The Minnesota Home Ownership Center s mission is to promote. sustainable ownership for low- and moderate-income Minnesotans

Transcription

1 Annual Report 2007

2 The Minnesota Home Ownership Center s mission is to promote sustainable ownership for low- and moderate-income Minnesotans through the development and delivery of quality, standardized education, counseling and related support services. We strive to: Empower low and moderate-income households statewide to purchase and sustain affordable homes, with a major focus on those who face the greatest barriers and challenges to home ownership. Assure wealth creation for low-income individuals and communities by teaching sound financial and credit management as part of home buyer and home owner education and counseling. Preserve stability for families and children by preventing foreclosures. Conserve public and private resources within the broader community by averting the negative ramifications that foreclosures present for neighborhoods and cities.

3 Message from our & Board Chair Executive Director Minnesota faced unprecedented housing and mortgage challenges in According to Foreclosures in Minnesota: A Report Based on County Sheriff s Sale Data, more than 20,000 homes were lost to foreclosure in 2007, a 71% increase over The same report projects over 28,000 foreclosures in The Minnesota Home Ownership Center is leading the response to this mortgage crisis. Through our partnerships with nonprofits, governments, and other stakeholders, we articulated and implemented a statewide capacity building initiative, including: more than tripling the number of mortgage support advisors engaged in foreclosure counseling; launching a comprehensive plan for increasing public education through new outreach initiatives; and participating in a range of foreclosure-related research and initiatives. Preventing foreclosures through counseling is a small fraction of the cost compared to those incurred by the multiple stakeholders impacted by foreclosure. The average cost of providing a homeowner with foreclosure counseling is about $1,000, compared to costs as high as $34,000 per foreclosure for local governments and $59,000 for the mortgage industry. Minnesota s model for foreclosure counseling is unique in the country. No other state offers a centralized support model with consumer services delivered locally. In 2008, the Center estimates that 20,000 impacted homeowners will be assisted through our network of local providers. While purchasing a first home may prove to be more challenging in the future, the Minnesota Home Ownership Center remains committed to making sustainable, affordable new home ownership attainable for Minnesota families and communities through our first-time home buyer education services. The current mortgage crisis underscores the need for programs and services that offer potential buyers important, trusted information, like our Home Stretch program. Working with Home Stretch providers, buyers learn how to seek out reliable lenders and realtors; the responsibilities of home ownership; and how to plan financially for achieving and sustaining their home. Thank you for your partnership and support. Mike Haley Chair, Board of Directors Julie Gugin Executive Director hocmn.org 1

4 2007 HIGHLIGHTS In 2007, the Minnesota Home Ownership Center provided key support services to a statewide network of 50 community based agencies. These agencies, in turn, delivered pre-purchase, post-purchase and foreclosure education and counseling programs to low- and moderate-income households. Our model is unique. No other state has this centralized, standardized approach to home owner support services. 2 Annual Report 2007

5 Empowered more than 13,000 lowand moderate-income families with the tools they need to purchase and sustain their homes. More than 4,400 households received foreclosure counseling and over 5,000 households participated in pre-purchase programs. Embarked on a strategic planning process to determine the direction of the organization for the next five years. Introduced a new logo and corporate identity, allowing the Center to implement a new branding protocol on its publications and materials. Conducted dozens of trainings for network partners, including trainings on: the CounselorMax client management system, NeighborWorks pre-purchase train-the-trainer certification, best practices for pre-purchase counseling, newly passed antipredatory lending legislation and foreclosure counseling. Created a refinance counseling program with accompanying program standards in response to new state legislation. Recruited 19 network partners to offer this service statewide. hocmn.org 3

6 Foreclosure Preventio When the number of Minnesota foreclosures dramatically increased in 2007, the Minnesota Home Ownership Center was uniquely positioned to respond to the crisis. Equipped with a strong network of non-profit and public agencies, foreclosure counseling services were already available in every county in Minnesota. Faced with a dramatic increase in the need for foreclosure services, the Center needed to look no further than its network partners and build on its successful model of foreclosure counseling. The Center, in partnership with Minnesota Housing, the Family Housing Fund and Greater Minnesota Housing Fund, put a plan in place to increase the foreclosure counseling service capacity and to retool the service delivery model for greater efficiency. This service model helps families facing foreclosure through in-depth counseling, budgeting and financial management, intervention and advocacy, emergency financial assistance, and referrals. Foreclosure counselors also assist home owners develop and negotiate a recovery plan with their lenders and creditors. The result was an enhanced statewide foreclosure counseling system that could respond to escalating consumer demand efficiently and effectively. The initial implementation of this effort set the stage for the growth of the foreclosure counseling network in ,404 Minnesota homes were lost to foreclosure in 2007 More than 4,400 Minnesota households received foreclosure counseling Forty-eight percent of foreclosure counseling consumers avoided foreclosure 4 Annual Report 2007

