ic annual report 2009

Invest. Transform. Sustain.

Impact Capital’s Report to Investors. 2009.

“The role that Impact Capital plays as an early risk capital and technical assistance provider to nonprofit housing organizations in Washington State is absolutely critical to the success of those projects over the long term. This makes the futures of families living in affordable housing more secure, and I personally want to ensure that Impact Capital has the resources to continue this work by advocating internally and externally on their behalf.”

-- Ann Melone Board Vice Chair and US Bank Vice President, Commercial Real Estate

2 x Impact Capital Annual Report 2009

Impact Capital is a community development financial institution that makes strategic investments

in nonprofit organizations, tribal entities, and housing authorities to spur community development,

including affordable housing, art and cultural centers, community facilities, and vibrant commercial

districts. Our work transforms distressed communities and neighborhoods into healthy ones –

good places to live, work, do business, and raise families.

Our role is to blend mission with financial impact. By addressing the needs of underserved

neighborhoods and low to moderate income families, we can achieve our goals and provide

a crucial link in the world of community development.

Impact Capital acts as a catalyst for investment. We leverage financial resources, national partnerships, and local expertise to

bring on average $23 dollars of total development to communities for each $1 invested by Impact Capital. Because our flexible

financial tools aren’t available in the marketplace, our zero-interest predevelopment loans and interest-bearing bridge loans

can help a project move forward to serve families, students, workers, and communities.

Through our Vibrant Communities program, Impact Capital uses a holistic approach to address the needs and goals of each

neighborhood we serve. Our success stems from working with neighborhood stakeholders, local governments, and community

organizations to address issues, develop neighborhood action plans, provide expertise, and create truly vibrant neighborhoods.

In 2009 we accomplished the following:

• Provided over $9 million of loans and grants to organizations in Washington to develop community projects,

affordable housing, revitalize commercial districts, enhance neighborhood green spaces, and reduce crime.

• Launched a new Vibrant Communities initiative in the Spokane International District with support from the local

government, local and national funding partners, community stakeholders, and Spokane Neighborhood Action

Partners (SNAP).

• Hosted our first fundraising event in Eastern Washington to showcase our Vibrant Communities program in Spokane

and raised funds for the Neighborhood Action Plan which will help guide revitalization in the District.

• Organized a Breakfast Series event with speakers from Local Initiative Support Corporation’s (LISC) national policy

department who discussed how the American Recovery and Reinvestment Act of 2009 would affect community

development nationally and here in Washington.

• Developed a newsletter to share stories about our role in community development and the lives being changed by

our partners, funders, and borrowers.

On behalf of the entire Board of Directors and Staff of Impact Capital, I would like to personally thank the many investors

and partners who work with Impact Capital to make affordable housing and community development projects a reality

in Washington.

Sincerely,

Jan Laskey,

Chair, Board of Directors

Senior Vice President, Community Lending Bank of America

S

2009 Sample of Funded Projects*

Impact Capital Annual Report 2009 x 3

26

1

2 3 4 6

5

Longview Housing Authority

Loan Amount: $57,630Address: 1207 Commerce Avenue Longview, WA 98632

Type of Project: The preservation of a historic build-ing, which will include the rehabilitation of 20 units of affordable housing.

What will result: The rehabilitation of 20 studio apartments in order to create 24 beds of permanent supportive housing for homeless veterans.The rehabilitation includes the installation of an elevator, relocation of the laundry room(s), installation of fire suppression systems, and American with Disabilities Act (ADA) access that will benefit all building tenants.

*Impact Capital approved 20 loans for a total of $7,926,871 to build 727 units of housing and 18,245 square feet of community facility space. These loans leveraged over $155 million dollars in total development costs.

Walla Walla Housing Authority

Loan Amount: $1,280,000Address: 204 North Spokane StreetWalla Walla, WA 99362

Type of Project: Preservation of affordable housing and new construction

What will result: The Walla Walla Housing Authority (WWHA) is going to rehabilitate 35 units of affordable housing and build an additional 15 units of affordable housing to bring the total to 50 units. The existing 35-unit apartments are comprised of 6 wood-framed single story homes and 2 multi-story homes, both located in downtown Walla Walla. WWHA wants to modernize and increase the energy efficiency of each existing unit. The new construction will consist of pri-marily two-bedroom homes along with 1,000 square feet of community space. WWHA is going to restrict 25 of the units to households at or below 30% of the AMI, 15 units will serve households at or below 50% AMI, and 10 units will serve at 60% AMI.

