Community Concepts Financial Corp 2016 Annual Report

Fiscal Year

2016 REPORT

Marking 15 years of supporting economic growth in Western Maine.

2016 REPORT Welcome

Welcome, friends, to our 2016 Annual Report!

As Community Concepts Finance Corporation begins its 16th year, it is well positioned to provide capital to

people becoming new homeowners who are properly prepared to handle all that being a homeowner involves.

individuals looking to start a business, to businesses

We are planning to grow our affordable mortgage

that are not yet ready for conventional financing, and

financing for families who are shut out of conventional

to provide gap financing together with our lending

mortgage financing due to a range of factors.

partners.

On the Economic Development side, we provided

We have built strong partnerships with the financial

hundreds of hours of economic development activities

institutions in our communities while providing unique

throughout Oxford County which furthered our

financial products tailored to the needs of those who

understanding of the needs of those communities and

struggle to acquire a traditional loan.

the resources we can provide or coordinate to help them move forward.

Our programs are serving more communities, families, individuals and businesses than ever before.

Meanwhile, we have advanced key strategic initiatives that will

We Believe all Individuals, Families, and Communities can be Financially Secure.

position us to continue to grow.

On the business lending side, I am pleased to report that we had a 41% increase in business loans over 2015 with 50 loans closed and $2.8 million in lending!

We are also proud of the 158 jobs we were able to help create or retain in our communities this year.

On the residential side, we had a 29% increase in Homebuyer Education participants, resulting in 158

Many

of

our

services

are

entirely paid for by the grants and donations we receive from numerous sources, while others are offered on a sliding scale. We strive to be the best place to start

a conversation even if a person may be able to work within the traditional financial system.

In the pages that follow, you will read about a few of the businesses we assisted, mortgages we have made, the folks we have counseled and the impacts we have had with the individuals, families, businesses and communities we serve.

CCFC CEO Dennis Lajoie Board of Directors CHAIRMAN: Lincoln Jeffers, Director of Economic & Community Development for the City of Lewiston VICE-CHAIR: Tara Davis, Registered Client Associate with Northeast Retirement Solutions SECRETARY: Peter Chapman, President of Paris Farmers Union MEMBER: Mark Samson, CEO of Rainbow Federal Credit Union MEMBER: Travis Frautten, VP Commercial Loan Officer at Androscoggin Bank 2

Economic Development

Rumford

CCFC Aids Effort to Spur Growth through Rumford Historic District Designation Throughout

2016,

CCFC

worked

Historic

District

designation,

CCFC

values

are

generally

expected

to

alongside a local group to designate

helped determine the town’s eligibility

increase under the designation. Historic

downtown Rumford a Historic District

and organized a public meeting to

designation could also create a visitor

by the National Trust for Historic

explain the potential positive impacts

attraction to the Rumford Falls area,

Preservation, a move aimed at spurring

of

up

which would help ensure the success

economic development in the heart of

misconceptions about the move. CCFC

of a new hotel being built close to

the Great Falls area.

also aided the effort to draw up the

downtown Rumford.

Helping towns create historic districts is just one strategy employed by CCFC to

the

designation

and

clear

nomination papers and document the buildings in the area.

create new opportunities for towns and

In April 2017, the National Trust

businesses in Oxford County. CCFC’s

for Historic Preservation added

economic development efforts include

downtown Rumford to its list

grant making, professional consultation

of

and direct participation in projects such

CCFC will now pursue additional

as historical designations.

financial

“I see our role as a facilitator and connector to resources to help advance

designated

historic

incentives

to

sites. help

revitalize downtown with the boost from the new designation.

the priorities of local communities,”

The potential economic development

CCFC’s

impacts of the designation are wide-

Economic

Development

Program Director Mia Purcell said.

In its effort to realize the Rumford

ranging. Contributing property owners would receive tax credits for pre-

“The

historic

designation

has

the

possibility to be very significant,” Purcell said. “We are hoping this will spark more development.”

approved renovations, and property 3

Business Lending

Auburn CCFC’s Business Lending Booming with Positive Results Enka and Genti Suli will be celebrating

The

their fifth anniversary in January 2017 at

the cash saved from

84 Court Pizza & Restaurante in Auburn,

the down payment to

and the occasion will be particularly

renovate the interior, demonstrating

“There is very good communication

sweet, since they are the new owners of

one major benefit of financial assistance

between the banks and Community

the building that houses their business.

from CCFC. They are planning to

Concepts. It really helps a small business

lay long-lasting ceramic tiles in the

like us,” Mr. Suli said. “They helped us

downstairs and paint and make other

tremendously, actually, with purchasing

updates to the upstairs dining room.

the building.”

for the previous 5 years, guiding them

CCFC greatly exceeded its fiscal year

Ownership of the building is a major

through a process that included Norway

2016 goals throughout its business

milestone in the couple’s quest to create

Savings Bank and the Finance Authority

lending services, showing continued

a successful business of their own.

of Maine’s State Small Business Credit

growth and measurable impact. CCFC

Initiative.

helped create 158 new jobs through its

Community Corporation

Concepts assisted

the

Finance Sulis

in

purchasing the building they had leased

CCFC provided 20 percent of the required down payment, allowing the Sulis to hold on to some of their cash.

“It was a good savings for us, because we did not have to put all the money down that they needed for purchase of the building,” Mr. Suli said.

Sulis

are

using ENKA AND GENTI SULI

strategic business lending, over double its initial goal, and provided technical

Dollar amount of loans closed Technical Assistance - total hours Jobs Created/Retained 4

we managed to get it through some very tough times,” Mr. Suli said.

assistance to 133 clients, nearly double

The Sulis emphasized the inherent

the expected rate.

difficulty of the restaurant business,

CCFC was named Top Performing Microlender

for

the

second

year

in a row by the U.S. Small Business Administration.

with long hours and the need for round the clock attention to it. But the fact of owning the building that houses the restaurant has a made a key difference.

“You still have to work, because that’s

FY15

FY16

% Change

31

50

61.29%

it’s going to go in your pocket, because

$1,682,255

$2,841,320

68.90%

it’s your building, it’s your property,”

1,730

1,686

-2.54%

Mrs. Suli said.

108

158

46.30%

Business Lending Loans Closed

“It was very hard in the beginning, but

how it is, but at least the most important is that we are working for ourselves, and

Tilton’s Market Kept Alive through Unique Partnership A bustling small town market known

hold

simply as Tilton’s has been in the heart

note.

of the Buckfield community since 1939.

A

family-run,

community-oriented

place to purchase essential items, meet your neighbors and discuss local events, Tilton’s Market received a new lease on life thanks to a partnership with a retired school teacher and Community Concepts Finance Corporation.

“There was an opportunity for someone else to be the owner of Tilton’s Market, and I said to my husband, ‘What do you think about this pipe dream?’ And we laughed, and then we talked about it,” said owner Sandra Fickett. “Community Concepts offered us not only financial support but the intellectual support I needed as a new business owner.”

Ms. Fickett worked with CCFC and the interim owners of the market, who had already begun to restructure purchasing relationships and increase the market’s revenue. Due to Ms. Fickett’s limited direct experience in running a business, CCFC

negotiated

a

three-party

agreement in which the seller would

a

Business Lending

subordinated

CCFC provided technical assistance and required the

seller

available

to to

remain provide

guidance to Ms. Fickett.

CCFC financed the real estate

in

2014,

with

funding through the USDA Intermediary

ages 16 to 76, who are all members of the

Relending Program. After two years

community. A person with disabilities is

of

positive

among the employees, and the market

community feedback, in 2016, CCFC

also does outreach on job skills training

approved a cash-flow refinance to

with the local school for other young

take out the remainder of the seller’s

people with disabilities.

sustained

growth

and

subordinate debt with some of the financing coming through the U.S. Small Business

Administration’s

microloan

program.

“After a concerted effort by members of the community and CCFC staff, a family run business founded at the tail end of the Great Depression gets a new family and a second chance,” said Zachary Maher, loan officer at CCFC.

“From the very beginning, Community Concepts has been there to make our dream come true,” said Ms. Fickett.

People who have frequented the market for decades expressed their gratitude to Sandra for stepping forward to take it over. They also noted her innovations in providing a wider selection of products and creating a community space in their town.

The market employs 18 people from

Buckfield MS. FICKETT

5

Total Portfolio

$8,224,669

Housing Loans, $3,260,000

Business Loans, $4,964,668

Community Concepts Finance Corp.

Audited Statement of Financial Position FY15

FY16

Assets

TOTAL ASSETS

$3,929,316 $$6,072,933 $10,002,249

$2,366,544 $25,304 $8,996,653 $11,388,501

TOTAL LIABILITIES

$1,974,204 $5,816,608 $7,790,812

$2,395,998 $6,117,131 $8,513,129

$2,211,437

$2,875,372

$10,002,249

$11,388,501

Current Assets Property & Equipment Other Assets

Liabilities Current Liabilities Non Current Liabilities

Net Assets TOTAL LIABILITIES & NET ASSETS FY15 CPA RKO FY16 CPA BerryDunn 6

Residen,al Loans by Funding Source

Residential Loans

by Funding Source

19% Residen5al Loans by Funding Source 1%

$1,868,561.65 57%

81%

5%

3%

Grants Borrowed

4% 11%

$1,391,439.27 43%

Business Loans Deployed

by Funding Source

Borrowed

Grants

1%

5%

3%

4% 11%

76%

76%

SBA USDA Borrowed Grants FAME SBA USDA Founda<ons Borrowed Grants FAME Founda<ons

Business loans Deployed by Funding Source Business loans Deployed by Funding Source

7

Residential Lending

Lewiston

MELISSA DUNN

Residential Lending Offers Individuals a Chance to Afford Safe, Healthy Housing Providing home loans is one of the

Ms.

a

arm is working to finance more and

most rewarding aspects of the work

homeowner but couldn’t qualify for a

more people like Dunn who are strong

at

mortgage from a bank.

candidates for home loans but do not

Community

Concepts

Finance

Corporation (CCFC), because it impacts people on an individual basis in a way that visibly changes their lives.

Dunn

wanted

to

become

“I just didn’t have any credit, so conventional

lending

wasn’t

qualify under conventional standards.

really

“Home loan activity fell short of our

an option for me,” Dunn said. Lack of

goals for FY16 due to a lack of capital

Melissa Dunn is a case in point. Born

savings was also an issue. “Even though

resources. But I am looking ahead to

and raised in Lewiston, Ms. Dunn

I have invested a lot in my community,

2017 with enthusiasm, knowing that we

is dedicating her life to helping the

you don’t do it for pay. That’s the bottom

have secured additional resources from

city’s residents. Dunn is a community

line.”

the Federal Home Loan Bank of Boston,”

organizer who does outreach and support work for case managers and direct services.

CCFC worked with Ms. Dunn to create a path to home ownership that fit her

loan officer.

particular circumstances

CCFC’s work to help finance quality,

and where she wished

affordable

to live. She first went

important to Ms. Dunn, who has often

through the Homebuyer

helped others with housing issues

Education program. CCFC

in Lewiston, such as lead poisoning

then connected her with

dangers, severe pest problems, and lack

the City of Lewiston’s

of heat and hot water.

savings match program that helped her quickly obtain a down payment.

CCFC’s residential lending 8

said Deb Trenoweth, CCFC residential

housing

was

especially

“I am my sole provider, and it’s really difficult to get healthy and safe housing with restricted income,” Dunn said.

The process yielded results. “I never

thought in a million years that I would

Concepts, and she feels continually

be able to be a homeowner,” Dunn said.

supported by the organizations.

“I love my home! But it’s a lot of work - I’m painting, I have a lot of projects

“Community Concepts really worked

CCFC is licensed under the Nationwide Mortgage Licensing System, NMLS #973575.

with me to make sure I am able to

Deb Trenoweth is individually

maintain and keep my home. They really

licensed under the Nationwide

Together, Community Concepts and

want to see people succeed,” Dunn

Mortgage Licensing System,

CCFC are continuing to provide support

said. “I know if there’s ever a time, or

NMLS #380375.

for Ms. Dunn as she takes on her new

if I’m ever in a predicament, I can just

role as a homeowner. She has taken

outreach to folks, and they’ll be there to

advantage of the financial counseling

help support me.”

going on, and I work a full time job.”

services

provided

by

Community

FY15

FY16

% Change

Residential Lending Loans Closed Dollar amount of loans closed Loans Packaged/Brokered Dollar amount of loans packaged/brokered

9

7

-22.22%

$337, 380

$124,500

-63.1%

16

0

0.00%

$560, 930

0

0.00% 9

Foreclosure Counseling

Lewiston Foreclosure Counseling Helps in the Most Difficult Times

RONALD OUELLETTE

For 27 years, Lewiston nurse Ronald

everything for me. She communicated

“The judge said he was going to give

Ouellette owned and operated a number

with the banks and tried to negotiate,”

me 30 days to try to sell the house.

of boarding homes for elderly people

Mr. Ouellette said.

He wasn’t going to foreclose on me,

with dementia. He loved his work, and it helped shape his identity.

Mr. Ouellette’s case was typical of the kind of situation Baril encounters

because he respected what I did in the past with the elderly,” Ouellette said.

Then a tragic accident three years ago

in her work, where people want to

Baril is a fixture in court when foreclosure

set off a chain of negative events that

remain in their homes despite issues

cases are on the docket, showing up to

upended his life.

with affordability. Her job begins with

provide guidance to whomever may

a fact-finding mission to understand

want to meet with her.

