Habitat for Humanity of Catawba Valley Board of Directors Meeting

July 23, 2018

Devotion – Tina Morgan Swearing in of new President

Adoption of Agenda — Whit Malone

Consent Agenda: All items are considered routine by the Board of Directors and will be enacted by one motion. There will be no separate discussion of these items unless a Board Member so requests. In which event, the item will be removed from the Consent Agenda and considered under Action or Informational Items.

1) Minutes from June Board Meeting 2) Staff Reports 3) June Financial Reports (attached)

Action Items: 1) Finance Committee Report a) 2018-19 Budget – Doug Dickson and Lisa Brown b) ReStore Loan Refinance – Mitzi Gellman 2) Nominating Committee Report – Whit Malone Informational Items: 1) Home is the Key Event – Jenna Ross 2) Director’s Report – Mitzi Gellman Upcoming Events:

7/26 – Brew Crew, Northstone; 7/27 – Rudy Project Work Day; 7/30 – Crawdad’s Night

8/1 – Table Captain Training; 8/9 - HabiHour Wine and Cheese Info Session

Next Board Meetings: Aug. 27th , Sept 24th, Oct 22nd , Nov 26th, Ask Event – Nov 14th @7:30 -Table Captains; 8am for guests – Lake Hickory CC

Consent Agenda Item 1.

Habitat for Humanity of Catawba Valley

Board of Directors’ Meeting Minutes

June 4, 2018

Members Present: Bobby Boyd, Doug Dickson, Frances Hilton, Ander Horne, Pat

Jones, Whit Malone, Cliff Moone, William Pleasant, Wil Posey

Members Not Present: Scott Echelberger, Steve Elledge, Anthony Freeman, Charlotte

Williams

Staff Present: Mitzi Gellman, Jeff Mingus, Tina Morgan, Gail Bowman, Richard

Greathouse, Jenna Ross

Guests: Meg Robertson, Toinette Wilkinson

Welcome and President’s Remarks

There being a quorum, the April meeting of the Habitat for Humanity of Catawba Valley Board

of Directors was called to order by Board President Bobby Boyd at 5:02 pm.

Adoption of Agenda

Upon motion and second, the Board unanimously adopted the June Meeting Agenda.

Consent Agenda

The Board adopted the Consent Agenda of the April Board Meeting Minutes, the Staff Reports,

and the April Financial Reports by motion and second without dissent.

The board also accepted selection recommendations from the Homeowner Selection Committee.

Habitat selected the family of Latoya Ramseur, and denied one application based on lack of

need, as well as denied 16 applications that did not meet the ability to pay requirements as listed

on the committee’s recommendation report.

Action Items

• Board Treasurer Doug Dickson presented the February Financial Report. Following

motion and second, the report was approved unanimously.

• Following motion and second, the Board unanimously voted to approve the Conflict of

Interest policy as presented by Staff Member Tina Morgan.

Presentation: November Ask Event – Overview and Exercises

Devotion: Retreading Our Passion - Board members shared what inspires them to be an

ambassador for Habitat

Overview of the Benevon Model - Mission driven, relationship focused, cycle of engagement,

sustainable funding stream

Treasure Map Exercise – Who do you know that can be a resource for Habitat?

Opportunities for Board Involvement – Table Captain, POE Host, Follow-up Calls, join Mitzi on

donor visits

Upcoming Events

• Next Board Meetings: July 23rd, Aug 27th, Sept 24th, Oct 22nd, Nov 26th

• Home is the Key Annual Breakfast – Nov 14th at 7:30am (for Table Captains); 8:00am

for guests, Lake Hickory Country Club

Adjourn

Wil Posey was recognized and thanked for his service to the board.

Upon motion and second, Bobby Boyd adjourned the meeting at 6:13 pm. The next Board

Meeting will be on July 23rd, at 5:00 in the ReStore.

Consent Agenda Item 2. – Staff Reports

Repair Project of the Month – Richard Greathouse

July 23, 2018

This is the home of Willie May Conley, 1215 4th Street Lane NE in Hickory. Neighbors notified Habitat that

Ms. Conley’s house was without power after a tree fell on her power line to the house during the storm on

July 5. Duke power had come out and disconnected her exterior panel and meter and she was completely

without power. She is in her upper eighties.

Given the urgent nature of the situation, we were able to locate an electrician who was able to come out on the

next Tuesday and install a new meter base and panel. Duke restored her power that afternoon.

Our site visit to address her electrical emergency also discovered that the tree damaged her roof in one spot.

We were able to have that patched the same day that power was restored. We also determined that the roof is

in need of replacement and that the 17 year old HVAC unit was leaking freon it is cooling at about 50% .

So in addition to restoring her power and repairing the roof, Habitat Repairs will be replacing her roof

shingles, cleaning out her gutters and installing leaf guards using Hickory CDBG funds and will be installing

a new HVAC system using PNG funds.

