MENTOR MANUAL by jennyyingdi


									       MENTOR’S MANUAL
   MY MENTOR TRAINING DATE IS: ________________________________

                          FAMILY CONTACT INFORMATION

Family Name:


Cell Phone:

Work Phone:



Crook County and Bend Area Habitat for Humanity’s (CC/BAHFH) Mentorship Manual is not a contract of
   agreement. The Manual is intended to provide information relevant to the process of mentoring the

 For the purposes of this Manual the terms “homeowner” and “family” are used herein to refer to persons
                           selected to own a home through the BAHFH program.
                                              Revised 12/15/10

                                              Page 1 of 59
                          TABLE OF CONTENTS

Mission…………………………………………................................................... 3
Being a Family Mentor……………………………………………………….... 3
Contact Information……………………………………………………………. 4
      Crook County and BAHFH
Bend Area Habitat for Humanity Responsibilities………………………… 6
Family Responsibilities………………………………………………………… 7
Mentor responsibilities………………………………………………………… 8
Mentor Training Checklist…………………………………………………….. 9
Assignment List…………………………………………………………………. 12
Section 1: An Overview and Planning Ahead…………………………………13
Section 2: Sweat Equity…………………………………………………………. 15
Section 3: Budget and Financial Literacy……………………………………… 16
Section 4: Matched Savings Plan and More Budgeting……………………… 18
Section 5: Construction of Your Home…………………………………………19
Section 6: Community Relations, Resources and Contacts………………… 20
Section 7: Mortgages and Closing Documents……………………………… 22
Section 8: Systems and Maintenance………………………………………… 23
Section 9: Reviewing Your Accomplishments……………………………… 23
Section 10: Planning Your Home Dedication…………………………………. 24
Additional Resources…………………………………………………………… 25
Appendix                                                                   29
      Qualifications and Process
      Sweat Equity Time Sheet
      Sample Letter of Intent (LOI)
      Debt to Income Ratio Information
      “Pay Yourself First” Information
      Article “The Total Cost of Borrowing Money”
      12-month budget
      Goal Setting
      Matched Savings Programs
      Cost of Raising Children
      Personal Networking

                                    Page 2 of 59

Bend Area Habitat for Humanity, with God's guidance, works in partnership with the
community and with families in need, to build quality, affordable homes in Bend and in
Crook County.

                        BEING A FAMILY MENTOR

Thank you for your commitment, time and energy to working with Bend Area
Habitat for Humanity families! We look forward to developing our partnership
with you. As a Family Mentor you will help to ease the awesome and sometimes
overwhelming commitment of home ownership. You will have an opportunity
to share your expertise and/or explore this home ownership journey together.

Your role with the family will be to provide communication between Habitat and
the homeowner. You will be given the support to help provide the assistance
and guidance your family needs to make the transition into homeownership.
This might include help with budgeting skills, community resources, planning,
and problem-solving. Or you may even discover that you have other strengths
that will be invaluable to Habitat. We welcome your participation.

Some homeowners will require less involvement; others will need more hands-
on assistance. Throughout, the Mentor’s main goal is to create self-reliance
rather than dependence on Habitat. The formal relationship between you and
your family will begin early in the family selection process and will end six
months after moving into the house, depending on specific needs. Hopefully the
friendship will remain for a lifetime. See “Mentor Responsibilities” section for
more information.

This manual will serve as a guide for the Mentor process. If you need more
information or training in a specific section, please contact DeeDee Johnson,
Family Services Manager at (541)385-5387, ext 227 or by email at

                                       Page 3 of 59

                      ReStore Manager: Lori Gannon
                             1427 NW Murphy Court
                               Prineville, OR 97754

                                ReStore Hours
                      Tuesday thru Friday: 9:00am - 5:00pm
                         Saturday: 10:00 am to 4:00 pm

                               Phone: 541-447-6934


                                 740 NE 1st Street
                                 Bend, OR 97701
                       PH: 541/312.6709     FX: 541.598.3041
Hours of Operation: Tuesday- Friday 9:00 am to 5:00 pm, Saturday 10:00 am to 4:00 pm

ReStore Director: Sophie Paez                Volunteer Coordinator: Brenda Jackson
ReStore Manager: Di Crocker                  Driver: Lars Hofland
Warehouse Manager: Milt Riley                Cashier: Amy Tracey
Donations Coordinator: Michel Miller         Lot 2: Alison Bublitz

                     See website for email contact information.

