Justine Petersen Housing & Reinvestment Corporation (Justine PETERSEN)

Transcription

1 Justine Petersen Housing & Reinvestment Corporation (Justine PETERSEN) General Information Contact Information Nonprofit Justine Petersen Housing & Reinvestment Corporation (Justine PETERSEN) Address 920 Main Street, Suite 100 Kansas City, MO Phone (816) Website Facebook facebook.com/justinepetersenorg Twitter 1

2 Mission & Areas Served Statements Mission Statement Our mission is to connect institutional resources with the needs of low- and moderate-income families in order to build assets and create enduring change. Background Statement Justine Petersen Housing and Reinvestment Corporation (Justine PETERSEN) was founded in 1997, and is named after the late Justine M. Petersen. Justine was a pioneer in implementing community reinvestment in St. Louis. She worked with local banks to develop loan products for good homebuyers who had been shut out of the homeownership process because of income or location preference. She believed that owning a home promoted one s building of assets and contributed to individual growth and, therefore, to community and neighborhood development and stabilization. As her legacy, Justine PETERSEN's products and services are modeled after the plan Ms. Petersen created with local banks and community development organizations.after building a successful homeownership program, the leadership of Justine PETERSEN recognized a need for consumer and micro-lending. In order to expand financial products to its clientele, Justine PETERSEN created and wholly owns a Community Development Financial Institution (CDFI), certified by the U.S. Department of Treasury. In 2002, lending from the CDFI began.as the organization continued to grow in its product offerings, it also noticed an increased demand for micro-lending across the state of Missouri and in Kansas. In 2012, Kansas City recognized a great need for micro-lending, and thus Justine PETERSEN expanded its operations to cover the Kansas City market. Since that time, the organization has loaned $6.43 million in 616 loans within the Kansas City market.today, Justine PETERSEN offers credit building and financial education, homeownership preparation and retention, and micro-enterprise lending and training.since inception in 1997, Justine PETERSEN has:individually counseled 30,000 families on credit building strategies.assisted 4,500 low- and moderate-income individuals to purchase homes, accessing $415 million in safe, affordable mortgage loans.originated over $23 million in micro-loans to 3,300 micro-enterprises.opened 1,500 IDA accounts and facilitated 1,000 matched withdrawals for asset purchases.since CDFI lending began in 2002, it has originated:$4 million in consumer loans to 5,100 individuals for short-term emergencies, credit building and enhancement, and as an alternative to payday lenders.$3 million in first and second mortgage loans to 495 borrowers for down payment and closing costs, foreclosure prevention, and debt consolidation.$14 million to 650 entrepreneurs for micro-enterprise. Impact Statement In 2016, Justine PETERSEN experienced growth in nearly all areas of our programming. Last year, the organization was able to: Educate 1,261 people on the importance of building and maintaining a strong credit profile. As part of this comprehensive credit building counseling, 511 consumer credit building loans were originated to teach clients how to manage their personal finances and a monthly household budget.originate $12.3 million to over 850 micro-enterprises and small businesses that were unable to access safe, affordable capital anyplace else. In the Kansas City market, $1.43 million was originated to 153 micro-enterprises and small businesses.build the capacity of nearly 3,484 micro-enterprises and small businesses that attended workshops and seminars on topics such as Business Law, Building Business Credit, Intellectual Property, Minority Business Enterprise certification and Women Business Enterprise certification. In 2017, Justine PETERSEN plans to continue and expand the vital work that it is providing the community, with particular attention to the Kansas City area. This year, the organization s strategic goals are to:educate low- and moderate-income families on the importance of building and maintaining a strong credit profile and originate 900 consumer credit building loans to teach clients how to manage small loans and lines of credit. The long-term goal of this work is to improve the client s credit score, strengthen their credit profile, and transition the client to mainstream financial services.originate $15 million to 1,000 micro-enterprise and small businesses that are not able to access safe, affordable capital anyplace else. With community support, Kansas City loan originations will grow to $3 million to 200 micro-enterprises and small businesses.build the capacity of 2,500 micro-enterprises and small businesses through technical assistance and training. 2

