Page 1
Page 2
Page 3
Page 4
Page 5
Page 6
Page 7
Page 8
Page 9
Page 10
Page 11
Page 12
New Directions Rural Community Assistance Corporation 2014 Annual Report creating vibrant healthy and enduring rural communities Members Frank Bravo CA Lyle Meeks MT Martin Miller WA Elizabeth Moore NV Rachel Morse AK Vickie Oldman-John NM David . Provost NY Gary Severson CO John Sheehan CA President Robert Rendon UT Vice President Anita Gahimer Crow WA Secretary Nalani Fujimori Kaina HI Treasurer Joe Herring ID RCACprovidestraining technicalandfinancial resourcesandadvocacy soruralcommunities canachievetheirgoals andvisions. Stanley Keasling CEO Robert Rendon Board President Mission FY14BoardofDirectors 2014 RCAC Annual Report Page 1 As we develop new initiatives and expand existing programs we can look back on the past year with pride. RCAC received the prestigious Wells Fargo NEXT Award for Opportunity Finance which provided 2 million in grant and loan funds for our Devel- opment Solutions initiative. The initiative builds local nonprofit capacity to develop affordable multifamily housing in rural and Native communities. As part of this initiative we launched the Tribal Housing Excellence Academy which provides training and technical support to tribal housing organizations as they complete their housing projects. We collaborated with The California Endowment on an inno- vative pilot to install water bottle filling stations in schools and public places in two rural California areas where contaminated water and aging utility systems are commonplacethe eastern Coachella Valley and southern Kern County. The pilot expands access to safe drinking water and encourages youth to make water their beverage of choice. The Board of Directors adopted a new 20152019 Strategic Plan which incorporates a transition to an outcome-based frame- work to better measure our impact. It also includes several new strategic directions. We expect our partners to achieve the following outcomes Practice new capacitieswe will build rural development organizationsexisting skills and programs to help them achieve even greater impact in their communities. Complete community and economic development pro- jectswe will work with our local partners to complete more than 1 billion of community and economic develop- ment projects during the five-year planning period. Increase their impact through collaboration in local state and national networkswe will help partners build and support collaborations and networks that strengthen rural community development efforts. We are very concerned about the sustainability of rural communities and see re- gional collaborations as a critical element to achieve vibrant healthy and enduring rural communities. Strategic directions Form regional collaborations to achieve economies of scale and take advantage of new opportunities. Ensure communities especially children in schools have access to and increase consumption of safe drinking water. Expand the quantity and types of training available to rural communities and organizations. Diversify local nonprofit services to build more sustainable organizations. Enhance the skills of organizations that provide infrastruc- ture housing and other essential services in Indian Country. Provide development services to increase housing opportu- nities in rural communities. Increase access to affordable mortgages for rural organiza- tions and residents. Build partnerships with local economic development organ- izations to expand small business lending. Finally to emphasize our policy and advocacy works impor- tance our new mission statement includes advocacy in the list of services we provide. It now reads RCAC provides training technical and financial resources and advocacy so rural commu- nities can achieve their goals and visions. Looking ahead we are confident that RCAC can respond well to the challenges facing the rural western United States. Building on this past years work we look forward to continued success in cooperation with our partners in fiscal year 20152016. Stanley Keasling CEO Robert Rendon Board President Dear RCAC Friends Top THE Academy participants and trainers take a break to pose for a group photo during the third week-long training. This session was held at the Isleta Resort Casino in Albuquerque New Mexico. Left Eileen Piekarz RCAC trainer coaches left Ray DePerry executive director and right Sal Chiaramonte constructionprojects manager Tule River Indian Housing Authority as they work on the sources and uses of funds budget for their proposed housing projects. Right Renee Hoel construction program assistant for the Northern Circle Indian Housing Authority. 2014 RCAC Annual Report Page 3 n October 2013 RCAC and Native Home Capital NHC launched The Tribal Housing Excellence Academy THE Academya three-year initiative to work with innovative tribal organizations in the West to increase housing variety and volume on tribal lands. THE Academy provides an incubator to increase tribal organizationsknowledge and ca- pacity to develop housing using multiple funding and financing sources to reduce their reliance on outside developers. Prior to 1996 the U.S. Department of Housing and Urban De- velopment HUD identified administered and funded housing development in Indian Country. The 1996 Native American T.H.E. Academyincreasing quality quantity and types of housing on tribal lands The consultants and experts ease the way as we work through multiple layers of rules and regulations during this course. Laurie Ann Cloud Housing Assistance and Self-Determination Act NAHASDA significantly changed the model moving all HUD funding into a block grant program that allows tribes to structure their own approaches to develop housing for their members. While NAHASDA presented a welcome change today tribes still struggle to meet the housing needs of their members which in- clude low-income families teachers healthcare workers public safety officers and the entire reservation community. They also encounter unique challenges to building on trust land have dif- ficulty attracting outside financing and face a lack of capacity and experience among tribal housing developers. Overcoming these challenges will put tribal organizations in the lead and reduce dependence on others. THE Academy employs faculty members and coaches who have extensive expertise in housing development on and off tribal lands and in best practices to leverage new funding and financing sources. Through peer-support intensive capacity- building sessions networking with top developers and financial institutions legal guidance and coaching from seasoned devel- opment experts THE Academy is moving housing projects from concept to construction. Nine tribal organizations were selected because they demon- strated clear determination to increase their skills willingness to commit time and resources and had a potential housing devel- opment project. As the program unfolded one Tribal Housing Authority withdrew leaving the project with a cohort of eight agencies. Each participating organization assembled a develop- ment team and at least two development team members from each organization are participating in four week-long training sessions over the course of 15 months. The development teams also receive technical assistance from a coach as they move their projects forward. We greatly appreciate the opportunity to participate in the Tribal Housing Excellence Academy. The diverse experience and commonality among the participants creates a great classroom setting to discuss a variety of challenges and barrierssaid Laurie Ann Cloud from the Nez Perce Tribal Housing Authority in Idaho.The consultants and experts ease the way as we work through multiple layers of rules and regulations during this course. Top Bob Lerude director Kern County Parks and Recreation Department talks about the importance of easy access to safe drinking water to local residents and the press during a launch event in southern Kern County at Lamont Park. Three water bottle filling stations have been installed at the park. Left A supply of Nalgene reusable water bottles and educational materials were provided to local residents at the launch events to help promote water consumption and change negative perceptions of Californias tap water. Right Alanne Rodriguez attended a launch event in eastern Coachella Valley at the San Jose Community Learning Center with her mother and grandmother. After the event Alanne was first to fill up her new reusable water bottle at one of the centers two new water bottle filling station. 2014 RCAC Annual Report Page 5 ccess to safe drinking water is a basic human right and a foundation for individual health and healthy communities but this is not a reality for many rural areas in the West. In many rural communities inadequate infra- structure and a contaminated water supply which can cause serious health issues is the norm. Teaching and encouraging children to drink more water is fundamental to their physical and mental growth but it is hard to do so when the public water supply is contaminated. California led the nation in mandating access to drinking water for school children during meal times. In spite of the mandate able to replace in the near future due to our current budget explains Larry Swan park superintendent Kern County Parks Department.The new fountains are far more inviting to use and with increased usage may mitigate residents turning to alternative type sugary drinks. Special thanks to everyone who donated to the Agua4All Indiegogo campaign. For a full list of Agua4All supporters please visit httpwww.rcac.orgthank-you-Agua4All-campaign Video about the need in Agua4All communities Agua4All Pilotsafe drinking water access for rural California Kern County Parks will receive new drinking fountains to replace those that are broken which we may not have been able to replace in the near future due to our current budget. Larry Swan approximately 25 percent of Californias 9846 public schools do not have the infrastructure to meet this standard according to the California Department of Education. Furthermore an estimated 500 California schools do not have access to safe drinking water at all because the water supply is contaminated. RCAC is partnering with The California Endowment Com- munity Water Center CWC and Pueblo Unido Community Development Corporation PUCDC in an innovative program called Agua4All. The program goal is to increase safe drinking water access and consumption in California especially among school children. The pilot is working in southern Kern County and eastern Coachella Valley in Riverside County two regions where the public water supply is often unsafe to drink. RCAC is installing more than 120 water bottle filling stations in schools and other public places throughout these two areas. Where necessary water treatment is added to remove arsenic or other contaminants. Reusable water bottles are made available to optimize filling station use. CWC and PUCDC are providing on- the-ground support for the schools and other sponsors in the year and a half-long pilot. Kern County Parks will receive new drinking fountains to replace those that are broken which we may not have been Top An arial view of Kunia Village and the surrounding farmland home to 600 farmworkers retirees and their family members. Left An artists rendering of what the new Kunia Village homes will look like after project completion. Illustration 2005 Honsador LLC Right RCAC won 2 million from the Wells Fargo NEXT Awards for Opportunity Finance which provided RCAC with the opportunity to expand its Development Solutions initiative. Wells Fargo filmed a video to showcase RCACs efforts and achievements. At right is Michael Carroll director of RCACs lending housing program talking about Development Solutions. View the video at httpsvimeo.com108398166 2014 RCAC Annual Report Page 7 Development Solutions affordable housing preservation n 2008 Del Monte Fresh Produce closed its pineapple farming operations in Hawaii. Del Monte had operat- ed on leased land since the 1920s and had developed offices packing facilities and 120 units of rentalcompanyhous- ing in Kunia Village in central Oahu. When Del Monte closed the 600 farmworkers retirees and their family members were faced with losing their homes. The Hawaii Agriculture Research Center HARC agreed to take ownership and responsibility for the village and to continue to provide housing for the residents. Although most of the housing is more than 70 years old and in various states of disrepair We are grateful to have partnered with a competent and experienced development organization such as RCAC. Considering the complex- ities of this low-income housing project we would have been over- whelmed without RCACs support. Stephanie Whalen HARC wanted to keep the existing residents in the village and it understood that housing would be critical to the emerging agricultural and commercial businesses that are developing in the area. RCACs Development Solutions staff initially provided financial consulting services to HARC but HARC soon realized it would need a development partner to secure financing to build new homes and rehabilitate others in the village. In 2014 RCAC and HARC raised the 32.5 million debt and equity needed to build 35 new homes rehabilitate 47 units and up- grade all of the village infrastructure. All of this work will retain the sites historic nature because Kunia Village was designated as a State and Federal Historic District in December 2014. Development Solutions was established to support rural orga- nizations that want to develop and preserve affordable housing. The staff provides development consulting services tailored to the needs of the local partner. Although it is not our goal RCAC will even take an ownership role in local developments if that is the level of support required. We are grateful to have partnered with a competent and experienced development organization such as RCAC. Consid- ering the complexities of this low-income housing project we would have been overwhelmed without RCACs supportsaid Stephanie Whalen HARCs executive director.The projects importance in supporting the necessary infrastructure for the emerging agriculture on Oahu cannot be overstated. 