2013-2014 Annual Report

Our Mission: Assist in providing

decent, safe, and affordable housing and revitalizing

neighborhoods to improve the quality of life in our

communities.

BUY, FIX, KEEP: BUILDING NEIGHBORHOODS TOGETHER

Dear Friends & Partners:

2013 was a year of full of growth, challenges, and milestones. Our appreciation and gratitude is extended personally to each and every one of our supporters; your selfless efforts are making way for a stronger, more vibrant community that we call home.

Affordable homeownership opportunities and resident-led community engagement efforts are building strong and resilient communities throughout Western South Dakota.

NeighborWorks® Dakota Home Resources’ community outreach program had over 1600 volunteers donate 27,000 hours of their time to improve our community. Volunteers pariticpated in neighborhood block club engagements such as Paint the Town, Warm & Safe, Plant Swap and Group WorkCamps.

In July of 2013, NeighborWorks Dakota Home Resources welcomed 433 teenagers and adult leaders from all over the country to participate in the 7th Annual Group WorkCamps. Christian volunteers traveled to the Northern Hills to perform house repairs of all varieties. Together the volunteers logged 12,990 hours, performing more than $120,000 worth of work on 57 homes. All of the materials were purchased through in-kind and monetary donations. Many of the homeowners would have never been able to improve their home without the volunteers and the community’s generous donations.

In 2013, NeighborWorks® Dakota Home Resources invested over $200,000 in home rehab funds to provide 23 homeowners with opportunities to improve the health and safety of their home. Preserving our communities’ stock of existing homes is vital to the sustainability and future growth of our community.

NeighborWorks® has assisted families with homeownership opportunities for over twenty years, and in 2014 we reached the landmark achievement of 1,000 families in homes. This joyous landmark is not celebrated alone, it takes a web of interlocking partners to develop and sustain healthy, vibrant communities. None of us can do it alone.

Thank you to all who contributed to NWDHR’s ongoing Campaign for Homeownership. For every dollar NeighborWorks® Dakota Home Resources receives we are able to leverage $36 additional dollars to fund our programs and services. Whether through volunteering or capital contributions, we are able to maximize local and federal funds to achieve our mission thanks to great partners like you.

On behalf of the board of directors and staff of NeighborWorks® Dakota Home Resources, I thank you for your support in making the dream of homeownership a reality for our families. Sincerely,

Eric Fowler - NWDHR Board President NeighborWorks® Dakota Home Resources,

Executive Director, Joy McCracken & Board President, Eric Fowler

1,000 families! NeighborWorks® Dakota Home Resources Campaign for Homeownership celebrated a major milestone and welcomed the Anderson family into their new home. Kelly Anderson and her two children are now the proud owners of a 3 bedroom South Dakota Housing Governor’s House in Sturgis.

The Andersons are the 1,000th homebuyers to purchase a home through NeighborWorks® Dakota Home Resources. NeighborWorks® assisted with the purchase and construction of the Governor’s House and the lot. The family had been crammed into a 2-bedroom apartment that was very hard for her son to get around in his wheelchair. “The apartment was very small; we are so excited to have more space,” Kelly Anderson explained. Kelly decided to purchase the Governor’s House because of the affordability factor. “We looked for existing homes in Sturgis, and could not find anything that would fit our needs.” Anderson explained. The Governor’s House has two bedrooms, one bath, and 1,008 square feet, with options to build with a basement. The Anderson home has a finished basement that her son will be utilizing as his living quarters.

Thanks to the partnerships between NeighborWorks® Dakota Home Resources, South Dakota Housing Development Authority, and USDA Rural Development, Kelly’s mortgage payment will be comparable to the rent that she was paying for the much smaller apartment.

Kelly Anderson utilized USDA Rural Development 502 Direct Program. 502 Direct loans are primarily used to help low-income individuals or households purchase homes in rural areas. The program extends the terms of the loan creating more affordable payments for the homeowner. “USDA is pleased to be a part of this recognition ceremony,”

said USDA Rural Development State Director Elsie Meeks. “Owning your first home is a big step and huge accomplishment. We want to celebrate this milestone to highlight the efforts that make homeownership possible and thank NeighborWorks® Dakota Home Resources for their hard work.” Since 1992, NeighborWorks Dakota Home Resources has been assisting families with homeownership opportunities. “NeighborWorks® Dakota Home Resources could not do the work we do without our partners and supporters. Safe, decent and affordable housing is essential for the economic growth and health of our community,” stated NeighborWorks Executive Director Joy McCracken.

Achieving the Dream of Homeownership:

Home Matters To NeighborWorks® Dakota Home

Resources:

Total Families Assited with Homeownership Since 1992:

1,005

First Time Home Buyers in 201347

“Being a home owner is great! I can do what I want and I don’t have to ask anyone!”- Kelly Anderson

Home is where we’re protected. It’s where our health and spirits are restored. It’s where we become

empowered, encouraged, and inspired.

