Youth Jobs Homes 101207


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Green construction jobs for youth, age 18-24, homeless housing, creative financing. This is a Social Enterprise Venture, combining free enterprise and social service,
Utilizing shared-equity solutions and Green renovation,
Primarily to create income and housing opportunities for individuals and families,
Who have heretofore been left out of the economic mainstream, and those losing their status,
as members of the Middle Class, through these rough economic times.

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Youth Jobs Homes 101207

  1. 1. Participation is invited in a Business Plan, Solving a Number of Problems, Not the Least of Which is High Youth Unemployment and Homelessness, including issues regarding the Environment, Transportation and Foreclosures We dont believe that all social issues can or should be solved with an intent to makemoney. There are some institutions that are better left in the States hands. Yet, there are some problems which cannot be solved by the State. Still there are others where the non-profit sector, for as much money as it has spent on the problem is not able to solve it, because of the market and personal forces which create the problem. Such is theproblem of the lack of foster care homes, and supportive housing for emancipated youth. Therefore our plan comes at the resolution of high youth unemployment and homelessness from the direction of the market. This plan just so happens to be one which is self-sustaining in its solution. It is also one that creates self-sufficiency in youth, builds dignity and a sense of self worth through the actual experience and participating with others in solving of ones own problems. How Easy it is to Create an Inclusive Economic Environment, with Access to More Affordable Housing & Living Wage Jobs. All we need is to “close the circle(1)” to make this program cycle the benefits to be had. Will you help us close the circle?Slide 1
  2. 2. Internal / External Corporations There is only one corporate entity internal to the business plan. That entity is the non-profit, 501(c)3*, Homes for the Upwardly Mobile (HUM). The other entities are appurtenant to this one, but integral to its mission and function. Internal External Homes for the Prospective Homeowners Upwardly Mobile (HUM) Association (the non-profit) (a mutual benefit society) Competitively The Endeavor Priced Residences Housing Cooperative (an internal department) (A California Corporation)Slide 2 Exhibit 1
  3. 3. Homes for the Upwardly Mobile (HUM): a social enterprise, targeted towards sustainability, providing on-the-job training for homeless youth in the Green Construction industry A non-profit, managing Green Renovation Projects consisting of single & multi-family Residential Properties● Providing Transitional Housing, by allowing pre-staged workers to live/work on-site.● By and through this training, youth will obtain living wage positions, and thereby the● Earnings to rent at rates less-than-market, group or individual residential living, thence● Effectively gaining Permanent Supportive Housing, with an additional option to have a● First Right of Refusal to purchase shares in the cooperative that owns the properties,● Whereby they will no longer be homeless, having sufficient income, and education so● As 18-24 year olds, they gain an opportunity to begin building equity for their future● So, as it rehabilitates properties, HUM is rehabilitating lives & the regional economySlide 3
  4. 4. Unaffiliated and Aligned OrganizationsPerforming tasks for the Mission & on behalf of our Clients, with the cooperation of others HUM PHA CPR Property Owner Endeavor Lender Funding Mutual Benefit Society, Home Renovation Ownerless Management LLC Advocacy Group Market Equity Department & R.E. Buyer Club Housing Cooperative Non-Profit Hire Contractors & require them to hire youths to receive on-the-job training & perform service Housing Product or Service Sales to public, workers & for banks or Realtors Exhibit 2Slide 4
  5. 5. Transform Lives through Education and Mentoring. Empowering Youths and Families to Develop a Business by Helping Others Homes for the Upwardly Mobile (HUM): A non-profit “social enterprise”, transforming the lives of disadvantaged youth . HUM identifies currently homeless youths ready to work, by partnering with agencies that work directly with this population, as long as theyre able to be trained in Green Construction, by our construction contractors, who supervise their work. For those whom HUM contacts who want to improve their lives, it will provide transitional housing, and an opportunity to learn. Then HUM provides an opportunity to earn by performing job tasks under qualified supervision on Green construction jobs in the geographic areas in and around San Gabriel Valley, Los Angeles County, California. Whereupon they will help create their own permanent supportive housing, and through this, create a process by which they are involved in helping others like themselves.Slide 5
