North & East Lubbock

Community Development Corporation

P.O. Box 3893 Lubbock, Texas 79452

Phone: (806) 747-5937 Fax: (806) 747-5934

Email: mc_nelcdc@outlook.com

Board of

Directors

David Haynes

Chairperson

Henry Ray Lozada

Vice Chairperson

Cosby Morton

Treasurer

Sonny Garza

Asst. Treasurer

Rosalind Priestley

Secretary

Monique Coleman

Executive Director

Juan Chadis

Gilbert Flores

Vernita Holmes

Subodh Patel

Robert Ramirez

Matt Stephens

Quincy White

Vacancy

Vacancy

Vacancy

Advisory

Members

Greg Jones

David Langston

Mario Ybarra

May 12, 2016

Cheryl Brock

Executive Director of Budget

P.O. Box. 2000

Lubbock, TX. 79457

Ms. Brock:

The North & East Lubbock CDC respectfully requests a funding allocation of

$363,547 as a portion of oil and gas royalties in the form of a Chapter 380 Grant

Management Agreement as permitted by Local Government Code 380.002.

Please find the fiscal year 2015-2016 NELCDC budget and performance

measures below. The proposed budget was approved by the NELCDC Board of

Directors on January 27, 2016 and line item amendments were approved on March

23, 2016.

Please let me know if you require additional information. Thank you in advance

for your consideration.

Regards,

Monique Coleman, MPA, MCRP

Executive Director

North & East Lubbock CDC

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FY 2015-16 Requested Income (Sec. 380 Grant Management Agreement) 363,547$

QuickBooks

Accounting

Codes

4000 Tax ID: 71-0961103

4001 Chapter 380 Eco. Development Grant Management Agreement from City of Lubbock 363,547$

4002 Community Champion Awards Banquet 30,000

4003 e-Newsletter Advertisements -

4004 Board & Advisory Member Donations 500

4005 King's Dominion Lot Sales 36,000

4006 Reimbursed Income - HOME Construction Funds ($130,000 and $93,786) 223,786

4007 BBVA Compass Bank Housing Counseling Grant 7,500

4008 Reimbursed Income - CDBG Other Funds (Infrastructure Development) 108,507

4009 Reimbursed Income - CDBG Other Funds (Operations & Repair of Foreclosed Property) 65,710

4100 Interest Income 200

4101 Scholarships and Refunds -

TOTAL PROJECTED INCOME 835,750$

5000 A. Administration (Governance & Management) 7,050$

5001 1. Board Expenses: Meetings, Trainings, and Administrative 2,000$

5002 2. Management Business Expenses 500

5003 3. (D&O) Directors and Officers Liability Insurance 4,250

5004 4. Admin. Services (SOS certs & filing fees, charitable permit fee, etc.) 300

TOTAL 7,050$

5010 B. Personnel (Salaries, Payroll Taxes, Car Allowance) 164,752$

5011 1. Executive Director 80,752$

5012 2. Program Manager 45,000

5013 3. Admin/Bookkeeper/Intern 25,000

5014 4. Payroll Taxes 12,500

5015 5. Car allowance (for Program Mgr. and Admin Asst. @ $0.575/mile) 1,500

5016 6. Program Manager/Counselor Salary -

TOTAL 164,752$

FY 2015-16 Approved NELCDC Budget

Operating Acct #: XXXX068 Payroll Acct #:

XXXX351

INCOME

BUDGET

2

FY 2015-16 Requested Income (Sec. 380 Grant Management Agreement) 363,547$

QuickBooks

Accounting

Codes

FY 2015-16 Approved NELCDC Budget

Operating Acct #: XXXX068 Payroll Acct #:

XXXX351

5020 C. Health Benefits ($550/month/employee - $575/month for ED) 22,200$

5021 1. Executive Director 6,900$

5022 2. Program Manager 6,600

5023 3. Administrative Assistant 6,600

5024 4. Ameritus Dental/Vision-group plan admin fee 1,800

5025 5. Dearborn Life Insurance 300

TOTAL 22,200$

5030 D. Professional Development & Training 15,500$

5031 1. Neighbor Works Training (HUD-certification for 2 employees) 7,500$

5032 2. 2015 Neighborhoods, USA Annual National Conference 2,000

5033 3. TACDC Training (for Executive Director) 1,500

5034 4. Other professional development/training (unplanned travel or events) 4,500

TOTAL 15,500$

5040 E. Memberships & Subscriptions 3,320$

5041 1. TA-CDC ($250 annual fee) 250$

5042 2. Lubbock Chamber of Commerce (LCC) & Young Professionals Membership 325

5043 3. Neighborhoods, USA ($200 annual fee) 200

5044 4. Sam's Club membership ($45 annual fee) 45

5045 5. Miscellaneous (mid-budget year requests) 450

5046 6. Avalanche Journal (AJ) Subscription-48 wks @ $226.20 250

5047 7. Administrative Assistant professional membership 400

5048 8. Housing Counselor/Program Manager professional membership (s) 800

5049 9. Volunteer Center of Lubbock 100

5050 10. East Lubbock Community Alliance 500

TOTAL 3,320$

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FY 2015-16 Requested Income (Sec. 380 Grant Management Agreement) 363,547$

QuickBooks

Accounting

Codes

FY 2015-16 Approved NELCDC Budget

Operating Acct #: XXXX068 Payroll Acct #:

XXXX351

5050 F. Support (Professional) Services 32,800$

5051 1. Legal Services 18,500$ 5052 2. Accounting Services @$500/month 6,000 5053 3. Auditing Services $7,500/year 7,500 5054 4. Bank fees (check purchases & fees) 800

TOTAL 32,800$

5060 G. Contractual Services 5,475$

5061 1. Marlin Services (Xerox machine leasing) 3,300$

5062 2. Benchmark Maintenance Agreement (for Xerox machine) 1,500

5063 3. Website Developer Services (www.nelcdc.org) 675

TOTAL 5,475$

5070 H. Office Operational Expenses 11,500$

5071 1. Supplies 3,800$

5072 2. Postage (USPS bulk-stamp purchase @ $49.99/100-stamp roll) 500 5073 3. Printing 200 5074 4. Phone Service and Maintenance 4,500 5075 5. Network Services (supplies and installation) 5,000 5076 6. Computer Supplies and Servicing 2,500

TOTAL 16,500$

5140 I. Loan Payments -

5141 1. Loan Payments (to Western Bank) 40,000

TOTAL 40,000$

5150 J. Community Champion Awards (CCA) Banquet (FUNDRAISER) -

5151 1. Banquet facility 1,000$

5152 2. Postage, Printing & Marketing 500

5153 3. Food 6,750

5154 4. Tenant User Liability Insurance (typically required for civic center use) 250

TOTAL 8,500$

4

FY 2015-16 Requested Income (Sec. 380 Grant Management Agreement) 363,547$

QuickBooks

Accounting

Codes

FY 2015-16 Approved NELCDC Budget

Operating Acct #: XXXX068 Payroll Acct #:

XXXX351

5160 K. Donations -

5165 5. Mid-budget year (unanticipated request) 1,500

TOTAL 1,500$

5170 L. Micro-Lending Program -

5171 1. Micro-Loan Requests ($10,000 max) 5,000

TOTAL 5,000$

NOTE: The expense line items in blue will not be paid with Section 380 city grant funds.

