INFORMATION 4 08-13-2012 INFORMATION
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Minnesota t w•-•
Homeownership
Center Annual Report 2011
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Promoting and advancing successful
homeownership in Minnesota
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www.hocmn.org
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CgWe recognize that ownin g a home is
the dream of many an Minnesotans.
e are committed to being the
- .;, :aN state's leading independent,
nonprofit provider of
homeownership education and resources.
a
,- .x ` ° _ We are here for all Minnesotans who need
' �. = help pursuing the dream of owning and
. maintaining a home of their own. We
",-. helped over 15,000 Minnesotans in 2011
�� ! � ( � find and maintain their home,through our
` . �� homebuying and foreclosure prevention
- services,
We believe that with the right resources and
` ��� _ education, homeownershi can be a reality.
� �� �. � � � � ����? I We focus much of our support on low-and
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€@3i i moderate income households in Minnesota.
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`' .-,,"-;`47t,'; "We make lasting change in the
� w lives of those with the greatest
E harriers and. challenges."
We also focus on serving communities of
Many of the people we € color that have historically experienced
limited access to homeownership
help never thought that i opportunities.We know that investing in
long-term,sustainable homeownership is
they could own a home ? good for homeowners,their families and our
community as a whole.
of their own. Many of the people we serve never thought
that they could own a home of their own.
We make lasting change in the lives of those
with the greatest barriers and challenges
to homeownership. Advocacy and ongoing
OUR MISSION education is key to what we do,and helping
The Minnesota Homeownership Center's mission is to the clients we serve become their own
promote and advance successful homeownership in advocates ensures that they remain in their
Minnesota,with a focus on serving the needs of low-and homes for the long-term.
moderate-income families and emerging markets. Since 1993,we have served over 100,000
At the core of this mission is the belief that lower income Minnesotans through our range of
households can achieve and recognize the benefits of homeownership services,from homebuyer
long-term homeownership if they enter homeowner- education to foreclosure prevention
counseling.
ship through the right door—prepared to make wise,
informed decisions for their families.
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www.hocmn.org
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How we do what we do ,.
Partnering with others to ensure wit arrii
access and success for all
he Homeownership Advisors Network s> �
is a statewide association of agencies x
providing homebuyer services, iiif';'
foreclosure counseling,reverse mortgage
counseling,and other homeownership 2011 Homeownership Advisors Network
support. 1 p
1st Homes Network
Led by the Minnesota Homeownership I African Development Center
Center,the Network is committed to ensuring African Families Development Network
that Minnesotans have access to non-biased, Albert Lea Housing Authority
trusted education and personalized advice I American Dream Services
on topics related to buying a home and American Indian Community Development Corporation
sustaining homeownership. Anoka County Community Action Program
Arrowhead Economic Opportunity Agency
The ultimate goal of the Minnesota Austin Housing and Redevelopment Authority
Homeownership Center and the Bi-County Community Action Programs
Homeownership Advisors Network is ( Carver County Community Development Agency
successful and sustainable homeownership. CCCS of The Village Family Service Center
I Central Minnesota Housing Partnership
a a - City of Owatonna
Community Action Duluth
', , « Community Action Partnership of Suburban Hennepin
.‘
Community Neighborhood Housing Services
„ $ ' _ Dakota County Community Development Agency
*V.,4� ' Family Life Credit Services
s Headwaters Regional Development Commission
i a . Hmong American Partnership
r � InterCounty Community Council
.,�<. , KOOTASCA Community Action,Inc.
Lao Assistance Center of Minnesota
LSS Financial Counseling
2011 highlights of the network:
Mankato Economic Development Agency
• The African Families Development MCASA c/o Model Cities Community Development Corporation
Network joined the network,expanding Neighborhood Development Alliance
Neighborhood Housing Services of Minneapolis,Inc.
our services to more of Minnesota's Northwest Community Action Program
African immigrant families. One Roof Housing(FKA Neighborhood Housing Services of Duluth,Inc.)