All of the work will be done by subcontractors.

Ms. Conley’s house showing storm damage

Original HVAC compressor and New meter base

Habitat Repairs Jobs Report

June 2018

• Repairs in progress 14

• Repairs completed in June 2

• Pending start date 7

• Pending site visit 7

Homeowner Services: Selection – Gail Bowman

Report for Board of Directors July, 2018

Homebuyer Program:

Latoya Ramseur, our newest Homebuyer, has signed the Participation Agreement in response to the offer of partnership. We met and reviewed the agreement and the Homebuyers Handbook. She is now beginning to track sweat equity hours and her monthly

expenses.

The month was primarily devoted to prep and follow up for the Applicant Information

Meeting held on June 12th at 12:30 p.m. and again at 6:00 p.m. There were 66 registered and 50 in attendance. (Not all attendees registered). We received 22 applications. At this

time it appears that 3 applicants are eligible for income, credit and debt to income. These three will be asked to submit the remaining required documents which include a budget done with Consumer Credit Counseling. Shortly thereafter, the Homeowner Selection

Committee will be doing Home Visits for those that still meet selection guidelines.

There were 39 new inquiries in June.

Repair Program:

During June, the calls continue to come in, primarily for roofs and HVAC. We are still accepting applications that our staff and our funding can accommodate (City of Hickory and PNG funded repairs, especially roofs and subcontractor work). Other applicants are being referred to agencies that may be able to meet their needs, and are also being added to a list of those who will be contacted when our staffing and funding will allow us to respond to

their needs.

Homeowner Services: Resource – Tina Morgan

Report for Board of Directors July, 2018

Delinquency Report

Reporting Period 6/29/2018 Total Mortgages: 105

Delinquent # Mortgages

Delinquent

Arrearage % Delinquent

31-60 days 6 $ 3,721 5.7%

61-90 days 2 $ 2,678 1.9%

90 plus days 11 $ 16,863 10.5%

Total this month 19 $ 23,262 18.1%

Total 4/30/18

(106 mtgs)

14 $ 18,576 13.1%

Total same mo. prior yr

6/30/17 (111 mtgs)

19 $ 13,571 17.1%

Jun. 2013, last mo.

prior to MF (119 mtgs.)

12 10.1%

Homeowner Services News

Habitat Catawba Valley has partnered with the Section 8 Homeownership Program at WPCOG to make a

second chance at successful homeownership possible for Teresa Robinson. The Section 8 program will be

making payments for Teresa while she gets back on her feet, and Habitat’s Homeowner Resource

Committee will consider her for a mortgage modification if she continues to keep her commitments of

payments, residency, and partnership.

The foreclosure on the home of Shawnte Eskridge continues in process.

Habitat Catawba Valley has offered to accept Angela Cowans’ deed-in-lieu of foreclosure, and Angela has

accepted that offer. In order to have a clearer title coming back to Habitat, as well as to help Angela get

settled elsewhere, this will be handled as a purchase, and Angela will leave the closing with a little

travelling money.

Judy Ikard has paid off her Habitat mortgage. (See article coming soon in enewsletter.)

Patrick, Harper, and Dixon attorneys are currently working on pro bono wills for three of our

homeowners. In the recent past, they have done four other wills, and in total, they have done about 19.

We are beginning a new venture, a Habitat ambassador program, through which we plan to create a

group of homeowners who are willing to speak on Habitat’s behalf, and who have had some training to

enable them to do it well. At our first meeting, we had six homeowners sign up to be Ambassadors.

We have signed Habitat Repairs! contracts with two homeowners since the last board report was done.

The ReStore Report June 2018

Donations and Sales – New donations arriving daily! Scheduled truck pick-ups are currently booked at 3-

5 days out. The scheduling is pretty aggressive booking approx. 6 appointments per day allowing a small

buffer for our “regulars” (McCreary Modern, Good’s Furn., Hickory Park, Hooker/Heritage, and Home

Depot) and last-minute donors to be fit into the schedule. Recent contacts with Vanguard, Hickory

White, Steve Terry (fabric), other ReStores, Robert Abbey, Leather & More have been paying off too.

Kroehler Furniture recently donated approx. 50pcs so we have a new contact with them … Thanks

Mitch. All these donors, individual and corporate, have given us a good start for the new fiscal year. And

the variety and quality of donations have been outstanding. Happy 2018-19!

We finished the 2017-18 Fiscal year at $847,812 (unofficial) with a profit margin of 39% (unofficial). A

good, solid year; thank you for believing in the ReStore, its staff and volunteers, we experienced a lot of

positive change last year. That positivity is on-going as we explore different ways to identify and attract

our two diverse support groups, donors and customers. Let’s move on to social media and marketing!

Social Media – Closer and closer, the new ReStore webpage is on the coming together!