  6. 6. Parties to the Transformation These are the parties to the process, which creates the circle of change H G F A Angel Home Buyers, Blanket The Endeavour Investment who themselves Corporate Housing Cooperative Group worked on projects Mortgage B C D E Competitively Organization 2 Organization 1 Prospective Homeowners Homes for the Priced Banks REOs Residences 501(c) 6 Upwardly Mobile a mutual benefit organziation (a HUM Dept.) (HUM) 501(c)3Slide 6 Exhibit 3
  7. 7. Youth will learn aspects of running their own business, and more than just the fundamentals of budgeting, insurance & finances As Stakeholders, Becoming Responsible OwnersAs Business, Property and Financial Instrument owners, participating youth will have the opportunity of learning to run a business, teaching how to do it & investing in others. As newly renovated properties are sold to Endeavor California Housing Cooperative, youth workers will be offered the first right of refusal to purchase shares in this housing cooperative, which will grant them ownership and teach them management of the residential properties that they themselves renovated, making them self-reliant. As the asset base of Endeavor California Housing Cooperative is built up, theshareowners of the co-op will learn to leverage these assets, by borrowing against them to loan funds back to the non-profit. It will require additional investors participation aswell, giving local neighbors the opportunity to invest in these worthwhile redevelopments.This in turn continues the cycle of purchase, renovation and sales of residential units totheir co-op, while assisting other youths to obtain the same opportunity they themselves were provided, enticing neighbors to invest, so as to improve their own neighborhoods.Slide 7
  8. 8. Processes in the Circle of ChangeN-P. Borrows to Hire & Train Workers Receive Co-op LeveragesPurchase REOs Youth Workers Right of Refusal Asset ValuesBorrow Again to Sell Renovated Co-op Manages Co-op Loan FundsRenovate REOs REOs to Co-op Property Assets Non-Profit Needs & Other Buyers Non-Profit Pays Co-op Refinances Investor Loans Blanket MortgageSlide 8 Exhibit 4
  9. 9. Multiple Benefits Realized by Enacting Plans: Good Jobs, Affordable Homes, Lower Transportation Costs, a Sound Economy, a Healthy Environment, the restructuring of bad mortgages & the retention of family homes Real Estate Investment Trusts (REITs), Property Management and Asset Management Processes In the way that the cooperative itself becomes a business, it is not unlike a REIT. But while a REIT must redistribute the majority of its profits on an annual basis, the co-op can sell shares, reinvest any earnings and leverage values, earning more. It performs not only as an affordable home production company for the employment of previously homeless youth, in starting small it can afford to function as a property management company for its own properties, eliminating the need for any middleman. As an asset management company, it leverages the maximum amount of value in the properties by lending money to the non-profit, which in turn purchases additionalReal Estate Owned by banks (REOs) and pre-foreclosure (Short Sale) properties owned by individuals and corporations for renovation & eventual sale to the cooperative itself.Short Sale properties will become leased by their original owners, saving family homes.Slide 9
  10. 10. Self-Funding Business Services We are looking for opportunities to self-infuse with multiple avenues of income, to strategically grow opportunities for the non-profit to establish itself.Slide 10 Exhibit 5
  11. 11. Renovation projects will be developed initially on small multi-family buildings, that are in REO Status, in order to provide multiple benefits to the local community, not the least of which is jobsCommunity Redevelopment: Improving older homes that have been foreclosed, or those which are in a state of pre-foreclosure. It expands buildings on existing properties, making more living space, while allowing existing owners to sell their properties to the cooperative, and allowing those owners to buy shares in the co-op. Therefore, this process shores up existing owners with financial difficulties, while improving the housing stock throughout the region and solidifying values nearby. As it revitalizes neighborhoods, it is utilizing new and recycled materials that emit low Volatile Organic Compounds (VOCs) and enhancing the buildings “envelopes”, by repairing & updating buildings to their “bones” in a fashion so as to reduce utilities use, by installing heavy-duty insulation in the walls and ceiling areas, and by creating low water usage environments outside the buildings and inside of them. (Following the CalGreen Code enacted in 2010, which becomes the law for 2011).Slide 11
