Strategic Plan

Transcription

1 Strategic Plan A Community Development Financial Institution Affiliate of Cabrillo Economic Development Corporation and NeighborWorks America Homeownership Center Network Member As of January 2011, Ventura County Community Development Corporation began doing business as (DBA) Cabrillo Community Lending & Realty

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3 Contents Introduction 4 Methodology 5 Organizational History 6 Organizational Profile 7 Mission Statement 8 Vision, Values and Guiding Principles 8 Statement of Strategic Direction 9 Seven Key Goals for Strategies for Achieving the Seven Key Goals for Process of Implementation and Monitoring 18

4 Introduction Ventura County Community Development Corporation, through the extensive contributions and collaborative process of its Board of Directors, management, staff and stakeholders including government, business partners, community based organizations and clients has, over the past eighteen months, conducted a thorough review of the organization s mission, vision and operations and opportunities. This effort has led to the adoption of the first stand-alone strategic plan developed by VCCDC since the organization s inception in Originally, as an operating entity whose genesis came from within Cabrillo Economic Development Corporation, VCCDC s planning process was incorporated within the framework of CEDC s strategic plan. However, by 2008, it became clear to the Board and management of VCCDC, that it was time for the organization to develop its own long range plan due to the emerging risks of being a mortgage lender, the capital and debt complexities in its balance sheet, the divergent nature of its stakeholders and the near exponential growth of its operations and staff. Between the commencement and conclusion of the planning process the organization was forced to readdress its business strategies in light of the massive disruption of the capital markets, the financial liquidation of its primary lending partner, Neighborhood Housing Services of America and the marketwide shift to tougher borrower credit standards. The impact of these rapidly changing market dynamics on the future business of VCCDC has been fully integrated into this strategic plan throughout the many months of the planning process. The plan, as now adopted, provides a road map for the organization to follow as it implements is mission statement. In January 2011, in response to management s recommendation and approval of the Board of Directors, the Ventura County Community Development Corporation began doing business as (DBA) Cabrillo Community Lending and Realty. Ventura County Community Development Corporation will be referred to as Cabrillo Community Lending & Realty throughout the rest of this document, with the exception of the Organizational History Section. Board President 4 Executive Director

5 Methodology Laura Rocha, Cabrillo Community Lending & Realty s Homeownership Program Manager, served as Coordinator of the strategic planning process. Mark Levine served as a planning consultant. Cabrillo Community Lending & Realty s Strategic Plan was developed under the auspices of a Working Group consisting of the following people: Cabrillo Community Lending & Realty Board Members Mike McGuire, President Zeeda Daniele, Vice President Ernest Baskette, Treasurer Rodney Fernandez, Board Member Shane Saunders, Board Member Cabrillo Community Lending & Realty Management Staff Bertha Garcia, Executive Director Laura Rocha, Homeownership Program Manager Alex Vega, Lending Program Manager Contributions to the planning process included: Analysis of Cabrillo Community Lending & Realty s production trends Interviews with key stakeholders Focus groups with Cabrillo Community Lending & Realty s customers Surveys completed by Cabrillo Community Lending & Realty s Board and staff members Surveys completed by Cabrillo Economic Development Corporation s Senior Management Team Members Two retreats with Cabrillo Community Lending & Realty s Board of Directors One joint board meeting with Cabrillo Community Lending & Realty s Board of Directors and Cabrillo Economic Development Corporation s Board of Directors One full Cabrillo Community Lending & Realty staff retreat One stakeholders retreat Several in-depth Working Group sessions At the second retreat for the Cabrillo Community Lending & Realty s Board of Directors, staff, and branding consultants, led a session that resulted in the decision to create the DBA for Ventura County Community Development Corporation (VCCDC). The DBA for VCCDC is Cabrillo Community Lending & Realty. 5

