ConneCting Communities to Capitalsccommunityloanfund.org/wp-content/uploads/2015/03/2012.pdf · 2016-07-07 · Connecting Communities to Capital: 2012-2013 Annual Report 1 Dear Friends,

investing in community

ConneCting Communities to Capital2012-2013 Annual Report

“Housing is where jobs go to spend the night.”

– Mary Graham, Charleston Metro Chamber of Commerce

Mayor Joseph P. Riley, Jr. City of Charleston

Housing matters: tri-County Housing summit, may 17, 2013

Connecting Communities to Capital: 2012-2013 Annual Report 1

Dear Friends,Connecting Communities to Capital is LHT’s theme for our

2012-2013 annual report. The topic reflects our growing emphasis on funding

the many variables that go into building successful communities. While we

continue our core mission of financing affordable and workforce housing,

we recognize that housing must work in conjunction with other community

assets. Therefore, we have expanded our mission to include lending for

access to healthy foods, community facilities, and community businesses.

Connecting Communities to Capital reflects our geographic

expansion to include all communities in South Carolina. When we made

our first loan in 2005, our focus was on the Charleston tri-county region;

over the past two years, we expanded to include Georgetown County,

the City of Beaufort, and the Town of Port Royal. Recognizing the need

to create opportunity across South Carolina, we now provide funding

and services statewide with an emphasis on the 10 coastal counties.

Connecting Communities to Capital reflects our collaborative

efforts with local, state, regional, and national partners to address the

growing resource needs facing underserved communities across the state.

Collectively, we provide experience, knowledge, and capital to better

serve our target and focus areas. This past year alone, these partnerships

helped to provide educational opportunities on healthy food retail and

affordable housing to community and state leaders.

Connecting Communities to Capital reflects our relationships

with investors and donors. We appreciate the opportunity to put your

investment to work and to leverage your commitment by creating new

funding opportunities. Over the past 12 months, we have leveraged our

capital 10:1.

With your support, we will continue to build vibrant and smarter

communities by bringing capital investment where it is needed most, by

building capacity where it is lacking, and by helping to focus dialogue

statewide to explore ways to address pressing community issues.

Connecting Communities to Capital - bringing together partners,

resources, and solutions to meet the capital needs of South Carolina

communities.

Karen AbramsBoard Chair

Michelle MappExecutive Director

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yeAR in ReVieWCapitaliZation$1,300,000 in investments and program grants

$703,806 financial Assistance Award from the uS Treasury Cdfi fund

$590,531 in operating grants

$226,669.81 in earned revenue

lenDing$3,681,942 in development loans

$35,000 in affordable housing subsidies

$46,949 in down payment and closing cost loans

aDVoCaCySponsored statewide workshop Growing food & Opportunities in South Carolina

Hosted inaugural Housing Matters: A Tri-County Housing Summit

Leadership of SC food Access Taskforce and SC Community development finance Alliance

eXpansionexpanded scope of services to include healthy food retail, community facility and community business lending

expanded staff by hiring a program manager for the healthy food and community facility loan programs

finalist for the 2013 Wells fargo neXT Seed Capital Award

WHy We inVest: sCBt“SCBT is committed to improving the lives of Lowcountry residents. Our

investment will help LHT continue to provide affordable housing options

and create positive social and economic change for our local communities.”

– Thomas Anderson, Vice President., SCBT


investing in community

iMPACT

WHy i inVest:robert Johnston“As an investor, i seek opportunities that not only provide

a financial return, but allow me to support an organization i

believe in. By investing with LHT, i am able to make a difference

in my local community.”

– Robert Johnston, The InterTech Group

$41.7 Million

in development

$3.6 Millionin financing

335jobs created

740families served

1 business

1community

facility

296housing units

14loans

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COnneCTinG COMMuniTieS TO CAPiTAL

aFForDaBle Housing loan: toWn oF HollyWooDLHT provided the Town of Hollywood a loan in the amount of $253,784 and provided a housing subsidy of $25,000 for Holly Grove, a 42-unit project for families at 80% AMi or below. LHT’s financing will be used to construct the first phase of the project, four units of affordable rental housing for families at 80% AMi or below, and will be used as a catalyst for the next phase of development.

