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DONOR PROFILE: Washington State Housing Finance Commission
WSHFC is a publicly accountable, independent organization dedicated to increasing housing access and affordability for people in Washington. As an umbrella organization for housing funding, the Commission been involved with Impact Capital right from the beginning.
"When Impact Capital was created out of the merger of the Washington Community Development Loan Fund and another agency, we were already a funding partner," recalls Kim Herman, executive director of the Housing Finance Commission.
"We saw the need for both pre-development and bridge loans in the state, particularly outside of the Puget Sound region. So we increased our investment in Impact Capital to serve those markets with those types of loans." Herman describes Impact Capital's loans as crucial for nonprofit development agencies.
"Early money is hard to get, yet it can be critical to the success of the projects," Herman said. "The bridge financing is important because often, when the nonprofit organizations get to the point of beginning construction, they may be waiting for government financing. There's often a time lag between the approval of those funds and their availability. Impact Capital provides the bridge funding so that the project can get underway."
In 2001, the Commission invested $4.75 million in Impact Capital to be used for the preservation of low-income housing. At that time the Commission joined the Impact Capital Board of Directors. Currently, the Commission has $5.25 million invested in Impact Capital in the form of a two-percent loan for a 20-year term for affordable housing projects. This year the Commission reduced the interest rate on that loan to one-half of one percent to help Impact Capital weather the current turmoil in the housing and lending industries
The Commission has also worked with Impact Capital to create a pre-development revolving loan program for state non-profit organizations, with an emphasis on projects outside of King, Snohomish, and Pierce counties. Initiated with $750,000 from the Commission, the fund has revolved 5-1/2 times and with every dollar from the fund an additional $154 has been leveraged from other sources to providing housing for very-low income households.
Herman predicts that Impact Capital will adapt to meet the needs of the nonprofit development projects that are emerging in this new climate. "I think they'll be doing pre-development lending for energy projects, and for projects that involve the acquisition and rehabilitation of foreclosed properties," Herman said. "There are going to be projects to lower the energy costs of older properties, and even projects to build new, neighborhood-based energy production facilities."
He noted that many cities and counties are currently looking for an organization that can provide funding for secondary mortgages and down-payment assistance for low-income housing. As an Impact Capital board member, Herman is appreciative of the work Impact Capital does outside of the affordable housing loans that the Commission is involved in funding.
"They're providing training and technical assistance that helps borrowers plan and carry out complex community development projects," he said. "Impact Capital is a valuable resource for community development groups and nonprofit organizations across the state."