                                       Page 4 of 59
                                1860 NE 4th Street
                                 Bend, OR 97701
                     PH: 541/385.5387        FX: 541/383.1789
   Office Hours: Monday - Friday 8:00 am to 5:00 pm, Closed Saturday and Sunday

Executive Director: Mark Quinlan - ext 232
Office Manager: Sheilah Sherman – ext 221
Operations Manager: Paula McClean – ext 231
Community Relations Manager: Robin Cooper – ext 229
Communications Coordinator: Sara Mishaline – ext 228
Neighborhood Revitalization Manager: Sheila Pyott – ext 225
Family Services Manager: DeeDee Johnson - 227
Finance Manager: Juline Bodnar – ext 233
Finance Office: Ruthe Giltrap- ext 230
Construction Manager: Glen McClean – 541-815-7999
Construction Coordinator: Jeannie Adkisson- 541-815-8588
Site Supervisor: Chris Neumaier – 541-815-2628
Rehab / Deconstruction Supervisor: Kirk Patterson – 541-848-7433

                      See website for email contact information.

                                      Page 5 of 59

     CC/BAHFH agrees to:

          Secure land, materials and funding for the construction of the
          Family home
          Coordinate the volunteers in the construction of the home and
          provide job site supervision
          Select qualified persons to become Habitat homeowners
          Provide training on home ownership issues through
          homeownership, construction and money management classes/
          Match you with a Family. You will serve as your personal link to
          Habitat, and will provide special assistance to you whenever
          Help the Family devise a goal/ plan for how to complete sweat
          equity hours
          Answer any questions regarding the progress of the
          homeownership status
          Meet with the Family at the work site to go over what is needed
          Provide a no- interest loan for the cost of the Family home
          Help you and your Family plan the house dedication for the home
          Transfer ownership of the home to the Family upon successful
          completion of the Habitat program

                               Page 6 of 59
                              FAMILY RESPONSIBILITIES

Throughout this manual we will help you discuss, support and educate your
family on the various responsibilities and expectations. We expect the family to:

   •   Accurately track spending

   •   Create and live by an accurate 12 month spending plan

   •   Budget for changing family situations like additions to the family,
       reduction in income, additional expenses

   •   Create short, medium, long term goals – financial or otherwise

   •   Understand financial concepts:
         o Debt to income ratio
         o Fixed, Variable, and Periodic expenses
         o Assets and liabilities
         o Pay yourself first
         o Borrow from yourself first
         o Interest rates and what it costs to borrow money

   •   Understand Purchase and Sale Documents and homeowner
          o Escrow
          o Option to Purchase
          o Promissory Note
          o Trust Deed
          o Title
          o PTI – what costs go into the mortgage payment
          o Wills and Testaments
          o How the systems of the home work
          o Necessary maintenance of the house
          o Homeowner’s insurance – how to use it properly

                                     Page 7 of 59
                      MENTOR RESPONSIBILITES

Your goal will be to meet with your family a minimum of 12 times before they
move into their home. However, you may meet more than that if you would like,
or if needed. A minimum of one meeting per month is required. There are 12
sections in this manual. We have also included an appendix of relevant forms.

Depending on the needs of the family you may wish to cover materials in other
section or in a different order. The sections are in a suggested order as they come
about in the general process. However, each family need will vary. Please feel
free to rearrange the order of the sections based on the needs of your family. If a
section or specific material is mandatory, it will be noted with a symbol:

√ Check off each section and the related boxes (topics) as completed.    √
√ Remind the family to be sure to track each meeting as a minimum of 1
  hour toward sweat equity, more if the meeting is longer.

√ Review the “Homeownership Requirements” and “Process” located in
 the appendix, especially if you are new to the Habitat Mentorship program.

√ You are welcome to attend meetings with your family, such as the monthly
  Partnership meetings. Other meetings could include credit counseling,
  COLINK classes, meetings to go over closing documents, etc.

√ As a mentor you will need to sign up as a volunteer on the “VolunteerUP”
  section of our website at:

√ As a mentor you will also be able to track your time toward your family’s
 sweat equity. Please be sure to track this Mentor Training time as well. See copy
 of Sweat Equity Tracking log in appendix.

                                     Page 8 of 59
                        MENTOR TRAINING Checklist

As a Mentor your initial training will cover topics that families are expected to
understand by the time they move in. Your initial training will be in a 1-2 hour
meeting. You will review the following topics (more detail is provided in
sections throughout this manual):

□     VolunteerUp Database. Your Family will be tracking sweat equity hours
      and signing up for on-site work through our volunteer database called

□     The wealth of information on the Habitat website:

□     Sweat Equity requirements. See also the link for the tracking hours
      document on the website. You will be required to monitor your family’s
      progress in accruing sweat equity and meeting other goals. The Family
      Services Manager will provide you with a copy of your monthly sweat
      equity totals.