HealtHy FooD loan: HuB City CooperatiVeSpartanburg, South Carolina is a designated food desert, and serves as the perfect location for Hub City Cooperative, a consumer food co-op that will provide healthy, affordable food options to local residents. LHT recently approved a loan in the amount of $571,800 to purchase and rehabilitate an abandoned building in downtown Spartanburg that will serve as retail space for the co-op. Hub City expects to begin renovations in 2014.

Community FaCility loan: Crisis ministriesLHT provided Crisis Ministries a development loan in the amount of $500,000 for its Veterans’ dorm, a 41-bed transitional housing facility for homeless male Veterans. This marks LHT’s second investment in the project.

Community Business loan: Humanities FounDationin order to continue providing affordable housing options to families earning 60% of the area median income (AMi) or below, the Humanities foundation approached LHT to help address the liquidity requirements mandated by their national financial institution. LHT’s loan in the amount of $500,000 provided critical financing that allowed the Humanities foundation to secure additional required construction financing to ensure project completion. As a result, 168 affordable rental units were developed for very low-income households.

“Securing the loan from Lowcountry Housing Trust was a huge step toward accomplishing our fundraising goal. With LHT’s support, not only are we closer to reaching the funding goal, we also have the support of an outstanding community development organization that believes in the power of the cooperative business model to build stronger, more economically-sound communities.” Erin Ouzts, Hub City Cooperative

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LendinGaFForDaBle Housing DeVelopment loans

CHARLeSTOn COunTy HuMAn SeRViCeS COMMiSSiOn Loan Amount: $150,000 Location: Charleston impact: 1 unit/3 jobs

CHARLeSTOn COunTy HuMAn SeRViCeS COMMiSSiOn Loan Amount: $150,000 Location: Charleston impact: 2 units/6 jobs

BAy POinTe ii, LLC Loan Amount: $325,000 Location: Myrtle Beach impact: 56 units/68 jobs

MAdiSOn STATiOn ii, LLCLoan Amount: $200,000 Location: Columbia impact: 48 units/59 jobs

PORT ROyAL APARTMenTS, LLCLoan Amount: $170,000 Location: Port Royal impact: 60 units/73 jobs

ROCK POinTe APARTMenTS, LLCLoan Amount: $200,000 Location: Rock Hill impact: 48 units/59 jobs

COBALT deVeLOPMenTS, LLC Loan Amount: $232,000 Location: north Charleston impact: 2 units/6 jobs

LiGHTHOuSe ReAL eSTATe SeRViCeSLoan Amount: $150,000 Location: north Charleston impact: 6 units/3 jobs

MeTAnOiALoan Amount: $175,000 Location: north Charleston impact: 8 units/4 jobs

neW AMeRiCALoan Amount: $301,158 Location: Orangeburg impact: 6 units/19 jobs

TOWn Of HOLLyWOOd Loan Amount: $253,784 Location: Hollywood impact: 4 units/13 jobs

TRi-COunTy ReGiOnAL deVeLOPMenT CORPORATiOnLoan Amount: $375,000 Location: Georgetown impact: 14 units/3 jobs

Community FaCility loan

CRiSiS MiniSTRieSLoan Amount: $500,000 Location: Charleston impact: 41-bed facility/19 jobs

Community Business loan

HuMAniTieS fOundATiOnLoan Amount: $500,000 Location: Charleston impact: working capital

WHy We inVest: pnC Bank“PnC Bank has a strong commitment to investing in our local

communities and supporting Cdfis. We are proud to fund the

important work of LHT, helping them to provide both development

loans and technical assistance in communities where they are most

needed, but often not readily accessible.”

