Self-Help Community Development E-Newsletter (California) - Issue 4

We're three years into the recession and California families continue to struggle while predatory financial products flourish. So it's more important than ever to create access to responsible and wealth building financial services for working families throughout the state.  For that reason, most of Self-Help's California resources continue to build Self-Help Federal Credit Union, a community development credit union that is doing just that.
This has been a quarter of intense "blocking and tackling" within our 18 branch network, assembled by merging the operations of 7 previously independent credit unions.  We've been integrating products and services around those best suited for our target market, converting to a common core processing platform, standardizing policies and procedures, beginning to build a unified culture -- it's all pretty unglamorous stuff.  But it's critical to building a platform from which we can do the really exciting work of supporting hard working and often underserved families.
Below we share a few our recent accomplishments, highlight some of our valued partners, and tell the stories of a few members and clients we serve -- the ones doing the most difficult and important work of all.  We thank you for your continued interest in our efforts and, as always, welcome your thoughts on how we can better create and protect ownership and economic opportunity for all California residents.
All the best,
Steve

More Than 50 Families Realize the Dream of Homeownership

Late last year Self-Help Federal Credit Union introduced its mortgage program for buyers with difficult credit and quickly closed three mortgage loans in the Central Valley. As of October 1st, the credit union has loaned almost $5 million to 52 families who weren't sure they could get a mortgage loan -- helping them realize their dreams of homeownership.  Having started this program in the Modesto area, we now offer this mortgage product in all of our 18 branches in the Central Valley and Bay Area. Our Vallejo mortgage team helped its first family purchase a home in August, and, by the end of this month will have assisted 15 families in achieving this American dream.

Micro Branch Pilot Receives Additional Support

In the past few months, Self-Help received important support for the continued development of its innovative Micro Branch -- a hybrid check casher/credit union branch designed to serve unbanked families and help them transition to the financial mainstream.  Both Citi Community Development and the Silicon Valley Community Foundation were eager to help us prove that this population can be responsibly served through a fully sustainable branch model.  More about Citi's support in this press release.

In connection with an article on innovative efforts to serve the underbanked, The Economist visited Micro Branch and did an excellent job capturing our goal of not only providing responsible transaction services, but connecting this population with asset-building products. Please enjoy their video.

Borrower Uses Small Personal Loan for Big Community Impact

For years Tony Coleman dreamed about opening a neighborhood bike shop that could support community kids. He was finally able to realize that dream with a personal loan from the West Oakland branch of Self-Help Federal Credit Union - formerly People's Community Partnership FCU.. "Everyone else turned me down, but [the credit union] gave me a chance." Bikes 4 Life (B4L) opened its doors in 2009 and is an entrepreneurial project of One Fam, a community organization established in response to the criminalization of young people and the lack of positive resources in urban neighborhoods. The mission of B4L is to support the surrounding community and offer healthy, sustainable life opportunities to youth in West Oakland. B4L's business model focuses on using biking, arts, and technology to empower young people and develop leadership, business skills, and a sense of community pride and responsibility. In addition to running B4L, Mr. Coleman leads an annual bike ride for peace as well as historical bike tours of West Oakland.

Learn more about Bikes 4 Life.

Foreclosure Recovery - Three More Homes Purchased

After successfully completing the cycle for two previously foreclosed homes - purchase, rehabilitation, and sale to a family of modest means - we have begun phase II of our pilot program.

This summer, Self-Help purchased three homes in the Antioch and Pittsburg area. One of our partners in this project - CHDC of North Richmond - has already identified several families from their counseling programs for whom these homes might be a great fit. With early support from the East Bay Community Foundation, we are on the path to developing a sustainable model through which hard-working families, not just all-cash investors, can benefit from the most affordable California home prices in decades.

Strength through Partnerships

As mentioned above, CHDC is an integral partner in our Foreclosure Recovery Project. They provide home-ownership education to our buyers and introduce our homes to their clients already receiving counseling.  CHDC has also connected two of our buyers with down payment assistance programs and assisted in their obtaining an attractive mortgage.  Without CHDC's efforts, these families likely would not have been able to close on their homes.

CHDC of North Richmond was founded in 1990 by local leaders working to eliminate blight, improve housing opportunities for current and future residents, and create better economic conditions. Its mission is to create and sustain vibrant communities that make a positive impact in people's lives by providing high quality affordable housing and neighborhood services. To date, CHDC has added over 200 owner-occupied homes to the Richmond area along with street improvements, public services, and senior and family rental housing. It is a local leader in affordable homeownership and quality rental housing, and is recognized statewide for its asset-building programs.