549)
Net assets beginning of the year
$1,165,709
3,378,066
$4,543,775
Net assets 12/31/07
$1,318,079
$2,992,147
$4,310,226
Net assets released from restriction
Total
Copies of the audited financial statements are available upon request.
2008 Report to Investors
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Board of Directors Jayne Auld
Kim Herman
Executive Director, Spokane Housing Ventures
Executive Director, WA State Housing Finance Commission
Michael Brown (Board President)
Ann Melone
Director, Community Projects, The Seattle Foundation
Vice President, Commercial Real Estate, U.S. Bank
Susan Duren
John Poling (Past President)
President, WA Community Reinvestment Association
Executive Director, Housing Authority of Grant County
Jan Laskey
Sue Taoka (Board Secretary)
Senior Vice President, Community Development Lending, Bank of America
Executive Director, Seattle Chinatown International District Preservation and Development Authority (SCIDPDA)
Judith Olsen (Board Treasurer) Vice President & CDO, Wells Fargo Bank
Susan Shannon Director, Office of Economic Development, City of Seattle
Lisa Vatske Managing Director Housing Trust Fund State of Washington CTED/Housing
Margaret Yung First Vice President & National Manager Community Investment, Washington Mutual Bank
Joe Brancucci Executive Vice President Boeing Employees Credit Union (BECU)
Loren Dixon Senior Vice President/ CRA Officer, Banner Bank
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Impact Capital
Mario Villanueva Executive Director, Catholic Charities Housing Services Diocese of Yakima
Mike Tierney Executive Vice President & COO Local Initiative Support Corporation
Staff
Heyward Watson
Jennifer LaBrecque
CEO
Program Officer
Julie Alexander
Ingrid Martin
Bookkeeper
Senior Financial Officer
Jon Clarke
Elsa Natal
Program Officer
Associate Program Officer
Tess Colby
Tracy Reich
Chief Program Officer
Program Officer
Yolande Hargraves
Terri Symbol
Program Assistant, Contracts
Program Officer
Andrea John-Smith
Katie Yeo
Fund Development & Communications Officer
Executive Assistant
Chris Jowell Program Officer
2008 Report to Investors
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The Northwest affiliate of Local Initiatives Support Corporation
Offices in Seattle: 401 Second Avenue South Suite 301 Seattle WA 98104 Phone: (206) 587-3200 Toll Free: (800) 336-0679 Fax: (206) 587-3230 Offices in Spokane: 421 W. Riverside Avenue Suite 661 Spokane, WA 99201 Lending: (800) 257-7345 (509) 456-8088 Capacity: (800) 709-8088 (509) 624-5936 Fax: (509) 456-8350
Impact Capital’s mission is to make strategic capital investments in communitybased nonprofit development organizations in ways that enhance and sustain their ability to positively impact the quality of life in communities in Washington State and the Pacific Northwest Region. www.impactcapital.org