Intercommunity Mercy Housing

Loan Amount: $350,000Address: 1707-1719 South G Street Tacoma, WA 98405

Type of Project: New Construction

What will result: The new construction of a 73-unit apartment building to serve seniors that are 62 years or older.

The project is a HUD 202 project, which is a supportive mixed-finance development located in Tacoma in the Hillside neighborhood. This is the first redevelopment project of the ¾ block that is currently occupied by boarded up and dilapidated properties. The end result will be a four story wood and concrete structure comprised of 72 one-bedroom units and a two-bedroom manager’s unit.

Green Development: The building will include solar water heating and energy generation.

St. Andrews Housing Group

Loan Amount: $75,000Address: 124th Street and 124th Avenue Kirkland, WA 98034


What will result: The new construction of 60 units of housing for homeless and workforce individuals and families.

The project will consist of 114 units of residential development. The building consists of five levels of residential and community space (within two residential towers) with one level of underground parking. Out of the 114 units, 60 of the units will be for single individuals and families that are homeless, 13 units for residents with an income at or below 30% AMI, 33 for residents at or below 40% AMI, and 14 for residents at or below 60% AMI. The location is close to the Totem Lake Transit Center and within walking distance of several Metro Buses, allowing for easy transportation access.

Kitsap County Habitat for Humanity

Loan Amount: $466,910Address: Multiple locationsPort Orchard, WA 98366


What will result: The acquisition loan will be used to refinance the purchase of vacant property in Port Orchard, which will then be turned into 32 single family homes.

The acquisition of this property originally occurred in July of 2008 using Westsound Bank and the Washington State Housing Finance Commission’s LAP program. In May of 2009, Westsound Bank was taken over by the FDIC, which recalled the loan, requiring the sponsor to seek an alternative loan for the land to replace Westsound Bank’s note. Impact Capital stepped in and took over the loan.

Green Development: Habitat for Humanity plans on incorporating radiant heat floors into each unit as part of their efforts to create energy efficiency for the families.

Spokane United Methodist Homes

Loan Amount: $215,225Address: 2221-225 Farr Road,Spokane Valley, WA 99212


What will result: The new construction of 38 units of senior housing on what was originally a vacant lot. Appleway Court will provide 38 one bedroom rental units for seniors 62 years of age or older through the Housing and Urban Development (HUD) 202 Program. Each unit averages 512 square feet. There will also be a small lounge on the first floor and laundry rooms on all three floors. All units will be dedicated to seniors with income at or below 50% of the Area Median Income (AMI).

1453

Invest. Transform. Sustain.

OUR MISSION:

We help build and sustain vibrant neigh-

borhoods in underserved communities

throughout Washington.

OUR ROLE IN THE COMMUNITY:

Impact Capital works to meet the basic

needs of residents by helping to build

and sustain affordable housing through-

out Washington. Impact Capital knows

that community development means

more than just affordable housing, but

we believe positive neighborhood change

starts with a place to live. We create

vibrant communities by using tools

like our zero-interest predevelopment

loans and interest-bearing bridge loans

to help nonprofit organizations, tribal

entities, and housing authorities create

safe, decent, and affordable housing.

Our lending products ensure that these

organizations can afford to create a plan

for a new project, acquire the property,

and construct and rehabilitate homes

that families can afford.

The role that Impact Capital plays in

strengthening communities across the

state is significant. We provide early

bridge financing for strategic real estate

investments. We take the riskiest part

of the financing package, thereby

attracting other investors to the table.

Impact Capital was created to take the

deep and broad risks necessary to invest

in communities with persistent

challenges. Without a strong vehicle for

encouraging healthy transformation,

these communities continue to languish

in the gap.

Yet, despite our mission to provide

loans not available in the private market,

we have an outstanding repayment rate

of 100% on our interest-bearing loans

and over 92% on our predevelopment

zero-interest loans. Compare that to the

private market!

Impact Capital works in 94% of the

counties in Washington. Over the last

twenty years, we have partnered with

nonprofit organizations throughout

Washington to create 17,874 affordable

ownership and rental housing units.

Additionally, we have financed

13 childcare facilities, 11 community

centers, 2 job training facilities, 4 arts

and cultural facilities, and 552,245

square feet of retail and industrial space.

