Virg inia Co mmunity Ca pita l So c ia l I mpa c t Teri Lovelace, - PowerPoint PPT Presentation

Virg inia Co mmunity Ca pita l So c ia l I mpa c t Teri Lovelace, Esq. Chief Impact Officer March 31, 2016

Struc ture  VCC no npro fit b a nk ho lding c o mpa ny  CCB fo r pro fit sta te c ha rte re d c o mmunity de ve lo pme nt b a nk (no c o nsume r le nding ) VCC  Ne a rly 50 e mplo ye e s – 3 lo c a tio ns (no npro fit)  Chie f I mpa c t Offic e r – 5 F T E s; 5 c o nsulta nts CCB (fo r pro fit) 2

VCC’ s Visio n T o b e the first c ho ic e fo r innova tive c a pita l a nd c olla bora tive le a de rship pro mo ting vib ra nt lo c a l c o mmunitie s a nd e nha nc e d q ua lity o f life 3

So c ia l Ac c re dita tio ns & Me mb e rships 4

So c ia l I mpa c t Da ta -- widg e ts  Ho using Units – re ha b , ne w c o nstruc tio n & a ffo rda b le  Sq ua re F e e t o f ho using , c o mme rc ia l & c o mmunity fa c ilitie s  Jo b s c re a te d & re ta ine d – L iving wa g e jo b s  L e ve ra g e Amo unt (VCC lo a n, o the r $, to ta l pro je c t $)  L e ve ra g e ra tio  Stra te g ic lo a n fo c us – a ffo rda b le ho using ; mix use ; e c o no mic de ve lo pme nt  Spe c ia l Se g me nts – mino rs, se nio rs, disa b le d 5

So c ia l I mpa c t Da ta -- widg e ts  E ne rg y sa ving s – MHw  F re sh fo o d fina nc ing – fo o d de se rts  Spe c ia l Se g me nts – mino rs, se nio rs, disa b le d  Se rvic e ho urs b y e mplo ye e s & c o nsulta nts in c o mmunity de ve lo pme nt a re a s 6

So c ia l I mpa c t Da ta – g e o g ra phic  Ge o c o de e ve ry lo a n  Ge o g ra phic re g io ns  Ce nsus tra c t inc o me distrib utio n (lo w, mo d)  Ho using a ffo rda b ility c o mpo ne nt % o f AMI  Spe c ia l pla nning distric ts  US Co ng re ssio na l Distric ts  BE A q ua lifie d 7

VCC’ s I mpa c t Ac ro ss Virg inia 8

VCC’ s So c ia l & F ina nc ia l I mpa c t Ac ro ss Virg inia (thro ug h De c e mb e r 31, 2015) Soc ial Impac t Quantity Jo b s c re a te d / re ta ine d 4,997 Affo rda b le ho using units fina nc e d 4,719 units He a lthc a re fa c ilitie s fina nc e d 9 Ho urs o f fre e a dviso ry se rvic e s Ove r 14,800 to o ve r 1700 o rg a niza tio ns F inanc ial Impac t Quantity L o a ns o rig ina te d $320 millio n Pro je c t I mpa c t Ove r $766 millio n L e ve ra g e fa c to r $1 : $1.40 T o ta l lo a ns 488 9

VCC’ s Co mmunity I mpa c t Ac ro ss Virg inia  I nc re a se a ffo rda b le ho using  I mpro ve a c c e ss to he a lth c a re a nd c o mmunity fa c ilitie s Ho te l Blue (Ca pe Cha rle s)  I mpro ve a c c e ss to fre sh fo o ds  I nc re a se jo b c re a tio n a nd re te ntio n thro ug h sma ll b usine sse s  E nha nc e c o mmunity vib ra nc y So uthe a st Co mmunity Assista nc e Pro je c t I nc . (Ro a no ke ) 10

L e nding – Vib ra nt Pla c e s  Mixe d Use  Affo rda b le Re nta ls  Co mmunity F a c ilitie s  L I T C/ HT C de a ls YMCA (Ro a no ke ) Cra ddo c k T e rry Ho te l (L ync hb urg )  Pre de ve lo pme nt Do lla rs  Ac q uisitio n F ina nc e  Co nstruc tio n L o a ns  Mini-Pe rm L o a ns Po nc e de L e o n Apa rtme nts (Ro a no ke ) 11

L e nding – Jo b Cre a tio n F re sh F o o d L e nding J.R. Ca ske y, I nc . (Oilville ) Cho c o la te s By K e lly (Ric hmo nd)   He a lthy F o o d F ina nc ing Wo rking Ca pita l   T o urism E xpa nsio n F ina nc ing  So la r & E ne rg y E ffic ie nc y 12

L e nding – E nha nc e d Qua lity o f L ife  Ne w Ma rke t T a x Cre dits (NMT C)  Sta te / F e de ra l L o a n Pro g ra ms T ri-Are a He a lth Ce nte r, F lo yd Rive rside PACE (Ric hmo nd) Pio ne e r He a lth Se rvic e s, I nc . (Pa tric k Co unty) 13

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OH, The Places We’ll Go… C E LE B R AT I N G TE N YE A RS O F I M PAC T

VCC is 10 years old! We offer this Top Ten list to demonstrate why this occasion brings us, our partners and the Commonwealth of Virginia…Many Happy Returns. The Power of 10. We exist to… 1 Leverage $15 million to make a difference in underserved markets as directed by a bipartisan group of Virginia legislators 2 Make loans when and where others can’t or don’t 3 Attract the resources of national, state, and local social investors 4 Regenerate our funds and opportunities. We get out when others enter the market…allowing us to recycle our dollars for the next project

5 Be a convener of dollars and advice for increased jobs, vibrant places and improved quality of life in Virginia’s communities with the most need 6 Demonstrate that perceived “risky” community development financing can actually lead to smart financing 7 Listen to the unique needs of each borrower and form a dedicated expert team to serve them 8 Be both mission-focused and financially sustainable 9 See through lenses others may not, structured as both a non-profit Community Development Financial Institution (CDFI) and a for-profit bank, with a B Corp approach 10 Prompt a 51x Factor, an additional investment of $1.40 for every dollar we put in. Millions happen because we step in first Turn the page to learn more about our Top Ten… VCC฀|฀Celebrating฀10฀Years฀|฀2016฀•฀ 1

Start with $15 million and leverage it for an economic return to underserved areas. Mandate from Governor Mark Warner and the Virginia Legislature VCC CDFIs provide credit and financial services to people, businesses and Virginia communities not served Community Capital by mainstream lenders. (nonprofit) “ With this structure, instead of shareholders looking for a quarterly dividend, the There are about 1000 bank has a nonprofit owner CDFI’s nationally, 118 CDFI CCB whose mission is to create Banks, and only about 10 jobs, vibrant places and owned by nonprofits. Community enhance the quality of life Capital Bank in communities throughout of Virginia the Commonwealth.” (for profit) Jane Henderson, VCC President & CEO 2 ฀•฀VCC฀|฀Celebrating฀10฀Years฀|฀2016

“ They went into 2008 with the confidence of the Commonwealth of Virginia but not as an instrument of government. And they were charged with finding deals in areas of need that just had a missing piece to be a viable project. They have done a wonderful job at meeting that charge.” Susan Dewey, Executive Director, Virginia Housing Development Authority “ VCC is a state-chartered bank owned by a nonprofit—set up to help with economic development in underserved areas.” Sandy Fitz-Hugh, former President of Bank of America, Virginia & VCC Director Emeritus “ Our objective was to address a gap in community development finance in the Commonwealth. Working with the Governor and the legislature, we were able to privatize two existing governmental loan funds. Our challenge was to leverage and ‘get to scale’ so we could achieve a higher level of impact in Virginia.” Bill Shelton, Director, Virginia Department of Housing and Community Development & VCC Board Member “ It was really about privatization—can we take government program dollars and using the strength of the private market, multiply our impact in these Virginia regions with the greatest need? And keep politics out of it?” Michael Schewel, Secretary of Trade and Commerce in Governor Warner’s administration & VCC Director Emeritus “Everything VCC does is impactful—it is our mandate.” Chuck Mills, CEO, Salera Employee Benefits Solutions & VCC Board Member VCC฀|฀Celebrating฀10฀Years฀|฀2016฀•฀ 3

The places we’ve gone... Launches Pathfinders, a comprehensive community planning program with support from DHCD and USDA Rural Development VCC’s wholly owned bank becomes profitable Introduces Learning Exchange – a forum to bring new concepts in community development to Virginia Partnership with CHP, Fahe and VCDC creates VCC Opens as CDFI with $15 million from State of Virginia Creates Community Capital Bank of Virginia— Small 3 county mico-lender becomes statewide CDFI Virginia’s first regulated FDIC-insured bank with bringing capital to underserved areas a community development mission Jane Henderson becomes President & CEO Wins $15 million New Market Tax Credit allocation Originates 7 real estate loans over $2.4 million from the U.S. Department of Treasury 2006 2007 2008 2009 2010 Opens Richmond office Partners with VA Community Healthcare Association & Virginia Healthcare Foundation to offer $20 million funding to medical facilities in medically underserved regions Merges with VHDA’s Virginia Foundation for Housing Preservation; initiates the Preservation Acquisition Loan Program, Receives $686,000 stimulus funding from the Department $30 million loan pool to preserve of Health & Human Services to launch small business affordable rental units consulting program Offers a ready source of financing during economic & banking crisis Grows social deposits to $17 million 4 ฀•฀VCC฀|฀Celebrating฀10฀Years฀|฀2016