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Rural Community Assistance Corporation 2015 Annual Report RURAL VALUES Leadership Collaboration Commitment Quality Integrity MEMBERS Elizabeth Moore NV Vickie Oldman-John NM John Sheehan CA Gary Severson CO Martin Miller WA Frank Bravo CA Richard Elas AZ Jon D. Warner UT PRESIDENT Joe Herring ID VICE PRESIDENT David . Provost NY SECRETARY Nalani Fujimori Kaina HI TREASURER Rachel Morse AK FY 15 Board of Directors Creating vibrant healthy and enduring rural communities Dear RCAC friends During the first year of our Strategic Plan we continued to build programs to implement new strategic directions. Looking back on 2015 there is much to celebrate as we worked to make rural communities vibrant healthy and enduring. Housing Last year 18 U.S. Department of Agriculture USDA Mutual Self-Help Housing Program organizations renewed grants totaling more than 19 million. In addition seven new self-help grantees were awarded grants totaling more than 2 million. RCAC staff worked on two housing developments that secured 23.5 million in financing. We passed through funds or managed more than 2.5 million in resources for 85 housing counseling agencies. As a loan packaging intermediary we helped 44 low income families secure financing through the USDA Rural Development 502 direct loan program. Environmental In our environmental program 30 plus small communities secured more than 20 million in financing to upgrade their water and wastewater systems. RCAC staff helped more than 100 water systems to come into compliance with Safe Drinking Water Act standards. Nine communities adopted rate studies that resulted in a 1.8 million increase in revenue and 18 income surveys were completed to lower financing costs for new systems. We installed nearly 150 water bottle filling stations in schools to give students better access to safe drinking water. Staff also began work on five new regionalization projects to build relationships among 15 small communities that want to make their infrastructure more sustainable. Loan Fund Our loan fund closed 40 loans totaling almost 30 million supporting housing development environmental infrastructure community facilities and small businesses. In addition staff closed 22 small loans so families could replace wells that had gone dry as a result of the drought. Training Training is a big piece of our work and staff trained more than 7500 people last year who received almost 40000 hours of training. We held a Tribal water conference and par- ticipated in the National Self-Help Housing Conference. We initiated a new program we call the Tribal Housing Excellence Academy and the first cohort of students representing seven reservations graduated. Community and economic development Another new initiative Building Rural Economies is working with six communities to create an entrepreneurial culture and support new local business development. We are working with two Tribes in this program. One of the Tribes launched a construc- tion company that now employs six Tribal members. The balance of this report will look at five projects that demonstrate our impact and reflect our core values. Our staff members reflect these values in their work and we are particularly proud of their commitment to the organization and the communities we serve. Of course none of this would be possible without our generous funderssupport. It is a pleasure to work with the staff and our dedicated board of directors as we improve the quality of life in the rural West. Sincerely FinancialsSupporters A letter from our CEO Stanley Keasling Chief Executive Officer LEADERSHIP identifies innovative strategies to further rural community and economic development and inspires partners to achieve great outcomes COLLABORATION achieves superior results by respectfully and inclusively identifying partners COMMITMENT works with passion and dedication to improve rural communities and the lives of their low-income residents QUALITY produces exceptional work products to help our partners meet their goals INTEGRITY practices the highest professional standards and cultural competency in our work The following stories from demonstrate our core values and the impact they have on rural communities throughout the West. RCACs CoreValues Top Tulare water operators gather to discuss water issues. Bottom A small Tulare County water system. Leadership Lets not lose sight of why we are here water water water. Alex Marroquin Board President Orosi PUD Tulare County Regionalization Rural communities like those in northern Tulare County rely on small water systems that often struggle to supply residents with safe affordable water particularly when water becomes contami- nated wells go dry or aging infrastructure needs to be replaced. As California regulates more contaminants and enforces more ground water regulations regional collaboration gives rural communities options to share managerial infrastructure andor treatment costs. In 2015 RCAC staff helped the Cutler East Orosi Monson Orosi Seville Sultana and Yettem communities form the Northern Tulare County Water Alliance opening the door for shared resources and