TOTAL REQUESTED ADMINISTRATION BUDGET 262,597$

5080 M. Housing/Credit Counseling (Group Education & One-on-One Counseling) 13,500$

5081 1. Staff - moved to administration -$

5082 2. Supplies & postage 2,500

5083 3. Counselor Max (software) $595 annual fee +$17.50/credit report+admin fees 4,500

5084 4. Community financial literacy training classes (space, food, supplies) 1,500

5085 5. Training Services 5,000

5086 6. Payroll Taxes - moved to administration -

TOTAL 13,500$

5200 N. King's Dominion 19,500$

5201 1. HOME Fund Expenses (new home construction) 223,786$

5202 2. Maintenance 7,500

5203 2. Down Payment & Closing Cost Assistance 12,000 TOTAL 243,286$

6000 O. Personnel (Salaries, Payroll Taxes) - Moved to Admin -

5

FY 2015-16 Requested Income (Sec. 380 Grant Management Agreement) 363,547$

QuickBooks

Accounting

Codes

FY 2015-16 Approved NELCDC Budget

Operating Acct #: XXXX068 Payroll Acct #:

XXXX351

6010 P. Adopt-a-Spot Reserves (Housing Development & Rehab) 48,000$

6011 1. Down-Payment & Closing Cost Assistance 20,000$

6012 2. Housing Rehabilitation Materials 28,000

TOTAL 48,000

6020 Q. Adopt-a-Spot Community Meeting Materials 9,000$

6021 1. Meeting facility 4,500$

6022 2. Food, supplies, marketing materials, press releases, signage, etc. 4,500

TOTAL 9,000$

6030 R. Housing/Credit Counseling - Moved to Admin -

6040 S. Volunteer Administration 2,500$

6041 1. Training (Volunteer Center of Lubbock) 500$

6042 2. Marketing & Outreach Supplies 500

6043 3. Ambassador T-shirts 1,500

TOTAL 2,500$

6050 T. Referral Partner's Program 1,200$

6051 1. Meeting materials, supplies, postage, marketing efforts 1,200

TOTAL 1,200$

6060 U. Mahon Villas (Villa del Norte) Redevelopment Initiative - Tax Credit Project 7,250$

6061 1. Community meetings, application administration 750$

6062 2. Legal Services (local real estate transactions) 6,500

TOTAL 7,250$

TOTAL REQUESTED PROGRAMS BUDGET 100,950$

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FY 2015-2016 NELCDC Performance Measures

The North & East Lubbock CDC is primarily a service organization. We function as a developer

too, but we are primarily a service-oriented non-profit. That means, when an organization is

designed to provide a critical service to a designated people group or geographical area, the

measure of impact may be immediate or occur over a period of time as a result of the services

provided to its clientele. The primary service the NELCDC provides is housing counseling and

financial literacy education in a format approved and certified by the U.S. Department of Housing

and Urban Development (HUD). This critical service allows the NELCDC to educate clients on

the process of becoming first-time homebuyers. That educational component is comprised of

budgeting, general money management, building net-worth, credit counseling, and pre and post-

purchase counseling to name a few. In the coming year, the NELCDC plans to add

foreclosure/delinquency/loss mitigation, rental assistance, and fair housing counseling to its

educational curriculum. These essential core services provided by the NELCDC are provided by

staff members. The staff members, comprised of the Executive Director, a Program Manager, and

support staff, are necessary to ensure the various components of the services provided can and will

come together. These educational efforts are focused upon to create first-time homebuyers.

With staff providing essential educational services to Lubbock and the greater west Texas region,

the following programs have been developed to demonstrate the outputs or outcomes of the

services being provided.

Administration, which consists of staff and operations used to implement Programs, which provide

performance outcomes, are the basis of the proposed 2015-16 fiscal year budget. This budget was

approved by the North & East Lubbock CDC Board of Directors on January 27, with approved

line item amendments on March 23, 2016.

A summary and performance measure output matrix for the 2015-16 fiscal year are provided

below.