At Perry Productions’ suggestion, based on market and Facebook analytics, live video shorts are the “in

thing”. Focusing on the two-pronged strategy of donors and shoppers, we are creating videos designed

to introduce Habitat, its mission, and our need for revenue. If only we had a character, someone who

believed in Habitat to be the face of the ReStore? I still don’t know why they picked me. So, have you

seen the new ReStore video shorts? The first one, emailed and posted to our social media pages was

widely received with over 4,800 views on Facebook alone. Next comes the “free donation pick-ups”…

stay tuned.

Check out ‘ReStore Catawba Valley’ on Facebook. Even if you don’t need to buy something, share with

friends and get the word out about our great store. Thanks!

ReStore Events – As part of the “Home is the key” Breakfast Fundraiser the ReStore will be hosting

several “point of entry” events, ReStore After-Hours. Special invitational social gatherings designed to

introduce and grow interest in Habitat for Humanity of Catawba Valley and its mission. The culmination

will be an annual fundraiser event. My hope is we can use these “Habihours” to reintroduce the Door

Jam Event with a focus on local artists, repurposing, and promoting all things ReStore.

New ReStore Phone Number– Worth repeating as we wait for CenturyLink to complete the changes to

our phone systems.

In an effort to facilitate donation calls, we’re getting our own phone number. This, along with the new

ReStore website (and a huge marketing push); will produce a renewed energy as we approach our 7th

Anniversary at the new location.

828-327-7467(SHOP)

Jeff Mingus

ReStore General Manager

Community Outreach Report – Jenna Ross

7.23.18

Events:

Rudy Project Groundbreaking

• 11:00 Saturday, June 2

• 52 attendees, 12 volunteers, 48 hours served

• Homeowner: Crystal Alcantara

Homeowner Ambassador Training

• 8 attendees

• Training program to equip homeowners to speak on behalf of Habitat

Outreach:

• 6/8 - Ben Hoyle, Chamber

• 6/12 - Connect Catawba Resource Forum, attendee

• 6/16 – CatCo Democratic Women, presentation

• 6/19 – Sierra Pritchard, Manager Woodforest National Bank

• 6/21 – Food Council Interest Meeting, LiveWell Catawba

Service:

• May 12th – July 5th

o 147 volunteers

o 517 volunteer shifts completed

o 1,634.8 hours served

o Groups

▪ Challenger

▪ Rudy Project Kick-Off

▪ The Guild at HCT

▪ Sandy Ridge Baptist Church

▪ Precedent

▪ The City of Hickory (The Rudy Project)

▪ ASD

Upcoming Events:

• 7/10-12 – South Mountain Bible Camp, ReStore

• 7/12 – Duke Energy, Northstone

• 7/26 – Brew Crew, Northstone

• 7/27 – Rudy Project Work Day

• 7/30 – Crawdad’s Night

• 8/1 – Table Captain Training

• 8/9 - HabiHour Wine and Cheese Info Session

Development Report – Lynn Nelson

July 2018

Grants

Grant Approvals:

The Rudy Project

• Leon Levine Grant, $15,000.

• Underdown Family Foundation Grant, $10,000.

• Wells Fargo Foundation Grant, $10,000.

• The Unifour Foundation, $7,500.

• Kulynych Family Foundation I, $1,000.

• City of Hickory, $20,000 (City employees donated $10,000 + City match of $10,000).

Habitat Repairs

• ER Carpenter, $35,000 (both new construction and repairs)

• The Bolick Foundation, $3,000.

The Rudy Project

Groundbreaking event for the Rudy Project (home and picnic shelter) was held Saturday, June 2 at 11am

at Northstone. Event was a success!

Home is the Key Breakfast Event

Table Captain list completed. Board and staff making calls to potential Table Captains.

Welcome Table Captain letters sent to confirmed Table Captains. Scheduling Point of Interest Events and

Table Captain trainings. Continuing to hold weekly phone meetings with consultants.

Upcoming Events

• Make a Difference Monday with Hickory Crawdads to be held on Monday, July 30 at 7:00pm.

• Table Captain Training Meeting – Wednesday, August 1, 12 noon at HfH Office Conference Rm.

• HabiHour – Wine & Cheese Event (HfH mission), Thursday, August 9 at 5:30pm ReStore

Conference Rm.

