Review MHCLF’s most recent e-newsletter articles, loans closed, and more.
MHCLF’s predevelopment loan product continues to be predevelopment financing tool of choice for many affordable housing developers around the state. Predevelopment loans have made up nearly one-third of MHCLF’s lending over the last two years. Predevelopment loans up to $250,000 are offered at competitive rates and, under certain circumstances, can be made without real estate collateral.
MHCLF recently approved a predevelopment loan to Gorman & Co. for their Grove Street Apartments project at 3116 West Alameda Avenue. The project received an allocation of 9% LIHTCs in September 2014 and will include 42 units of affordable rental housing.
Cecil Development, LLC was also approved recently for a $250,000 predevelopment loan for costs related to the planning development of eleven for-sale affordable townhomes in Denver. This unique project is being developed in partnership with Denver Housing Authority and the Colorado Community Land Trust. Known as the Solis Townhomes, the project will be built at 3399 Humboldt St. in the Cole neighborhood of Denver. With the land trust model, the project will create, and preserve in perpetuity, home ownership opportunities for households at 80% AMI. Visit www.coloradoclt.org for more information about the land trust model.
Dear Borrowers and Stakeholders,
On behalf of the MHCLF Board of Directors, it is my pleasure to announce the appointment of Sean Doherty as the Executive Director of MHCLF effective April 1, 2015.
Sean will assume the responsibilities of the position held by Jeff Seifried since 2006. Jeff announced his retirement in the Fall of 2014. The search committee of the Board implemented an extensive search process that resulted in Sean’s selection.
Sean has served from 2007-2014 as Chief Financial Officer/Director of Portfolio Management for Baltimore Community Lending, a CDFI in Baltimore, Maryland. He actively negotiated the initiation of several loan programs including partnering with the City of Baltimore to finance multi-family development projects located in distressed neighborhoods and providing capital/construction management services for a multi-neighborhood community development project spread over a large geography surrounding the Johns Hopkins Medical Campus. He also substantially expanded the organization’s portfolio of dedicated stakeholders to include government, foundations and a variety of regional and national banks.
Mr. Doherty holds a Master’s of Science degree in Finance from Loyola College in Baltimore and a Bachelor’s degree from the University of Baltimore. He is a CPA and is a Chartered Financial Analyst (CFA).
Outgoing Executive Director, Jeff Seifried, led MHCLF for nearly nine years and guided the organization’s growth to $16 million in total assets. Over the same period, MHCLF has approved 117 loans and closed loans totaling $39.7 million. Net assets have grown over 40% and MHCLF has raised nearly $2 million in equity and $6.27 million in debt capital.
MHCLF completed 2014 with near record loan activity and has doubled its outstanding loan portfolio since we have emerged from the recession.
With the recently updated Strategic Plan (2015-17), continued access to new loan fund capital, diversified markets and a strong lending team, MHCLF is prepared to meet the growing demand for its products.
We look forward to building on the strong platform and performance of MHCLF to meet important community development and affordable housing project financing needs.
MHCLF recently closed a $500,000 construction/mini-perm loan to 2400 Curtis Street, LLC for the redevelopment of the original Temple Emanuel building. The three-story building was constructed near the turn of the century (the 20th century that is) and is listed on the national and state registers for historic places. There is a two-story 4300 square foot addition that was added in the 1950s.
When completed the “Temple” will be used for artist and artisan workspace, photography studios and darkroom, community woodworking/metalworking shop, as well as office space for nonprofits and creative businesses.
Platte Forum, a twelve-year-old nonprofit working with Denver youth has signed a lease for 4,000 square feet. Their mission is to, through the creative process, give hope and direction to under-served youth who collaborate with master artists from around the world to transform the lives of the youth, artist and community. Platte Forum’s programs include ArtLab, College Access Mentoring Program (CAMP), Learning Labs and Creative Residency.
The vision for the facility is to create a community facility that provides affordable space to artists, nonprofit organizations and other groups that offer programs, products and services in Curtis Park and surrounding neighborhoods.
Friends and Supporters,
I recently announced to the MHCLF staff and board of directors that I plan to retire as Executive Director effective March 31, 2015. It has been a privilege and a pleasure to lead MHCLF over the last 8+ years. I have been very fortunate to have a dedicated and professional staff and an engaged and supportive board. We have accomplished much and with the continued support of our investors, donors and many community partners MHCLF will continue to create economic opportunities with its community development lending activity.
The MHCLF board of directors has set up a search committee and will announce the Executive Director position in December. The search will be managed by Erickson-Pearson Search. Inquiries can be directed to David Erickson-Pearson at firstname.lastname@example.org or 303-703-6165.
Mile High Community Loan Fund is taking part in the 5th Annual Colorado Gives Day – Tuesday, December 9th. Colorado Gives Day is an initiative to increase philanthropy in Colorado through 24 hours of online giving to Colorado charities presented by Community First Foundation.