• The Hmong American Partnership Otter Tail-Wadena Community Action Council
expanded to include homebuyer PRG,Inc.
services for the Hmong community. Reverse Mortgage Counselors,Inc.
Rochester Olmsted Community Housing Partnership
• The network adopted national RW Media,Inc
standards for homeownership services. Scott County Community Development Agency
Standardized practices have helped Southwest Minnesota Housing Partnership
ensure efficiency and quality across all I St.Paul Planning and Economic Development
providers. Strickland and Associates
Three Rivers Community Action
• We increased the availability of Tri-Valley Opportunity Council
continuing education, improving the Twin Cities Habitat for Humanity
quality of services offered by the Washington County Housing and Redevelopment Authority
Homeownership Advisors Network. West Central Minnesota Communities Action
White Earth Investment Initiative
Wright County Community Action,Inc.
Minnesota Homeownership Center Ann ai Re,pc. "-:),I.1.
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CLIENT PROFILE: A neighborhood helps
make a new home for Maggie and Lucia
aggie and her four-year-old daughter, Lucia,are spending
AA . their first summer in their new home on the East Side of St.
Paul.She's a busy single working mother,with her days spent
as the America Indian Student Services Coordinator at Metro State
"' University,where she also received her B.A in Psychology in 2010.
Her evenings are spent settling into the one-and-a-half story,recently
remodeled home that she purchased and moved into with Lucia."I
' love everything about it. It's the perfect size,with room to grow."
� Growing up in both St. Paul and Minneapolis, bouncing around a bit,
i r � s Maggie never thought of herself as a potential homeowner."My mom
x .- C renter."a" ���� �,; x�y; € was always a renter. Packing up and moving often as a child and teen,
also meant changing schools frequently throughout the years."When
7yn I was in my early 20's, I never saw myself in a house. I thought I was
going to travel around."When
her daughter came along in her "when I first started
.,i �,3 y �Hy �yy„ �
mid-20's, Maggie knew that she thinking about buying a
u wanted to give her a sense of house, I. wasn't even sure
stability that wasn't always there of what the steps were. I
when Maggie was little.
needed to learn them.,)
uying CCB a home is "When I first started thinking
about buying a house, I wasn't even sure of what the steps were. I
one of the biggest needed to learn them." Help came from a Home Stretch workshop
held by The American Indian Community Development Corporation.
The AICDC is a member of the Homeownership Advisors Network and
life decisions a the workshop introduced Maggie to three key elements of securing
her first home:education, resources and support.
person will make. "I learned about all the resources available to me. I discovered the
HUD 184 program,which is a great program."The Section 184 Indian
We advise on Home Loan Guarantee
"My daughter just loves the Program is a home mortgage
making the best house. And I just love the specifically designed for
neighborhood." American Indian and Alaska
possible decisions Native families,Alaska
Villages,Tribes,or Tribally Designated Housing Entities."They showed
me the grants available for first-time homebuyers. I was also referred
to ensure success in to the Woodlands National Bank,which is a native-owned bank."
homeownership The network of counselors and advisors also helped Maggie
understand who all the players in the process were,which can be quite
confusing to a first-time homebuyer. "I learned how everyone was
connected and that my REALTOR®had my best interest in mind."
"My daughter just loves the house and I just love the neighborhood
and how my daughter loves playing with the neighbors.It's awesome."
Maggie and Lucia's neighborhood is the final piece in making their
house a home,and Maggie is looking forward to many years of
homeownership and stability for her family on the East Side of St. Paul.
www.hocmn.org
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Homebuyer services:
Helping make homeownership a reality -.
for all Minnesotans
uying a home is one of the biggest life decisions a person will
make,as well as one of the largest financial moves in ones
lifetime.We help people get started out on the right foot and ! ',of, � y 40,1, , ‘,1,1.-0,,
stay with them to make the journey easier and more successful. n°"`` �,„ n a " "%
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CLIENT PROFILE: Barbara saves her home
arbara's life as a homeowner has made a complete about-face.Two
years ago,she had called her mortgage company and said, "I can't afford
4
i- my$1,200 a month house payment.What can I do?"
