Applicant Details & Scoring
ARC State Program Manager Comments
Total Qualifying Score: 9
County (ARC Region): Yes
State (ARC Region): Yes
Q3. IRS Status: Nonprofit – 2
Q4. Parent Entity: No – 1
Q5. 2 or More Full-Time Employees : Yes (as of 12/31/2019)
Q7. Budget Level: $250,001 to $1.5 million – 5 (Last Fiscal Year Actual Income)
Q8. Restricted Reserves: No – 1
Q9. CARES Act Funding: Yes – 0
Q13. Participation by Executive: Yes
CONTACT & LOCATION INFORMATION
County (ARC Region) Marion
State (ARC Region) West Virginia
ORGANIZATIONAL & FINANCIAL INFORMATION
The Fairmont Community Development Partnership is a private, non-profit organization which promotes community and economic development along with neighborhood revitalization and affordable housing in targeted low income areas. Our primary goals are to improve quality of lives by assisting low-income families with safe, decent, housing; and, by promoting business growth as part of local community development.
Q2. How organization aligns with ARC’s Plan & Goals:
Our mission and strategic plan most directly relate to the first of ARC’s five goals: Investing in entrepreneurial and business development strategies that strengthen Appalachia’s economy. The partnership helps achieve this mission through two programs: The Excellerator and a Small Business Revolving Loan Fund.
The Excellerator is a business incubator in the form of office space, housed just outside of downtown Fairmont. It has room for up to 6 start-ups, depending on the amount of office space required. Currently, all but two spaces are rented. One of those two contain our offices and the other is expected to be rented by the end of the month. This program provides opportunities for start-ups and other small-businesses to expand their business and offer a better client experience at a lower monthly rate than would be required elsewhere. Additionally, the revolving loan fund allows businesses to fund small-to-medium programs or capitol improvements needed to meet the demands of growth or kickstart an increase in clients, income or services.
Additionally, the Partnership has an active role in increasing the education, knowledge, skills, and health of Fairmont residents by providing the availability of clean, affordable housing in a region that has a significant amount of sub-standard housing. This component of community development is directly linked to the overall health and well-being of Fairmont residents. As people move to Fairmont to take jobs at the new medical facilities, and the commercial developments in Whitehall, the need for these units will continue to grow. Furthermore, our organization is currently applying for funding to begin offering rental housing counselling services in 2021, in partnership with NeighborWorks and the WV Housing Development Fund. These services will have a quantifiable impact on the education, knowledge and skills required by renters to maintain safe housing environments and increase the overall wellbeing of Fairmont.
The Partnership also works to build the capacity and skills of current and next-generation leaders and organizations to be innovative and advance their business through the revolving loan fund, as well as our support of our commercial food & beverage rentals. These vendors advance community and economic development by being a part of a unique downtown ecosystem, contributing to the heightening of cultural elements in Fairmont’s downtown and providing a variety of options and attractions for visitors.
Q3. IRS Filing Status: 501(c)(3)
Q4. Unit or Chapter of Larger Organization: No
Full-Time/Part-Time Employees: 2/0 (as of 9/1/2020)
Full-Time/Part-Time Employees: 2/2 (as of 12/31/2019)
Current Year Income/Expenses: $331225/$345160
Q6. Fiscal Year: Calendar
Q7. Budget Level
Last Fiscal Year Income/Expenses (Actual): $466,674.23 / $571,389.08
Current Year Income/Expenses (Projected): $331225 / $345160
Q8. Restricted Reserves (Amount): No ($)
Q9. CARES Act Funding (Amount): Yes ($24750)
Received From: SBA- Payment Protection Plan Loan. Lender – NCIF Date Received: 8/10/2020
For What Purpose(s): Payroll
Q10. Negative Impacts from COVID-19:
COVID-19 has had a dramatically negative impact on our organization. Our organization operates on the income received from our rental properties, which comes to roughly $33,000 per month. Due to job loss, loss of income and other factors, we have consistently received 25-30% less of this income since March. Due to the eviction moratoriums, we are unable to evict tenants for non-payment, nor would we want to in the current circumstances. We are in the process of completing the construction of four additional single-family homes through the AHP grant program provided by Federal Home Loan Bank. It was estimated that this project would be completed this summer, at which time the organization would receive a $106k developer fee, which was intended for paying off small debts, establishing a reserve fund and mitigating operating expenses. Because of COVID-19, this project has been delayed a number of times and we do not expect to receive that payment this calendar year.
Additionally, we have seen a significant increase in maintenance costs because we had halted all non-emergency maintenance to reduce the possibility of exposure. Tenants were also hesitant to submit work orders, even for emergency situations because they didn’t want anyone in their home. Because of this, we now have some units that require thousands of dollars in repairs due to water leaks, mold growth, etc. All of which could have been mitigated, had maintenance been aware and able to evaluate at the time.
Q11. Top Three Concerns:
No cash reserves set aside for a delinquency in rental payments to meet operating expenses.
Very little money available to meet capitol improvements to existing real estate.
Commercial rentals account for 16% of rental income from businesses, two of which are food & beverage and have suffered immensely due to the shutdown.
How Participation in Program Will Address Concerns:
Our participation in this program will give us the tools and knowledge necessary to regain financial control and implement strategies that will keep the partnership alive and set a foundation for future success. Due to a variety of reasons, the Partnership has experienced a 100% shift in personnel. Through the transition, shortfall and opportunities for improvement of financial systems and procedures have been identified. Participating in this course will not only give us the background required to not only create a strong foundation, but ultimately see significant forward motion.
In recent board discussions, it was noted that fundraising has not been a priority for the partnership in the past and that is an area in which we could see significant positive impact if executed properly. Our board and our staff has limited experience in this area, but all are willing to learn and implement with the right tools and knowledge. Fundraising could bring in enough extra revenue to mollify many of the struggles the Partnership is currently experiencing.
Q12. Applying as a Proposed Cohort? No
Q13. Executive Director or CEO Will Participate in the Program? Yes
Q14. Top Two Choices for Cohort Instruction:
Course #1 Choice: 1-Short-term Financial Management
Course #2 Choice: 2-Fundraising
Q15. Desired Course Schedule for Cohort Instruction:
#1 Desired Course Schedule: 1-Fall 2020: 6-Week Course (Nov. 9, 2020 – Dec. 18, 2020)
#2 Desired Course Schedule: 2-Fall 2020: 6-Week Course (Nov. 9, 2020 – Dec. 18, 2020)
APPLICATION SUBMITED BY:
Name: Kayleigh Kyle, Executive Director
Application Approved by Organization Director or CEO? Yes, Approved by Executive Director/CEO