“I got into a major car accident, and I developed seizures,” Ouellette said.

“I wasn’t able to concentrate on what was going on with the residents and

the person’s situation, what changed in their lives and what they can afford based on their current income.

paperwork. The doctors advised me that

“For me, everybody wants to stay in

I really should give it up.”

their home, so you look at every avenue

Mr.

Ouellette’s

income

plummeted

due to the closure of his business, and he could no longer make his house payments.

That’s

when

he

called

possible. I provide guidance, and it’s up to them to determine how they are going to change to make the house affordable,” Baril said.

Marjorie Baril, foreclosure and credit

CCFC and Ouellette tried to modify

counselor at Community Concepts

the loan, but as is often the case in the

Finance Corporation.

foreclosure counseling process, in the

“She really helped me. She made sure everything was done the way it was supposed to. She followed up on 10

end Mr. Ouellette decided letting the house go was his best option. He went to court in May 2016.

After the house sold in a short sale, CCFC helped Ouellette and his caretakers, his sister and sister-in law, to find affordable housing in Lewiston.

“Everything fell together, and Marjie’s the one I thank,” Ouellette said. “She took my case right on, and she led me all the way, right up to the end.”

CCFC helped nearly 350 people with foreclosure counseling in 2016, and the organization expects that number to increase in the coming years.

CCFC Helps Prepare New Homeowners through Homebuyer Education Community

Concepts

Finance

Corporation is a leading provider of Homebuyer Education courses in the state of Maine. CCFC held a total of 14 live classes throughout 2017, serving 163 participants. Online classes hosted through CCFC were even more popular, with 212 individuals participating in the on-demand classes.

The classes make some participants eligible for $3500 in down payment and closing cost assistance on the purchase of a home through MaineHousing’s First Home Mortgage Program. The bonus serves as a great incentive for many to take the class, but the benefits extend

beyond monetary assistance.

Homebuyer Education course in July. “After taking this course,

Participants learn how to create a household budget and find resources

I feel much better about exploring homeownership.”

for homeowners. They also gain a full

Many

understanding of the credit report and

helps clarify a process that can be

score requirements for a mortgage.

overwhelming

Independent experts in relevant areas

importance of having a buyer’s agent,

are invited to each class to share their

getting

knowledge.

inspected, and budgeting – advice

“I really enjoyed hearing from the different

guest

presenters.

I

even

participants

the

say

and

the

class

conveys

home

the

independently

many home seekers otherwise may not have been given.

learned tips on how to make my current

The class is a proven tool to help

living space more energy efficient,” said

new

Samantha Hinson of Lewiston, who

homeowners.

homebuyers

be

successful

participated in a homebuyer education

FY15

FY16

% Change

Live class participants

162

163

0.62%

Online participants

128

212

65.63%

290

375

29.31%

51

158

209.80%

925

1846

99.57% 11

Homebuyer Education

Total Participants: New homeowners created Foreclosure and Credit Counseling - total hours

Thanks to all our supporters!

Financial Institutions Androscoggin Bank

SIS Bank

Key Bank

Camden National Bank

Machias Savings

Skowhegan Savings Bank

Rainbow Credit Union

Franklin Savings Bank

TD Bank

Northeast Bank

Gorham Savings

Evergreen Credit Union

Katahdin Trust Company

Government Agencies NeighborWorks America CDFI Fund U.S. Department of Housing and Urban Development

CHAPA Citizens Housing and Planning Association Oxford County City of Auburn

Maine Department of Professional & Financial Regulations Maine Housing Authority

HoMEworks

Partners AVCOG Androscoggin Valley Council of Governments

Envision Rumford

Bethel Area Nonprofit Collaborative

Franklin County Chamber of Commerce

Bethel Chamber

Franklin County Chamber of Commerce

Four Directions Native CDFI

Biddeford Saco Area Economic Development Corporation

Fryeburg Business Association

Bridgton Chamber of Commerce

GFDC Greater Franklin Development Council

CEI CDFI

Granite State Development Corp.

Jay Livermore Chamber of Commerce

River Valley Chamber of Commerce

LA Metro Chamber of Commerce

SBDC SBAâ&#x20AC;&#x2122;s Small Business Development Centers

LAEGC Lewiston Auburn Economic Growth Council

SCORE

Maine Preservation Maine Stream Finance CDFI Norway Downtown

SMPDC Southern Maine Planning & Development Council Western Maine Community Action

Oxford Hills Chamber of Commerce

DECD

Foundations & Nonprofits

Special thanks to Katya Danilova of Doroga Media for the photographs of our programs in this report!