Administration Performance Measures – Budget: $262,597

Summary Matrix

(Output Units)

Resource Development (Grants) NELCDC Management will focus on writing grants as a result of the MPA

fundraising development plan provided by the Texas Tech University MPA

program last fall. This plan also recommended a gift acceptance policy, which

is currently being developed (3/2016). This process will result in the

submission of 2-3 grants. Additionally, the NELCDC has identified a small

but possibly consistent bank grant for its housing counseling program. A

$7,500 grant was provided in Nov. 2015. If performance is met, this might

become a consistent annual grant for the NELCDC. The NELCDC will be

submitting a grant application to United Way. The NELCDC also plans to

submit grants to federal agencies that align with its mission, vision, goals and

objectives. The performance measure is to submit and hopefully receive six

(6) grants, in addition to a Chapter 380 Grant Management Agreement from

the City of Lubbock. The second resource development performance measure

is the development of a gift acceptance policy.

6 Grants

1 Gift Acceptance

Policy

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Board Development As shown in the exemplary performance of the FY 14-15 audit, NELCDC

management and board members worked to ensure the financial management

policies and procedures were closely followed. These improved practices

demonstrated the efficient implementation of protocol and processes. The goal

is to continue the use of the Executive and Finance Committees to have a

measure of involvement in administrative processes. The Ad Hoc Committees

for Development and Human Resources will be more heavily focused on this

fiscal year. The NELCDC Board and Executive Director with its legal counsel

will review internal practices as well as the bylaws. These items are essential

to help the board understand the administrative practices of personnel, good

governance practices for the Board of Directors, and most importantly is

insurance coverage as well as various procedural shortcoming, which could

expose the organization various liabilities. This is critical work to establish a

renewed professional culture, which will help the organization move towards

success in the future.

1 Report

-outline meetings,

activities, policy

changes or

amendments,

corrective action taken

to safeguard the

NELCDC

Professional Development Because the NELCDC is a HUD-certified housing counseling agency, a certain

amount of training is required. All new staff members must be certified to

provide housing counseling services to NELCDC clientele; this is mandatory.

The budget also calls for training of support staff; training will help improve

the skills of support staff for various administrative functions pertinent to the

functions provided to the NELCDC.

Lastly, since the NELCDC is a Texas CDC, the organization’s affiliation and

participation in TACDC is very important. If possible, the Executive Director

will attend the annual TACDC conference.

As a new measure of accountability, any professional development or training

paid for by the NELCDC (for board members or staff), will require a written

report to be provided, on a form developed and provided by management. The

report format will be standardized. This will be maintained and kept as a way

to: 1) Provide documented information for business-related travel; 2)

demonstrate the knowledge being obtained 3) document how the information

may be used to facilitate better performance of NELCDC members, which will

hopefully produce greater outputs for the organization.

1 – Conference (local,

regional, or national)

for ED.

1 – or more Training Events for ED. (local,

regional, or national)

for ED.

1 – or more Training Events for Program

Manager. (local,

regional, or national)

for ED.

1 – or more Training Events for support

staff. (local, regional,

or national) for ED.

Fundraising The NELCDC will host an annual fundraiser. Currently the annual fundraiser

is the Community Champion Awards Luncheon. The FY 15-16 event will be

held on May 3, 2016. These funds are typically set aside as reserves or to pay

expenses which are not paid by restricted funding.

1 Event

-to raise discretionary

funds for various uses

by the organization.

8

Network Services, Programming, and Integration In FY 14-15, the NELCDC started networking its computers so staff could

share information and try to streamline and standardize its way of functioning

for the organization. The next step in the process of networking services,

programming, and integration is to establish an independent secure network for

the NELCDC; network the NELCDC web page, with its email marketing

client; create a high-performing online client management profile that can be

used for volunteer registration, housing counseling registration, event

registration, and much more. Many of these efforts were started last year. The

implementation of constant contact will further this effort. The NELCDC is

also working on a new online training module, which if approved by HUD, will

be used to expand the NELCDC’s service reach and capacity, and will be used

as a small but consistent revenue generating program for the NELCDC.

1 – Constant Contact

Implementation

1 – Online Training

Module

Regis Park Development Project (Administrative/Management

Activity) The NELCDC has partnered with Texas Investment Partners, LLC via

Dominion Real Estate to work to facilitate the development of a mixed-use

development at MLK and Regis. In addition to proposing the development of

an east Lubbock TIF District, the NELCDC also proposed the establishment of

a public-private partnership between NELCDC-LEDA-Texas Investment

Partners for the installation of a sewer line in the public right-of-way. This

proposal will extend a 12-inch sewer line from LEDA’s business park to the

southwest corner of the proposed develop site at MLK and Regis. To

contribute to the partnership, NELCDC is writing a grant for a portion of the

sewer line installation in public right-of-way.

Ongoing / Consulting

and Facilitating of

the Development

Process

1-Grant

Program Performance Measures – Budget - $100,950

Summary Matrix

(Output Units)

King’s Dominion - $19,500 ($7,500 + $12,000 – see DPCCA below)

NELCDC management and staff will focus on the construction and sale of

homes in King’s Dominion Phase II. This effort will be approached in one of

two ways: 1) by the use of the proceeds from the sale of the newly constructed

home at 1822 E. Harvard St. or by the use of approximately $129,000 of HOME

(HUD) funds the NELCDC was awarded in FY-2014-2015. These funds must

be spent by Sept. 2017. 2) through private development. The $12,000 down

payment and closing cost assistance allocated specifically for King’s Dominion

will be used as an incentive for qualified first-time homebuyers who are seeking

to purchase a lot and develop a new single-family home in northeast Lubbock.

The home at 1822 E. Harvard St. is under contract and is scheduled to close on

March 29, 2016.

3 – New

Construction

3 – Land or Home

Sales

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Down Payment & Closing Cost Assistance (DPCCA) Funds for

First-time Homebuyers - $12,000 Management and staff will use the $12,000 requested for down payment and

closing cost assistance allocated specifically for King’s Dominion will be used

as an incentive for qualified first-time homebuyers who are seeking to purchase

a lot and develop a new single-family home in northeast Lubbock. The home at

1822 E. Harvard St. is under contract and is scheduled to close on March 29,

2016.

3 – Clients to Receive

a $3000+/- Grant

Housing Counseling - $13,500 The NELCDC is planning to serve 50 one-on-one clients in the FY 15-16 fiscal

year; which is 10 clients per quarter. HUD requires all housing counseling

agencies to serve at least 30 clients per year. The number is reduced from 46

clients served to 40 due to a change in personnel, which will show a temporary

lull in performance numbers. An account also has to be given to the effort to

train and certify new staff.

NELCDC has been serving many remote clients in the west Texas region who

are either in rural areas or other west Texas cities (Odessa, Midland, San Angelo,

Amarillo, and Abilene). Clients are often referred to the NELCDC, the only

west Texas agency many clients can reach. Since HUD mandates the NELCDC

serve clients in our region in accordance to the approved Housing Counseling

Work Plan, which mandates we provide phone and/or Skype as an option for

clients who are not able to come into the office. Currently, the primary

curriculum for these approx.. 3-hr course is the Building Wealth Booklet.

The NELCDC provides a housing counseling/financial literacy workshop on a

monthly basis. Some classes are taught at the Bridge of Lubbock and others are

taught at the Lubbock Housing Authority. Online registration is available.

Certificates provided may be used by clients to secure first-time homebuyer

grants from various lending sources who recognize the NELCDC as a HUD –

certified housing counseling agency.

The NELCDC is working to develop an online training module. $5,000 has

been budgeted for this effort. The curriculum will be developed in partnership

with the NELCDC’s referral partners. A focus group of sorts will be used to

develop premier training modules. If approved by HUD, a fee schedule will be

developed and the modules will be available for anyone to use and access as

needed. In addition to the online module being used by clients locally and

regionally, this new system will increase the NELCDC’s impact and also

provide a potential revenue generating stream for the housing counseling

program.