  12. 12. Loans and Donations (1) Otherwise, we are seeking loans to establish the self-sufficient business entity, which will in turn develop the funds to continue the processes outlined in this plan. Who do you know who would invest in the leaders of tomorrow, by helping youth in need today? (Verify with your accountant whether they are tax-deductible to you.) Call Gary Cook, Founder (626) 414-4127 Donate to our PayPal account, by e-mailing your donation through PayPal, to PayPal at Or you can loan funds to our building dept. (*Your donation is not tax-deductible, until our 501(c)3 application is approved.) Note: Were currently seeking a “Fiscal Sponsor” to speed our process along.Slide 12
  13. 13. As the Organization Grows: Employee Benefits & Alternative ServicesWe plan to treat each worker as an employee of the non-profit, but lease them tocontractors. We will create a health and retirement program (403B) for all of those whostay on as employees of the non-profit. As well, to educate and provide an opportunityfor workers to purchase insurance and retirement products to supplement theirorganization provided benefits. The goal here is to self-insure at sometime, not providingfunding to insurance carriers, that go to their profits and not support their insured.Further, opportunities to create neighborhood-based homes to support physical andpsychological care of residents of areas we renovate in, to support local citizens andtheir families, including foster homes. This will give workers the opportunity to learn andpractice skilled trades in human service industries. These rehabiliation or care homeswill be owned or managed by the non-profit, offering jobs to workers, in these areas: Board and Care for Terminally-ill Assisted Group Living for the Elderly Long Term Rehabilitation In-home Care Adult and/or Child Day Care Alzheimers CareSlide 13
  14. 14. HUD “First Look” programU.S. Housing and Urban Development (HUD) Secretary Shaun Donovan has announced anagreement with the nation’s top mortgage lenders to offer selected state and local governments,and non-profit organizations a “first look” or right of first refusal to purchase foreclosed homesbefore making these properties available to private investors.The National First Look Program is a first-ever public-private partnership agreement between HUDand the National Community Stabilization Trust (Stabilization Trust). In collaboration with nationalservicers, Fannie Mae, and Freddie Mac, the First Look program is intended to give communitiesparticipating in HUD’s Neighborhood Stabilization Program (NSP) a brief exclusive opportunity topurchase bank-owned properties in certain neighborhoods so these homes can either berehabilitated, rented, resold or demolished.“This groundbreaking agreement will help rebuild neighborhoods that have been struggling withblight and declining home values due to foreclosures,” said HUD Secretary Donovan. “Localcommunities will now get an exclusive option to buy foreclosed properties in targetedneighborhoods so they can turn the homes into affordable housing or, in some cases, tear themdown. This agreement helps us level the playing field to give communities a better chance tostabilize these neighborhoods.” Wed, 2010-09-01 14:47 – from National Mortgage ProfessionalSlide 14
  15. 15. The July 12, 2010 HUD RulingAfter expressing interest in a property, the First Look Period will last approximately five to12 business days during which the NSP Grantee will conduct inspections and establishcosts to repair in anticipation of the financial institutions price offer. In the event that noNSP grantee exercises its preference to purchase an REO property during the First Lookperiod, the financial institution will follow its normal process to sell the home on the openmarket.Currently, the Federal Housing Administration (FHA) offers a complementary pilotprogram in which NSP grantees receive an exclusive option to purchase so-called HUDHomes at a discount prior to those homes being made available to the investorcommunity. The FHA pilot, alongside todays agreement expands the opportunity forNSP grantees to gain access to REO properties through a national first-look standardoption.(Page 2 of 4 – HUD First Look program)Slide 15
  16. 16. HUD First Look program HUDs Neighborhood Stabilization Program was created to address the housing crisis, create jobs, and grow local economies by providing communities with the resources to purchase and rehabilitate vacant homes. NSP grants are helping state and local governments, as well as non-profit developers, acquire land and property; demolish or rehabilitate abandoned properties; and/or offer down payment and closing cost assistance to low to middle-income home buyers. Grantees can also stabilize neighborhoods by creating "land banks" to assemble, temporarily manage, and dispose of foreclosed homes. To date, HUD has allocated nearly $6 billion in funding to state and local governments and non-profit housing developments. In the coming weeks, HUD will allocate an additional $1 billion in NSP funding, which was provided through the Dodd-Frank Wall Street Reform and Consumer Protection Act. (Page 3 of 4 – HUD First Look program)Slide 16
  17. 17. HUD First Look & Neighborhood Stabilization Program (NSP) References From Homelessness to Helping Others Like Themselves, with your help!Slide 17