Minnesota Homeownership Center Annual Report 2012 Breaking New Ground
Laura Ingalls Wilder once said that “Home is the nicest word there is.” At the Minnesota Homeownership Center, we couldn’t agree more. For the last 20 years, the Center has remained committed to one goal: making sustainable, affordable homeownership attainable for Minnesota families and communities.
The Center has persistently underscored the need for programs and services that offer potential buyers non-biased, trustworthy information to help them make good decisions about home buying. In addition Home is the nicest to supporting our Homeownership Advisors Network so that more than 20 non-profit, governmental and tribal organizations could word there is continue to offer our flagship homebuyer education program, Home Stretch, in 2012 the Center launched a first of its kind interactive Laura Ingalls Wilder online homebuyer education course known as Framework™. Now, both online and in-person, buyers learn how to seek out reliable lenders and REALTORS®; the responsibilities of homeownership; and how to plan financially for achieving and sustaining their home.
The number of homes lost to foreclosure in 2012 reached its lowest point since 2006, but thousands of Minnesota families still struggled. The Center continued to support our unique and critical foreclosure prevention model. Nowhere else in the country is there a centralized support model for foreclosure services delivered locally.
As we celebrate 20 years Leading Minnesota Home, we thank you for your continued partnership and support.
Mike Haley Julie Gugin President, Board of Directors Executive Director
www.hocmn.org 1993. Jurassic Park was the country’s top movie In pursuit of this vision, the Center recognized that the and the now-ubiquitous “Got Milk?” ad campaign only way to ensure accessibility and flexibility while was first launched by the California Milk Board. Here meeting the needs of today’s tech-savvy buyers, was in Minnesota, a group of forward-thinking affordable to create an online homebuyer education workshop. housing advocates, educators, real estate & lending professionals and community members were breaking new ground in the field of homeownership education and counseling by founding the Minnesota Homeownership Center.
Over the years, the Center continued to break www.FrameworkHomeOwnership.org new ground by unifying homebuyer education and counseling under a single certified curriculum and In 2012, Center formed a partnership with the counseling model known as Home Stretch. We were Housing Partnership Network to develop and one of the first organizations in the country to establish launch Framework™, the most comprehensive online protocols and procedures for foreclosure prevention homebuyer educational tool available anywhere in the counseling and even established a refinance counseling country. model that is now legislatively required when holders of certain affordable mortgages would like to obtain a Framework™ incorporates the most advanced best refinance. practices for online adult learning and engages users via a fun and personalized learning experience. Breaking new ground to help Framework’s™ ‘graphic novel’ theme is visually Minnesota households become or remain appealling, intuitive and easily allows homebuyers to access information and complete the course at their successful homeowners and building own pace.
stronger communities across the state This innovative is what we do. approach to homebuyer Our award-winning Home Stretch curriculum has education is demonstrated the effectiveness of pre-purchase once again education in positively affecting sustainable helping the homeownership. Given the housing crisis of the last Center break few years, it’s abundantly clear that a significant number ground in of foreclosures could have been prevented had more Minnesota. homebuyers and industry professionals recognized the unique advantages of homebuyer education taught by a Through Framework™: trusted, unbiased source. • We’ve customized the learning experience. Buyers can expand on content, review For several years the Center recognized the need to sections they find challenging more than be able to effectively reach more homebuyers before once, and complete sessions at their they make the decisions that ultimately will affect their convenience. success as homeowners.
www.hocmn.org • We’re now better able to reach Minnesota’s rural communities, households with Tawana’s Story disabilities, and families with time and For years, Tawana and her family were moving from schedule constraints. one unstable rental environment to another. Then last • Most importantly, we’ve greatly expanded year, she again found herself being forced to move the Center’s ability to reach new buyers. out of the home she was renting when the property Currently in Minnesota, about 20% of first- was sold. Running out of time and frantically trying to time homebuyers participate in Home Stretch find an affordable rental large enough for her and her classes every year. That means 80% of the four children, a ‘wrong number’ dramatically changed first-time homebuyer market is not taking the direction of her life. advantage of the benefits of homebuyer education. I couldn’t have done it on
As we celebrate my own… they cared. the Center’s - Tawana, New Homeowner 20 years of innovation in Thinking she was calling an ad for a four-bedroom homeownership rental property, Tawana inadvertently called MCASA, education, we a member of the Center’s Homeownership Advisor will continue Network. MCASA had recently bought and rehabbed to strive to a previously find new foreclosed and ground-breaking ways to support our mission property and of successful, sustainable homeownership for all were looking Minnesota families in our next 20 years. to sell it to a low- to moderate- income buyer I’ve recommended the Center’s to help stabilize both the community and the family’s housing situation. services to hundreds of real estate With the assistance of a Homeownership Advisor and agents and consumers. They seem with her Home Stretch certificate in her hand, Tawana to have answers for almost every was able to avoid becoming homeless by accessing down payment assistance and other programs to situation. purchase her first home.