solutions. With RCACs assistance these com- munities are drafting an agreement to form a Joint Powers Agency. Next the group will seek funding for a new surface water treat- ment plant which will provide them with a long-term safe reliable and affordable water source. Native Capital Access In 2012 RCAC entered into a promising partnership with Native Capital Access a Native Community Development Financial Institution. RCAC already has a long history of providing technical expertise to Tribal communities. This unique collaboration was a chance to expand its efforts to bring affordable housing to Tribes. Similarly Native Capital Access has strong leadership expertise staff and consultants but it still faced size and capital constraints. Both organizations hoped to increase the capital they provide for critical infrastructure housing and community facilities on Tribal lands. Together RCAC and Native Capital Access also developed The Tribal Housing Excellence THE Academy an effective training and technical assistance program that helps build Tribal housing organizationshousing development capacity. Collaboration Our collaboration with RCAC is deep and wide Its so meaningful to be able to talk and strategize with leaders. Dave Castillo CEO Native Capital Access Tribal Housing Excellence Academy participants enjoy the graduation celebration. Commitment THE Academy has greatly benefited uswith direct examples of the dos and donts of tribal housing development.Joseph Kunkel Project Manager SDTHA Santo Domingo Tribal Housing Authority SDTHA The Tribal Housing Excellence THE Academy offered four weeks of intensive training and coaching to nine Tribal housing organizations last year. One participant the Santo Domingo Tribal Housing Author- ity in New Mexico is fully committed to applying its new skillsit secured low income housing tax credits U.S. Department of Housing Urban Development HOME funds and other additional financing including a loan commitment from Native Capital Access to build a 41-unit rental housing project. SDTHA faces obstacles to build sustainable and affordable housing on its lands. The staff came to recognizethrough THE Academys instructionthe many resourc- es they already had and how to set priorities. The staff also used THE Academy coaches for technical assistance such as developing a re- quest for proposals and scope of work for a tax credit development consultant. Housing construction began in spring 2016. Top A rendering of SDTHAs rental housing project. Bottom SDTHA staff. Quality Weve been doing RD for years perfecting our process and we are excited to be breaking ground on the Puff Factory. Jacqueline Alexander principal Puff Factory Puff Factory loan in Oregon RCACs 5.3 million loan to Oregon orchard owner Jacqueline Alexander will bring 41 full-time jobs to the area around Hood River. The loan supports the Puff Factorys construction a facility that will process package and ship freeze-dried fruit products. This will allow the company to enter the 36 billion snack food produc- tion industry which has expanded 3.6 percent during the last five years when many industries were in decline. Starbucks among other companies has already inquired whether the Puff Factory would produce snack products smoothie and tea flavorings. The Puff Factory also gives orchardists in the region the opportunity to command a higher return on their quality fruit products which are currently sold to juice producers at a fraction of the value of freeze dried fruit. Jacqueline Alexander Puff Factory owner in her orchard. Integrity IACET Accredited Providers are an elite group of educators dedicated to quality in continuing education and training. John P. Spitler IACET commissioner IACET Accredited Trainings RCAC is a leader in training water and wastewater operators and managers in best practicesfrom water chlorination to board member ethics. RCAC has been conducting workshops and training since 1979. In 2015 alone RCAC conducted 220 plus workshops conferences and online courses. After a rigorous and lengthy appli- cation process RCAC received IACET International Association for Continuing Education Training certification which allows it to award CEUs course credits similar in weight to college credits for IACET-certified trainings. Moreover unlike most IACET applicants RCAC earned the certification upon its first attempt a testament to years of experience conducting training and the hard work and attention to detail that went into developing the pilot course poli- cies and procedures manual and application. Neil Worthen RCAC rural development specialist teaches a water operator workshop. The following is a summary of information contained in RCACs annual financial statements for fiscal years 2015 and 2014. Complete financial statements with the associated independent auditors report are available at Condensed Balance Sheets as of September 30 2015 2014 ASSETS cash and investments 20750176 21049085 loans receivable net 59248686 56907886 grants contracts and other receivables 3154963 2436210 fixed assets 2847654 2713666 other assets 4226760 2880877 total assets 90228239 85987724 LIABILITIES AND NET ASSETS accounts payable