Also in the Issue:
> Personalized Mortgage Servicing Gives Homeowners a Second Chance
> Preserving History, Culture Through Community Investment
> New Grants and Individual Donations Bolster CRF Fundraising
> CRF Promotes Sustainable Investing with Keynote Address at LEIF Forum
> In Memoriam - Marguerite F. "Maggie" Cole

Personalized Mortgage Servicing Gives Homeowners a Second Chance
CRF SUPPORTS TWIN CITIES PROGRAM WITH HIGH-TOUCH LOAN SERVICING

Watch Rasheda Pettiford talk about SHOP on the Minneapolis and St. Paul CBS affiliate WCCO-TV.

For Rasheda Pettiford, rebuilding a life broken by the recession started with a place to call home. And thanks to the Sustainable Home Ownership Program (SHOP), Pettiford now owns her home in north Minneapolis. Several Minnesota nonprofit organizations, including CRF, created the SHOP program to help homeowners struggling with poor credit or foreclosure. The local CBS television affiliate featured Pettiford, CRF lending partner Greater Minneapolis Housing Corporation (GMHC) and the SHOP program in a recent broadcast.

In September 2009, Pettiford couldn’t catch a break. A single mom raising two kids, she watched helplessly as her landlord raised the rent on the St. Paul, Minn. duplex she had rented since 2007. She had just spent the last three years training to become a carpenter and finally started working in her trade.

With less-than-perfect credit and without permanent shelter, Pettiford moved her family to a friend’s house in neighboring Minneapolis. By November, thanks to the SHOP program, everything had changed. With a new job and her credit on the mend, Pettiford contemplated something unthinkable just months earlier – owning her first home.

The SHOP program provides contract-for-deed financing, credit counseling and one-on-one loan servicing to dozens of Twin Cities homeowners, many who lost homes through foreclosure and thought they would never again own a home.

Generally, nonprofit community housing organizations like GMHC don’t have the capacity or expertise to get involved in loan servicing. The complexity of programs like SHOP, with multiple loan types and non-traditional borrowers, requires a specialized servicer willing to look at each loan as more than simply numbers. CRF recognizes that behind every loan is an individual or family who deserves a second chance.

CRF has made a name for itself in the servicing arena, performing contract loan and master servicing for more than 5,600 loans and portfolios across the country. According to Pettiford, it’s CRF’s high-touch approach that makes the SHOP program so special when compared to a traditional bank loan.

“Not only did the program let me set my own payment date, but CRF offered to help me set up a dedicated account for my mortgage,” said Pettiford. “Every week, money is transferred from my paycheck to the account, so I don’t have to worry about getting my payment in on time. It’s a great benefit because it means less hassle for me, and it’s repairing my credit in the process.”

Learn more about CRF’s loan servicing capabilities for nonprofit organizations, municipalities, economic development agencies and more.

In December 2009, CRF financed a $19 million New Markets Tax Credit (NMTC) loan to renovate the historic Eastman Theatre in Rochester, N.Y. as part of a $46.9 million modernization and expansion effort. Based on third party economic studies, the project is projected to generate significant economic benefits to the Rochester area in 2009-2010, including $15 million in household income, $1.56 million in local government revenue and nearly $1 million in state revenue.

Owned by the University of Rochester, the Eastman Theatre derives its revenue from ticket sales and rental payments. NMTC financing will allow the University to continue operating a high-quality performance space and vital community facility for its students, staff and the City of Rochester.

The Eastman Theatre, which lies within a low-income census tract, is well suited for NMTC investment, and will provide cultural and aesthetic benefits to the entire region for years to come.

The Eastman School of Music and the Eastman Theatre have a long-held commitment to community engagement as one of the principal tenets of their missions. Many community events and free or discounted concerts are offered in the Eastman Theatre each year. The preservation of the Eastman Theatre and the new addition, will ensure these events continue and will offer the opportunity to hold more frequent events, thereby increasing the need for additional services in the area.

Learn more about the Eastman Theatre’s history.

New Grants and Individual Donations Bolster CRF Fundraising
‘GIVE TO THE MAX DAY' GENERATES UNPRECEDENTED SUPPORT

CRF thanks key supporters for recent investments and grants, including a $20,000 grant from Ameriprise Financial and more than $15,000 raised in November through “Give To The Max Day,” Minnesota’s first online fundraising rally for nonprofits.

Grants like these add equity to CRF’s balance sheet, attracting additional institutional investors to fund economic development and affordable housing programs.  

On November 17, CRF joined 37,000 Minnesota nonprofits participating in the first annual “Give To The Max Day” sponsored by GiveMN, a new Minnesota website for charitable giving.

In a 24-hour period, CRF raised $15,135 from individuals and institutions. GiveMN matched a portion of these donations and supported all participating nonprofits by waiving operational fees often required to process web-based donations.

The money CRF raised on “Give To The Max Day” helps ensure communities receive the resources they need to rebuild our economy. CRF can leverage every dollar five-fold for a total of $75,675 worth of community impact.

Make an individual donation anytime or learn how your company can enhance its community development leadership position by investing in CRF. 

 
SCOTT YOUNG
SENIOR VP AND CFO

CRF Promotes Sustainable Investing with Keynote Address at LEIF Forum

CRF Senior Vice President and CFO Scott Young gave the keynote address at the first annual Leaders of the Ethosphere Institute Forum (LEIF) October 12-14, 2009 in Napa, Calif. Young’s keynote topic, Sustainable Fund Platforms and the New Financial Paradigm, addressed rising marketplace demand for environmentally- and socially-responsible investment vehicles.

CRF took advantage of this excellent opportunity to discuss how businesses must reduce operating costs through “green” initiatives in order to remain profitable through a protracted recession. Since many businesses often lack the financial or internal resources to fund green-building enhancements, CRF is developing a mainstream loan product to help businesses save money and reduce environmental impact.

CRF is in the process of rolling out a pilot program for its new “green” business loan, an extension of its existing New Markets Tax Credit (NMTC) loan product family. CRF is currently identifying partners and investors for the loan and plans to launch a regional pilot in St. Paul and Minneapolis, Minn. Community partners already committed to the pilot include the St. Paul Port Authority, the Minnesota Community Capital Fund (MCCF) and the City of Minneapolis Office of Community Planning and Economic Development.

“We can’t afford to wait for the recession to subside, or wait for our business leaders to finally embrace the notion of sustainability as an essential business practice,” Young said. “Sustainable investment is not simply a good idea – it’s an imperative practice for business, for communities, the economy and the planet.”

If you are interested in supporting sustainable lending, e-mail crfusa@crfusa.com, to learn more about CRF’s new “green” business loan pilot program.

 
IN MEMORY OF
MAGGIE COLE

We are sorry to report that longtime CRF executive assistant and liaison to the Board of Directors Maggie Cole died on Feb. 3, 2010 following a short illness. She was 60 years old.

Maggie was a powerful advocate for CRF and its mission, working with us since our inception in 1988 and managing some of our highest-profile events and activities, including the annual Community Development Forum.

Active and fun loving, Maggie loved to take bike tours, dance, read and do puzzles. She especially loved her cats, Cleo, Kitty, Toby, Smokey and Zack.

"CRF would not be here today, if not for Maggie,” said Frank Altman, CRF’s CEO and founder. “She was a true partner and a faithful pioneer in building CRF. She lived for the community impacts that CRF, our investors, lending partners and their borrowers achieved."

She is survived by her husband, David; sisters, Valeria McRoberts and Jaime Goodsman and a brother, John Pope as well as other relatives and friends.

Services were held Saturday, February 6 in Richfield, Minn.