'' s, ' �= Her lender suggested a mortgage modification,a process in which the terms of
' .:, .:,....;, 4~ -4. �w a mortgage are modified outside the original terms of the contract agreed to
: � by the lender and borrower. Barbara said, "Yes!"and they began the process
,� ,Above didn't to lower her payments,to save her Oakdale
all else „ home she loved so much. "Above all else, I
I wan.0 to lose my house,
�� didn't want to lose my house.”
After nearly a year,the modification was still not complete.At the time,
2- . '> , Barbara was told that the only hope of her home not going to sheriff's sale(a
� s foreclosure on the property)was to put it up for short sale. In the meantime,
' ' her daughter suggested getting in touch with the Washington County
'
Housing and Redevelopment Authority, a member of the Homeownership
,, x Advisors Network.At the HRA,she was connected with Nicola Viana,a Senior
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Homeownership Specialist.
. , ,„, .. �'` Barbara received a purchase agreement ".. ro
o d the legwork,
- ,, . '. for her home around the same time,
� � ,- 4. but for a price far below the value of and d 1 `e someone in
- - . v 4 ,, € the property. Nicola reviewed Barbara's your cor ne , arid 1 ":y u
financial situation and outlined out her succeed.”want
options. Barbara decided to apply for a
:4z loan modification with the help and guidance of Nicola. "When a sheriff sale
was set to take place, I requested that Barbara's lender postpone the sale while
her file was under review," Nicola said.When Barbara's mortgage was sold to a
5 " new lender, Nicola assisted Barbara in starting the application for modification
anew,with the goal of getting the monthly payment to$702. "This I knew I
could do," Barbara said.
"If I hadn't had Nicola and the
Barbara's patience and Washington County HRA when
'...:4".4.; :if, .-''''''' P crseveranc.c s�r�.ed per we_ needed them, !would have lost my
though this ? ` €cess; she house. I did everything she told me."
advocate." Every time Barbara spoke with the
lender,she connected with Nicola as
well,and with Nicola's help and advice,the modification was soon in place.
"Nicola went above and beyond to make sure everything worked out. And I
have my house." Nicola says: "Barbara's patience and perseverance served her
well through this process;she became her own advocate."
Barbara believes that if everyone had an organization like the Washington
County HRA and a specialist like Nicola,they would most likely be able to keep
their homes. "If you do the legwork, and have someone in your corner,and if
you want it,you can succeed," Barbara says.
CC In 2011 , over 12,000 homeowners facing the threat of
foreclosure sought advice from the Homeownership
Advisor's Network. Over 60% avoided foreclosure,
surpassing the industry average.
