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Impact Capital’s Report to Investors. 2009.

Invest. Transform. Sustain.


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mpact Capital is a community development financial institution that makes strategic investments in nonprofit organizations, tribal entities, and housing authorities to spur community development, including affordable housing, art and cultural centers, community facilities, and vibrant commercial districts. Our work transforms distressed communities and neighborhoods into healthy ones – good places to live, work, do business, and raise families. Our role is to blend mission with financial impact. By addressing the needs of underserved neighborhoods and low to moderate income families, we can achieve our goals and provide a crucial link in the world of community development. Impact Capital acts as a catalyst for investment. We leverage financial resources, national partnerships, and local expertise to bring on average $23 dollars of total development to communities for each $1 invested by Impact Capital. Because our flexible financial tools aren’t available in the marketplace, our zero-interest predevelopment loans and interest-bearing bridge loans can help a project move forward to serve families, students, workers, and communities. Through our Vibrant Communities program, Impact Capital uses a holistic approach to address the needs and goals of each neighborhood we serve. Our success stems from working with neighborhood stakeholders, local governments, and community organizations to address issues, develop neighborhood action plans, provide expertise, and create truly vibrant neighborhoods. In 2009 we accomplished the following: • Provided over $9 million of loans and grants to organizations in Washington to develop community projects, affordable housing, revitalize commercial districts, enhance neighborhood green spaces, and reduce crime. • Launched a new Vibrant Communities initiative in the Spokane International District with support from the local government, local and national funding partners, community stakeholders, and Spokane Neighborhood Action Partners (SNAP). • Hosted our first fundraising event in Eastern Washington to showcase our Vibrant Communities program in Spokane and raised funds for the Neighborhood Action Plan which will help guide revitalization in the District. • Organized a Breakfast Series event with speakers from Local Initiative Support Corporation’s (LISC) national policy department who discussed how the American Recovery and Reinvestment Act of 2009 would affect community development nationally and here in Washington. • Developed a newsletter to share stories about our role in community development and the lives being changed by our partners, funders, and borrowers. On behalf of the entire Board of Directors and Staff of Impact Capital, I would like to personally thank the many investors and partners who work with Impact Capital to make affordable housing and community development projects a reality in Washington. Sincerely,

Jan Laskey, Chair, Board of Directors Senior Vice President, Community Lending Bank of America

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Impact Capital Annual Report 2009

“The role that Impact Capital plays as an early risk capital and technical assistance provider to nonprofit housing organizations in Washington State is absolutely critical to the success of those projects over the long term. This makes the futures of families living in affordable housing more secure, and I personally want to ensure that Impact Capital has the resources to continue this work by advocating internally and externally on their behalf.”

-- Ann Melone Board Vice Chair and US Bank Vice President, Commercial Real Estate


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Spokane United Methodist Homes

Loan Amount: $215,225 Address: 2221-225 Farr Road, Spokane Valley, WA 99212

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Type of Project: New Construction What will result: The new construction of 38 units of senior housing on what was originally a vacant lot. Appleway Court will provide 38 one bedroom rental units for seniors 62 years of age or older through the Housing and Urban Development (HUD) 202 Program. Each unit averages 512 square feet. There will also be a small lounge on the first floor and laundry rooms on all three floors. All units will be dedicated to seniors with income at or below 50% of the Area Median Income (AMI).

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Loan Amount: $466,910 Address: Multiple locations Port Orchard, WA 98366 Type of Project: New Construction

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2009 Sample of Funded Projects

*

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Walla Walla Housing Authority

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Kitsap County Habitat for Humanity

Intercommunity Mercy Housing

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St. Andrews Housing Group

What will result: The acquisition loan will be used to refinance the purchase of vacant property in Port Orchard, which will then be turned into 32 single family homes. The acquisition of this property originally occurred in July of 2008 using Westsound Bank and the Washington State Housing Finance Commission’s LAP program. In May of 2009, Westsound Bank was taken over by the FDIC, which recalled the loan, requiring the sponsor to seek an alternative loan for the land to replace Westsound Bank’s note. Impact Capital stepped in and took over the loan. Green Development: Habitat for Humanity plans on incorporating radiant heat floors into each unit as part of their efforts to create energy efficiency for the families.