Action Items:

1) Finance Committee Report

a) 2018-19 Budget – Doug Dickson and Lisa Brown (attached)

b) ReStore Loan Refinance – Mitzi Gellman

Building Information:

Parcel ID: 371106399846 Parcel Address: 1615 8TH ST DR SE City: HICKORY, 28602 LRK(REID): 9452

Deed Book/Page: 3050/1153 Last Sale: $784,500 on 2010-11-12 Calculated Acreage: 1.630 Building(s) Value: $129,500 Land Value: $734,400 Assessed Total Value: $863,900 Year Built/Remodeled: 1973/2010

Background:

In 2010 Habitat purchased and renovated the current ReStore building on 8th St Dr SE, Hickory

($784,500 purchase $250,000 renovate). Both were private loans, one from the owners of the

building, and renovation loan was from David Looper. The renovations loan was paid off within

1 year. The loan for the building purchase was a 3-year loan with no option to renew. After

many attempts to refinance the building with local lenders including BB&T, 1st Citizens, Self

Help Credit Union, Lance Sellers, CEO Peoples, agreed to refinance, if Habitat could secure a

guarantor for 50% of the loan. Bob and Michele McCreary agreed to co-sign for half of the

mortgage and remain as the guarantors.

Loan Information:

Current Balance $639,084

Current loan: 360 month amortizing schedule w/10yr balloon (2 years left) @ 4.75% interest. Monthly

payment $4,065.

Earlier this year I met with a representative with BB&T and asked to review our current loans. During his

evaluations, he suggested that Habitat consider refinancing the ReStore loan prior to the maturity date

of 2021. He based his recommendations on highly anticipated rising interest rates.

After talking with the BB&T rep, I spoke with Roger DeCato at Peoples on the possibility or need to

refinance earlier than the maturity date. He recommended refinancing now, or soon, due to anticipated

rate increases over the next 2 years. He also reviewed our most recent financials and noted Habitat’s

improved financial status since original loan and agreed to drop McCreary’s as loan guarantors.

Proposed Loan: Based on his assessment, Peoples will refinance the ReStore loan but with a 20.5yr

amortizing schedule w/ 10 balloon @ 5.2% interest. No fees or closing costs, except for appraisal ($600

approx.) Monthly payment $4,220 (monthly increase of $155)

Action Item:

2) Nominating Committee Report – Whit Malone

Committee comprised of White Malone, Ander Horne, Frances Hilton, Scott Eichelberger, Jenna

Ross, Jeff Mingus and Mitzi Gellman

Returning Members: Whit Malone, Doug Dickson, Cliff Moone

Proposed New Members:

Troy Howard – FUMC Minister of Youth and Missions. Has worked with Habitat through Apostle

Build and many numerous projects.

David Leonetti – City of Hickory, Planning and Development. Has worked with extensively with

Habitat to identify future building sites, promote the repairs program and support need for

affordable housing.

Informational Items:

1) Home is the Key Event Update – Jenna Ross (information to be distributed at meeting)

2) Director’s Report – Mitzi Gellman

Update on Paul Thompson Loan

We are scheduled to finalize the loan with Mr. Thompson on July 24th. The loan will be

dispersed in 2 installments: 1st payment of $350,000 pays off outstanding balance on current

loan, $210,000 with $165,000 to Habitat. The 2nd payment of $350,000 will be dispersed in

October following the sale of a Habitat home in Northstone. The loan is payable in 5 annual

installments of $150,000 + interest of IRS minimum (2.28%).

Transportation Insight’s Community Giving Referral Program – Transportation Insight is a

national company with locations in Hickory, Boston, Bentonville, AR; Kanas City, KS; and

Atlanta. Through the marketing department located in Hickory, Habitat Catawba Valley has

been selected as the recipient of $200/each time a customer referral results in a in person

meeting with a member of TI. If the referral generates a new customer, Habitat receives an

additional $200. (see TI Built to Serve attachment)

Sale of Market Rate Home – We have received a request from Adam Oakley to purchase one of

the market rate homes currently under construction. Staff has met with him on several

occasions and have agreed to a sales price of $118,000 for the home, in it current state of

competition. Adam is a licensed contractor and would like to complete the home to his

specifications. He is in agreement with the neighborhood covenants. He and his wife will be a

great addition to the Northstone community. Sale should finalize by August 30th.

Donation of House – I was contacted by an individual, serving as POA for his sister, about the

donation of her home, located in the Colonial Heights neighborhood of Hickory. The home is in

salvageable condition in a neighborhood where homes are selling in the $120,000 – 180,000

range. We agreed to accept the house, but the donation was not completed prior to the

owner’s death on 6/29. Now part of the estate, the brother still plans to donate the house, but

the donation will be delayed until 4th quarter 2018.

NC Housing Finance Agency Homeownership Nomination – I have submitted the Northstone

Community into nomination for the best affordable community in NC 2018. Within affordable

housing developers, it would be a pretty big deal if we received the recognition.

Announcements are made in October.

New Staff Addition – Josh Stamey will be joining the construction staff on 7/24 as construction

project manager. He is replacing Jesse Barber, who is leaving Habitat on 8/30 to pursue a career

as an outdoor adventure guide and begins training with a month-long training in Patagonia.

Josh was previously employed with Glaze Construction and has been involved as a Habitat

volunteer in the past.