40 – One-on-One

Clients Served

25 – Remote Clients

Served

1 – Revised HUD

Housing Counseling

Work Plan

75 – Households

Served (Workshops)

1 – Online Training

Module (HUD

approved)

10

Adopt-a-Spot Program - $57,000 ($48,000 + $9,000)

The NELCDC is working to finalize the program and the way in which the

process for adopt-a-spot works between the NELCDC-LUNA-Habitat

partnership. The program may be rebranded; if so, this will be revealed in the

finalized plan.

The NELCDC and its partners will identify a new neighborhood to kick-off

another housing rehabilitation project. The team will work to rehabilitate 8-10

households.

1 – Finalized Plan

1 – New Project

8-10 Households

Impacted

Volunteer Administration Program - $2,500 The NELCDC kicked-off its volunteer administration program in August 2015.

The program, as presented during the July 23, 2015 Lubbock City Council work

session, was developed to allow the NELCDC to increase its capacity to do more

with less. So far, the NELCDC has gained some great uses through volunteer

administration in the following ways: staffing booths for outreach and

promotion at location in Lubbock to help promote the financial literacy

workshops; a volunteer coordinator has served to help develop ways to better

utilize volunteers; and volunteers have been cultivated for the adopt-a-spot

initiative. Each staff member will be charged with the task of trying to obtain

and sustain committed community ambassadors (volunteers) who will work

alongside the NELCDC to help build our capacity and increase the

organization’s impact. The goal is to add eight (8) new ambassadors to the

NELCDC volunteer database.

8 – New

Ambassadors

Referral Partner’s Program - $1,200 The NELCDC developed the Referral Partner’s Program in September 2015.

The program was developed to create very specific methodology for working

with lending (and real estate) professionals. As a HUD certified housing

counseling agency, the NELCDC has concise federally mandated practices,

which are often a reinforcement and are consistent with the measures of

homebuyer qualifying practices lenders must follow. Since many NELCDC

clients are primed for FHA lending practices, the NELCDC felt it was prudent

to align its practices with those of lenders, thus the referral partner’s program.

The goal is to obtain lending partners who will execute an agreement with the

NELCDC (really a friendship contract) stating they will work in concert with us

to serve the best interest of our clients. This is also a great way to identify

lenders who can and often times have attended the NELCDC’s financial literacy

workshop to teach “Unit 4 – Obtaining a Mortgage”. This program get’s lenders

involved in the educational side or our process as well as allowing them to

cultivate relationships with the NELCDC’s housing counseling clients who are

often working to become first-time homebuyers. The Referral Partner’s

Program also allows lenders to experience the NELCDC’s educational process

and curriculum and become familiar with the NELCDC’s client management

system (Counselor Max). In this fiscal year, the NELCDC will strive to obtain

5 new referral partners, develop an online clearinghouse (of resources) for

partners, network with partners to develop the online training module, revise and

update the referral partner’s agreement, and develop a CRA proposal packet,

which can be used to leverage more participation from lending institutions for

the NELCDC’s financial literacy educational efforts.

5 – New Confirmed

Referral Partners

1 – Clearinghouse

for partners

1 – Revised

Agreement

1 – Development of

CRA Proposal

Packet

11

Mahon Villas (formerly Villa del Norte) Redevelopment

Initiative - $7,250 The NELCDC is working to acquire 1913 Baylor St. (Villa del Norte) property

and redevelop the site into affordable multi-family housing followed by single

family housing. The NELCDC and it’s partners are seeking state and federal

grants to complete this project.

Ongoing

Grants / Acquisition

East Lubbock Community Alliance - $500 The NELCDC participated in the community forums last year and sporadically

attended monthly alliance meetings. Nonetheless, the NELCDC remains

committed to the mission and vision of the Alliance. The NELCDC is

committed to support the various activities and initiatives of the Alliance in the

best and most feasible way possible.

Ongoing / Activities

and Support

Monique Coleman, MPA, MCRP

Executive Director

North & East Lubbock CDC

Mc_nelcdc@outlook.com

Phone: (806) 747-1505

Fax: (806) 747-5934

www.nelcdc.org

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