Health: Healthy habits take root more easily in stable, affordable homes. Children grow strong and adults stay well, and live better.

Education: Children in stable homes learn and achieve more in school. Home helps level the playing field.

Community: Home recharges us for the work or school day ahead, so we better engage with the world around us. When we take pride in our Home, we can take pride in our community and make it a safer place to live.

Economy: By having a home that is affordable, people of all income levels have more to spend and support the economy.

Margaret Koch did not know what she was going to do when her home repair cost began to wear down her finances. She had only lived in her home for two years and the cost of major plumbing and home maintenance repairs were becoming too costly and overwhelming for her monthly fixed income.

As a first time homebuyer Margaret thought she had done everything to ensure that she was purchasing a home that would fit her needs and budget. Margaret stated that two home inspections were completed and both concluded that the home was not in need of any major repairs. It was shortly after Margaret moved in that her plumbing started backing up and causing issues. “I had plumber after plumber come in and try to fix the issue.” She had hired a company to go inside the plumbing and replace a pipe that had collapsed. Once the company notified her that the work was completed she was still facing regular plumbing and back up issues.

“Even after I fixed the problem, I was spending nearly $200 a month on plumbing repairs,” Margaret explained. “It was not until I found NeighborWorks® that there was light at the end of the tunnel…I called NeighborWorks and Robert was here the next week. They helped me find contractors to fix my plumbing issues, and also discovered that the original work was not completed.” Margaret explained

NeighborWorks® Dakota Home Resources worked with Margaret to find a contractor that could complete the necessary home repairs at a cost that she could afford. “I would not have been able to complete these repairs without NeighborWorks®. I will have a small loan payment, but it is a payment I can afford.” Margaret explained. “If I would not have found NeighborWorks, I would have had to sell my home.”

NeighborWorks® Dakota Home Resources is able to provide low interest rate loans and forgivable loans for home rehabilitation and repair projects throughout Western South Dakota, thanks to the support from NeighborWorks® America, South Dakota Housing Development Authority, US Bank and Wells Fargo Bank.

NeighborWorks® Dakota Home Resources completes around thirty home rehab projects annually. Assistance ranges from replacement of furnaces and hot water heaters, to updating electrical and plumbing in homes. In 2013, NeighborWorks Dakota Home Resources invested over $100,000 into preserving and rehabbing affordable homes throughout Western South Dakota.

Margaret explained that she could not have been happier with the contractors that completed the repairs. “They did quality work, and NeighborWorks® was there for me whenever I had any questions.”

23 Families were assisted in 7 communities with home rehab: Lead: 4 Deadwood: 1 Edgemont: 1 Rapid City: 13 Sturgis: 2 Black Hawk: 1 Piedmont: 1

NeighborWorks® Dakota Home Resources assisted 23 families with home rehab and repairs in 2013. Assistance consisted of replacement of furnaces and hot water heaters to updating electrical and plumbing in homes.

NeighborWorks® Dakota Home Resources believes that rehabilitation of properties is an effective way to preserve affordable homes. In fiscal year 2013, NeighborWorks® Dakota Home Resources invested over $100,000 into preserving and rehabbing affordable homes throughout Western South Dakota.

NeighborWorks® Dakota Home Resources Home Rehab Proggram Preserving the Dream of Homeownership:

“If I would not have found NeighborWorks® , I would have had to sell my home.” - Margaret Koch

Sustaining the Dream of Homeownership:“Knowing that I did this all on my own is just an amazing feeling.” NeighborWorks® client, Stephani Kunkel explained. Spearfish has always been home to Stephani. Her family lives here, her job is here, and it is the community she wants to live in. “I grew up in Spearfish and I want to lay roots down here.”

Even with a good job and working her way into a management position, her options for quality affordable rentals were limited. “I was living in a small studio apartment and felt like I would never be able to afford anything with more than one room.” Stephani explained.

Like many young adults she did not think homeownership and a mortgage would fit into her budget. “Owning a home did not seem possible. I thought, I am only 23 and how can I do this on my own?” Stephani stated. It was not until her mother heard about South Dakota Housing’s Governor’s House Program that Stephani realized that homeownership was a possibility.

Stephani contacted her local bank to look into her options and the idea of homeownership began to take form.

The Governor’s House was a perfect fit for Stephani. “There is plenty of room for me, and if I have a family someday there will be room to expand.” The 1,008 square feet house has two bedrooms and one bath, with the option to build a full basement. Stephani’s home will have a complete unfinished basement. South Dakota Housing delivered and placed the home on the foundation in July, and NeighborWorks® Dakota Home Resources completed the remaining construction in September.

To create an affordable monthly payment Stephani also utilized Dakota Land Trust (DLT). DLT was established to create a supply of affordable homes for low to moderate-income households in the communities of Western South Dakota. DLT purchases the lot and places the land in a 99 year ground lease. Taking the cost of land out of her purchase price will allow her to have manageable monthly payments and afford to keep her home.

Together NeighborWorks® Dakota Home Resources, Dakota Land Trust, USDA Rural Development, South Dakota Housing Development Authority, and First Interstate Bank created an affordable homeownership opportunity for Stephani. Her mortgage payment will be comparable to the rent that she was paying for the much smaller apartment, and she is investing into her future and community.

Thanks to the support from organizations throughout South Dakota, Dakota Land Trust (DLT) has entered into it’s sixth year of operation.

Dakota Land Trust offers unique homeownership opportunities for families in communities while maintaining affordable housing for the future. Their mission is to create opportunities and foster stewardship of permanently affordable housing for low-income and moderate income families and individuals.

Through this mission DLT has been able to provide affordable housing for 22 families throughout seven communities.

The partnerships and contributions from South Dakota Housing Development Authority, Black Hills Vision, City of Spearfish, The City of Rapid City, and NeighborWorks® Dakota Home Resources have been crucial for DLT’s success.

Dakota Land Trust looks forward to creating and strengthening new and existing partnerships that will allow DLT to reach their goal of assisting 10 families every year.

Dakota Land Trust:

Communities Need Affordable Housing to Be Vibrant and

Resilient.

“I grew up in Spearfish and I want to lay roots down here.” -Stephani Kunkel

In April of 2013, NeighborWorks® Dakota Home Resources and the College Park Block Club received support from Rapid City Parks and Recreation and the City of Rapid City to create a neighborhood pocket park on a vacant city lot located in North Rapid.

The space once was a park, but due to deterioration the equipment was removed and the lot was left vacant. With the increase of children in the neighborhood, it became apparent to the residents they needed to create something to entertain and keep the children safe. A community pocket park was their solution.

For over a year residents and volunteers worked together to build Willow Park, and on September 13th, 2014 over 120 volunteers created a beautiful play space.

Lemmon Avenue used to be one of the busiest neighborhoods for police in Rapid City, but those days are in the past. In 2009 NeighborWorks® Dakota Home Resources partnered with the Rapid City Police Department and the residents of Lemmon Avenue to form the College Park Block Club.

Five years into the partnership, the neighborhood has seen a turn around. Today, signs of community can be seen through the commitment of the residents from well-maintained owner-occupied and rental homes, to groomed public areas, such as the College Park Community Garden and now Willow Park.

Residents and local youth played a vital role in creating Willow Park. Their ideas created a unique play space that children of all ages and abilities can enjoy. Their involvement created ownership, and the ownership is the parks’ salvation; children won’t want to see it vandalized or trashed because it is their park.

The positive outcome of Willow Park is a reflection of the amazing opportunities that can be created through neighborhood revitalization and grass roots commitments. Community revitalization is not possible without partners and volunteers. Support from local and national organizations provided over $50,000 in monetary and in-kind donations to complete the Willow Park project; and although monetary funds are required for such a large scale community project, the support and encouragement that the entire community offered is the biggest pay off of all.

“Litter, broken windows and graffiti can snowball into increase deterioration and crime, conversely improvements and a sense of ownership can also snowball and lift a neighborhood out of crime.”- John Olson, RCPD

Community Revilization: Willow Park

2013 Financial Report :

NWDHR would like to thank everyone that made a contribution in 2013. Please visit out web site for a complete list of 2013 contributors.

Balance Sheet 2013AssetsCash...................................$323,157Cash Restricted for Loans..$308,667Loan Receivable................$265,233Inventory Property ............$1,068,363Prepaid Expenses ..............$10,825

Property and EquipmentOffice Building...............$448,799Other Rental Buildings...$1,657,889Furniture.........................$186,657Depreciation...................($410,188)

InvestmentsLoan Receivables............$1,294,295Restricted Cash & Debt Reserve...............$1,002,293

Total.................................6,155,990

Current Liabilities Current Portion of Debt.....$417,494Accrued Expenses.............$89,079Account Payable...............$61,941

Long Term LiabilitiesLong Term Debt............$2,671,700

Net AssetsUnrestricted..................$1,362,224Temporarily Restricted......$40,701Permanently Restricted..$1,512,851