To date, Impact Capital has invested

more than $97 million in Washington

State and leveraged more than $2.2

billion in development, bringing $23

to Washington communities for every

$1 invested by Impact Capital. Our

programs and expertise have been put

to the test in communities around the

state and have proven to be successful

in turning distressed neighborhoods into

vibrant ones – where people are proud to

live, work, and raise their families. While

we have made excellent progress over the

years, our work is more important now

than ever. In these challenging times,

with credit becoming more difficult

to obtain, nonprofit organizations and

communities need our unique lending

tools to continue to meet the basic needs

of Washington families.



COMMUNITY BUILDING PROGRAMSIt takes more than just housing to create great neighborhoods and communities. The organizations that develop affordable housing and revitalize neighborhoods also need resources and support. While some of our programs change from year to year to address new challenges, Impact Capital has a set of tools and programs available to assist nonprofit organizations to create sustainable change in their neighborhoods.

VIBRANT COMMUNITIES

Through our Vibrant Communities program, Impact Capital works with key neighbor-hood partners and nonprofit organizations to help transform distressed communitiesinto vibrant ones. Our approach recognizes that physical development, while critical,is not enough to create truly vibrant communities. As a result, we work with ourpartners on the ground to strengthen neighborhood commercial districts, createaffordable homes, sustain affordability, increase public safety, create parks and openspace, improve educational opportunities, and help families build homes.

The cornerstone of this program is the development of a neighborhood action plan.The plan contains a variety of action items to be completed in short-term, mid-termand long-term timelines. A lead agency is selected to steward the plan, but no one agency is expected to complete everything in the plan; instead, the expectation is that a variety of partners will collaborate to achieve the vision, strategies, and actions laid out in the plan.

AffORDABLE HOUSING PRESERVATION SERVICES

Despite the community development industry’s success in addressing the need for affordable housing, the age, diversity, and complexity of our portfolio requires that we bring greater attention to preservation and maintenance efforts needed to keep our existing portfolio affordable and sustainable. Impact Capital provides asset management, technical assistance, and resources.

LENDING PROGRAM

Impact Capital provides predevelop-

ment, acquisition, construction, and

bridge loans to nonprofit organizations,

housing authorities, and tribal entities

throughout Washington. In an economy

where credit is becoming scarce, Impact

Capital’s role in the funding community

is more important than ever. Our lending

program helps organizations fulfill their

missions to build affordable housing

and provide community facilities such

as food banks, senior centers, and day

care centers.

COMMUNITY DEVELOPMENT LOAN fUND: $3 MILLION LOAN POOL

• Provides zero-percent interest loans (for up to $75k) to assist nonprofits with feasibility costs required to enable them to develop initial applications for grants and project financing.

• Since 1994, Impact Capital has invested $97 million and leveraged more than $2.2 billion in total development costs.

• In 2009, Impact Capital made 9 CDLF Loans totaling $620,143. These loans will result in 322 units of low income housing.

COMMUNITY INVESTMENT fUND: $26 MILLION LOAN POOL

• Provides secured, interest-bearing loans, which can be used to acquire land and buildings, pay for predevelopment expenses, bridge capital campaigns, pay for construction costs, and bridge tax credit equity payments.

• Since 2000, 120 loans totaling over $78 million leveraged nearly $860 million in total development costs.

• $0 in losses.• In 2009, Impact Capital made 11 CIF Loans

totaling $7,306,728. These loans resulted in 405 units of low income housing.

Impact Capital Programs

THE KNOWLEDGE BANK

As the Northwest’s experts in community

development, Impact Capital provides a

range of services and resources to help

community development practitioners

increase their skills and capacity. Our

services include:

• Technical Assistance: Consultants

and individualized technical assistance

to build organizational and program-

matic capacity.

• Training: Sessions are offered each

year on a range of industry topics.

• NFL Grassroots Program: In partner-

ship with the Local Initiatives Support

Corporation (LISC) and the National

Football League (NFL), Impact Capital

provides grant assistance to develop

sports fields and recreational

opportunities for youth in low-income

neighborhoods.

• Community Safety Initiative: In

partnership with LISC, Impact Capital

provides assistance in developing

and implementing community safety

programs in neighborhoods.

“Great changes are

happening and we’re

excited to be a part of it.

We are proud to be located

in Spokane’s International

District. We would love

for you to come meet our

family as we make a meal

for you and yours.” -- Huu ‘Nick’ Au, whose family owns and operates Vien Dong restaurant in the Spokane International District and who is a member of the East Spokane Business Association

Invest.Vibrant Communities Spokane International DistrictLocation: Spokane, WA

Impact Capital Investment: $120,596 in financial support and 1,100 hours of technical assistance, guidance, and leadership

Funds have been used to create marketing materials for district street banners, facilitate meetings, and develop a Neighborhood Action Plan.