7 n Program 2007 Key Foreclosure Prevention Efforts Began multi-faceted implementation of a statewide outreach and education program to raise awareness about the availability of foreclosure counseling services. This included developing collateral print materials; conducting numerous speaking engagements locally and nationally; and piloting consumer outreach through the St. Paul Public libraries. Hosted two Borrowers Workshops, offering 500 distressed home owners a forum to learn about foreclosure and their rights during foreclosure, meet with a foreclosure counselor, and discuss their mortgage options with their lenders. Participated in the Minnesota Foreclosure Partners Council, a statewide collaborative of housing stakeholders dedicated to implementing coordinated strategies for foreclosure prevention and community recovery. Secured funding to expand counseling capacity in Dakota, Washington and Hennepin counties. hocmn.org 5

8 Pre-Purchase Education & Counseling Home Stretch: Preparing home owners for sustainable home ownership A solid base of pre-purchase education and counseling helps to ensure that Minnesota families are fully prepared for the financial and practical responsibilities of home ownership. Home Stretch is the Center s pre-purchase education and counseling curriculum provided to homebuyers. Delivered through both workshops and individual advising, homebuyers gain the knowledge they need to examine their personal finances, understand the pros and cons of home ownership, determine their readiness for home ownership, and understand the steps required to successfully purchase and maintain a home. Home More than 5,000 households participated in Home Stretch workshops, and more than 1,500 received pre-purchase counseling. The Center maintained its commitment to emerging and underserved markets: More than 10% of the 486 workshops hosted throughout the state were held in language other than English Eighty percent of households served earned under 80% of the area median income. Approximately 30% of Home Stretch participants were single-headed households. 46 Annual Annual Report 2007

9 2007: A challenging time for home ownership Home ownership is a means for families to build wealth, achieve stability, and support their children s success in school and life. However, achieving and holding on to the American dream of home ownership became more difficult than ever in For low- and moderate-income families, the ability to achieve sustainable home ownership was challenged on a number of fronts. Stretch At the same time, declining home prices and increased availability of housing stock created unforeseen opportunities for homebuyers. The Center and its network partners were ready to address the needs of homebuyers interested in entering home ownership through the right door, empowered with information. Home Stretch prepares households to make wise, informed decisions about home ownership. Educators and advisors address concerns buyers may have about mortgage risks and buying in the current economy. New Leadership for Pre-Purchase Programs Our goal was to further strengthen Home Stretch, an already highly regarded and effective program. It became clear an important step would be to revise the consumer manual. With the help of Home Stretch providers, we began the process of developing a manual that would more accurately reflect home ownership today and better serve consumers. - Brooke Walker, Program Director In 2007, the Center undertook a number of steps designed to improve its nationally recognized, award-winning pre-purchase program: Hired pre-purchase program director, Brooke Walker. Began re-writing the Home Stretch manual and enhancing other program support materials. Adopted national standards for home ownership education and counseling and trained network partners on these standards. Implemented program review protocol that ensures timely support for agency partners and program excellence for consumers. hocmn.org 7

10 2007 Network Providers The Network Loses a Friend Kathie Davis Kathie Davis, a long-time Home Stretch Provider and friend of the Center, passed away in late Kathie was passionately involved in affordable housing issues with Partners for Affordable Housing and Resource Connections and throughout southeastern Minnesota. She will be fondly remembered for her dedication and devotion to those consumers she assisted throughout her career. ACORN Housing African Development Center American Dream Services Anoka County Community Action Program Arrowhead Economic Opportunity Agency Austin Housing & Redevelopment Authority Bi-County Community Action Program Carver County Community Development Agency CCCS of The Village Family Service Center Central Minnesota Housing Partnership Children s Home Society and Family Services City of Mankato, Economic Development Agency City of Owatonna City of St. Paul Planning & Economic Development Community Action Partnership of Suburban Hennepin Community Neighborhood Housing Services Cornerstone Community Realty Dakota County Community Development Agency Family Life Credit Services Headwaters Regional Development Commission Heartland Community Action Agency Hispanic Chamber of Commerce of Minnesota Inter-County Community Council KOOTASCA Community Action LSS Financial Counseling Neighborhood Development Alliance Neighborhood Housing Services of Duluth Neighborhood Housing Services of Minneapolis Northside Residents Redevelopment Council Northwest Community Action Agency Ottertail-Wadena Community Action Council Partners for Affordable Housing PRG, Inc. Rochester-Olmsted Community Housing Partnership Semcac St. Paul Urban League Southwest Minnesota Housing Partnership Strickland Associates Tri-Valley Opportunity Council Twin Cities Habitat for Humanity University of Minnesota Extension Service, Blue Earth County University of Minnesota Extension Service, Dodge County University of Minnesota Extension Service, Douglas County University of Minnesota Extension Service, Grant County University of Minnesota Extension Service, Pennington County Washington County Housing and Redevelopment Authority West Central Minnesota Communities Action White Earth Investment Initiative Wright County Community Action YES Consulting Designates a new provider 8 Annual Report 2007

