17. bankers/developers/housing advocates: partnering to

Bankers/Developers/Housing Advocates: Partnering to Create

Housing Opportunities

Macy Kisilinsky, PNC Bank

Elly Fisher, Oakland Planning and

Development Corp. (OPDC)

Evolving Relationship Business Banking: • Checking, savings, line of credit and some mortgages • Strong relationship with business banker and local

branch manager Neighborhood Partnership Program: • 6 year funding commitment in exchange for tax credits • Supported community development services from

organizing to workforce development • Formed a deep long-term relationship • Community Development representative on our board

Evolving Relationship (continued)

Housing Development Application: • Support letter for Low Income Housing Tax

Credit application • Ongoing support and advice to prepare for

award

Why the Relationship Worked

OPDC: • PNC was dependable, offered products/services

that they needed and shared their interest in developing a longer term relationship

PNC: • OPDC had a track record, they were well

established and experienced • Demonstrated mission driven results, with

staying power

Keys to Success

PNC: • Navigating the bank organization - finding the right

person at the bank to fill your needs • For a large bank like PNC that may involve getting

to know several people. For smaller banks it may be one person

OPDC: • Start with the Community Development Department,

introduce yourself and your organization, articulate your needs, look for other possible connections

Andy Haines, S&A Homes

Becky Yago, Dollar Bank

Federal Hill

Project details: • Pittsburgh, PA • Build and sale period-2009-2012 • 44 homes constructed and sold • Price Range- $145,000 to $380,000 • Homes are reselling at 50% appreciation on average • Built by S & A Homes and Central Northside

Neighborhood Council

Federal Hill

Financing Sources: • PHFA Homeownership Choice Program • Urban Redevelopment Authority • PHFA & Dollar Bank Construction Loans

Before

After

After

After

Why the Relationship Worked

S&A Homes: • Dollar understood the nuances of their deal. Four

funding sources, two were grant sources, bank needed to understand how they all work together

• Dollar had knowledge of the neighborhood and the challenges involved

Why the Relationship Worked

Dollar Bank: • Expertise and experience of S&A Homes and

their development team – particularly as it relates to construction process. This is where everything happens

• Key underwriting concern – would the market absorb the units planned? Dollar, like the mixed income aspects

• If the deal runs into an obstacle, how are the interests of the bank protected? Gets back to the strength of the development team

Keys to Success • Understand and be comfortable with the typical multi-

layered financing involved in affordable housing development. Be aware of the different parameters for each source of financing, understand the impact of scale and complexity of the project

• Be prepared to “roll with the punches” expect the unexpected. Both partners

• CRA is a consideration but not always the key driver for banks, track record of the development team is often more important

• Communication among partners. Don’t over react, but don’t under react either. Situations sometimes change quickly particularly during construction, is the relationship nimble enough to react effectively?

Mollie Phukan, Wells Fargo Home Mortgage

William Hall, Clarifi

Foreclosure Prevention Efforts Details of the relationship: • Foreclosure Client pipeline management -

specialized team created to help agency manage loss mitigation process

• Foreclosure Prevention Events – – large scale Wells Fargo sponsored events with non-

profit participation – small scale co-branded events

• Atlantic City Casino Closings – partnership on efforts to connect those impacted by casino closings with valuable community resources.

Why the Relationship Works

Clarifi: • Both sides aligning business goals • Shared mutual interest

Wells Fargo: • Agency leadership open to approaching the

partnership in different ways as industry and markets change

• Valuable perspective on market nuances

Keys to Success

Clarifi: • Non-profit organizations should put their best

foot forward when engaging with banks, start by doing your homework

• The approach should be relational not transactional. Be clear about what each brings to the table and the roles each will play in the relationship

Keys to Success

Wells Fargo: • Defining common goals and building the

relationship through those goals • Feedback and communication • Quality and dependability make for a strong

relationship