50 55 60 65 70 75 80 85 90 20142013201220112010 10 15 20 25 30 20142013201220112010 Condensed Balance Sheets as of September 30 2014 2013 ASSETS cash and investments 21049085 23405028 loans receivable net 56907886 49241575 other receivables 2436210 2318590 fixed assets 2713666 2692317 other assets 2880877 1745216 total assets 85987724 79402726 LIABILITIES AND NET ASSETS accounts payable accrued liabilities 2693572 2668185 grants payable 1122131 1122557 notes and bonds payable 51998446 47533929 net assets 30173575 28078055 total liabilities and net assets 85987724 79402726 Condensed Statements of Activity for the 12 Months Ending September 30 2014 2013 REVENUE grants and contracts 12059855 14483899 loan fees and interest 2972477 2760266 investment income 153861 136222 other 257697 835782 total revenue 15443890 18216169 EXPENSES loan fund 2322071 2545508 housing and community 3317129 3667287 environmental services 4309947 4740688 other programs 835685 456647 rental operations 132053 115851 management and general 2431485 2548286 total expenses 13348370 14074267 increase in net assets 2095520 4141902 consisting of change in unrestricted net assets 1612429 650450 change in temporarily restricted net assets 483091 3491452 2095520 4141902 Five-Year History of Total Assets Millions of Dollars Five-Year History of Net Assets Millions of Dollars he following is a summary of infor- mation contained in RCACs annual financial statements for fiscal years 2013 and 2014. Complete financial statements with the associated independent auditors report are available at Financial Information 2014 RCAC Annual Report Page 9 Supporters Private Ally Bank American International Group Inc. Association of California Water Agencies Banamex USA Bank of the West CalHFA Mortgage Assistance Corp California Bank Trust California United Bank Care66 Catholic Health Initiatives Community Economics Inc. Community Water Center Conejos County Clean Water Inc. Dignity Health Dominican Sisters of Hope Douglas County Housing Partnership Enterprise Community Partners Inc. Erich and Hannah Sachs Foundation Federal Home Loan Bank of San Francisco Ford Foundation Four Bands Community Fund Golden State Acquisition Fund LLC Gutteridge Haskins Davey Inc. Hawaiian Legacy Hardwoods LLC Housing Assistance Council Housing California John D. and Catherine T. MacArthur Foundation JP Morgan Chase Bank McCune Charitable Foundation Mercy Investment Services Inc. Merrick Bank Corporation Minnesota Housing Partnership Monarch Community Fund LLC Morgan Stanley Bank MUFG Union Bank Na Kupaa o Kuhio NeighborWorks America Pacific Rim Bank PG Environmental Rabobank Rasmuson Foundation Religious Communities Investment Fund Rural Community Assistance Partnership Rural LISC Sisters of the Holy Cross St. Joseph Health System Tahoe Truckee Community Foundation Tahoe Water Suppliers Association The California Endowment The Congregation of the Sisters of Charity of the Incarnate Word The Episcopal Church The FB Heron Foundation The Sisters of St. Francis of Philadelphia Trinity Health Corporation US Bank Wells Fargo Bank WSOS Community Action Zions Bank U.S. Government U.S. Dept. of Agriculture U.S. Dept. of Health Human Services U.S. Dept. of Housing Urban Development U.S. Dept. of Labor U.S. Dept. of the Treasury CDFI Fund U.S. Dept. of the Treasury SBLF U.S. Environmental Protection Agency U.S. State Department State Local and Tribal Big Sandy Rancheria California Dept. of Community Services Development California Dept. of Public Health California Housing Finance Agency California State Water Resources Control Board City of Beaumont Colorado Dept. of Public Health Environment County of Humboldt County of San MateoDept. of Public Works County of Santa Cruz Grindstone Rancheria Hoopa Valley Tribe Idaho Dept. of Environmental Quality Indian Health ServicesCalifornia La Jolla Band of Luiseo Indians Los Coyotes Band of Cahuilla and Cupeo Indians Manchester-Point Arena Rancheria Mesa Grande Band of Mission Indians Mirage Casino Montana Dept. of Natural Resources Conservation New Mexico Environment Department New Mexico Finance Authority New Mexico Mortgage Finance Authority Nooksack Indian Tribe North Dakota Department of Health Office of Native American Programs Office of Public and Indian Housing Pit River Indian Tribe Rincon Band of Mission Indians San Diego County Water Authority San Pasqual Band of Mission Indians Santa Rosa Band of Cahuilla Indians Sherwood Valley Rancheria Smith River Indian Tribe South Dakota Dept. of Environment Natural Resources Southern Indian Health Council Alpine Clinic Stallion Springs Community Services District Tule River Tribe U.S. Virgin Islands Dept. of Planning Natural Resources Division of Environmental Protection Upper Lake Rancheria Washington State Dept. of Ecology Washington State Dept. of Health West Dakota Water Development District Rural Community Assistance Corporation 3120 Freeboard Drive Suite 201 West Sacramento CA 95691 Office 916 447-2854 Fax 916 447-2878 Subscribe to our free publications and follow us on social media Subscribe to our newsletters at www.rcac.orgpages758 Follow us on Facebook Follow us on Twitter twitter.comRCACorg RCAC 2014 Annual Report Team Writer Elizabeth Zach Designer Dustin Love Managing Editor Sharon Wills