Healthy neighborhoods are at the heart

of healthy communities. Government,

nonprofit agencies, commercial

businesses, and local residents all hold

roles in contributing to the vibrancy and

strength of a community. Communities

that are economically and socially fragile,

however, face stressors – ranging from

an insufficient amount of affordable

housing to struggling commercial

districts to families living in poverty

that all threaten community members’

well-being.

SPOKANE INTERNATIONAL DISTRICT

Too often, these communities lack the organizational capacity needed to overcome such

issues which, if left unaddressed, can lead to a neighborhood’s deterioration. Intermediary

organizations, like Impact Capital, provide essential tools and resources at critical junctures

in these communities’ development that make possible the turning point that allows them

to grow into strong and vigorous places for people to live and work.

In 2009, Impact Capital launched a new Vibrant Communities site in Spokane to revitalize

a struggling historic neighborhood with culturally diverse businesses, arts activities, and

increased housing opportunities. This project is the culmination of many months

of working with the City of Spokane and Council members to identify a potential

neighborhood and develop a partnership. The portion of the East Central neighborhood

along the Sprague corridor between Helena and Crestline was chosen due in part to efforts

already underway in that area. Impact Capital issued a request for proposals to find a

lead agency to help steward the work on the ground in the neighborhood. Spokane

Neighborhood Action Partners (SNAP) was selected to be that lead agency to work closely

not only with Impact Capital and the city, but also the East Spokane Business Association

(ESBA) and other key stakeholders and partners to revitalize the neighborhood.


The first year of the Vibrant Communities

program is about building partnerships

to help the community define a vision for

their neighborhood. Impact Capital’s role

is to help build the infrastructure to be

able to achieve that vision.

The ESBA and community stakeholders

wanted to build on the culturally diverse

businesses in the area as well as draw

other arts and cultural activities.

As part of the initial Vibrant Communities

efforts, this neighborhood with many

different names has rebranded itself into

the Spokane International District and

created a logo.

Impact Capital and SNAP worked

with focus groups to flush out priorities,

which have become part of the Spokane

International District Action Plan

published in 2010. A database was

created to contain information about the

buildings and properties within

the district, and dedicated volunteer

committees have been formed to help

work on issues and projects. “In the

last year Impact Capital has invested

a tremendous amount of time to build

relationships between SNAP, Spokane

City Department staff, the East

Spokane Business Association (ESBA),

and neighborhood stakeholders.

Without this web of networks and

successful relationships, we wouldn’t be

seeing the more visible signs of success

we do now.” -- Terri Symbol, Impact

Capital Program Officer

The vision of the Spokane International

District is to develop the neighborhood

into a destination community with

thriving businesses, diverse and

attractive housing options, and

a distinctive multicultural identity.

The goals of the district are to:

o Create a vibrant and culturally

diverse commercial district;

o Create an inviting and safe district;

o Preserve the unique historic

character of the neighborhood; and

o Create access to diverse housing

options.

We achieve these comprehensive goals

by making a multi-year commitment

of resources, support, and guidance

that leverage Impact Capital’s wealth

of expertise and regional and national

networks of relationships. In each

Vibrant Community project, we not only

help ensure that activities are imple-

mented effectively, but also support

participating communities in strength-

ening skills and empowering them to

sustain their work over the long term.

ACCOMPLISHMENTS:1. The City of Spokane and the East Spokane Business

Association helped Impact Capital select SNAP as the lead agency for the Vibrant Communities project.

2. The public launch event of Vibrant Communities Spokane International District was organized by Impact Capital and was attended by Mayor Mary Verner, Councilman Mike Allen, and Councilman Richard Rush.

3. Impact Capital helped organize the Spokane Interna-tional District’s first Neighborhood Cleanup Day and received overwhelming support from local business and neighborhood residents.

4. The Spokane International District Neighborhood Action Plan was drafted in July with focus groups held in the fall to integrate additional stakeholder and resident input. The final plan will be published in 2010.

5. Impact Capital and SNAP created a database to house an inventory of the commercial and residential buildings in the district; the data will help identify future development activities, assist in business attraction, and track assessments for a future Business Improvement District.