– John Bryson, Development Advisor, PNC Bank

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CAPACiTy BuiLdinGWorKsHops

August 15, 2012 AffORdABLe HOuSinG PROGRAM WORKSHOPLocation: Beaufort # of Attendees: 64

August 29, 2012 AffORdABLe HOuSinG PROGRAM WORKSHOP Location: Pawley’s island # of Attendees: 36

december 10, 2012 neW MARKeT TAX CRediT WORKSHOP Location: Port Royal # of Attendees: 18

June 26, 2013 HOMe CAPACiTy BuiLdinG WORKSHOP Location: Charleston # of Attendees: 18

training

October 27, 2012

HOMeBuyeR ASSiSTAnCe TRAininG

Location: Pawley’s island

# of Attendees: 12

december 6, 2012

BeGinneR deVeLOPeR TRAininG

Location: Charleston

# of Attendees: 11

January 12, 2013

HOMeBuyeR ASSiSTAnCe TRAininG

Location: Georgetown

# of Attendees: 21

March 23, 2013

HOMeBuyeR ASSiSTAnCe

Location: Georgetown

# of Attendees: 8

eVents

September 25, 2012 GROWinG fOOd & OPPORTuniTy in SOuTH CAROLinALocation: Columbia # of Attendees: 200

May 17, 2013 HOuSinG MATTeRS: TRi-COunTy HOuSinG SuMMiTLocation: north Charleston # of Attendees: 118

WHy We inVest:Frances p. Bunnelle Foundation“We partnered in a program related investment with the Lowcountry

Housing Trust because we appreciate their vision for a broader

base of housing in Georgetown County. Their innovative process of

leveraging funding from a variety of investors was very appealing.

We joined with County government to fund LHT in Georgetown

and we are hopeful that their presence in our community will move

Georgetown County forward. “

– Geales Sands, Executive Director, Frances P. Bunnelle Foundation


TeCHniCAL ASSiSTAnCelHt offers individualized technical assistance to guide you

through the complexities of the development and project

financing process.

2012 Client: Crisis ministries, non-profit organization

service: LHT assisted Crisis Ministries with applying for and receiving a

federal Home Loan Bank of Pittsburgh award in the amount of $250,000;

the application was for gap financing needed for the Homeless Veterans

Transitional dorm. Specifically, LHT assisted with the completion of

budget spreadsheets required for the request.

2013 Client: summit Development partners, liHtC Developer

service: LHT assisted Michael with the submission of a Low-income

Housing Tax Credit application for a project in Greenville. As a new

developer, Michael requested LHT’s assistance with ensuring compliance

with the application package. The application is pending approval from the

state and will provide 44 units if approved.

2013 Client: BCD affordable Housing, For profit Developer

service: LHT assisted BCd Affordable Housing with compliance of a

Low-income Housing Tax Credit property. Specifically, LHT reviewed

documentation for accuracy, defined liability for outstanding loans on

the property, and provided clarification on compliance requirements.

BCd is currently rehabilitating the property to provide 22 rental units

in Charleston.Crisis Ministries, Homeless Veterans Transitional Dorm

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dOnORSTHank you To our 2012-2013 Donors for THeir ongoing supporT of THe operaTions of THe lowcounTry Housing TrusT

FinanCial institutionsBank of America BB&T Heritage Trust federal Credit union SCBT SunTrust Wells fargo

FounDationsfrances P. Bunnelle foundationMary Reynolds Babcock foundation

goVernmentCharleston CountyCity of BeaufortCity of CharlestonCity of north CharlestonGeorgetown CountySC State Housing finance & development AuthorityTown of Port Royalu.S. department of Treasury Cdfi fundWaccamaw Regional Council of Governments

DonorsKaren and Andy AbramsThomas AndersonAmy BakerMagda BakerTom and Julie BakerMeg Calnon

debra CrawfordJoan and George dehnenadine deif and Robert JohnstonSharon fratepietroCharles and Cynthia GoldmanAshley and Jennifer HeggieAlice HerrmannJacquelyn and James HeywardTammie and John HawkinsPeggy HuchetChristie McCoyRobert nettlesJean normanRon Owensflorence PetersWhitney PowersKelly PriceMatt SloanSloan family Charitable fundHenry and Rochelle SlykerSarah and Craig SmithBill Stanfield and evelyn Oliveirafred Vereen, Jr.Randy and debby WaidRon and Susan WattsSteve and Jenny WichmannPamela Williams and Jary HulstHenrietta and nicholas WoodwardTony and Heidi WoodyWendy Zara


inVeSTORSImpact investments are a growing tool that financial institutions, philanthropists, and foundations use to employ their capital for the greatest social impact. A loan from you ($25,000 minimum) or your organization ($100,000 minimum) to LHT offers both a financial return (quarterly interest payments, a 33% state tax credit, and principal repayment) and a social return; your loan is put to work improving the communities in which we live, work, and play.

Thank you to our investors for their ongoing support.

for more information on investment opportunities, please visit www.lowcountryhousingtrust.org, or call 843-973-7285.

ARCHITECTURAL

ASSO CIATES, l lc AniTA Zucker

roberT JohnsTon

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finAnCiALSa snapshot of lHt’s financial health as of 12/31/2012:

1. FinanCially sounD

a. net asset ratio, a measure of equity to total assets, was 51%

b. Sound capital structure as evidenced by

low debt/equity ratio of 42.2%

c. 10 months of operating cash on hand

2. soliD loan portFolio

a. Only experienced one write-off in its history

b. no past due accounts

c. Loan loss reserve ratio of 5% is sufficient to cover any future

potential losses

3. aVailaBle FunDs

a. Capital available for lending was $5,684,527 as of 12/31/2012

b. funding from the uS Treasury for affordable housing, healthy

food retail, community business, and community facilities

Elliott Davis, LLC audited the financial statements for the fiscal year ending December 31, 2012 in accordance with generally accepted accounting principles and expressed an unqualified opinion. The audit was approved by the Board of Directors and is available upon request by emailing [email protected].

$-

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

$3,500,000

2008 2009 2010 2011 2012 YTD 2013

ExpensesProgram Services 621,991.00$ Management and General 50,901.00$ Fundraising 36,037.00$

708,929.00$

Investments2008 $0.002009 $250,000.002010 $200,000.002011 $617,000.002012 $950,000.00

$2,017,000.00

88%

7% 5%

Program Services Management and General Fundraising

$0.00

$250,000.00 $200,000.00

$617,000.00

$950,000.00

2008 2009 2010 2011 2012

loans outstanDing

annual groWtH in inVestments

WHy We inVest:Bank of america“As the nation’s largest Cdfi lender, Bank of America recognizes

the critical role community loan funds like Lowcountry

Housing Trust play in revitalizing South Carolina’s economy.

This $1 million investment, the largest private investment

in Lowcountry Housing Trust’s history, will increase the

supply of high-quality affordable housing through long-term,

low interest-rate loans for local projects. Our partnership

with Lowcountry Housing Trust is part of Bank of America’s

community development commitment to increase lending and

investing in local communities with an emphasis on affordable

housing opportunities in underserved areas.”

– Dan Letendre, managing director for Bank of America’s

Community Development Financial Institutions, Bank of America

statement oF FinanCial position

As of december 31, 2012 (with comparative totals for 2011)

assets

Current assets 2012 2011 Cash and cash equivalents 4,544,718 4,305,335 Accounts receivable 200,000 19,808 Promises to give, current portion 50,000 100,000 Other current assets 4,481 4,308 Loans receivable, current portion 85,012 382,975 total current assets 4,884,211 4,812,426

non-Current assets Property and equipment, net 33,288 23,926 Promise to give, net of current portion 0 49,020 Loans receivable, net of allowance for loan loss and current portion 2,237,976 734,960 total non-current assets 2,271,264 807,906 total assets 7,155,475 5,620,332

liaBilities

Current liabilities Accounts payable 5,061 5,341 Accrued expenses 17,513 15,142 deferred revenue 1,405,961 2,263,642 Refundable advances 42,413 79,236 total current liabilities 1,470,948 2,363,361

other liabilities Other liabilities-program related investments 1,175,000 475,000 Other liabilities-equity equivalent investments 842,000 592,000 total other liabilities 2,017,000 1,067,000 total liabilities 3,487,948 3,430,361

net assets unrestricted undesignated 2,675,635 1,464,170 Board designated 895,657 527,200 Temporarily restricted 96,235 198,601 total net assets 3,667,527 2,189,971 total liabilities and net assets 7,155,475 5,620,332