6 Organizational History Ventura County Community Development Corporation was incorporated in June 2001, with the mission to undertake community development activities that will revitalize neighborhoods by stimulating investments. Ventura County Community Development Corporation was created to address the difficulties very low-, low-, and moderate-income families experienced when they attempted to purchase a home. To alleviate this problem, the organization lends amortized and deferred subordinate loans to families. The lending capital is acquired from financial institutions, intermediaries, foundations, municipalities, California s government, and the federal government. In 2004, Ventura County Community Development Corporation received certification as a Community Development Financial Institution (CDFI) from the Department of Treasury. A certified CDFI is a specialized financial institution that works in markets that are underserved by traditional financial institutions. As a certified CDFI, Ventura County Community Development Corporation has the opportunity to access more capital to provide gap financing to underserved populations. In 2005, as a result of Ventura County Community Development Corporation becoming a CDFI, Cabrillo Economic Development Corporation made a determination to transfer all of their NeighborWorks Homeownership Center activities and relationships to Ventura County Community Development Corporation. The NeighborWorks Homeownership Center was established to build the assets of low- to moderate-income families. We do this by financially assisting people in Ventura and Santa Barbara counties so they can purchase and retain a home. The original Homeownership Center was launched in In September 2001, the Homeownership Center joined the NeighborWorks Network and extended its services to Ventura and Santa Barbara counties. This network is run by NeighborWorks America, the country s preeminent leader in affordable housing and community development. Since its inception, the Homeownership Center has provided education, counseling, and lending services to more than 7,035 households preparing to purchase a home, or more recently, wishing to retain homeownership. An additional 658 families have become homeowners as a result of the homeownership classes offered at the NeighborWorks Homeownership Center. Ventura County Community Development Corporation is considered a full cycle lender, which means in addition to lending, the organization provides a variety of assistance throughout the home-buying process. For example, lower-income homebuyers are offered education, counseling, down-payment assistance, and consulting for first-time buyers. Counseling is also provided for troubled borrowers struggling to remain in their home. In January 2011, the Ventura County Community Development Corporation was approved by the Board of Directors to begin doing business as (DBA) Cabrillo Community Lending and Realty.

7 Organizational Profile Service Areas: Board of Directors: Ventura and Santa Barbara counties and adjacent areas in Los Angeles County Eight board members. The board may expand to to 11 members. If this occurs, the additional 3 board members are appointed by the Board of Directors of Cabrillo Economic Development Corporation. Cabrillo Community Lending & Realty Board Mike McGuire*, President Zeeda Daniele*, Vice President Jorge Gutierrez*, Secretary Ernest Baskette, Treasurer Shane Saunders, Board Member Rashi Kallur, Board Member Rodney Fernandez*, Board Member Lena Freiberg*, Board Member * Also serves on Cabrillo Economic Development Corporation Board Number of People Served: Annual Budget: Personnel: Net Total Assets: Approximately 1,200 people served annually FY 2011 operation budget of $1.4 million Fifteen full-time staff members and one part-time staff member $3,601,197 (FY 2010 VCCDC, now Cabrillo Community Lending & Realty, audited financials) 7

8 Mission Statement To strengthen and sustain vibrant communities by empowering and enabling low-to-moderate income individuals, families and businesses to build wealth through homeownership and entrepreneurship. Vision, Values and Guiding Principles Vision: Cabrillo Community Lending & Realty is committed to collaborating with our clients, service providers, funding agencies, and stakeholders to create opportunities to build wealth in the communities we serve. Values: The values of our organization are the foundation on which our work is built, and represent the shared commitment of Cabrillo Community Lending & Realty s board, staff, and volunteers. Respect we are committed to show respect for the dignity of clients of all races and income levels. Reliability we are committed to delivering on the promises we make to our stakeholders and clients. Innovation we are committed to providing innovative, flexible loan products and services to meet the ever-changing needs of our clients. Professionalism we are committed to high a level of professionalism, both in our workplace and in our communities. Inclusion we are committed to creating an environment in which any individual or group will feel welcomed, respected, supported and valued. Multiculturalism we are committed to welcoming diversity among our clients and showing fairness to all people. Leadership we are committed to leading the way to community stabilization by creating informed, skilled, and committed borrowers. Guiding Principles: Below are the guiding principles of the organization: Client Focus we are focused on delivering the outcomes our clients care about. Passion we have a passion to serve our clients and achieve our mission. Effective Practice we ask our stakeholders and clients to provide feedback on our services to help us meet the needs of our clients. Accountability we hold ourselves accountable to each other, and to the families and communities we serve. Fairness and Equity we make certain that everything we do is fair and equitable to our clients, community and stakeholders. Consistency we endeavor to provide consistency in the delivery of all programs and services. Sustainability we are committed to building relationships that provide long-term sustainability to Cabrillo Community Lending & Realty and our clients. 8

