Capital for Change's (C4C) mission is to provide flexible, creative and responsive financial products and services to benefit low and moderate income persons, and minority and otherwise disadvantaged individuals, businesses and communities. The vision for Capital for Change is to be Connecticut's premier community development financial institution offering capital solutions that will create and sustain lasting, positive change to low-income communities, including broadened social and economic participation, economic growth and environmental sustainability. C4C's core lending products focus on financing and servicing loans for affordable housing development, energy efficiency and conservation, and neighborhood revitalization.
What gets me excited about Capital for Change? it fills a unique place in the Connecticut landscape of financing for a purpose. It is like tapping a water source in a parched desert. Ground that looks barren can blossom with a flow of funding able to reach the places that have never had it before. With C4C, more people have places that they can afford to live in. And dozens of area nonprofits can better serve those in need thanks to better funding options.
Capital for Change maintains a strong regional presence and maintains an office at 171 Orange Street, New Haven. C4C offices exist in the cities of New Haven, Hartford and in Bridgeport. The New Haven regional office address and phone numbers remain the same as that of the former Greater New Haven Community Loan Fund, or 171 Orange Street, Suite 3, New Haven, Connecticut.
Capital for Change is a Community Development Financial Institution that makes flexible loans available to housing developers to help address the tremendous demand for safe, affordable housing throughout our state. Desired projects encompass many types of affordable housing options including rental, supportive housing, mutual housing, cooperatives and home-ownership. Loans may be obtained for a variety of purposes, including acquisition, bridge funding, and construction/rehabilitation financing. In FY15, CHIF supported the creation/rehab/development of !,295 affordable/energy efficient housing units. GNHCLF is responsible for financing another 39 housing units. As a CDFI, our goal is to assist others in joining the economic mainstream and the target demographic for our work is low to moderate wage earners with household incomes of 80% of area median income (AMI) or less. In addition, C4C includes a loan servicing business that specializes in affordable housing and community development loans. Clients are state, federal and private mortgage lenders with housing, community development and economic development loan portfolios.
Affordable Housing opportunties will be available throughout the region to homeowners and renters in a variety of housing types, i.e. single and multi-family. Affordable housing projects include renovation of formerly blighted properties that will help stabilize urban neighborhoods. Lower income people need safe, decent housing to enjoy a higher standard of living, health and economic stability.
Capital for Change is a HUD-certified housing agency that offers free housing counseling to homeowners at risk of home foreclosure. The Connecticut Department of Housing and grants from our philanthropic partners provide programmatic funding. Clients are also referred to the C4C through partner agencies, the federal Housing and Urban Development (HUD) website, local outreach activities including workshops and referrals from others who have benefited from our services. Clients in 23 area communities are recipients of foreclosure counseling but the majority of our clients resided in New Haven, Hamden, East Haven, and Ansonia last year,
Counselors work with individual homeowners to develop a clear understanding of their financial circumstances and the terms of their existing mortgage. Counselors help develop a viable strategy uniquely designed to prevent a foreclosure depending on their circumstances. This approach could involve the negotiation of a loan modification request from a bank servicer, access to applicable government programs or a short sale.. In 2015, 63 households s received free foreclosure counseling services and more than 70% of clients experienced a positive outcome upon working with a counselor..
Counseling will also prevent homeowners from falling prey to the many "housing assistance" scams where they risk losing more money and gaining no assistance.
With the assistance of Capital for Change counselors, families in, or at risk of foreclosure are able to utilize available programmatic, legal and financial resources to arrive at the most advantageous resolution of their housing issue. In most cases a successful resolution will mean that the family is able to get a permanent mortgage modification that allows the family to stay in their home with a mortgage payment that is affordable and sustainable. In some circumstances, the family may need to leave the home but if that is the case it is done in a time frame and a manner that does the least damage to the homeowner's long term credit and provides them a stable transition to another living situation.Counseling will also prevent homeowners from falling prey to the many "housing assistance" scams where they risk losing more money and gaining no assistance.
Client cases are tracked through the HCO (Housing Counselor Online) system which is used to report to HUD and our funders. The system tracks client progress and outcomes through the counseling process. Financial, demographic and other client data are also captured by the system.