www.hocmn.org
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,', � - :4 Board of Directors
y� , Officers
President
Michael Haley,Minnesota Housing
4,. , Vice President
- opt , [ Vicki Shipley, US Bank
Treasurer
David Lindstrom,M&l BMO/Harris Bank
Foreclosure Prevention: Secretary
Helping homeowners weather the reality of David Eide, Western National Mutual Insurance Company
today's home market Members
he Center has been a leader in the State of Jill Aleshire, Thrivent Financial Bank
TMinnesota's response to the current foreclosure Jerry Boardman,Fannie Mae*
crisis and our foreclosure prevention services extend Marilyn Bruin, University of Minnesota
throughout all 87 counties in the State. Homeownership Joe Collins,City of Saint Paul, Planning and
Advisors that specialize in foreclosure prevention work Economic Development
closely with clients,building trust as they assess each
individual's situation and work with them to move Darielle Dannen,Metropolitan Consortium of
forward. Community Developers
In 2011,over 12,000 homeowners facing the threat of
Jim Erchul,Dayton's Bluff Neighborhood Housing Services
foreclosure were counseled within our Homeownership Tom Fulton,Family Housing Fund
Advisors Network,and an industry-leading 60%avoided Muffle Gabler, Wells Fargo Bank
foreclosure. Karen Gajeski, Bremer Bank
( Chris Galler,Minnesota Association of Realtors®
2011 highlights of foreclosure Jacqueline King,Federal Reserve Bank of Minneapolis
prevention services: Repa Mekha,Nexus Community Partners
• We developed industry partnerships with Fannie Robin Peterson, Coldwell Banker Burnet
Mae and Wells Fargo(through a national partner, Elfric Porte, City of Minneapolis Community Planning
the Housing Partnership Network).This created a and Economic Development
clearly-defined and streamlined process for helping Jim Roth,Metropolitan Consortium of
homeowners apply for loss mitigation,as well as Community Developers*
a single point of contact for advisors for all Fannie
Mae cases. It also added a diversified funding ! Jorge Saavedra,The Saavedra Law Firm PLLC*
source to support our programming. E Bill Sarvela, TCF National Bank
• We led a successful outreach campaign,call center Andy Schlack,Greater Minnesota Housing Fund
and dedicated website to respond to inquiries about [ Todd Sipe, Thrivent Financial Bank*
the Emergency Homeowner's Loan Program (EHLP). Mary Thompson,Headwaters Regional
Applications were received from thousands of Development Commission
Minnesota households. (Representing Minnesota Homeownership Center's Advisory Council)
• We successfully raised over$6 million to preserve Joan Trahan, USDA Rural Development*
network capacity during a gap in federal funding. Nicola Viana, Washington County HRA*
• We received additional funding to support a Rapid (Representing Minnesota Homeownership Center's Advisory Council)
Rehousing program,an innovative grant program Stephanie Vergin, USDA Rural Development
to help households obtain long-term stable housing 1 Lowell Yost,Family Housing Fund*
after experiencing foreclosure. 87%of households
remained continually housed one year later. *Term ended March,2011
Minnesota Homeownership Center Anni,al Report 2011
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Financial at nt
Statement of Financial Position Statement of Activities
Current assets Support and revenue
Cash and cash equivalents $2,400,803 Contributions $1,225,885
Accounts receivable 187,643 Grants and contracts 1,804,997
Contributions receivable 402,742 Loan repayments 16,186
Prepaid expenses 3,119 Sales of workshop manuals 31,278
Security deposit 700 In-kind contribution 59,194
Inventory 18,605 Interest 7,460
Total current assets 3,013,612 Other 30,486
Property and equipment-net 114,078 Subtotal 3,175,486
Total assets 3,127,690 Total support and revenue 3,175,486
Liabilities and net assets Expenses
Current liabilities: i Program services 2,684,151
Accounts payable 236,123 Management and general 149,685
Due to HECAT 250,000 Fundraising 38,511
Accrued expenses 46,992
Funds held for others 13,655 Total expenses 2,872,347
Capital lease-short term 3,623 j Change in net assets 303,139
Total current liabilities 550,393
Net assets - beginning of year 2,272,272
Non-current liabilities:
Capital lease-long term 1,886 Net assets - end of year 2,575,411
Total liabilities 552,279
Other
Net assets: 4.6% Revenue
Unrestricted:
Undesignated 1,304,355 tits
Board designated: u
Mortgage foreclosure prevention
loan pool 196,580
Reserves 209,027 .
Total board designated 405,607 Grants&Contracts
Total unrestricted 1,709,962 56,8%
Temporarily restricted 865,449 Administration
5%
Total net assets 2,575,411
Fundraising
Total liabilities j Expenses 1%
and net assets 3,127,690 ° x'
,A Program Delivery
Minnesota 94%
Homeownership
Center
www.hocmn.org