Funds raised will support MHCLF investments in affordable housing and other community assets to improve economic opportunities of low-income persons and communities. Over 5,800 units of affordable housing and nearly 191,000 square feet of nonprofit facility space have been financed with the help of MHCLF. One hundred percent of your donation will come to our organization. When you give online December 9th, FirstBank Incentive Fund will increase the value of your gift, which means your donation will go even further!
We are only 4 days away from Colorado Gives Day 2014. Donate online or visit www.coloradogives.org/mhclf any time during the 24-hour period on December 9th to “give where you live!” We thank you for your continuing support!
The 30th anniversary Opportunity Finance Network (OFN) Conference will be held in Denver, Colorado October 14th through the 17th. Over 60 workshop sessions focus on topics including community facilities, affordable housing and small business financing practices, measuring impact, collaboration, healthy communities, Native CDFIs, financial management and more. Networking opportunities and community tours are also available to participants throughout the week.
Eight Colorado-based CDFIs, including MHCLF, are serving as local co-hosts of this year’s conference – participating in many workshops and coordinating affordable housing and small business tours. Tours will highlight the role of CDFIs in Denver’s transit-oriented development initiative, affordable housing in Boulder, innovative mixed-use supportive housing, Denver microbreweries and Native communities across the Front Range.
The Opportunity Finance Network (OFN) is made up of CDFIs, banks, faith-based institutions, foundations, corporations, government and everyday people who believe in aligning capital with justice. The common thread linking opportunity investors is that together they create opportunities and provide resources to help people act in the best interests of their communities, themselves and future generations.
Potential CDFI investors and foundation staff interested in CDFIs’ missions and impacts as well as others involved with affordable housing and small business development are welcome to attend. Visit the 2014 OFN Conference website and/or to register, click here.
In addition to seven affordable housing development loans approved since July 1, MHCLF approved loans for the renovation of Curtis Park building, the expansion of an Aurora charter school and the rehab and expansion of a mountain community center. Together over 21,000 square feet of community facility space will be developed with three projects.
The seven affordable housing project loans will help create/preserve 438 loans in four different counties. The approved loans will include two loans that will support the Habitat for Humanity’s efforts to construct homes in communities impacted by the 2013 floods and a participation in a rural multi-family property rehabilitation loan originated by Funding Partners, a Colorado based CDFI that MHCLF has worked with on multiple occasions.
MHCLF also recorded five loan closings this quarter for a total of $2.1 million. Closed loans include two construction loans, two predevelopment and one acquisition loan.
The Argosy Foundation recently became MHCLF’s newest loan fund capital investor with a program related investment (PRI) and an operating grant. The Argosy Foundation’s mission is to support people and programs that make our society a better place to live. They seek to employ creative and entrepreneurial approaches that help people help themselves and become self-sustaining whenever possible.
Two current investors, Wells Fargo and First National Nebraska – Community Development Corporation (a subsidiary of First National Bank), have recently increased their loan fund capital investments with MHCLF.
Wells Fargo’s increase brings their total investment to $1.5 million and makes the bank MHCLF’s second largest investor. The increase comes with a consolidation of previous investments and a long-term maturity extension that positions MHCLF well to make longer-term loans. Wells Faro has been an investor with MHCLF since 2003.
First National Bank’s $500,000 investment doubles the bank’s initial 2012 investment. These loan fund capital resources will be used specifically in the north metro, Boulder and Northern Colorado communities that make up the bank’s service area.
MHCLF was recently awarded an “AA2” rating from the independent Aeris (formerly known as CARS) rating process. The upgrade in the Impact Performance Rating from “A” to “AA” comes as a result of three years of loan portfolio growth and is described by Aeris, “A CDFI in this group has clear alignment of mission, strategies, activities and data that guides its programs and planning. It accurately tracks appropriate output data that indicate it is using its resources effectively to benefit its target populations or communities in line with its mission.”
The Financial Strength and Performance Rating was upgraded to a “2” in a previous review and only 6% of the CDFIs rated have achieved a higher rating. Aeris defines a “2” as, “fundamentally sound” and is a CDFI that, “Exhibits solid financial strength, performance and risk management practices relative to its size, complexity and risk profile.”
Investors and potential investors can have easy online access to the comprehensive report issued that includes a five-year review of outputs, resource leveraging, capital structure, asset quality, portfolio composition and performance and earnings.
MHCLF is one of approximately 90 CDFIs nationwide that’s been rated and has been rated since 2007. MHCLF uses the Aeris rating process as part of its ongoing improvement and strategic planning processes.
The 2013 MHCLF Annual Report is available for review here. For a hard copy of the report, please contact Britton at email@example.com or 303-860-1888 x6.