9 Statement of Strategic Direction Cabrillo Community Lending & Realty is committed to strengthening operations, services, financial resources, and communication to assure its capacity to serve low- and moderate-income clients as described in its mission statement, as well as expanding its operations as market conditions and resources permit. This Statement of Strategic Direction outlines the high level strategies Cabrillo Community Lending & Realty has set for the three year period This strategic direction will serve as Cabrillo Community Lending & Realty road map as it continues its long tradition of being a place for innovation, and a recognized leader in lending and homebuyer education. CCL&R is committed to facilitating homeownership and entrepreneurship through effective marketing and strategic partnerships. The following are four key strategic directions that guide our organization: Expansion. Act as a actalyst for homeownership and lending services through an expanded base of business partners; Sustainability. Achieve sustainability by targeting development of appropriate capital and diversifying streams of revenue, thus creating alternatives to lessen dependency on funding from grants; Collaboration. Increase clarity of the functions of Cabrillo Community Lending and Cabrillo Economic Development Corporation with a focus on further collaboration between the two organizations; Capacity. Retain existing talent and recruit new talent. 9

10 Seven Key Goals for The Seven Key Goals listed below provide the platform for Cabrillo Community Lending & Realty s business planning, operational management, service delivery and development. They take account Cabrillo Community Lending and Realty s history, rapidly changing context and policy development, as well as anticipating future opportunities. The Seven Key Goals emerge from, and reinforce, the organization s Mission, Vision, Values, Guiding Principles and Statement of Strategic Direction. 1. Sustainability. Expand traditional and alternative funding sources for operations, capital, and investments for long-term viability. 2. Expansion. Strategically place Cabrillo Community Lending at the forefront of community lending and homeownership services through the use of innovative products and services for the long-term viability of Cabrillo Community Lending and the community it serves by developing and strengthening key partnerships and geographic expansion. 3. Excel at the Fundamentals. Strengthen the existing capacity of Cabrillo Community Lending & Realty s, both as a whole and within current business lines, as measure by four main areas: homeownership, education, counseling and lending services. 4. Cabrillo Community Lending & Realty and CEDC Partnership and Collaboration. Position and maintain Cabrillo Community Lending & Realty as an independent and sustainable enterprise that aligns with the long-term viability and expected growth of CEDC. 5. Marketing/Visioning. Develop a strong and comprehensive marketing plan to enable Cabrillo Community Lending to increase its visibility and credibility, expand its client base and partnerships by becoming the trusted source in community lending and homeownership services in the Counties of Ventura, Santa Barbara, and Los Angeles. 6. Management Systems. Update, implement and enforce policies and procedures to effectively and efficiently serve more clients by simplifying, streamlining and creating uniformity of all current and new services that will deliver exceptional levels of responsive customer service. 7. Board Development. Strengthen the Cabrillo Community Lending & Realty Board s governance capacity and increase the engagement of Board members in furthering Cabrillo Community Lending & Realty s mission and strategic goals. The following pages list the seven key goals using the S.M.A.R.T. method, including the strategies for achieving the goals for the Strategic Plan. The acronym S.M.A.R.T. stands for Specific, Measurable, Achievable, Relevant, and Time-Bound. 10

11 Strategies for Achieving the Seven Key Goals for Cabrillo Community Lending & Realty s progress in achieving its goals will be documented and measured by the specific outcomes identified below. 1. Sustainability. Expand traditional and alternative funding sources for operations, capital, and investments for long-term viability. Goals: a. Increase Cabrillo Community Lending & Realty s budget from $1.4 million in 2011 to $1.7 million in 2013 a 10% growth rate by December b. Develop and implement a resource plan that results in a 10% increase in net gross income by December c. Maintain existing $3 million equity lines of credit through December d. Increase annual fee revenue from $661,531 (46%) of the FY 2011 $1.4 million operating budget to $1 million (60%) of the FY 2013 $1.7 million operating budget, thereby decreasing reliance on grants. Strategies for Achieving Goals: Manage short term assets and liabilities. Analyze existing resources and develop a plan to expand products and services and diversify funding revenues. Strengthen relationships with existing investors and add new investors by continuing to identify ways to leverage resources and acquire beneficial partnerships. Hire a dedicated staff member to strengthen and expand Cabrillo Community Lending & Realty s accounting department and services. Create policies for debt management that include sources of repayment. Review existing debt and plans for repayment. Continue to offer long-term solutions for providing affordable housing to low- and moderate-income families and minorities. Adapt to the ever-changing needs of the communities we serve. 11