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Longview Housing Authority

Loan Amount: $1,280,000 Address: 204 North Spokane Street Walla Walla, WA 99362

Loan Amount: $350,000 Address: 1707-1719 South G Street Tacoma, WA 98405

Loan Amount: $75,000 Address: 124th Street and 124th Avenue Kirkland, WA 98034

Loan Amount: $57,630 Address: 1207 Commerce Avenue Longview, WA 98632

Type of Project: Preservation of affordable housing and new construction

Type of Project: New Construction

Type of Project: New Construction

What will result: The new construction of a 73-unit apartment building to serve seniors that are 62 years or older.

What will result: The new construction of 60 units of housing for homeless and workforce individuals and families.

Type of Project: The preservation of a historic building, which will include the rehabilitation of 20 units of affordable housing.

The project is a HUD 202 project, which is a supportive mixed-finance development located in Tacoma in the Hillside neighborhood. This is the first redevelopment project of the ¾ block that is currently occupied by boarded up and dilapidated properties. The end result will be a four story wood and concrete structure comprised of 72 one-bedroom units and a two-bedroom manager’s unit.

The project will consist of 114 units of residential development. The building consists of five levels of residential and community space (within two residential towers) with one level of underground parking. Out of the 114 units, 60 of the units will be for single individuals and families that are homeless, 13 units for residents with an income at or below 30% AMI, 33 for residents at or below 40% AMI, and 14 for residents at or below 60% AMI. The location is close to the Totem Lake Transit Center and within walking distance of several Metro Buses, allowing for easy transportation access.

What will result: The Walla Walla Housing Authority (WWHA) is going to rehabilitate 35 units of affordable housing and build an additional 15 units of affordable housing to bring the total to 50 units. The existing 35-unit apartments are comprised of 6 wood-framed single story homes and 2 multi-story homes, both located in downtown Walla Walla. WWHA wants to modernize and increase the energy efficiency of each existing unit. The new construction will consist of primarily two-bedroom homes along with 1,000 square feet of community space. WWHA is going to restrict 25 of the units to households at or below 30% of the AMI, 15 units will serve households at or below 50% AMI, and 10 units will serve at 60% AMI.

Green Development: The building will include solar water heating and energy generation.

What will result: The rehabilitation of 20 studio apartments in order to create 24 beds of permanent supportive housing for homeless veterans. The rehabilitation includes the installation of an elevator, relocation of the laundry room(s), installation of fire suppression systems, and American with Disabilities Act (ADA) access that will benefit all building tenants. *Impact Capital approved 20 loans for a total of $7,926,871 to build 727 units of housing and 18,245 square feet of community facility space. These loans leveraged over $155 million dollars in total development costs.

Impact Capital Annual Report 2009

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Invest. Transform. Sustain.

OUR MISSION: We help build and sustain vibrant neighborhoods in underserved communities throughout Washington.

OUR ROLE IN THE COMMUNITY: Impact Capital works to meet the basic needs of residents by helping to build and sustain affordable housing throughout Washington. Impact Capital knows that community development means more than just affordable housing, but we believe positive neighborhood change starts with a place to live. We create vibrant communities by using tools like our zero-interest predevelopment loans and interest-bearing bridge loans to help nonprofit organizations, tribal entities, and housing authorities create safe, decent, and affordable housing. Our lending products ensure that these organizations can afford to create a plan for a new project, acquire the property,

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and construct and rehabilitate homes that families can afford. The role that Impact Capital plays in strengthening communities across the state is significant. We provide early bridge financing for strategic real estate investments. We take the riskiest part of the financing package, thereby attracting other investors to the table. Impact Capital was created to take the deep and broad risks necessary to invest in communities with persistent challenges. Without a strong vehicle for encouraging healthy transformation, these communities continue to languish in the gap. Yet, despite our mission to provide loans not available in the private market, we have an outstanding repayment rate of 100% on our interest-bearing loans and over 92% on our predevelopment zero-interest loans. Compare that to the private market! Impact Capital works in 94% of the counties in Washington. Over the last

