WIXLIB

Building Nonprofit Capacityto BuildSponsored by theFlorida Housing Finance Corporation’sAffordable Housing Catalyst ProgramFlorida Housing CoalitionMay 26, 2022

Our Thanks to the Florida HousingCatalyst ProgramSponsored by the Florida HousingFinance Corporation

Catalyst Training Schedulewww.flhousing.org

The Florida Housing CoalitionJuanita JonesTechnical Advisorjones@flhousing.org

Logistics for Today’s Webinar All attendees are muted Please type in your questions. We will answer questionsthroughout the webinar. Webinar is being recorded and will be posted to our website Handouts PowerPoint for today’s webinar will be posted online

Who’s attending?In theQuestionsBox What’s your experience in housingdevelopment?Have you recently completed a thoroughevaluation of your capacity?What area(s) of capacity does yournonprofit need to build up the most?

Today’sAgendaWHY NONPROFITCAPACITY-BUILDING ISIMPORTANTQUESTIONS AND BESTPRACTICES FOREVALUATING CAPACITYBEING A GOODPARTNERFHFC AND THENONPROFIT SET-ASIDEFOR LIHTCSHOWCASE OFNONPROFITS

Florida Housing Coalition’s Vision: At least one active, viablecommunity-based organizationplays an important role indelivering affordable housing andrelated services in eachcommunity

Purposes of Our WorkSignificant need for the development andpreservation of affordable housingDesire to build capacity of nonprofits tosuccessfully participate in FHFC’s RFA process

Evaluating Nonprofit CapacityQuestions to ask and best practices

MissionMission Statement – Is it clear, strong, relevant, frequently referenced?Vision Statement – Is it clear, bold? Does it inform policy and priorities?Goals and Strategic Planning – Are they clear, coherent? Is there a process for review andadoption? Are outcomes measured?Culture and Values – Are they the same for the board, management, staff andstakeholders?

BoardCommitment – Do membersprovide strong and meaningfulsupport? How is attendance atmeetings?Composition – Are they experts intheir fields? Are their fieldsrelevant to your mission? Do theyserve as resources to the ExecutiveDirector and staff?Committees – Are thereany? Are they active,relevant? Do they have staffsupport?

More about the BoardRelationship with Executive Director and staff – Are all working towards common goal?Does the Board evaluate performance of Executive Director?Orientation – Is there one? Who provides it? How comprehensive is it?Governance – Are positions and committees clearly defined? Are meetings regularlyscheduled, well-run, effective?

Senior ManagementExperience – Are members qualified with expertise?Internal Leadership – Are they positive and likable? Do they frequently evaluateorganization for improvement? Do they actively seek to recognize and reward staff?External (Community) Leadership – Are they visible, recognized? Are they effectivepartners?Staff Dependence – Would the organization experience difficulty without dailypresence of Executive Director? Can management team assume other duties?

StaffRoles and Responsibilities – Are they clearly defined? Are they wellexecuted? Can staff assume other roles as needed?Experience – Does staff have experience and education relevant to role?Are they able to perform all tasks associated with positionMotivation – Is staff committed to mission and strategy? Does staffactively seek additional responsibility and training?Volunteers – Is there a dedicated base?

Program ManagementPolicies and procedures –Are they written down? Howwell-written are they? Arethey regularly reviewed?Job design – Do staff rolescorrespond well withprograms? Are staffencouraged to modify andimprove programs they areaccountable for?Program reporting – Arecontrols in place to ensuregoals and objectives aremet?Program design – Doprograms match themission? Are they innovativeand effective at meetingcommunity and organizationneeds?

Financial ManagementPolicies and Procedures – Isthere low potential formismanagement?Funding Sources – What is thesource(s) of funding? Doprograms and assets providereliable sources of income?Budgeting – Does the processinvolve the entire organization?How involved is the Board? Arevariances routinely examined?Reporting – Is fiscal informationregularly scrutinized? Is it usedas tool to evaluate strength andmake improvements?

LegalOrganizational documents – Has organizationobtained proper IRS status? Are corporatefilings in place? Are by-laws valid?Risk Management – Is there sufficientinsurance? Are all policies current?Legal Counsel – Is counsel available? Is it probono or reasonably price? How is counselutilized?

Marketing123Recognition and reputation –How well-known is theorganization in thecommunity? Famous orinfamous?Marketing materials – Arethey professionally designed?Is there a functioning website(up to date)? Is an annualreport published?Publicity – What efforts madeby management, Board andstaff to promote theorganization and its mission?Is there a dedicated staffperson or contracted firm forthis purpose?