12 2. Expansion. Strategically place Cabrillo Community Lending & Realty at the forefront of community lending and homeownership services through innovative products and services for long term viability of the organization and the community it serves, by developing and strengthening key partnerships, and geographic expansion. Goals: a. Complete a feasibility assessment to determine if Cabrillo Community Lending & Realty is able to expand its services to include small business loans by March b. Develop a plan to incorporate an in-house Real Estate Services Division that will include Acquisition and/or Rehabiitation of properties by March c. Develop and launch a Community Loan Fund that will service Ventura, Santa Barbara, and Los Angeles counties by June d. Restructure the partnership with Pacific Oaks Federal Credit Union to be a preferred lender and/or determine what other opportunities to offer services to its members are available by September e. Become a certified bankruptcy counseling agency by December f. Conduct a feasibility assessment to determine if Cabrillo Community Lending & Realty should become a statewide clearinghouse for other California nonprofit lenders and counseling agencies by December g. Conduct a feasibility assessment to determine if Cabrillo Community Lending & Realty should become, as a certified Community Development Financial Institution, a Federal Credit Union by December Strategies for Achieving Goals: Hire a consultant to work on the feasibility of offering small business loans. Consult with Community Housing Works and/or other organizations that have implemented an in-house Real Estate Services Division, and develop a business plan to expand/incorporate real estate services. Host a series of meetings to introduce the Community Loan Fund concept to potential investors. Research eligibility requirements to become a certified bankruptcy counseling agency and submit application if deemed feasible. Conduct surveys to NeighborWorks organizations and other nonprofit community homeownership programs to identify lending needs and CCL&R s ability to expand into this area. Research and work with other Community Development Financial Institutions that have become successful credit unions. 12

13 3. Excel at the Fundamentals. Strengthen the existing capacity of Cabrillo Community Lending & Realty, both as a whole and within current business lines, as measured by four main areas: homeownership, education, counseling and lending services. Goals: a. Homeownership assist 390 families in becoming homeowners by December b. Education Educate 2,375 families by holding workshops on these topics: Youth Financial Literacy, Adult Financial Literacy, 8-Hour Homebuyer Education, Post Purchase, and Foreclosure by December c. Counseling Counsel 2,900 families on these topics: Budget, Credit, Pre-purchase Planning, Home Equity Conversion Mortgage (HECM), and One-on-one Foreclosure Counseling by December d. Lending Provide 446 individual loans totaling approximately $47 million in financing. Activities: Close 199 first mortgage loans, totaling $37,412,000 Close 111 second mortgage loans, totaling $5,050,500 Close 136 deferred loans, totaling $4,080,000 Strategies for Achieving Goals: Implementation of a Marketing Plan that includes rebranding and web site design. Cross-train a select group of employees for public speaking and education assignments. Update workshop curriculum. Expand Homeownership Individual Development Account and Youth Individual Development Account programs. Develop a strategy to transition families from foreclosure to home buying. Establish a formal referral process with other community-based and faith-based organizations and government agencies, to refer all known resources to Cabrillo Community Lending & Realty. 13

14 4. Cabrillo Community Lending & Realty and Cabrillo Economic Development Corporation Partnership and Collaboration. Position and maintain Cabrillo Community Lending & Realty as an independent and sustainable enterprise that aligns with the long-term viability and expected growth of Cabrillo Economic Development Corporation (CEDC). Goals: a. Identify and formalize mutual lines of business that require a contractual agreement to support and minimize risk for each organization by June b. Work together to write a Memorandum of Understanding that formalizes the warranties and representations of each organization Cabrillo Community Lending & Realty and Cabrillo Economic Development Corporation and ensures the long-term sustainability of the Santa Maria Homeownership Center Satellite Office by July c. Have an Memorandum of Understanding in place by September 2011 that establishes the long-term collaboration between Cabrillo Community Lending & Realty and Cabrillo Economic Development Corporation with the following goals: 1) Leverage the collaborative relationship for the financial benefit of both organizations 2) Establish clear policies and procedures for financial reporting 3) Support each other s community building efforts 4) Collaborate on community branding. Strategies for Achieving Goals: Hold a minimum of one joint board meeting annually to discuss and clarify the business relationship between both organizations. Work together to identify, develop, and execute new business opportunities that will benefit both organizations. Collaborate with the Real Estate Development Division on two homeownership projects during the next three years. Establish an Individual Development Account Program (HIDA) Program for CEDC residents as a collaboration of CCL&R, Property Management and Community Building and Neighborhood Revitalization and enroll 16 households during the next three years. Collaborate to maintain Exemplary Status with NeighborWorks America during the next three years. 14

