2012-2013 Annual Report BUY, FIX, KEEP : BUILDING NEIGHBORHOODS TOGETHER

Our Mission: Assists in providing

decent, safe, and affordable housing and revitalizing

neighborhoods to improve the quality of life in our

communities.

NeighborWorks® Dakota Home Resources 795 Main Street

Deadwood, South Dakota 57732605-578-1401

www.neighborworksdhr.org@NeighborWorksSD

STAFFJoy McCracken

Executive Director

Robert ThorpHome Rehab Specialist

Susan StevensProperty Manager/Accounting

Tracy ThackerCommunity Outreach Coordinator

Sharon MartiniskoHomebuyer Education Facilitator

Michael DennisAssistant

Dennis RentzConstruction Manager

Krystal StulkenFunds Manager

Ellen JaniseAdministrative Assistant/Property Manager

Carol McMannLoan Processor

Doris NelsonLoan Counselor

Roxanne AndreBox Elder Community Outreach

Tammera Biller Edgemont Community Outreach

Stephany Valkenburg Marketing Director/Dakota Land Trust

BOARD OF DIRECTORS

Eric FowlerPresident

Dee Black Vice President/Treasurer

Tom AdamsSecretary

Floyd Rummel, IIITJ Larson

Heidi McBrideLarry GriffinJim Phillips

Dean SigmanAmy Young BearDarin DerosierDeb Fegueroa

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

Dear Friends & Partners: This year marks NeighborWorks® Dakota Home Resources (NWDHR) 20th year since inception. As we look back on 2012 we embrace our accomplishments and look forward to our future endeavours. We consistently drive our mission by providing safe, decent, and affordable housing and revitalizing neighborhoods to improve the quality of life for the people and communities we serve.

Through our mission and partnerships we continue to work diligently to revitalize neighborhoods throughout our communities. In 2012, Wells Fargo partnered with NeighborWorks® to help support their mission by donating a foreclosed property in Rapid City. NeighborWorks® Dakota Home Resources was able to acquire funds, and partnerships to demolish the existing structure and build a new home. Thanks to these efforts, the Chasing Hawk family (featured on the cover) will have a permanent and affordable place to call home.

At our core, NeighborWorks® Dakota Home Resources is about helping people and building communities. Quality, affordable homeownership opportunities are certainly needed, but we cannot stop there. NeighborWorks® Dakota Home Resources offers an array of enrichment activities through our community outreach programs. In June of 2012, we celebrated our 18th year of “Paint the Town”. This also helped kick off our “2012 NeighborWorks Week”. We engaged residents to paint homes, plant gardens, and revive neighborhoods and homes. Our efforts not only positively impacted many communities, but also helped us gain recognition from NeighborWorks® America.

During NeighborWorks® Week, NeighborWorks® America’s Steve Hermes presented the Bill Kitchen Award to our organization. The Bill Kitchen Award recognized NWDHR as having the “Best NeighborWorks Week” plan within the 13-state Midwest Region. Community involvement is vital for the success of all our community events; we would like to thank all our volunteers and supporters who help make our community programs a success.

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

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. As we enter into our third decade of service to Western South Dakota, we will continue to support our mission by expanding our services and remain committed to providing decent, safe, and affordable housing. Sincerely,

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

Executive Director, Joy McCracken & Board President, Eric Fowler

2012 Financial Report NeighborWorks® Dakota Home Resources 2012 Contributors

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

Community Leader (Investment of $5,000-$9,999)Donald Dietz

City of DeadwoodFirst Interstate Bank

Wells Fargo

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

City of Spearfish City of Sturgis

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

Deadwood Gaming AssociationTodd Deaux

First Wesleyan Church Madonna Goodart

Johnson Tree ServiceKnecht Home Center

Rushmore Radio Wharf Resources

Neighbor (Investment of $100-$999) Advanced Thermal Systems

John & Sherri Ashley Sam Benne

Black Hills Power Larry Heinbaugh

Friend (Investment of $100 -$349) Deadwood Gulch Gaming Resort

Deadwood Recreation Center Edge Sports

Elkhorn Ridge Golf Course Eric & Trayce Fowler

Days Inn- LeadHistoric Homestake Opera House

Action Mechanical George AdamsonJohn & Sherri Ashley Dale & Susan Berg Dennis & Nancy BridenstineLisa & Dan Cooley Dan’s Dumpster Service

NeighborWorks® Dakota Home Resources would like to thank everyone that made a contribution in 2012. Please visit out web site for a complete list of 2012 contributors.