Technology infrastructure – Is equipment up to date andoperational?Technology expertise – Is there IT expertise on staff orcontracted? How comfortable is staff with equipment?Database management – Is there organization-widereporting and tracking? Is data analyzed and used toinform policy?Records and filing – Are they organized and easilyaccessible? How often are they reviewed?Physical infrastructure – How well does the physicaloffice work for operations?Systems andInfrastructure

HR STAFF – WHO HANDLES THISRESPONSIBILITY? ARE THEREWRITTEN POLICIES ANDPROCEDURES?STAFF TRAINING ANDDEVELOPMENT – HOW IS THEONBOARDING PROCESS FORNEW HIRES? IS THERE ONGOINGTRAINING TO ENSURE JOBEXPERTISE? ARE THERE GROWTHOPPORTUNITIES WITHIN THEORGANIZATION?COMPENSATION AND BENEFITS –IS STAFF PAID? ISCOMPENSATION IN LINE WITHINDUSTRY STANDARDS?HumanResources

CommunityRelationship with funders – Does organization meet orexceed expectations? Are funders eager to continue fundingorganization?Partnerships – How well does the organization collaboratewith others? Do partnerships further the mission? Are theymutually beneficial?Needs Assessment – How well does the organizationunderstand its community/clients?Accessibility – Are programs easy to access and understand?Policy – Does the organization influence policy decisions thatadvance its mission?

Real Estate Development Describe the strategy: Does it advance the organization’s mission andvision? Is it based on current or projected housing needs? Are there adequate financial resources to coverdevelopment expenses? How is the relationship with local government? Does staff negotiate with the community and overcomeNIMBYs?

AssetManagement Are properties fully leased? Does income cover all expenses? Are properties in good physicalcondition? Are capital needs regularlyevaluated? Are there adequate reserves? Is there adequate insurancecoverage?

Resident Services Do programs and services meet the needsof residents? Are programs and services easily accessible? Do programs and services support themission? Are there written guidelines, policies andprocedures? Are residents active participants in their ownsuccess?

DevelopmentTeam Development ConsultantCo-developerLawyerCPA AccountantTitle CompanyLand SurveyorBuilderArchitectEngineerEnvironmental ConsultantMunicipal Planning & BuildingDepartmentsLenders/InvestorsProperty/Asset ManagementRealtorsHB Counselors

FHFC and the Nonprofit Setaside for LIHTCUnderstanding the requirements

The Nonprofit SetasideIRC Section 42(h)(5)

The NonprofitSet-aside Definition of a qualified nonprofit organization (3 requirements): Must be an organization as described in Section 501c3 or 501c4 and taxexempt under Section 501a, AND Must not be affiliated with or controlled by a for-profit company, AND One of the exempt purposes of the organization includes fostering lowincome housing

How Deals are tionPublicbenefitevaluationApplicantevaluation

Evaluating theApplicant Staff Capacity Key staff has qualifications needed tocarry out the project Organizational chart indicatesadditional staff and report chain forkey contacts Board Capacity Expertise of Board fills or augmentsknowledge and skills of staff If partnership or joint venture Split in ownership and/or division ofresponsibilities will facilitate effectiveexecution of project

Evaluating the ApplicantFinancial CapacityTrack RecordAudited Financial Statements indicate stablefinances with strong internal controlsHas applicant completed a similar projectbeforeCurrent finances and balance sheet in goodshapeStatus of previously funded projectsAbility to guarantee financing

Use FHFC as a Resource1Review the anticipated fundingschedule and other RFAinformation to determine whatfunding source best fits yourdevelopment and if your nonprofitcan or needs to partner2Identify established developerswho have been selected forfunding in previous cycles. Buildrelationships with thesedevelopers for future fundingapplications and developmentopportunities.34Participate in workshops. Call-in,ask questions, introduce yourself,advocate for your community andpopulation(s) you serve.Network and collaborate withother community organizations forfunding opportunities.

Being a Good PartnerConsiderations and best practices

Understanding Your Governance

Partner Characteristics

Partnership: Longterm or Short-term? All partnership negotiationsshould be approached with astrategic mindset.

Elements of aGood LongTermPartnership

Let’s Hear from the Nonprofits!

Nonprofit PanelCDC of Tampa – Ronda Watts, COONew Life Village – Mariah Hayden,Executive DirectorFlorida Home Partnership – MikeMorina, CEO

What We DoReal Estate Development– Utilizing an array of leveraged public and private financing, CDC of Tampa buildsaffordable single-family homes, primarily on vacant, scattered-site, in-fill urban lots. CDC of Tampa alsorehabilitates neglected and/or foreclosed homes and restores them to quality, affordable, and attractive homesfor first-time homebuyers, helping to boost the local real estate tax base while eradicating blight and neglect.Workforce Development- CDC of Tampa’s Workforce Development Center helps individuals acquire job skills,secure stable employment, and gain financial stability. The WDC provides job readiness training as well astraining for short-term certifications in construction, customer service, and healthcare related careers.Youth Leadership Program – This program assists at-risk or delinquent youth in grades 9 through 12 inestablishing a path to self-sufficiency through obtaining a high school diploma, entering a college/vocational ortechnical training program, or securing employment. The program promotes youth leadership development,academic achievement, employability skills, and financial literacy through targeted support, empowerment, andparental/caregiver engagement.

Nehemiah: Brick by Brick, Person by Person