Total.............................$6,155,990

NeighborWorks® Dakota Home Resources Partners

Adams- Mastervich Family FoundationBlack Hills PowerBlack Hills Vision

Town of Central CityCity of Deadwood

Deadwood Historic PreservationCity of Edgemont

City of Lead City of Spearfish City of Sturgis

Citi FoundationCommunity Development Financial Institution

Deadwood Gaming AssociationHomeowenership Education Resource Organization

Lawrence County Meade County

NeighborWorks® AmericaPro-Build- Spearfish

U.S Department of Housing and Urban Dev. South Dakota Housing Dev. Authority

Twin City HardwareUnited Way of the Black Hills

USDA Rural DevelopmentUS Bankcorp Community Dev. Corporation Wells Fargo Community Dev. Corporation

West River Electric - Rapid City

NeighborWorks® Dakota Home Resources 2013 Contributors

Gold Leader (Investment of $10,000 or More) Adams Mastrovich Family Foundation

First Interstate Bank NeighborWorks® America

Community Leader (Investment of $5,000-$9,999)Meade County

Community Builder (Investment of $2,500-$4,999)City of Sturgis

City of Deadwood City of Spearfish Rushmore Radio

Block Builder (Investment of $1,000-$2,499)City of Lead

Del’s Construction Black Hills Power

Sturgis Alliance of Churches City of Belle Fourche

First Wesleyan Church Knights of Columbus #6341

Neighbor (Investment of $100-$999)Deadwood Elks Lodge #508

Sheryl Eisenbraun Pioneer Bank & Trust Homestake & Barrick

Community Action Western S.D Ron Everett

Barrick Gold Corporation Wharf Resources (USA) Inc

Re/Max in the HillsJohn Carlson

Twin City Hardware Todd Duex

Town of Central CityJames & Rita EdwardsLawrence Land Title

Larry & Cindy Griffin Shawn Rost

Sturgis Chamber of Commerce Deb Fegueroa

Dennis BridensteinFirst National Bank

Norma Allen First United Methodist Church

Steven Fox Dentistry Northern Hills FCU

Rapid Foundation Repair Joy & Dave McCracken

RCPD Fraternal Order of Police Terry Peak Ski Resort

Joel Edgar

Bill Meehan Devils Tower Trading Post

Kiwanis c/o Diana Mathisrud Larson Properties

Linda Flack Trucking Brandon Bestgen

Jason and Dana Boke First National Bank

Troy & Rheta Reagan Stretch’s Glass & Mirror

Trinity United Methodist ChurchWestridge Properties

Anne Cassens Carol McMann

Fred Straub Winfred StraubHeidi McBride

Dee Black First Interstate Bank- Sturgis

Black Hills Wine Tours Lead Country ClubLead Art Council

One Way Service Pros Ainsworth-Benning Construction

Eric & Trayce Fowler Jim & Beverly Posey Round House Liquor Dick & Mona Tinker

Bryan WalkerProBuild

NeighborWorks® Dakota Home Resources 795 Main Street

Deadwood, South Dakota 57732605-578-1401

www.neighborworksdhr.orgFacebook@NeighborWorksSD

STAFFJoy McCracken

Executive Director

Tammera Biller Edgemont Community Outreach

Michael DennisAssistant

Lonnie Haugland Accountant

Kayla Kinard Belle Fourche Housing Coordinator

Tim MeekLoan Counselor

Carol McMannLoan Counselor

Dennis RentzConstruction Manager

Susan StevensProperty Manager/Accounting

Krystal StulkenFunds Manager

Tracy ThackerCommunity Outreach Coordinator

Robert ThorpHome Rehab Specialist

Stephany Valkenburg Marketing Director/Dakota Land Trust

Denese WadeAdministrative Assistant/Property Manager

Mike Walker Lending Director

Vicki Wilks Loan Processor

BOARD OF DIRECTORS

Eric FowlerPresident

Dee Black Vice President

Floyd Rummel, IIITreasurer

Tom AdamsSecretary

Amy Young BearLarry GriffinChuck KingTJ Larson

Heidi McBrideDusty PinskyJim Phillips

Stephen Reichert

In accordance with Federal Law and U.S. Department of Agriculture policy, this institution is prohibited from discriminating n the basis of race, color, national origin, age, disability, religion, sex, and familial status ( Not all prohibited bases apply to all programs).

How Can You Support NeighborWorks® Dakota Home Resources?

NeighborWorks® Dakota Home Resources is a 501(c)(3) charitable organization and relies on financial and in-kind contributions from individuals, foundations, corporations, and business and civic organizations in order to provide affordable housing and revitalize neighborhoods throughout our communities. Charitable support from the community is essential to our work.

Your Support Helps Us To: Develop permanently affordable housing.•Provide homeownership education and lending services to help •people purchase a home within their means.Help homeowners in danger of foreclosure come to a successful •resolution with their housing trouble. Engage in neighborhood activities that positively impact •communities.