15 5. Marketing/Visioning. Develop a strong and comprehensive marketing plan to enable Cabrillo Community Lending & Realty to increase its visibility and credibility, expand its client base and partnerships by becoming the trusted source in community lending and homeownership services in the Counties of Ventura, Santa Barbara, and Los Angeles. Goals: a. Finalize rebranding and new marketing materials by July b. Redesign and launch a new web site that promotes our services and products, improves customer service, and creates private funding opportunities by July c. Develop a three-year marketing plan that includes internal and external strategies to increase production, expansion of service and visibility by July d. Implement and modify, if necessary, the three-year marketing plan developed by focusing on the key elements of marketing (positioning, product and service mix, place, pricing, and promotion) that will drive our organizations strategic growth and profitability during the next three years. Strategies for Achieving Goals: Acquire the finances and talent to facilitate our organization s rebranding, new marketing plan development, and Web site redesign. Establish an outreach strategy that is consistent with our target market s geographic location, ethnicity, gender, professional and socioeconomic diversity. Collaborate with Cabrillo Economic Development Corporation to publish the VISTAS newsletter, annual reports and other key collateral, with-in house design and layout. Develop and implement a marketing training plan to increase production. Develop and implement a Contact Management System that promotes our services to clients and stakeholders. Become a recognized household name by becoming the trusted source in community homeownership services, which include education, counseling, lending and realty services. 15

16 6. Management Systems. Update, implement and enforce policies and procedures to effectively and efficiently serve more clients by simplifying, streamlining and creating uniformity of all current and new services that will deliver exceptional levels of responsive customer service. Goals: a. Create effective communication (i.e. forms and letters) for clients and partners by July b. Revise policies and procedures for Education and Counseling by October c. Revise policies and procedures for lending services, including the Quality Control Manual, by October 2011 d. Conduct and Impact Assessment for the Homeownership Center services by December e. Implement new Loan Servicing Software by July f. Work with a consultant to conduct an impact assessment for the Homeownership Center by December Strategies for Achieving Goals: Evaluate the effectiveness of our services by using client surveys and customer service inquiries to create effective communication among our clients and partners and modify policies and procedures, as appropriate. Assign and assist staff member who will complete the revised policies and procedures and update annually, or as needed, during the next three years. Create a quality control process for counseling files, implement best practices, and strive for consistency among staff members. Develop a training plan for new and existing staff. Encourage staff development and ensure compliance with industry standards by providing training in areas such as time management and customer service. Create additional management systems and/or tools to strengthen the accounting functions with services provided through the department. Hire Consultant to work on impact assessment for the Homeownership Center. 16

17 7. Board Development. Strengthen the Cabrillo Community Lending & Realty (CCL&R) Board s governance capacity and increase the engagement of Board members in furthering Cabrillo Community Lending & Realty s mission and strategic goals. Goals: a. Retain seven active Board members through December b. Establish committees of Board and non-board members that will participate in Board meetings beginning December c. Increase the number of active Board members to nine by December d. Consider increasing the number of active board members to 11 by December e. Hold an annual joint session with the Cabrillo Economic Development Coporation Board. f. Require board members to assist CCL&R with achieving its goals by participating in activities that provide opportunities for building strong relationships with our partners. g. Board members will further our mission and strategic goals through speaking engagements and other advocacy activities. Strategies for Achieving Goals: Establish a formal Board Recruitment and Selection process, and assign staff member(s) to be responsible for this process. Conduct a skills inventory and prioritize skill sets for recruitment. Require Board Members to attend 75% of the regular Board meetings. Require Board Members to sign a commitment letter at the beginning of each year of service. Establish that part of serving on the Board includes furthering the mission and strategic goals of the organization through individual activities (e.g., speaking engagements). Each Board Member annually commits to and carries out at least two activities to advocate for and/or represent the organization in a public way. 17

18 Process of Implementation and Monitoring Cabrillo Community Lending & Realty (CCL&R) has several existing mechanisms that will be used to implement and monitor the progress on the seven key goals set in the CCL&R s Strategic Plan. These include: Monthly meetings of the Board of Directors. Annual retreats of the Board of Directors. Annual joint board meetings with CEDC Board. Monthly senior management team meetings, both as a full group and among subsets of management team members. Quarterly corporate meetings and annual all-staff evaluation and goal-setting retreats. Regular individual meetings between staff and managers and within departments. Management tools such as Goals and Controls and Vital Factor spreadsheets. New methods of communication, including the re-branding, launch of new website, marketing collateral and use of a new intranet for sharing documents and progress. Key goals of this Strategic Plan have been incorporated to the Cabrillo Economic Development Corporation Strategic Plan in order to ensure that the two organizations are aligned with their mutual goals and strategic direction. 18

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20 702 County Square Drive, Ventura, CA Tel: Fax: