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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
Connecting Communities to Capital: 2012-2013 Annual Report 3
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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Connecting Communities to Capital: 2012-2013 Annual Report 5
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
Connecting Communities to Capital: 2012-2013 Annual Report 7
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
Connecting Communities to Capital: 2012-2013 Annual Report 9
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 $1 million investment, the largest private investment
in Lowcountry Housing Trust’s history, will increase the
supply of high-quality affordable housing through long-term,
low interest-rate loans for local projects. Our partnership
with Lowcountry Housing Trust is part of Bank of America’s
community development commitment to increase lending and
investing in local communities with an emphasis on affordable
housing opportunities in underserved areas.”
– Dan Letendre, managing director for Bank of America’s
Community Development Financial Institutions, Bank of America
statement oF FinanCial position
As of december 31, 2012 (with comparative totals for 2011)
assets
Current assets 2012 2011 Cash and cash equivalents 4,544,718 4,305,335 Accounts receivable 200,000 19,808 Promises to give, current portion 50,000 100,000 Other current assets 4,481 4,308 Loans receivable, current portion 85,012 382,975 total current assets 4,884,211 4,812,426
non-Current assets Property and equipment, net 33,288 23,926 Promise to give, net of current portion 0 49,020 Loans receivable, net of allowance for loan loss and current portion 2,237,976 734,960 total non-current assets 2,271,264 807,906 total assets 7,155,475 5,620,332
liaBilities
Current liabilities Accounts payable 5,061 5,341 Accrued expenses 17,513 15,142 deferred revenue 1,405,961 2,263,642 Refundable advances 42,413 79,236 total current liabilities 1,470,948 2,363,361
other liabilities Other liabilities-program related investments 1,175,000 475,000 Other liabilities-equity equivalent investments 842,000 592,000 total other liabilities 2,017,000 1,067,000 total liabilities 3,487,948 3,430,361
net assets unrestricted undesignated 2,675,635 1,464,170 Board designated 895,657 527,200 Temporarily restricted 96,235 198,601 total net assets 3,667,527 2,189,971 total liabilities and net assets 7,155,475 5,620,332
Connecting Communities to Capital: 2012-2013 Annual Report 11
ExpensesProgram Services 621,991.00$ 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
$950,000.00
2008 2009 2010 2011 2012
ExpensesProgram Services 621,991.00$ 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
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
Lisa McLean and granddaughter outside her home
inVeSTinG in COMMuniTy
Connecting Communities to Capital: 2012-2013 Annual Report 13
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