708,929.00$

Investments2008 $0.002009 $250,000.002010 $200,000.002011 $617,000.002012 $950,000.00

$2,017,000.00

88%

7% 5%


$0.00

$250,000.00 $200,000.00

$617,000.00

$950,000.00

2008 2009 2010 2011 2012


708,929.00$

Investments2008 $0.002009 $250,000.002010 $200,000.002011 $617,000.002012 $950,000.00

$2,017,000.00

88%

7% 5%


$0.00

$250,000.00 $200,000.00

$617,000.00

$950,000.00

2008 2009 2010 2011 2012

operational eFFiCienCy 2012

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LHT partners with local organizations to address their

self-identified economic and community development

needs. While LHT provides critical financing, its borrowers

are on the ground constructing and/or rehabilitating

affordable housing units, healthy food retail outlets, and

other community assets. This is the story of one family

whose neighborhood is being transformed as a result of a partnership between LHT and

the community-based non-profit, Metanoia.

“Homeownership has been a blessing.”

When Lisa, a single mother of two, decided to purchase her first home, she turned

to LHT for help. Working through Metanoia, Lisa was connected to LHT’s Homebuyer

Assistance Program. Through this program, Lisa realized the small steps she needed to

take to position herself financially for homeownership, and the down payment assistance

she received allowed her to realize her dream sooner than she had expected.

“Healthy food options are limited.”

The neighborhood where Lisa bought her home lacks important community assets

including a grocery store. The closest option for her is five miles away, which makes grocery

shopping difficult, especially for those who lack transportation. While the surrounding

streets are lined with fast food restaurants, they are void of healthy alternatives. LHT is

currently working with Metanoia, the City of north Charleston, and other community

partners to attract a grocery store to the neighborhood.

“What do i want in my community?”

“A grocery store, drug store, and gas station...because that’s what i use the most.”

“Through partnerships with community based organizations, LHT is able to provide

affordable lending products and services which are critical to bringing about positive,

long-term social and economic change for the communities we serve” states Michelle

Mapp, executive director of LHT. “We provide patient, flexible capital to enable low-

wealth communities like the Chicora/Cherokee neighborhood to build their own assets,

transform their neighborhood, and join the economic mainstream.”

“i hope that this will be the beginning of change.”

Creating positive social change, Metanoia is constructing a community center,

something Lisa is anxious to have available to her son. The youth enterprise Center

will fill a gap, offering afterschool, social, and mentoring programs for the youth of

the neighborhood. “When the Center opens, my son will have a safe environment

where he can learn and play.”

“We are here to be a catalyst to other investments in this community”

states Patrick King, LHT lending director. “We recognize that housing is just the

first piece of the puzzle. We are also here to create jobs and ultimately to help

create opportunity.”

Since 2006, LHT has provided 5 loans totaling $403,809 to Metanoia for the construction,

acquisition, and rehabilitation of 14 homes. Metanoia is a grassroots organization that

invests in neighborhood assets to build leaders, establish quality housing, and generate

economic development in the Chicora/ Cherokee neighborhood of north Charleston.

For more information on our loan programs, please contact Patrick King at

[email protected].