6. Impact Capital, ESBA, and City Staff collaborated to enact an ordinance declaring the Spokane International District an Alcohol Impact Area to reduce the incidence of alcohol abuse and improve public safety. City Council passed the ordinance unanimously.

7. The Spokane International District partners and stakeholders developed the International District Brand, worked with a local agency to create a logo, and collaborated to develop street banners. The Banners will be in place in 2010.

8. The Storefront Improvement Program was created to assist businesses and building owners to improve their storefronts. Architectural students from WSU are working with the businesses to design their new storefronts in exchange for partial tuition reduction.

9. Impact Capital hosted “Angels and Demons,” a fundraising event in conjunction with Housing Washington, to increase statewide awareness of the new program, recruit potential investors, and raise funding for the Neighborhood Action Plan.

10. Impact Capital worked with ESBA and the City to organize a “Your City” meeting and filming event with Mayor Mary Verner, City Department Directors, the Police Chief, and the East Spokane Business Association for a solutions-based discussion on neighborhood challenges. The video also highlighted the benefits of working, living, and playing in the neighborhood.

YWCA Pierce County was initially found-

ed in 1906, but purchased and moved

to its current location in 1928 as a place

for the women and girls of Pierce County

to recreate, to live on a temporary basis,

and to gather.

Today, it has grown into one of the

most successful women’s shelters in

the country with the capacity to house

50 individuals at a time. Not only does

this facility allow women to escape with

their children from abusive domestic

situations, the YWCA of Pierce County

became the first shelter in Washington

State to allow pets.

The YWCA is currently taking another

step as one of the leaders in the nonprofit

community. They recently decided to

move their facilities to a new location

that would increase their available

housing by 50%, while also creating a

more comfortable living environment

Transform.


YWCA Of PIERCE COUNTYfor women, their children, and pets. In the current location, rooms average a size of 97

square feet. In these small spaces a mother could be housed with up to three children

and all their possessions. Bathrooms and showers are all communal space with only one

tub to share among all children living in the shelter. The kitchens are also a communal

space, with each having a designated cupboard and each family having the option to

store their refrigerated goods in a small locked basket.

Less than a block away from their current shelter, the YWCA is remodeling an

vintage apartment building in order to create a place where women can live in their

own apartments. Impact Capital put the first dollars into the YWCA project with a phase

one predevelopment loan of $75,000. This allowed YWCA’s leadership team to put

together a plan of action for their eventual purchase of the Wilsonion Apartments.

In December of 2008, Impact Capital gave the YWCA another loan, this time an

acquisition loan for $549,702 to purchase the Wilsonion Apartments property.

The new building has a variety of apartments ranging from studios for single women

up to multi-bedroom apartments with the capacity to hold a nine-person family or be

transformed into an apartment for multiple single women. The new facility will allow for

each woman to have a private kitchen and bathroom. Living in a shelter seems so hard

that many people might not leave the abuse. But with the new space and privacy, the

shelter creates a peaceful environment where healing can begin.

“The hope is that we can accommodate all types of families. A place for children to play, places for teenagers to do homework and fill their needs, something we can’t address at the current shelter. These are all things that would really help us do a better job in keeping not only the women and children that come here safe but helping them feel comfortable and that they’re in a really productive working environment and providing them with help for their future life.”

-- Kelly McDonald, YWCA of Pierce County Marketing

YWCA of Pierce CountyLocation: Tacoma, WA

Impact Capital Loans:$624,702 Acquisition Loan

Used to purchase the Wilsonion Apartmentsand begin renovations.

Through a partnership with Impact

Capital, Casa Latina was able to expand

their capacity to serve Latino immigrants

by providing education and employment

opportunities, which empower individu-

als to participate in their community and

contribute to the economy.

In February 2009, Impact Capital provided

Casa Latina with a $1,076,022 Acquisition

Bridge Loan. This money was used to

purchase and renovate a building,

consolidate their administrative functions,

provide versatile facilities for their clients,

and construct a new Day Workers’ Center.

The completion of this project in March

of this year represents a significant

improvement to Casa Latina’s capacity

to adapt and better serve the needs of

their community.

CASA LATINAMarica Almquist, Casa Latina’s Director of Finance and Development, highlights

the importance of Impact Capital’s involvement: “All our grants are program related;

we had no ability to purchase property, so it was crucial that Impact Capital made

that loan commitment early on.” The loan was necessary to begin renovation

immediately, and fundraising became significantly easier once they had a permanent

building from which to operate.