3 Needs Statement Justine PETERSEN embraces the philosophy that a strong credit profile is the most important asset, as it leads to greater access to affordable capital. All clients work one-on-one with a credit building counselor to raise their credit score and strengthen their family s financial health. Justine PETERSEN meets the credit needs of microentrepreneurs that are unable to obtain financing through banks or relatives and who would otherwise turn to high interest credit cards or pay day lenders. In order to continue this important work in Kansas City, Justine PETERSEN s most pressing needs are:loan Fund Capital: Justine PETERSEN capitalizes its loan funds through bank, program-related and individual investments.loan Loss Reserve: Justine PETERSEN is able to leverage a $10,000 donation with $100,000 in loan fund capital to originate loans to people that are unable to access capital any place else.micro-enterprise Technical Assistance: A $1,784 donation will provide technical assistance and training of one entrepreneur.credit Building Counseling: A $641 donation will assist one individual to strengthen their credit profile.volunteer: Justine PETERSEN relies on knowledgeable professionals to contribute to client success. CEO/Executive Director/Board Chair Statement I created Justine PETERSEN in 1997 after the late Justine M. Petersen, who worked with local banks to develop loan products for good homebuyers who had been shut out of the homeownership process because of income or location. Our products and services are modeled after the plan Ms. Petersen created with local banks and community development organizations. Through JP s credit building, micro-lending, and homeownership counseling, thousands of lives have been changed. With support to JP in the form of donations, investments, and loans, we are able to satisfy demands for our area s financially underserved families. JP offers an alternative to high prices payday loans and provides opportunities for safe and affordable capital for small business owners and for families who want to buy their first home. Contributing to Justine PETERSEN creates purposeful change in an economy that is characterized by severe income inequality and by growing rates of poverty.as demand for our loan products continues to grow, and as JP expands geographically, we are seeking to form even more partnerships with individuals, foundations, corporations, and other nonprofit organizations. We are fortunate to work with several partners already, who offer their time, talent, and treasure to support JP and our work in local communities. On behalf of our JP staff, board of directors, and clients, I invite you to join the JP team as a volunteer, donor, or supporter. Service Categories Financial Institutions/ Services (Non-Government Related) Areas of Service Areas Served Areas MO IL KS - Atchison County KS - Franklin County KS - Johnson County KS - Leavenworth County KS - Wyandotte County KS - Wyandotte County Urban Core 3

4 Programs Programs Credit Building/Financial Education Description Category Justine Petersen embraces the philosophy that a good credit score is the most important asset, as it leads to greater access to affordable capital and reduced expenses. Our model has found that establishing affordable, positive lines of credit that report to the credit bureaus can increase an individual s credit score significantly. Justine PETERSEN Credit Building Counselors meet one-on-one with clients to assess income, debt, credit history and financial goals, and create a Credit Action Plan. A Credit Action Plan may include establishing new active lines of credit, making monthly payments on time, reducing debt, disputing erroneous information on the credit report, and completing financial education classes. We also offer group financial education classes through the Financial Capability Series on a monthly basis. The topics offered are updated frequently in hopes of meeting the needs and interests of our clients. Past topics have included saving, investing, student loans, bank accounts, insurance, and retirement. Public, Society Benefit, General/Other Banking & Financial Services Population Served Adults,, Short-Term Success Long- Term Success Program Success Monitored By Examples of Program Success Short-term success is identified by an increase in an individual s credit score. Many clients also see a decrease in expenses, and clients learn about the importance of having 2-3 active lines of credit. The ultimate goal for clients in our program is to gain access to affordable capital (transition to mainstream banking) and overcome poverty. The typical Justine PETERSEN client has significant credit barriers to accessing affordable capital at initial counseling. Most have a small amount of collections (under $3,000) and no positive active trade lines. The median credit score is 575. Low credit scores continue to position Justine PETERSEN clients as noncompetitive in the prime financial market and make them susceptible to predatory lenders. As our clients raise their credit scores and reduce their debts, they are able to enjoy a better standard of living and build a better future for themselves and their families. At the initial credit building appointment, all customers complete a credit action plan, which includes steps they can take to improve their credit. On an ongoing basis (usually once a month, dependent upon the client), the Credit Building Counselor will reach out to the client to reassess the Credit Action Plan and see how the client is progressing. Justine PETERSEN also collects stories about our clients success, so that we can share their testimonials with others. In 2016, Justine PETERSEN educated 1,261 people on the importance of building and maintaining a strong credit profile. As part of this comprehensive credit building counseling, 511 consumer credit building loans were originated to teach clients how to manage their personal finances and establish a monthly household budget. 4

5 Micro-enterprise (Small Business) Lending & Training Description Category Justine PETERSEN (JP) meets the credit needs of micro-entrepreneurs that are unable to obtain financing through banks or relatives and who would otherwise turn to high interest credit cards or pay day lenders. JP originates micro-loans up to $50,000, (average loan size $7,500) with interest rates ranging from %. JP staff has developed its own underwriting guidelines based on the 5 c s of lending (credit, capacity, collateral, capital, character). Its strengths-based underwriting guidelines have no automatic disqualifiers, but offer a structured tiered framework for lending. In addition to originating micro-loans, JP works individually with potential and current borrowers to provide a variety of additional services, including counseling and business technical assistance, financial education, business plan development, business training, business mentoring, and post-loan technical assistance. JP assists clients to transition from informal to formal micro-enterprises. Public, Society Benefit, General/Other Banking & Financial Services Population Served Adults,, Short-Term Success Long- Term Success Program Success Monitored By Examples of Program Success Short-term success is identified by an increase in an individual s credit score. Many clients also see a decrease in expenses, and an increase in working capital for them to maintain or grow their business. The ultimate goal for clients in our program is to reduce their expenses so that they can build a better future for themselves and their families. We want to assist our clients in maintaining or growing their businesses. Ideally, all of our clients would graduate from Justine PETERSEN and become ideal clients for a bank, where they can access even more affordable capital. Justine PETERSEN utilize VistaShare Outcome tracker to collect and maintain data on all of its micro-enterprise clients. Management uses this data to track progress on goals and to modify program strategies to meet goals. Program outcomes and progress are reported quarterly to the Governing Board. At initial intake, JP collects demographic information and information on household income. JP also collects credit report data every six months to track the changes in the credit profile of the entrepreneur. JP uses a TransUnion soft pull that does not impact the client s credit score or profile, and permission for this data collection is obtained at initial intake. JP also collects several data points related to the business, such as number of employees, owner s draw, average business sales, etc. Each year, JP participates in the Aspen Institute FIELD Micro-Test Program Performance and Client Outcome Survey, and is consistently categorized as a top performer in performance and outcomes. In 2016, Justine PETERSEN originated $12.3 million in over 850 microenterprises and small businesses that were unable to access safe, affordable capital any place else. In the Kansas City market, $1.43 million was originated to 153 micro-enterprises and small businesses. In 2016, Justine PETERSEN built the capacity of 3,484 micro-enterprises and small businesses that attended workshops and seminars on topics such as Business Law, Building Business Credit, Intellectual Property, Minority Business Enterprise certification and Women Business Enterprise certification. 5

6 Homeownership (Pre-purchase Counseling & Foreclosure Prevention) Description Category Justine PETERSEN provides pre-purchase counseling, homebuyer education, and foreclosure prevention to our clients. The pre-purchase counseling process includes sitting down with prospective homebuyers and addressing credit, debt, and income barriers to accessing an affordable mortgage loan. Justine PETERSEN also teaches a homebuyer seminar, to instruct potential purchasers on connecting with banks, working with inspectors and realtors, purchasing homeowners insurance, finalizing settlement statements, and completing closing documents. Additionally, Justine PETERSEN assists clients who struggle with mortgage loan repayment. Many experience a life event such as loss of a job, a health issue, divorce, or the death of a family member, and then struggle to repay their home loan. We offer foreclosure prevention counseling and work with each family to review options, negotiate with the lender, modify their loan, or in some cases, refinance. Public, Society Benefit, General/Other Banking & Financial Services Population Served Adults,, Short-Term Success Long- Term Success Program Success Monitored By Examples of Program Success Often the first step towards purchasing a home is gaining or increasing a credit score. Many clients who come to Justine PETERSEN with the goal of purchasing a home must first improve their credit score. Short term success includes completing a Credit Action Plan, gaining 2-3 active lines of credit, paying on time, and reducing expenses. These successes often allow for a client to become bankable and obtain a mortgage from a traditional bank. For our clients who are working to stay in their current homes, short-term success includes reducing payments and expenses so that a mortgage can continue to be paid and a house does not need to be foreclosed on by a bank. The ultimate goal for the clients in this program is to either buy a home, or keep the home they are living in. The organization s namesake, Justine M. Petersen, believed that owning a home promoted one s building of assets and contributed to individual growth and, therefore, to community and neighborhood development and stabilization. Similarly to other programs offered by Justine PETERSEN, success includes raising individuals credit scores and reducing their expenses. By doing this first, the organization is able to assist our clients in buying a home or keeping their home. In 2016, Justine PETERSEN conducted 434 pre-purchase loan counseling sessions that resulted in 83 home purchases. In 2016, Justine PETERSEN also provided 53 foreclosure intervention services. 6

7 Leadership & Staff Executive Director/CEO Executive Director Term Start Jan Mr. Robert F. Boyle MA Experience Robert earned his undergraduate degree from Washington University in St. Louis, and his Masters Degree from Southern Illinois University. Mr. Boyle s background includes work in urban planning, property management for low-income tenants, single family and multi-family housing development, and construction management. He also has owned and operated two small businesses, a real estate service company and a contracting company. He is a former member of the board of directors of a national asset building organization, Credit Builders Alliance. Senior Staff Mrs. Sheri Flanigan-Vazquez MSW Title Chief Operating Officer Mr. Galen Gondolfi MA Title Chief Communications Officer, Senior Loan Counselor Ms. Aida Richardson MSW Title Chief Lending Officer Mrs. Tamra Thetford Title Experience/Biography Chief Program Officer Tamra Thetford, BA, Chief Program Officer, came tojustine PETERSEN in April of 2016 with over 17 years of experience in the micro-enterprise field. Tamra leads Justine PETERSEN s credit building training expansion, ensures high-quality client outcomes data, and improves client services. Prior to joining Justine PETERSEN, she ran FIELD at the Aspen Institute s microtracker program where she assisted microenterprise programs across the country to collect and use data to improve performance and better serve entrepreneurs. She also has extensive experience designing and leading online and in-person trainings, analyzing data and making it useful for broad audiences as well as conducting primary qualitative and quantitative research on emerging issues that affect low-income Americans. Tamra graduated from American University in Washington D.C. with a Bachelors degree in International Studies. Tamra has never met a situation that couldn t benefit from a spreadsheet. She considers Guam home and is married with two sons. Staff Paid Full-Time Staff 30 Volunteers 26 7

8 Retention Rate 0% Paid Contractors 0 Formal Evaluations Senior Management Formal Evaluation Senior Management Formal Evaluation Frequency NonManagement Formal Evaluation Non Management Formal Evaluation Frequency Annually Annually Plans & Policies Organization Has a Fundraising Plan Organization Has a Strategic Plan Management Succession Plan Organization Policy and Procedures Nondiscrimination Policy Whistleblower Policy Government Licenses Is your organization licensed by the government? 8

9 Board & Governance Board Chair Board Chair Company Affiliation Mr. Eddie Davis Term Oct 2016 to Oct 2019 Center for the Acceleration of African American Businesses Board Members Name Ms. Rochelle Bea Mr. Eddie Davis Ms. Martina Gutierrez Mr. Allan D. Ivie IV Ms. Laurie Peterson Mr. Keith A. Willy Affiliation Beginning Futures, Owner Center for the Acceleration of African American Businesses Social Worker, Grace Hill Settlement House President, Reliance Bank Community Reinvestment Banker, PNC Bank Board Demographics - Ethnicity African American/Black 2 Asian American/Pacific Islander 0 Caucasian 3 Hispanic/Latino 1 Native American/American Indian 0 Other 0 Board Demographics - Gender Male 3 Female 3 Unspecified 0 Governance Board Term Lengths 3 Board Term Limits 4 Board Meeting Attendance % 0% Written Board Selection Criteria? Written Conflict of Interest Policy? Under Development Percentage Making Monetary Contributions 100% Percentage Making In-Kind Contributions 0% 9

10 Number of Full Board Meetings Annually 5 Standing Committees Finance Development / Fund Development / Fund Raising / Grant Writing / Major Gifts 10

11 Financials Fiscal Year Fiscal Year Start Jan 01, 2017 Fiscal Year End Dec 31, 2017 Projected Revenue $6,640, Projected Expenses $6,497, Endowment Value $0.00 Percentage 0% Detailed Financials Revenue and Expenses Total Revenue $6,101,437 $3,952,001 $3,351,179 Total Expenses $4,944,003 $3,365,141 $2,807,032 Revenue Sources Foundation and Corporation $1,670,393 $814,761 $256,674 Contributions Government Contributions $2,605,266 $1,325,777 $1,649,832 Federal State Local Unspecified $2,605,266 $1,325,777 $1,649,832 Individual Contributions Indirect Public Support -- $0 $0 Earned Revenue $1,825,778 $1,664,107 $1,379,817 Investment Income, Net of Losses $0 $39 ($44,745) Membership Dues -- $0 $0 Special Events $0 $0 $0 Revenue In-Kind $1,200,000 $0 $42,457 Other -- $147,317 $65,144 11

12 Expense Allocation Program Expense $4,755,517 $3,144,361 $2,651,756 Administration Expense $130,872 $165,856 $126,880 Fundraising Expense $57,614 $54,924 $28,396 Payments to Affiliates Total Revenue/Total Expenses Program Expense/Total Expenses 96% 93% 94% Fundraising Expense/Contributed Revenue 1% 3% 1% Assets and Liabilities Total Assets $27,526,853 $23,198,870 $20,877,443 Current Assets $15,583,827 $20,520,267 $17,924,215 Long-Term Liabilities $19,226,953 $15,563,554 $12,923,348 Current Liabilities $613,931 $489,942 $828,963 Total Net Assets $7,685,969 $7,145,374 $7,125,132 Short Term Solvency Current Ratio: Current Assets/Current Liabilities Long Term Solvency Long-Term Liabilities/Total Assets 70% 67% 62% Top Funding Sources Top Funding Source & Dollar Amount Second Highest Funding Source & Dollar Amount Third Highest Funding Source & Dollar Amount Capital Campaign Currently in a Capital Campaign? No Goal $0.00 Foundation Comments FY 2016, 2015, 2014: Financial data reported using IRS Form 990. Foundation/corporate revenue line item may include contributions from individuals. Created Copyright 2019 Greater Kansas City Community Foundation 12