twenty years, we have partnered with nonprofit organizations throughout Washington to create 17,874 affordable ownership and rental housing units. Additionally, we have financed 13 childcare facilities, 11 community centers, 2 job training facilities, 4 arts and cultural facilities, and 552,245 square feet of retail and industrial space. To date, Impact Capital has invested more than $97 million in Washington State and leveraged more than $2.2 billion in development, bringing $23 to Washington communities for every $1 invested by Impact Capital. Our programs and expertise have been put

to the test in communities around the state and have proven to be successful in turning distressed neighborhoods into vibrant ones – where people are proud to live, work, and raise their families. While we have made excellent progress over the years, our work is more important now than ever. In these challenging times, with credit becoming more difficult to obtain, nonprofit organizations and communities need our unique lending tools to continue to meet the basic needs of Washington families.


LENDING PROGRAM Impact Capital provides predevelopment, acquisition, construction, and bridge loans to nonprofit organizations, housing authorities, and tribal entities throughout Washington. In an economy where credit is becoming scarce, Impact Capital’s role in the funding community is more important than ever. Our lending program helps organizations fulfill their missions to build affordable housing and provide community facilities such as food banks, senior centers, and day care centers.

Community Development Loan Fund: $3 million loan pool • Provides zero-percent interest loans (for up to $75k) to assist nonprofits with feasibility costs required to enable them to develop initial applications for grants and project financing. • Since 1994, Impact Capital has invested $97 million and leveraged more than $2.2 billion in total development costs. • In 2009, Impact Capital made 9 CDLF Loans totaling $620,143. These loans will result in 322 units of low income housing.

Community Investment Fund: $26 million loan pool • Provides secured, interest-bearing loans, which can be used to acquire land and buildings, pay for predevelopment expenses, bridge capital campaigns, pay for construction costs, and bridge tax credit equity payments. • Since 2000, 120 loans totaling over $78 million leveraged nearly $860 million in total development costs. • $0 in losses. • In 2009, Impact Capital made 11 CIF Loans totaling $7,306,728. These loans resulted in 405 units of low income housing.

Impact Capital Programs

COMMUNITY BUILDING PROGRAMS It takes more than just housing to create great neighborhoods and communities. The organizations that develop affordable housing and revitalize neighborhoods also need resources and support. While some of our programs change from year to year to address new challenges, Impact Capital has a set of tools and programs available to assist nonprofit organizations to create sustainable change in their neighborhoods.

The Knowledge Bank As the Northwest’s experts in community development, Impact Capital provides a range of services and resources to help community development practitioners increase their skills and capacity. Our services include:

Vibrant Communities Through our Vibrant Communities program, Impact Capital works with key neighborhood partners and nonprofit organizations to help transform distressed communities into vibrant ones. Our approach recognizes that physical development, while critical, is not enough to create truly vibrant communities. As a result, we work with our partners on the ground to strengthen neighborhood commercial districts, create affordable homes, sustain affordability, increase public safety, create parks and open space, improve educational opportunities, and help families build homes. The cornerstone of this program is the development of a neighborhood action plan. The plan contains a variety of action items to be completed in short-term, mid-term and long-term timelines. A lead agency is selected to steward the plan, but no one agency is expected to complete everything in the plan; instead, the expectation is that a variety of partners will collaborate to achieve the vision, strategies, and actions laid out in the plan.

Affordable Housing Preservation Services Despite the community development industry’s success in addressing the need for affordable housing, the age, diversity, and complexity of our portfolio requires that we bring greater attention to preservation and maintenance efforts needed to keep our existing portfolio affordable and sustainable. Impact Capital provides asset management, technical assistance, and resources.

• Technical Assistance: Consultants and individualized technical assistance to build organizational and programmatic capacity. • Training: Sessions are offered each year on a range of industry topics. • NFL Grassroots Program: In partnership with the Local Initiatives Support Corporation (LISC) and the National Football League (NFL), Impact Capital provides grant assistance to develop sports fields and recreational opportunities for youth in low-income neighborhoods. • Community Safety Initiative: In partnership with LISC, Impact Capital provides assistance in developing and implementing community safety programs in neighborhoods.

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H

ealthy neighborhoods are at the heart of healthy communities. Government, nonprofit agencies, commercial businesses, and local residents all hold roles in contributing to the vibrancy and strength of a community. Communities that are economically and socially fragile, however, face stressors – ranging from an insufficient amount of affordable housing to struggling commercial districts to families living in poverty that all threaten community members’ well-being.

spokane international district Too often, these communities lack the organizational capacity needed to overcome such issues which, if left unaddressed, can lead to a neighborhood’s deterioration. Intermediary organizations, like Impact Capital, provide essential tools and resources at critical junctures in these communities’ development that make possible the turning point that allows them to grow into strong and vigorous places for people to live and work. In 2009, Impact Capital launched a new Vibrant Communities site in Spokane to revitalize a struggling historic neighborhood with culturally diverse businesses, arts activities, and increased housing opportunities. This project is the culmination of many months of working with the City of Spokane and Council members to identify a potential neighborhood and develop a partnership. The portion of the East Central neighborhood along the Sprague corridor between Helena and Crestline was chosen due in part to efforts already underway in that area. Impact Capital issued a request for proposals to find a lead agency to help steward the work on the ground in the neighborhood. Spokane Neighborhood Action Partners (SNAP) was selected to be that lead agency to work closely not only with Impact Capital and the city, but also the East Spokane Business Association (ESBA) and other key stakeholders and partners to revitalize the neighborhood.

“Great changes are happening and we’re excited to be a part of it. We are proud to be located in Spokane’s International District. We would love for you to come meet our family as we make a meal for you and yours.”

Invest. Vibrant Communities Spokane International District Location: Spokane, WA Impact Capital Investment: $120,596 in financial support and 1,100 hours of technical assistance, guidance, and leadership Funds have been used to create marketing materials for district street banners, facilitate meetings, and develop a Neighborhood Action Plan.

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-- Huu ‘Nick’ Au, whose family owns and operates Vien Dong restaurant in the Spokane International District and who is a member of the East Spokane Business Association


Accomplishments: 1. The City of Spokane and the East Spokane Business Association helped Impact Capital select SNAP as the lead agency for the Vibrant Communities project. The first year of the Vibrant Communities program is about building partnerships to help the community define a vision for their neighborhood. Impact Capital’s role is to help build the infrastructure to be able to achieve that vision. The ESBA and community stakeholders wanted to build on the culturally diverse businesses in the area as well as draw other arts and cultural activities. As part of the initial Vibrant Communities efforts, this neighborhood with many different names has rebranded itself into the Spokane International District and created a logo. Impact Capital and SNAP worked with focus groups to flush out priorities, which have become part of the Spokane International District Action Plan published in 2010. A database was created to contain information about the

buildings and properties within the district, and dedicated volunteer committees have been formed to help work on issues and projects. “In the last year Impact Capital has invested a tremendous amount of time to build relationships between SNAP, Spokane City Department staff, the East Spokane Business Association (ESBA), and neighborhood stakeholders. Without this web of networks and successful relationships, we wouldn’t be seeing the more visible signs of success we do now.” -- Terri Symbol, Impact Capital Program Officer The vision of the Spokane International District is to develop the neighborhood into a destination community with thriving businesses, diverse and attractive housing options, and a distinctive multicultural identity.

The goals of the district are to: o Create a vibrant and culturally diverse commercial district; o Create an inviting and safe district; o Preserve the unique historic character of the neighborhood; and o Create access to diverse housing options. We achieve these comprehensive goals by making a multi-year commitment of resources, support, and guidance that leverage Impact Capital’s wealth of expertise and regional and national networks of relationships. In each Vibrant Community project, we not only help ensure that activities are implemented effectively, but also support participating communities in strengthening skills and empowering them to sustain their work over the long term.

2. The public launch event of Vibrant Communities Spokane International District was organized by Impact Capital and was attended by Mayor Mary Verner, Councilman Mike Allen, and Councilman Richard Rush. 3. Impact Capital helped organize the Spokane International District’s first Neighborhood Cleanup Day and received overwhelming support from local business and neighborhood residents. 4. The Spokane International District Neighborhood Action Plan was drafted in July with focus groups held in the fall to integrate additional stakeholder and resident input. The final plan will be published in 2010. 5. Impact Capital and SNAP created a database to house an inventory of the commercial and residential buildings in the district; the data will help identify future development activities, assist in business attraction, and track assessments for a future Business Improvement District. 6. Impact Capital, ESBA, and City Staff collaborated to enact an ordinance declaring the Spokane International District an Alcohol Impact Area to reduce the incidence of alcohol abuse and improve public safety. City Council passed the ordinance unanimously. 7. The Spokane International District partners and stakeholders developed the International District Brand, worked with a local agency to create a logo, and collaborated to develop street banners. The Banners will be in place in 2010. 8. The Storefront Improvement Program was created to assist businesses and building owners to improve their storefronts. Architectural students from WSU are working with the businesses to design their new storefronts in exchange for partial tuition reduction. 9. Impact Capital hosted “Angels and Demons,” a fundraising event in conjunction with Housing Washington, to increase statewide awareness of the new program, recruit potential investors, and raise funding for the Neighborhood Action Plan. 10. Impact Capital worked with ESBA and the City to organize a “Your City” meeting and filming event with Mayor Mary Verner, City Department Directors, the Police Chief, and the East Spokane Business Association for a solutions-based discussion on neighborhood challenges. The video also highlighted the benefits of working, living, and playing in the neighborhood.


YWCA of Pierce County for women, their children, and pets. In the current location, rooms average a size of 97 square feet. In these small spaces a mother could be housed with up to three children and all their possessions. Bathrooms and showers are all communal space with only one tub to share among all children living in the shelter. The kitchens are also a communal space, with each having a designated cupboard and each family having the option to store their refrigerated goods in a small locked basket.

YWCA of Pierce County Location: Tacoma, WA Impact Capital Loans: $624,702 Acquisition Loan Used to purchase the Wilsonion Apartments and begin renovations.

YWCA Pierce County was initially founded in 1906, but purchased and moved to its current location in 1928 as a place for the women and girls of Pierce County to recreate, to live on a temporary basis, and to gather.
 Today, it has grown into one of the most successful women’s shelters in the country with the capacity to house 50 individuals at a time. Not only does this facility allow women to escape with their children from abusive domestic situations, the YWCA of Pierce County became the first shelter in Washington State to allow pets. The YWCA is currently taking another step as one of the leaders in the nonprofit community. They recently decided to move their facilities to a new location that would increase their available housing by 50%, while also creating a more comfortable living environment

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Less than a block away from their current shelter, the YWCA is remodeling an vintage apartment building in order to create a place where women can live in their own apartments. Impact Capital put the first dollars into the YWCA project with a phase one predevelopment loan of $75,000. This allowed YWCA’s leadership team to put together a plan of action for their eventual purchase of the Wilsonion Apartments. In December of 2008, Impact Capital gave the YWCA another loan, this time an acquisition loan for $549,702 to purchase the Wilsonion Apartments property. The new building has a variety of apartments ranging from studios for single women up to multi-bedroom apartments with the capacity to hold a nine-person family or be transformed into an apartment for multiple single women. The new facility will allow for each woman to have a private kitchen and bathroom. Living in a shelter seems so hard that many people might not leave the abuse. But with the new space and privacy, the shelter creates a peaceful environment where healing can begin.

“The hope is that we can accommodate all types of families. A place for children to play, places for teenagers to do homework and fill their needs, something we can’t address at the current shelter. These are all things that would really help us do a better job in keeping not only the women and children that come here safe but helping them feel comfortable and that they’re in a really productive working environment and providing them with help for their future life.”

Transform.

-- Kelly McDonald, YWCA of Pierce County Marketing


Casa Latina

“After going to the Day

Marica Almquist, Casa Latina’s Director of Finance and Development, highlights the importance of Impact Capital’s involvement: “All our grants are program related; we had no ability to purchase property, so it was crucial that Impact Capital made that loan commitment early on.” The loan was necessary to begin renovation immediately, and fundraising became significantly easier once they had a permanent building from which to operate.

Casa Latina Location: Seattle, WA Impact Capital Loans: $1,076,022 Acquisition Bridge Loan Used to purchase and renovate an administrative building and construct a day workers’ center.

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hrough a partnership with Impact Capital, Casa Latina was able to expand their capacity to serve Latino immigrants by providing education and employment opportunities, which empower individuals to participate in their community and contribute to the economy. In February 2009, Impact Capital provided Casa Latina with a $1,076,022 Acquisition Bridge Loan. This money was used to purchase and renovate a building, consolidate their administrative functions, provide versatile facilities for their clients, and construct a new Day Workers’ Center. The completion of this project in March of this year represents a significant improvement to Casa Latina’s capacity to adapt and better serve the needs of their community.

The services and programs provided by Casa Latina have dispatched 7,996 temporary jobs with an average wage of $13.97 per hour, placed 114 immigrants in permanent work, and dispatched 479 domestic workers’ jobs through their Household Helpers Project. Casa Latina’s English as a Second Language (ESL) classes have significantly improved the English skills of 164 adult students, and their Worker Defense Committee has recovered over $50,000 for workers who were not paid by their employers. Their new building accommodates day workers who are waiting for employment, provides enough space for a store run by the Women’s Program, and has the flexibility to be divided into separate rooms in the evenings for English classes. Every room of the newly renovated building is multi-purpose.

Workers’ Center for a few months, I was able to get a stable job that I kept for more than two years. . . These opportunities have given me economic and social stability in my life.”

-- Program Participant

Flexibility for Casa Latina is not only beneficial, it’s crucial. But none of this would have been possible without financial support from Impact Capital.

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Sustaining Our Local Art Scene

“Living in Hiawatha Lofts

Pioneer Square has long been considered a focal point of the artistic community in

is reaffirming the fact

Seattle. A centralized urban location and low rent for living spaces and studios made the area ideal for artists to live, create, and show their work.

that I, as an artist, am

Cathryn Vandenbrink, regional director of Artspace and a long-time resident of Pioneer Square, explained that no one really knew how many artists were living in the area because many residents tried to keep their housing situation private. “The fear was due to the fact that either they were living there illegally or they were afraid that if someone found out how little rent they were paying, that people would go to the landlord and offer to pay more and the artist would get kicked out.”

Tashiro Kaplan Artist Lofts Location: Seattle, WA Impact Capital Loans: $75,000 Phase I Predevelopment Loan Used for architects/engineers, surveys, consultations, and legal fees. $549,207 Equity Bridge Loan Used to bridge the second, third, fourth and fifth installments of the tax credit equity pay-in.

Artspace Hiawatha Lofts Location: Seattle, WA Impact Capital Loans: $75,000 Phase I Predevelopment Loan Used for architects/engineers, surveys, consultations, and legal fees.

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valued. My practice is being supported and what I bring to the community is valued.”

This fear became particularly acute during the ‘dot-com’ boom of the nineties; “Landlords who were getting fifty cents a square foot were suddenly able to get three dollars,” and though this economic boom didn’t last, the property owners made big investments to convert spaces and prices became too high for artists in the area. With the artists being pushed out, the historic character of the neighborhood began to change, and it became clear that affordable housing for artists and their families had become a crucial need. In order to preserve Pioneer Square’s status as an arts district, the City of Seattle brought in Artspace Projects, Inc, to transform two buildings, the Tashiro and the Kaplan, into

Sustain.

-- Christian French, a photographer who lives and works at Artspace Hiawatha Lofts


affordable live, work, and studio spaces for artists. This project provides 104,000 square feet of affordable one, two, and three-bedroom live/work spaces for individual artists and their families. These units range from 800 to 2,000 square feet and feature flexible floor plans and plentiful light to provide the perfect environment for artists to live and create. One of the key aspects of this project is the expansive 40,000 square feet of commercial space it provides, which has had an incredible economic impact on the area by providing 16 new art galleries, 13 studios, a coffee shop, and 4Culture, the cultural agency of King County, all of which provide a central location for the artistic culture of Seattle. This feature is particularly important to artists who often can’t afford to live near creative community resources.

Because of the success of Tashiro-Kaplan, Artspace’s second project in Seattle, the Hiawatha Lofts, was highly anticipated. In fact, their building’s residential and commercial space was completely leased before the official opening. The Artspace Hiawatha Lofts provide 61 one and twobedroom units of affordable live/work studios for artists, plus six commercial storefronts for artist-related businesses, including: • All World Dance Studio, which offers children’s dance classes, yoga, tango, and African dance to the community, as well as renting space to other dance companies. • Youth Venture, a nonprofit that works with people ages 12 to 18 to help them start organizations and businesses that change the world.

• C Art Gallery, which showcases artists of color and has a coffee shop for community socializing. Sustaining the artistic community in Seattle makes the city a more vibrant place for all its residents. Additionally, affordable artist housing helps maintain the cultural identity of neighborhoods like Pioneer Square. Christian French, a photographer who lives and works at Artspace Hiawatha Lofts, explains, “Living in Hiawatha Lofts is reaffirming the fact that I, as an artist, am valued. My practice is being supported and what I bring to the community is valued.” Financing for artist housing can be difficult, especially in the predevelopment stage. Grants that fund this work often cannot be secured until after initial stages of development have been completed,

including architectural and design work, environmental studies, and market studies. This can cost upwards of $100,000, which needs to be secured before an organization can even apply for additional funding for the acquisition and development of a property. “Predevelopment money is the hardest money to find,” said Cathryn Vandenbrink. “It is high-risk money… and other lenders just aren’t willing to take that risk.” This is where Impact Capital is essential. By providing zero-interest predevelopment loans, Impact Capital acts as a catalyst for community development, ensuring that affordable housing can help sustain artists and neighborhoods throughout Washington.

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2009 Donors & Investors Private Investors The Annie E. Casey Foundation Bank of America Banner Bank BECU Columbia State Bank The Erich and Hannah Sachs Foundation KeyBank Northern Trust Bank US Bancorp Washington Mutual Wells Fargo JP Morgan Chase

Public Investors City of Seattle City of Seattle, Office of Housing City of Spokane City of Tacoma King County Snohomish County US Department of Housing and Urban Development Washington State Department of Commerce Washington State Housing Finance Commission Washington State Housing Trust Fund

Heyward Watson Guillermo Sandoval Randy Robinson Lisa Vatske Mario Villanueva Julie Alexander Michelle Yu Joanne Burt Doug Prince Washington Agricultural Families Assistance The Catacombs, LLC AEC Foundation Spokane Housing Ventures KeyBank Foundation Avista Foundation Bank of America Banner Bank BECU City of Seattle, Office of Economic Development City of Seattle, Office of Housing City of Spokane, Office of Community Development

Donors. Investors.

Donors Jan Laskey Rick Allen Jayne Auld Natalie Beckmann Joe Brancucci Mariano Diaz Michael Brown Kim Herman Susan Duren Roy Johnson Ann Melone Judith Olsen

“I am passionate about housing finance and understand the genesis of communities; therefore, Impact Capital was where I wanted to focus my efforts and the resources of my company.�

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City of Spokane, Office of Economic Development Foster Pepper HSBC Bank USA Inland Northwest Community Foundation JP Morgan Chase Foundation Living Cities Local Initiatives Support Corporation (LISC) National Equity Fund Olympia Federal Savings and Loan Association Sterling Savings Bank Spokane Teachers Credit Union The Seattle Foundation US Bank Verity Credit Union AmericanWest Bank Washington Community Reinvestment Association (WCRA) Washington State Department of Commerce Watson and McDonell, PLLC US Department of Housing and Urban Development

-- Joe Brancucci, Board Member and BECU Executive Vice President


Board of Directors Impact Capital’s Board of Directors consists of representatives from private and public donors and investors as well as partners from community development and affordable housing organizations across Washington. The Board meets quarterly and members serve on committees that monitor, advise on, and oversee Impact Capital’s programs and activities. Jan Laskey, President Senior Vice President Community Development Lending Bank of America Ann Melone, Vice President Vice President Commercial Real Estate US Bank Randy Robinson, Secretary Vice President, Western Region Manager Community Development Lending Key Bank Susan Duren, Treasurer President Washington Community Reinvestment Association (WCRA) Jayne Auld Executive Director Spokane Housing Ventures

Natalie Beckmann Partner Helsell Fetterman LLP

Guillermo Sandoval CRA Officer and Vice President Banner Bank

Joe Brancucci Executive Vice President BECU

Lisa Vatske Managing Director Washington Department of Commerce

Michael Brown Vice President of Community Leadership The Seattle Foundation

Sue Taoka Executive Vice-President, Urban Programs Shorebank Enterprise Cascadia

Mariano Diaz Vice President, Western Region Local Initiatives Support Corporation (LISC)

Judith Olsen Vice President & CDO Wells Fargo

Kim Herman Executive Director Washington State Housing Finance Commission Roy Johnson Executive Director Vancouver Housing Authority

Susan Shannon Director, Office of Economic Development City of Seattle Mario Villanueva Executive Director Catholic Charities Housing Services Dwight Prevo Community Development Officer Wells Fargo

“Impact Capital’s Board includes some of the most committed and talented people in the field of community development and finance. It’s very rewarding to work cooperatively with them towards the common mission of having vital neighborhoods in communities throughout Washington State.” -- Randy Robinson, Board Secretary and Key Bank Vice President, Western Region Manager, Community Development Lending

Board of Directors.

Rick Allen President United Way of Pierce County

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STATEMENT OF FINANCIAL POSITION

(as of 12/31/2009)

expense

revenue Total: $1,828,672

Assets

Program Contracts

$357,543 19.55%

Program Interest & Fees

$811,116 44.36%

Cash & Investments

$15,834,613

Loans Receivable

$10,881,653

Investment Earnings $303,355 16.59%

Accounts Receivable & Other Assets

$552,090

Contributed Income $356,658 19.50%

Total Assets

$27,268,356

Total Revenue

$1,828,672

Management & General

$163,024

8.08%

Fundraising

$147,370

7.31%

Lending & Community Building $1,706,503 84.61% Total Expenses $2,016,897 Operating Overhead 15.39%

Liabilities & Net Assets

Accounts & other payables

$297,718

Loans Payable

$23,200,000

Total Liabilities

$23,497,718

Net Assets

$3,770,638

Total Liabilities & Net Assets

$27,268,356

STATEMENT OF ACTIVITIES

Unrestricted Temporarily Restricted

Revenues

$1,670,024

$158,648

$1,828,672

$315,074

($315,074)

$0

Total Revenue

$1,985,098

($156,426)

$1,828,672

Total Expense

$2,016,897

$0

$2,016,897

($31,799)

($156,426)

($188,225)

beginning of the year $1,289,004

$2,669,859

$3,958,863

Net Assets 12/31/09

$2,513,433

$3,770,638

Change in Net Assets Net Assets

14

x

$1,257,205

Impact Capital Annual Report 2009

Management & General Fundraising Lending & Community Building

Total

Net Assets released from restriction

Program Contracts Program Interest & Fees Investment Earnings Contributed Income

Financial.


2009 staff Fund Development and Communications:

Administrative and Finance:

Lending:

Heyward Watson: Chief Executive Officer Ingrid Martin: Senior Financial Officer Julie Alexander: Senior Accounting Clerk Michelle Yu: Accounting Clerk Jessica Gimse: Executive Assistant

Elsa Kings: Associate Program Officer Laurie Olson: Program Officer Terri Symbol: Program Officer Jon Clarke: Senior Program Officer

Jon Talent: Pitching softba ll and reciting Red Sox triv ia Tracy ot: acation Sp Favorite V Argentina

Magda Herrera: Senior Fund Development and Communications Officer Britney Boyer: Community Development Assistant

Magda inting Talent: Oil pa

Heyward Favorite Pastime: Tak ing pictures and collecting music

Terri Talent: Gardener Extraordinaire

Britney Favorite Vaca tion Spot: London

Ingrid tching old movies Favorite Pastime: Wa

Community Building: Jennifer LaBrecque: Program Officer Tracy Reich: Senior Program Officer

Staff.

Jessica Favorite Pastime: Camping & hiking in the Olympic Mountains Jennifer ing Favorite Pastime: Hik

Michelle ime: Favorite Past & tickle de hi g in ay Pl before ds ki y m with e bedtim

Elsa Favorite Vacation Sp ot: Maui

Julie Talent: Drawing lines

Laurie Favorite Vacation Spot: Mexico Impact Capital Annual Report 2009

x

15


seattle 401 Second Ave. S, Suite 301 Seattle, WA 98104 T 206.587.3200

spokane P.O. Box 3707 Spokane, WA 99220 T 509.456.8088

visit us at www.impactcapital.org

Investing in organizations that build community.

IC Annual Report 2009  

Annual report for year-ending 2009 activity.

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