The services and programs provided by Casa Latina have dispatched 7,996 temporary

jobs with an average wage of $13.97 per hour, placed 114 immigrants in permanent

work, and dispatched 479 domestic workers’ jobs through their Household Helpers

Project. Casa Latina’s English as a Second Language (ESL) classes have significantly

improved the English skills of 164 adult students, and their Worker Defense Committee

has recovered over $50,000 for workers who were not paid by their employers.

Their new building accommodates day workers who are waiting for employment,

provides enough space for a store run by the Women’s Program, and has the flexibility

to be divided into separate rooms in the evenings for English classes. Every room of

the newly renovated building is multi-purpose.

Flexibility for Casa Latina is not only beneficial, it’s crucial. But none of this would have

been possible without financial support from Impact Capital.


BEfORE AfTER

“After going to the Day

Workers’ Center for a

few months, I was able

to get a stable job that

I kept for more than

two years. . .

These opportunities

have given me economic

and social stability in

my life.”

-- Program Participant

Casa LatinaLocation: Seattle, WA

Impact Capital Loans:$1,076,022 Acquisition Bridge Loan

Used to purchase and renovate anadministrative building and constructa day workers’ center.

Sustain.


“Living in Hiawatha Lofts

is reaffirming the fact

that I, as an artist, am

valued. My practice is

being supported and what

I bring to the community

is valued.”

-- Christian French,

a photographer who lives

and works at Artspace

Hiawatha Lofts

Tashiro Kaplan Artist LoftsLocation: Seattle, WA

Impact Capital Loans:$75,000 Phase I Predevelopment Loan

Used for architects/engineers, surveys, consultations, and legal fees.

$549,207 Equity Bridge Loan

Used to bridge the second, third, fourth and fifth installments of the tax credit equity pay-in.

Artspace Hiawatha LoftsLocation: Seattle, WA

Impact Capital Loans:$75,000 Phase I Predevelopment Loan

Used for architects/engineers, surveys, consultations, and legal fees.

SUSTAINING OUR LOCAL ART SCENE

Pioneer Square has long been considered a focal point of the artistic community in

Seattle. A centralized urban location and low rent for living spaces and studios made

the area ideal for artists to live, create, and show their work.

Cathryn Vandenbrink, regional director of Artspace and a long-time resident of

Pioneer Square, explained that no one really knew how many artists were living in the

area because many residents tried to keep their housing situation private. “The fear

was due to the fact that either they were living there illegally or they were afraid that

if someone found out how little rent they were paying, that people would go to the

landlord and offer to pay more and the artist would get kicked out.”

This fear became particularly acute during the ‘dot-com’ boom of the nineties;

“Landlords who were getting fifty cents a square foot were suddenly able to get three

dollars,” and though this economic boom didn’t last, the property owners made big

investments to convert spaces and prices became too high for artists in the area.

With the artists being pushed out, the historic character of the neighborhood began

to change, and it became clear that affordable housing for artists and their families

had become a crucial need.

In order to preserve Pioneer Square’s status as an arts district, the City of Seattle brought

in Artspace Projects, Inc, to transform two buildings, the Tashiro and the Kaplan, into


affordable live, work, and studio spaces

for artists. This project provides 104,000

square feet of affordable one, two, and

three-bedroom live/work spaces for

individual artists and their families.

These units range from 800 to 2,000

square feet and feature flexible floor plans

and plentiful light to provide the perfect

environment for artists to live and create.

One of the key aspects of this project

is the expansive 40,000 square feet of

commercial space it provides, which has

had an incredible economic impact on

the area by providing 16 new art galleries,

13 studios, a coffee shop, and 4Culture,

the cultural agency of King County, all

of which provide a central location for

the artistic culture of Seattle. This feature

is particularly important to artists who

often can’t afford to live near creative

community resources.

Because of the success of Tashiro-Kaplan,

Artspace’s second project in Seattle, the

Hiawatha Lofts, was highly anticipated.

In fact, their building’s residential and

commercial space was completely leased

before the official opening. The Artspace

Hiawatha Lofts provide 61 one and two-

bedroom units of affordable live/work

studios for artists, plus six commercial

storefronts for artist-related businesses,

including:

• All World Dance Studio, which offers

children’s dance classes, yoga, tango,

and African dance to the community,

as well as renting space to other

dance companies.

• Youth Venture, a nonprofit that

works with people ages 12 to 18 to

help them start organizations and

businesses that change the world.