Two counseling examples:
NC – GNHCLF staff met with this single mother of two in September. She had applied for a modification due to reduced income and loss of overtime income. She completed the trial payments and was then told that she was ineligible for a modification. The trial payments, less than her regular payment now made her loan delinquent and in foreclosure. We contacted the servicer in October and were told that she may be eligible for a new program. NC completed the necessary documents. In November her mortgage was modified.
C C – Single parent of an adult child still living at home, CC had a reduction in income due to furlough days, taking in her elderly mother, and loss of income from her significant other who moved out of her home. In July GNHCLF presented documents to her servicer. In August she received trial payments for the months of September, October and November. In January of the following year she received permanent modification documents.
Capital for Change extends a unique investment opportunity to individual, institutional and corporate investors interested in making a socially responsible investment with local impact. With a minimum investment of $1,000 you can make a loan to us for terms between one and 10 years, at fixed rates of return up to three percent. Become a partner in community development with Capital for Change and put your money to work to improve our communities with an investment in the Community Loan Pool. Contact Darcy Arcand, Development Officer if you or someone you know is interested in changing the world for the better and exploring Socially Responsible Investing through a Community Development Financial Institution.
In the next year the Fund intends to raise an additional $750,000 in loan capital to assist more borrowers through its lending.
Investment outreach to new individuals and institutions interested in socially responsible investment will gain a deeper understanding of the work that the Loan Fund does and the community needs it supports.
No investors will lose any of their capital.
C4C Success: Capital for Change hopes to grow the size of its available capital from individuals, religious institutions and corporations by $750,000 during this fiscal year to provide a more substantial impact in terms of affordable housing development and nonprofit organization support through its lending. Capital for Change hopes to accomplish this by adding new investors and increasing the amounts pledged by our 55 current investors.
The Fund continually tracks the balance of its investments as part of its overall financial tracking. Success is tracked by the increase in the availability of investments available for lending, by the percentage of investors who roll their investments over for an additional term once they mature, and by the Fund's ability to repay investors when investments mature. The Fund has never lost any investor capital in its 26-year history. This record is a reflection of both the Fund's management of its lending risk through careful underwriting, good borrower relations, and prudent development of loss reserves and other net assets.
One measure of investor program success is to renew at least 85% of loans at term maturity.
"Calvert Foundation invests in GHNCLF to help create healthy homes and communities while empowering more individuals and families to overcome poverty and homelessness." Andrew W. Shlack APA, Assoc. AIA-Senior Investment Officer, US Investments, Calvert Foundation
"In keeping with the Adrian Dominican Sisters' criteria for community investing, GNHCLF invests in affordable housing development which ultimately assists low to moderate income individuals and their families. We recognize and applaud not only affordable housing development, but the promotion of the environmentally-friendly construction ("green construction") loan program. Thank you for all you do to improve lives and communities in the Greater New Haven region!"
Lura Mack, Director of the Portfolio Advisory Board, Adrian Dominican Sister
"We seek to allow our everyday investors to support the work GNHCLf does building commnities and development affordable housing in Connecticut"
Julie Sandler, Officer, Risk Management, Calvert Foundation
Capital for Change has a unique committee structure specific to its primary role as a lender. The Loan Committee makes lending decisions on behalf of the organization. The committee is made up of both board members and non-board members with specialized areas of knowledge and expertise in finance and/or banking that are important to the lending process.
Indirect Public Support HelpIndirect public support represents revenue received through solicitation campaigns. This includes funding United Way and other federated fundraising organizations, but does not include donor designated contributions.
Earned Revenue HelpEarned revenue represents income generated in direct exchange for a product or service.Earned income includes income from government contracts.
This profile, including the financial summaries prepared and submitted by the organization based on its own independent and/or internal audit processes and regulatory submissions, has been read by the Foundation. Financial information is inputted by Foundation staff directly from the organization’s IRS Form 990, audited financial statements or other financial documents approved by the nonprofit’s board. The Foundation has not audited the organization’s financial statements or tax filings, and makes no representations or warranties thereon. The Community Foundation is continuing to receive information submitted by the organization and may periodically update the organization’s profile to reflect the most current financial and other information available. The organization has completed the fields required by The Community Foundation and updated their profile in the last year. To see if the organization has received a competitive grant from The Community Foundation in the last five years, please go to the General Information Tab of the profile.
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