accrued liabilities 2205056 2693572 grants payable 1124741 1122131 notes and bonds payable 54044339 51998446 net assets 32854103 30173575 total liabilities and net assets 90228239 85987724 Condensed Statements of Activity for the 12 Months Ending September 30 2015 2014 REVENUE grants and contracts 13262779 12059855 loan fees and interest 3494374 2972477 investment income 110167 153861 other 44899 257697 total revenue 16912219 15443890 EXPENSES loan fund 2031986 2226148 housing 3240044 3242238 community environmental 5556047 4294412 other programs 594742 774359 fundraising 268006 247675 rental operations 149375 132053 management and general 2391491 2431485 total expenses 14231691 13348370 increase in net assets 2680528 2095520 consisting of change in unrestricted net assets 2717391 1612429 change in temporarily restricted net assets 36863 483091 2680528 2095520 Financials Financial Information 65 70 75 80 85 90 20152014201320122011 0 5 10 15 20 25 30 35 20152014201320122011 Five-Year History of Total Assets Millions of Dollars Five-Year History of Net Assets Millions of Dollars FinancialsSupporters PRIVATE Ally Bank American Express Anonymous donors Association of California Water Agencies Bank of America Bank of the West Bellagio Resort Beyond Shelter Inc. Blue Planet Network Burbank Housing Development Corp. Burney Water System California Bank Trust California Coalition for Rural Housing California Human Development California Municipal Finance Authority California Nevada Community Action Partnership California United Bank Canterbury LLC Catholic Health Initiatives CIT Bank Citi Business Services Comerica Bank Community Shelter Assistance Corp. of Oregon Community Economics Inc. Conejos County Clean Water Inc. Dignity Health Dominican Sisters of Hope Enterprise Erich Hannah Sachs Foundation First Foundation Bank Ford Foundation Golden State Acquisition Fund LLC Hana Water Systems LLC Hawaiian Legacy Hardwoods LLC Housing Assistance Council Housing California Insight Center for Community Economic Development Jacumba Community Services District Jennifer Speers JP Morgan Chase Bank Kawela Plantation Homeowners Association Klean Kantene Mary Ahlstrom Environmental McCune Charitable Foundation Meetings Concierges Source LLC Mercy Investment Services Inc. Merrick Bank Corporation Minnesota Housing Partnership Morgan Stanley Bank Na Kupaa O Kuhio Nalco Nalgene National Development Council National Water Research Institute NeighborWorks America Nevada Rural Housing Authority Opportunity Finance Network Pace Engineering Pacific Western Bank PG Environmental LLC PNC Bank Rabobank Rasmuson Foundation Religious Communities Investment Fund Rural Community Assistance Partnership Inc. Rural Community Innovations Rural Development Initiatives Rural LISC San Luis Valley Ecosystem Council Sandy Acres Mobile Home Park Santa Rosa Rancheria Self-Help Enterprises Sierra County Waterworks Sierra Health Foundation Sisters of the Holy Cross Sisters of the Holy Names of Jesus Mary S.L. Gimbel Foundation St. Joseph Health System Tahoe Truckee Community Foundation The California Endowment The Community Foundation The Congregation of the Sisters of Charity of the Incarnate Word The Environmental Justice Coalition for Water The FB Heron Foundation The Sisters of St. Francis of Philadelphia Trinity Health Corporation Union Bank US Bank Washington Mutual Weingart Foundation Wells Fargo Bank West Dakota Water Development District WSOS Community Action Commision Inc. Zions Bank U.S. GOVERNMENT U.S. Dept. of State 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 SBLF U.S. Dept.of the Treasury CDFI Fund U.S. Environmental Protection Agency STATE LOCAL AND TRIBAL Arizona Dept. of Environmental Quality Bear River Rancheria Cahil Dehe Rancheria California Dept. of Community Services and Development California Dept. of Public Health California Dept. of Water Resources California Housing Finance Agency California State Water Resources Control Board City of Blanding City of Calistoga City of Williams County of San Mateo County of Santa Cruz Dept. of Hawaiian Home Lands Hawaii Dept. of Health Honolulu Board of Water Supply Idaho Dept. of Environmental Quality Iipay Nation of Santa Ysabel Indian Health ServicesCalifornia La Posta Band of Mission Indians Mesa Grande Band of Mission Indians New Mexico Environment Dept. New Mexico Mortgage Finance Authority Nooksack Indian Tribe Olene Walker Housing Trust Fund Pala Giving Program Pauma Band of Mission Indians Pueblo de Cochiti Housing Authority Rincon Band of Luiseo Indians San Diego County Water Authority San Pasqual Band of Mission Indians Santa Rosa Rancheria Smith River Rancheria Southern Indian Health Council Spokane Indian Housing Authority Sycuan Band of the Kumeyaay Nation Tachi Palace Hotel and Casino Town of Waterville Tulare County Washington State Dept. of Ecology Washington State Dept. of Health Yocha Dehe Wintun Nation Supporters Rural Community Assistance Corporation 3120 Freeboard Drive Suite 201 West Sacramento CA 95691 Oce 916 447-2854 Fax 916 447-2878 Stay informed with our free publications and social media Subscribe to our newsletters at httpbit.ly1N4cuCF twitter.comRCACorg