• C Art Gallery, which showcases

artists of color and has a coffee shop

for community socializing.

Sustaining the artistic community in

Seattle makes the city a more vibrant

place for all its residents. Additionally,

affordable artist housing helps maintain

the cultural identity of neighborhoods

like Pioneer Square. Christian French,

a photographer who lives and works at

Artspace Hiawatha Lofts, explains, “Living

in Hiawatha Lofts is reaffirming the fact

that I, as an artist, am valued. My practice

is being supported and what I bring to

the community is valued.”

Financing for artist housing can be

difficult, especially in the predevelopment

stage. Grants that fund this work often

cannot be secured until after initial stages

of development have been completed,

including architectural and design

work, environmental studies, and market

studies.

This can cost upwards of $100,000,

which needs to be secured before

an organization can even apply for

additional funding for the acquisition

and development of a property.

“Predevelopment money is the hardest

money to find,” said Cathryn Vanden-

brink. “It is high-risk money… and other

lenders just aren’t willing to take that risk.”

This is where Impact Capital is essential.

By providing zero-interest predevelop-

ment loans, Impact Capital acts as a

catalyst for community development,

ensuring that affordable housing can

help sustain artists and neighborhoods

throughout Washington.

2009 DONORS & INVESTORS

PRIVAte InVeStoRS

The Annie E. Casey FoundationBank of AmericaBanner BankBECUColumbia State BankThe Erich and Hannah Sachs FoundationKeyBank Northern Trust BankUS BancorpWashington MutualWells FargoJP Morgan Chase

PublIC InVeStoRS

City of SeattleCity of Seattle, Office of HousingCity of SpokaneCity of TacomaKing CountySnohomish CountyUS Department of Housing and Urban DevelopmentWashington State Department of CommerceWashington State Housing Finance Commission Washington State Housing Trust Fund

DonoRS

Jan LaskeyRick AllenJayne AuldNatalie BeckmannJoe BrancucciMariano DiazMichael BrownKim HermanSusan DurenRoy JohnsonAnn MeloneJudith Olsen

Heyward WatsonGuillermo SandovalRandy RobinsonLisa VatskeMario VillanuevaJulie AlexanderMichelle YuJoanne BurtDoug PrinceWashington Agricultural Families Assistance The Catacombs, LLCAEC FoundationSpokane Housing VenturesKeyBank FoundationAvista FoundationBank of AmericaBanner BankBECUCity of Seattle, Office of Economic DevelopmentCity of Seattle, Office of HousingCity of Spokane, Office of Community Development

City of Spokane, Office of Economic DevelopmentFoster PepperHSBC Bank USAInland Northwest Community FoundationJP Morgan Chase FoundationLiving CitiesLocal Initiatives Support Corporation (LISC)National Equity FundOlympia Federal Savings and Loan AssociationSterling Savings BankSpokane Teachers Credit UnionThe Seattle FoundationUS BankVerity Credit UnionAmericanWest BankWashington Community Reinvestment Association (WCRA)Washington State Department of CommerceWatson and McDonell, PLLCUS Department of Housing and Urban Development


Donors. Investors.

“I am passionate about housing finance and understand the genesis of communities;

therefore, Impact Capital was where I wanted to focus my efforts and the resources

of my company.” -- Joe Brancucci, Board Member and BECU Executive Vice President


BOARD Of DIRECTORS

Impact Capital’s Board of Directors

consists of representatives from private

and public donors and investors as

well as partners from community

development and affordable housing

organizations across Washington.

The Board meets quarterly and

members serve on committees that

monitor, advise on, and oversee Impact

Capital’s programs and activities.

Jan laskey, PresidentSenior Vice PresidentCommunity Development LendingBank of America

Ann Melone, Vice PresidentVice PresidentCommercial Real EstateUS Bank

Randy Robinson, SecretaryVice President, Western Region Manager - Community Development LendingKey Bank

Susan Duren, treasurerPresidentWashington Community Reinvestment Association (WCRA)

Jayne AuldExecutive DirectorSpokane Housing Ventures

Rick AllenPresidentUnited Way of Pierce County

Board of Directors.

natalie beckmannPartnerHelsell Fetterman LLP

Joe brancucciExecutive Vice PresidentBECU

Michael brownVice President of Community LeadershipThe Seattle Foundation

Mariano DiazVice President, Western RegionLocal Initiatives Support Corporation(LISC)