11 Expanded Outreach & Marketing The Center partnered with the St. Paul public libraries to begin its implementation of a statewide outreach and education plan to raise awareness about the availability of foreclosure counseling services. Library patrons were increasingly asking library staff about foreclosure resources. The Center created support tools for librarians to use when answering clients questions and materials that could be displayed throughout the library system. The materials stress that home owners facing mortgage crisis are not alone. The primary message directs home owners to foreclosure counseling services, but also includes practical steps that home owners can take themselves. The campaign was an instant success. Requests came in to the Center from a variety of sources asking for additional materials. What began as bookmarks and posters to be used in a library setting soon became a selfmailing postcard, banners, utility-statement inserts and standalone handouts. By year end the Center had distributed over 100,000 marketing pieces. In 2008 the Center will co-brand these materials with network partners and other community stakeholders as one element of a comprehensive outreach and education campaign. hocmn.org 9

12 10 Annual Report 2007

13 Funders The Minnesota Home Ownership Center is funded through the generous contributions of the following corporations, institutions, foundations and governmental agencies: $100,000 and above City of Minneapolis Department of Community Planning and Economic Development City of Minneapolis Empowerment Zone Family Housing Fund Hennepin County Housing, Community Works & Transit The McKnight Foundation Minnesota Department of Commerce $51,000-$99,000 City of St. Paul Planning and Economic Development Greater Minnesota Housing Fund Housing Partnership Network Minnesota Housing U.S. Bancorp Foundation USDA Rural Development Wells Fargo Foundation Minnesota $21,000-$50,000 F.R. Bigelow Foundation Fletcher Family Foundation The Saint Paul Foundation Wells Fargo Foundation on behalf of Wells Fargo Home Mortgage $11,000-$20,000 Bremer Bank Coldwell Banker Burnet Freddie Mac M&I Foundation TCF Foundation $1,000-$10,000 Countrywide Home Loans GMAC-RFC Homestead Mortgage Corporation Marquette Financial Companies TCF National Bank Thrivent Financial Valspar Foundation Western National Mutual Insurance Company hocmn.org 11

14 Financials Spending Facts 6% Administration 2% Fundraising 92% of our funding is used for program delivery (either directly by the Center or passed-through to support our network organizations). 6% of our budget is for administration (management) and 2% is dedicated to fundraising. 92% Program Delivery Statement of Activities For the year ended December 31, 2007 Support and Revenue Contributions $1,139,001 Grants and contracts 716,825 Loan repayments 38,758 Sales of workshop manuals 20,869 In-kind contribution 13,225 Interest 24,174 Other 19,086 Total support and revenue $1,971,938 Expenses Program and services $1,300,669 Management and general 77,729 Fundraising 26,926 $1,405,324 Change in Net Assets $566,614 Net Assets, Beginning of Year $627,802 Net Assets, End of Year $1, 194,416 Financial Position For the year ended December 31, 2007 Assets Cash and cash equivalents $1,296,385 Accounts receivable 105,270 Contributions receivable 268,750 Prepaid expenses 2,495 Equipment, less accumulated depreciation of $27,196 23,531 $1,696,431 Liabilities and Net Assets Liabilities Accounts payable and accrued expenses $252,015 Due to HECAT 250,000 $502,015 Net Assets Unrestricted Undesignated $374,149 Board designated for: Mortgage foreclosure loan pool 167,683 Reserves 122,974 Total Board designated 290,657 Total unrestricted 664,806 Temporarily restricted 529,610 $1,194,416 $1,696, Annual Report 2007

15 Board of Directors Eduardo Barrera A.H. Wilder Foundation Ron Rankin City of Minnetonka Stacey Bostwick, Advisory Council PRG, Inc. Robin Peterson Coldwell Banker Burnet David Boyce, Secretary Stonebridge Bank Marilyn Bruin University of Minnesota Extension Service Joe Collins City of St. Paul Planning & Economic Development Elfric Porte City of Minneapolis Community Planning & Economic Development Bill Sarvela TCF National Bank Victoria Murray Shipley, Vice President US Bank David Eide Western National Mutual Insurance Company Todd Sipe Thrivent Financial Bank Jim Erchul Dayton s Bluff Neighborhood Housing Services Richard Smith Minnesota Housing Chris Galler Minnesota Association of REALTORS Susan Strasser Wells Fargo Bank Karen Gajeski Bremer Bank Stephanie Vergin Greater Minnesota Housing Fund Mike Haley, President Minnesota Housing Linda White Fannie Mae Minnesota Office Lance Larson USDA Rural Development Pam Zagaria Family Housing Fund David Lindstrom M&I Bank hocmn.org 13

16 Center Staff Karen Duggleby Research Director Julie Gugin Executive Director Bobbie Hoff Administrative Assistant Teresa Howard Intern Ed Nelson Marketing & Communications Manager Brian Paulson Intern Dana Snell Program Director Brooke Walker Program Director Debbie Wuerffel Program Manager