Lisa McLean and granddaughter outside her home

inVeSTinG in COMMuniTy


GOVeRnAnCeoFFiCers

Karen Abrams (CHAiR) Keller Williams Realty

Peggy Huchet nJ Housing Trust fund (Retired)

Ron Owens evening Post Publishing Company

Kelly Price iCf international

Tony Woody Thomas & Hutton engineering Company

DireCtors

Thomas Anderson SCBT

Tom Baker Architectural Associates, LLC

Zach Bearden Mashburn Construction Company

Jim Haley Cityvolve, LLC

Ashley Heggie Greystar

Jacquelyn Heyward Town of Hollywood

Robert Johnston The interTech Group, inc.

Montez Martin Lowcountry Housing and economic

development foundation

Rodly Millet Human Resources Consultant

Robert nettles Howell Linkous & nettles, LLC

florence Peters City of Charleston

Whitney Powers Studio A, inc.

Sarah Smith Waccamaw Regional Council of Governments

Bill Stanfield Metanoia

Susan Watts MeadWestvaco

Steve Wichmann Heritage Trust federal Credit union

Pamela Williams Santee Cooper

Henrietta Woodward Anchor Consultant, LLC

Wendy Zara Wells fargo Advisors (Retired)

Housing loan Committee

Peggy Huchet (CHAiR) nJ Housing Trust fund (Retired)

Thomas Anderson SCBT

Russ Gantt Td Bank

Ashley Heggie Greystar

Brian Hellman, esq. Hellman yates & Tisdale

edward McKelvey first federal

George Morrison Mcnair Law firm

Michael Wooddy Raven Cliff Company

CommerCial loan Committee

Zach Bearden (CHAiR) Mashburn Construction Company

Jennifer Crabb The Bank of South Carolina

Thomas Lauria Small Business development Center

Alan St. Clair Lowcountry innovation Center

Pamela Williams Santee Cooper

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STAff

Michelle Mapp Executive DirectorPatrick King Assistant DirectorSuzanne Lynch Finance Directordebby Waid Program DirectorAlice Williams Accounting ManagerAnna Hamilton Program ManagerKaren Hauck Communications DirectorShirley Wilkins Program Manager

debra Crawford Executive Assistant

HORRY1

YORK1

BERKELEY1

OCONEE1

ORANGEBURG1

CHARLESTON17

RICHLAND1

BEAUFORT2

NEWBERRY1

GREENVILLE1

GEORGETOWN1

SPARTANBURG1

MARLBORO1

DORCHESTER1

AIKEN

LEE

COLLETON

JASPER

SUMTER

UNION

LAURENS

FLORENCE

KERSHAWFAIRFIELD

ANDERSON

LEXINGTON

CHESTER

MARION

WILLIAMSBURG

PICKENS

HAMPTON

SALUDA

DILLON

CLARENDON

CHESTERFIELD

BARNWELL

ABBEVILLE

LANCASTER

EDGEFIELD

DARLINGTON

CALHOUN

BAMBERG

CHEROKEE

GREENWOOD

ALLENDALE

MC CORMICK

BeauFort oFFiCe1911 Boundary St.Beaufort, SC 29902Phone: 843.801.3131Primary Contact: Shirley [email protected]

georgetoWn oFFiCe1230 Highmarket St.Georgetown, SC 29440Phone: 843.737.6153Primary Contact: Patrick [email protected]

projects Financed by

lHt

CHarleston oFFiCe1535 Hobby St., Suite 209north Charleston, SC 29405Phone: 843.973.7285Primary Contact: Michelle [email protected]

“if the charleston region doesn’t successfully address the issues that affect our quality of place and attractiveness to young talent...we will not be able to sustain our current economic success over time in a meaningful way.”

– Stephen C. Warner Charleston Regional Development Alliance

Mitchell Silver City of Raleigh

Lowcountry Housing Trust1535 Hobby Suite 209,St.

North Charleston, SC 29405

843-973-7285 www.lowcountryhousingtrust.org

ConneCting Communities to Capital2012-2013 Annual Report

Documents

ConneCting Communities to Capitalsccommunityloanfund.org/wp-content/uploads/2015/03/2012.pdf · 2016-07-07 · Connecting Communities to Capital: 2012-2013 Annual Report 1 Dear Friends,