Balance Sheet 2012 AssetsCash...................................$368,049Cash Restricted for Loans..$681,701Loan Receivable................$47,725Inventory Property ............$930,576Prepaid Expenses ..............$9,133

Property and EquipmentOffice Building...............$448,799Other Rental Buildings...$1,759,239Furniture.........................$185,889Depreciation...................($334,562)

InvestmentsLoan Receivables............$1,115,409Restricted Cash & Debt Reserve...............$686,608

Total.................................6,328,566

Current Liabilities Current Portion of Debt.....$164,164Accrued Expenses.............$90,989Account Payable...............$67,962

Long Term LiabilitiesLong Term Debt...............$2,826,731

Net AssetsUnrestricted.......................$1,429,479Temporarily Restricted......$45,759Permanently Restricted....$1,703,482

Total.................................$6,328,566

Revenue By Source: 24% Neighborhood Reinvestment

31% Program Income22% Other Program Grants

3% Federal Government 7% Contributions

13% Rental Income

Expense By Program: 49% RLF / Homeownership

19% Real Estate Development 19% Community Engagement

4% Property Management9% Administration

NeighborWorks® Dakota Home Resources has helped more than 950 households achieve the benefits of owning a home.

The impact of having strong partnerships played a big roll in helping first time homeowner Jerilyn Chasing Hawk, and her four children, have a permanent place to call home.

In 2012, NeighborWorks® Dakota Home Resources (NWDHR) partnered with Wells Fargo and utilized the Wells Fargo’s REO program to create an affordable home for the Rapid City family. Wells Fargo’s REO Program facilitates the transfer of properties owned by Wells Fargo and investors to nonprofit housing intermediaries, like NWDHR, that have a history of providing sustainable, affordable homeownership.

Wells Fargo Business Banking Vice President, John Sendan stated, “We’re thrilled to continue our work with NeighborWorks® Dakota Home Resources to help stabilize and rebuild Black Hills neighborhoods, especially on a project

that’s consistent with our commitment to environmental stewardship. By donating this property, we’re providing more than just safe and affordable housing—we’re providing hope for people in need.”

That is exactly what this partnership created; hope for a family in need of a home. NeighborWorks® Dakota Home Resources demolished the existing structure and built a new four bedroom, two-bathroom quality home for the Chasing Hawk family.

Jerilyn had diligently been working with Teton Coalition for over three years when this opportunity became available. She had completed home buyer’s education, improved her credit score, and was ready to purchase a home but was unsure about purchasing a home. “ I wanted to become a homeowner, but I was scared to take the leap, but thanks to each organization, I knew I was ready to be a homeowner,” Jerilyn stated.

NeighborWorks® Dakota Home Resources began working with Jerilyn to design her future home. In November of 2012, NWDHR began constructing her home. Thanks to the partnership with Teton Coalition, First Interstate Bank, Rapid City Community Block Grant, and Dakota Land Trust; NWDHR was able to build Jerilyn and her family an affordable home.

The family will relocate to their brand new home June, of 2013. Jerilyn Chasing Hawk’s hard work is a proven success. The dream of homeownership is a long term goal, but with great partnerships and hard work, families can achieve their goal of homeownership.

NeighborWorks® Dakota Home Resources would like to thank all of the partners that made homeownership possible for the Chasing Hawk family.

Helping Residents Buy Their Homes

“ It is a great accomplishment knowing that I was able to obtain a home as a single parent. I did not think I could accomplish it all on my own, but I did!” - Jerilyn Chasing Hawk.

Thanks to the support from organizations throughout South Dakota, Dakota Land Trust (DLT) has entered into it’s fourth 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 20 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.

Fast Facts About NeighborWorks® Dakota Home

ResourcesTotal Families Since 1992:

950

First Time Home Buyers in 201244

Single Parents: 24

Dakota Land Trust

Community RevitalizationEach year NeighborWorks® Dakota Home Resources (NWDHR) engages residents to participate in NeighborWorks Week. Volunteers throughout our communities’ scrap and paint homes, clean up neighborhoods, swap plants, and engage in community activities. In 2012 volunteers and NWDHR organized Revive Five.

Revive Five was the result of five Western South Dakota residents attending the NeighborWorks® America Community Leadership Institute (CLI). The result of the CLI was Revive Five.

The Challenge of Revive Five was to impact five homes within visible sight of each another, utilizing partnerships, to make a positive visible impact on the neighborhood and community.

Volunteers from the Rapid City Police Department assisted in the selection process of determining what homes could utilize this service and provided volunteer hours to complete the repairs, five homes throughout the College Park neighborhood were selected.

Rose Suliveres’ home on Lemmon Avenue was one of the homes selected. Rose’s home was greatly in need of new stucco, a fresh coat of paint, and new steps. Rose stated that she was very thankful for Revive Five and NWDHR. “ Without their program, I would not have been able to do these repairs. I have fallen down my steps multiple times. Having new steps will make my home much more safe.” Rose explained.

Revive Five impacted five homes throughout the College Park neighborhood, but the outcome brought even more success. Revive Five introduced Rose to NeighborWorks® Dakota Home Resources home rehab assistance program.

Thanks to NWDHR’s home rehab program, Rose received assistance to better insulate her home, repair windows, install an exhaust fan in the bathroom, and smoke detectors throughout her home. Not only has the exterior been greatly improved, it is safe and sound on the inside.

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

OrganizationLawrence County

Meade County NeighborWorks® America

Pro-Build- Spearfish U.S Department of Housing and Urban Dev.