Kim HermanExecutive DirectorWashington State Housing Finance Commission

Roy JohnsonExecutive DirectorVancouver Housing Authority

Guillermo SandovalCRA Officer and Vice PresidentBanner Bank

lisa VatskeManaging DirectorWashington Department of Commerce

Sue taokaExecutive Vice-President, Urban ProgramsShorebank Enterprise Cascadia

Judith olsenVice President & CDOWells Fargo

Susan ShannonDirector, Office of Economic DevelopmentCity of Seattle

Mario VillanuevaExecutive DirectorCatholic Charities Housing Services

Dwight Prevo Community Development Officer Wells Fargo

“Impact Capital’s Board

includes some of the most

committed and talented people

in the field of community

development and finance.

It’s very rewarding to work

cooperatively with them

towards the common mission

of having vital neighborhoods

in communities throughout

Washington State.”

-- Randy Robinson, Board Secretary and Key Bank Vice President, Western Region Manager, Community Development Lending


STATEMENT Of fINANCIAL POSITION (as of 12/31/2009)

Assets

Cash & Investments $15,834,613

Loans Receivable $10,881,653

Accounts Receivable & Other Assets $552,090

Total Assets $27,268,356

Liabilities & Net Assets

Accounts & other payables $297,718

Loans Payable $23,200,000

Total Liabilities $23,497,718

Net Assets $3,770,638

Total Liabilities & Net Assets $27,268,356

STATEMENT Of ACTIVITIES

Unrestricted Temporarily Restricted Total

Revenues $1,670,024 $158,648 $1,828,672

Net Assets released

from restriction $315,074 ($315,074) $0

Total Revenue $1,985,098 ($156,426) $1,828,672

Total Expense $2,016,897 $0 $2,016,897

Change in Net Assets ($31,799) ($156,426) ($188,225)

Net Assets

beginning of the year $1,289,004 $2,669,859 $3,958,863

Net Assets 12/31/09 $1,257,205 $2,513,433 $3,770,638

Financial.

REVENUETotal: $1,828,672

Program Contracts Program Interest & Fees Investment Earnings Contributed Income

ExPENSE

Management & General Fundraising Lending & Community Building

Management & General $163,024 8.08%

Fundraising $147,370 7.31%

Lending & CommunityBuilding $1,706,503 84.61%

Total Expenses $2,016,897Operating Overhead 15.39%

Program Contracts $357,543 19.55%

ProgramInterest & Fees $811,116 44.36%

Investment Earnings $303,355 16.59%

Contributed Income $356,658 19.50%

Total Revenue $1,828,672

2009 STAff

ADMInIStRAtIVe AnD FInAnCe:

Heyward Watson: Chief Executive Officer

Ingrid Martin: Senior Financial Officer

Julie Alexander: Senior Accounting Clerk

Michelle Yu: Accounting Clerk

Jessica Gimse: Executive Assistant

CoMMunItY buIlDInG:

Jennifer labrecque: Program Officer

tracy Reich: Senior Program Officer

lenDInG:

elsa Kings: Associate Program Officer

laurie olson: Program Officer

terri Symbol: Program Officer

Jon Clarke: Senior Program Officer

FunD DeVeloPMent AnD CoMMunICAtIonS:

Magda Herrera: Senior Fund Development

and Communications Officer

britney boyer: Community Development

AssistantTracyFavorite Vacation Spot:

Argentina

JonTalent: Pitching softball and reciting Red Sox trivia

JessicaFavorite Pastime: Camping & hiking in the Olympic Mountains

JulieTalent: Drawing lines


Staff.

BritneyFavorite Vacation Spot:London

IngridFavorite Pastime: Watching old movies

TerriTalent: Gardener Extraordinaire

JenniferFavorite Pastime: Hiking

HeywardFavorite Pastime: Taking pictures and collecting music

LaurieFavorite Vacation Spot: Mexico

ElsaFavorite Vacation Spot: Maui

MagdaTalent: Oil painting

MichelleFavorite Pastime:

Playing hide & tickle

with my kids before

bedtime

SEATTLE401 Second Ave. S, Suite 301

Seattle, WA 98104

T 206.587.3200

SPOKANEP.O. Box 3707

Spokane, WA 99220

T 509.456.8088

VISIT US ATwww.impactcapital.org

Investing in organizations that build community.

ic annual report 2009

Documents

community organizations

financial impact

impact capital plays

impact capital acts

community stakeholders

community projects

world of community development

community facilities