- A. Dickinson, Realtor Hear more about her story, in her own words, here: http://bit.ly/10Wqeoq.
The Minnesota Homeownership Center’s mission is to promote and advance successful homeownership in Minnesota.
www.hocmn.org 2012 Financial Statement
Statement of Financial Position Statement of Activities
Current assets Support and revenue Cash and cash equivalents $ 2,520,007 Contributions $ 732,685 Contributions and grants receivable 420,375 Grants and contracts 1,268,701 Prepaid expenses 13,396 Loan repayments 6,000 Security deposit 700 Sales of workshop manuals 31,652 Inventory 16,689 In-kind contribution 64,549 Gain on investment in Framework joint venture 135,586 Total current assets 2,971,167 Interest 4,872 Noncurrent assets Other 43,126 Property and equipment - net 49,016 Total support and revenue 2,287,171 Investment in Framework LLC joint venture 263,504 Expenses Total noncurrent assets 312,520 Program services 1,958,949 Management and general 176,755 Total assets 3,283,687 Fundraising 63,362 Liabilities and net assets Total expenses 2,199,066 Current liabilities: Change in net assets 88,105 Accounts payable 273,073 Net assets - beginning of year 2,575,411 Due to HECAT 280,000 Accrued expenses 51,575 Net assets - end of year 2,663,516 Funds held for others 13,637 Capital lease - short term 1,886 Total current liabilities 620,171 Expenses Non-current liabilities: Administration Capital lease - long term - 8% Fundraising Total liabilities 620,171 3%
Net assets: Unrestricted: Undesignated 1,728,974 Program Delivery Board designated: 94% Foreclosure prevention loan pool 153,530 Revenue Reserves 251,723 Total board designated 405,253 Other Total unrestricted 2,134,227 12.5% Temporarily restricted 529,289 Grants & Total net assets 2,663,516 Contracts Contributions 55.5% 32.0% Total liabilities and net assets 3,283,687
www.hocmn.org 2012 Financial Support Board of Directors
City of Minneapolis, Community Planning Officers and Economic Development President Hennepin County Michael Haley, Minnesota Housing The McKnight Foundation Minnesota Housing Vice President Otto Bremer Foundation Vicki Shipley, US Bank
$100,000 + U.S. Bancorp Foundation and U.S. Bank Treasurer USDA Rural Development David Lindstrom, BMO Harris Bank Wells Fargo Secretary David Eide, Western National Mutual Insurance Company City of St. Paul Planning and Economic Development Members Fannie Mae Foundation Jill Aleshire, Thrivent Financial Bank Minnesota Department of Commerce Target Foundation Marilyn Bruin, University of Minnesota Thrivent Financial for Lutherans Foundation Robyn Bipes, Greater Minnesota Housing Fund $50,000 to 99,000 Cherie Shoquist, City of Minneapolis, Community Planning Ameriprise Financial and Economic Development Bank of America Charitable Foundation Joe Collins, City of Saint Paul, Planning and BMO Harris Bank Economic Development Family Housing Fund Darielle Dannen, Metropolitan Consortium of Greater Minnesota Housing Fund Community Developers Housing Partnership Network Jim Erchul, Dayton’s Bluff Neighborhood Housing Services Jay and Rose Phillips Family Foundation of Minnesota Tom Fulton, Family Housing Fund $10,000 to 49,000 TCF Foundation Muffie Gabler, Wells Fargo Bank* Western National Mutual Insurance Company Karen Gajeski, Bremer Bank Chris Galler, Minnesota Association of REALTORS® Bank of the West Coldwell Banker Burnet Jacqueline King, Federal Reserve Bank of Minneapolis Thrivent Bank Repa Mekha, Nexus Community Partners $10,000
< Valspar Foundation Robin Peterson, Coldwell Banker Burnet
Jill M. Aleshire Julie J. Gugin Elfric Porte, City of Minneapolis Community Planning and Economic Development* Thomas F. Alexander Tom W. Hodnefield Daniel Ballintine Nancy E. Hostetler Bill Sarvela, TCF National Bank Robyn Bipes Mary L. Jahnke Andy Schlack, Greater Minnesota Housing Fund* Robert Chrane Jacqueline King Stephen F. Devereux Ana B. Moreno Mary Thompson, Headwaters Regional Development Commission Molly T. Eichten Bill Sarvela (Representing Minnesota Homeownership Center’s Advisory Council) Brett L. Feldman Patty Schulz Tom Fulton Stephen Seidel Stephanie Vergin, USDA Rural Development KEYStone Donors Muffie Gabler Jeff Strand David Wiese, Wells Fargo Bank Shirley Gugin * Term ended prior to year end, 2012 www.hocmn.org www.hocmn.org