South Dakota Housing Dev. AuthorityTwin City Hardware

United Way of the Black Hills USDA Rural Development

US Bankcorp Community Dev. Corporation Wells Fargo Community Dev. Corporation

West River Electric - Rapid City

Rapid City Police Department, and College Park Block Club building stairs for Rose Suliveres.

35 Families were assisted in 10 communities with home rehab : Lead: 7 Deadwood: 2 Edgemont: 1 Keystone: 1 Rapid City: 14 Sturgis: 4 Black Hawk: 1 Newell: 2 Belle Fourche 1 Piedmont: 1

NeighborWorks® Dakota Home Resources assisted 35 families with home rehab and repairs in 2012. 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 2012, NeighborWorks® Dakota Home Resources invested over $100,000 into preserving and rehabbing affordable homes throughout Western South Dakota.

Fast Facts About NeighborWorks® Dakota Home Resources Home Rehab Program

November of 2011, NeighborWorks® Dakota Home Resources (NWDHR) began working with Rapid City resident, Janice Benson. Janice’s home needed substantial rehab to improve the quality and safety of her living conditions, but the financial burden of completing this project was too costly on her fixed monthly income.

NeighborWorks® Dakota Home Resources began working with Janice to help re-build her credit and pursued other sources of funding to help ease the burden. NWDHR partnered with NeighborWorks® America, South Dakota Housing Development Authority and Rapid City Community Development Office to secure needed rehab funds.

The Community Development Office works with community organizations to identify issues, human needs and gaps in services that affect the living standards of the residents of Rapid City. The safety issues dealing with Janice’s home fit into these categories, making her eligible for assistance.

Due to the major construction and evidence of asbestos, Janice had to move from her home temporarily. However when she was allowed to return, she had lots to be thankful for. The project included installing a new water heater, replacing kitchen cabinets, updating and replacing the plumbing and bathroom fixtures, and updating the electrical outlets. The floor joist and the sub flooring the bathroom and kitchen were also replaced.

“I am just so thankful everything is done, and I am still in my home. I could have not done these repairs without their help. The staff was just wonderful, and really helped me

get through the construction,” Janice Benson stated.

NeighborWorks® Dakota Home Resources is able to provide low interest rate 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.

Helping Residents Fix Their Homes

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, 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.

Helping Residents Keep Their HomesSherry Bald Eagle Bear and her two nieces will now have a safe and affordable, place to call home. Sherry purchased a South Dakota Housing Development Authority (SDHDA) Governor’s home in the McGuigan Ranch Subdivision in Spearfish. Sherry utilized a 502 Direct Loan from USDA Rural Development, and NeighborWorks® Dakota Home Resources down payment and closing cost assistance, to provide funding for the home. She also participated in NWDHR’s home buyer education classes to educate her on the entire home buying process.

Sherry never thought that she would be able to own a home due to her fixed income. It was not until she was referred to USDA Rural Development that she discovered programs like the Governor’s House and NeighborWorks® Dakota Home Resources. These programs and partnerships create affordable home ownership opportunities that help families with low-to-moderate incomes get into homes. By creating such programs, homeowners have a higher likelihood to succeed as homeowners.

“Once I was qualified for the loan, I thought the process was finished. I did not know how long the process would take,’ stated Sherry. “I attended the home buyer education classes and was educated on the entire process. The NeighborWorks staff, and their education program, helped me through the process, including the construction,” stated Sherry.

Sherry said the only thing she would have changed about the process was she wished she had attended the home buyer education class before she was pre-qualified. “The information I gained from the class was so valuable.”

A recent study completed by NeighborWorks® America reassures just how valuable home buyer education is. A survey completed in 2012, states that “Quality pre-purchase housing counseling and education makes first-time home buyers one-third less likely to have serious mortgage trouble compared to similar home buyers.” NeighborWorks® Dakota Home Resources offers pre-purchase housing counseling and education provided by certified professionals. The home buyers who complete home buyers education are less likely to be three or more months late on their mortgage. The likelihood of foreclosure or other default related costs are reduced helping a lender’s or service’s bottom line.

NeighborWorks Dakota Home Resources Fast Facts About Home Buyer Education, Post Purchase, Financial Capacity

Homebuyer Education Buy

NeighborWorks® Dakota Home Resources provided Home Buyer Education to 89 families and pre-purchase counseled to 279 families in 2012

Home buyer Education: focuses on financing options budgeting, insurance, home inspections and appraisals.

Post Purchase Fix

NeighborWorks® Dakota Home Resources provided Post Purchase classes to 87 families and counselled 218 families on post purchase issues.

Post Purchase Maintenance: hands-on-maintenance courses that covers such topics as interior painting, ceramic tile landscaping and much more.

Foreclosure PreventionKeep

NeighborWorks® Dakota Home Resources counseled 21 families on foreclosure prevention in 2012.

Money For Life and Budgeting Classes: provides credit counseling and educates families on the importance of budgeting, saving, and maintaining a good credit score.