□     Budget and financial literacy best practices. Let the Family Services
      Manager know if you would like to schedule an appointment with Money
      Management, Inc. (formerly Consumer Credit Counseling) for a free
      training. Your assistance in this area will be in addition to the classes
      taught through COLINK,, and
      through consumer credit counseling,
      which happen as a part of the required Savings Program.

□     Understand and review the 12 month budget (link posted on website to
      this excel spreadsheet). This will assist your Family in planning for future
      mortgage amount and other debt payments, as well as fixed, variable, and
      periodic expenses. As a part of budgeting with your Family, you will
      address credit and debt issues. You will also discuss additions to family
      (see Mentor Manual appendix) and possible loss of job. How does this
      factor into the budget/planning?

□     Understand the Matched Savings program as outlined on our website
      ( Review basic goal
      setting information provided in the Mentor Manual appendix.

                                     Page 9 of 59
□   Review of terms of income, assets, liabilities and Debt-to-Income Ratio,
    the terms “Pay yourself first”, “Borrow from yourself first” and Interest
    rates and what it costs to borrow money (see Mentor Manual appendix)

□   Get a list of current job sites and visit them to become familiar with
    simple, decent, affordable building standards.

□   Review construction site policies in the Homeowner’s Manual

□   Are you aware of childcare opportunities and/or transportation options in
    he area? Let the Family Services Manager know if you need more
    information on resources in our community.

□   Review aspects of the Home Dedication and prepare to assist your Family
    with this final phase before Homeownership

□   Will you need training in how to set up or transfer utilities? Your family
    may need assistance with this step.

□   Review the list of Community Resources in the Homeowners Manual. Let
    the Family Services manager know if you have questions regarding other
    resources as you get to know your Family’s needs.
    Review Purchase and Sale Documents and homeowner responsibilities.
    Most of these topics will also be covered in the monthly Partnership
    1. Escrow
    2. Option to Purchase
    3. Promissory Note
    4. Trust Deed
    5. Title
    6. PTI – what costs go into the mortgage payment
    7. Wills and Testaments
    8. How the systems of the home work
    9. Necessary maintenance of the house
    10. Homeowner’s insurance – how to use it properly

□   Schedule an appointment with the ReStore Manager to get an overview of

□   Schedule an interview with the Community Relations Manager

                                  Page 10 of 59
In Addition, although it is not required, you may be asked to attend meetings
with your Family as a support person. Attending these meetings will help you
understand the needs of your family and allow you to be better able to answer
their questions. Please let the Family Services Manager know if you would like
more information about these meetings.

□     Closing at the Title Company

□     Monthly Partnership meetings. Families will get updates from the various
      staff at Habitat, including sweat equity opportunities and other events.
      Your role as a Mentor is to help integrate your family in Habitat activities
      and events.

□     Be prepared to encourage communication between families in the Habitat
      program to foster a sense of community

                                    Page 11 of 59
     Projects/Assignments List Due (throughout the Mentorship)

•   Review Homeowner’s Manual section “Guidelines and
    Homeowner Responsibilities”.
•   Review Signed Letter of Intent
•   Sign up for IDA or VIDA program
•   Registration on VolunteerUp
•   Review and understand Sweat Equity requirements
•   Set up a plan for completing and tracking sweat equity (turn in to
    Family Services Manager)
•   Review Budgeting and Financial literacy concepts
•   Review concepts: Debt to Income Ratio, “Pay Yourself First”,
    Borrow from Yourself First
•   Submit 12-month spending plan/budget to Family Services
•   Turn in copy of short, medium, and long-term goals (financial or
    personal) to Family Services Manager
•   If adjustments are made to 12-month spending plan turn in an
    updated copy to Family Services manager
•   Review matched savings program progress and report to Family
    Services Manager
•   Turn in a copy of a schedule/calendar for “routine home

                          Page 12 of 59
SECTION 1: An Overview and Planning Ahead

                                                Meeting Date: ____________
                                           Length of meeting ____________
                                         Additional training time__________

Ask your family to discuss their story and how they came to BAHFH.
Help your family to understand that this process of homeownership is a
positive, life changing event. Begin discussing the anticipated changes of
what homeownership will do for them (more on this in Section Six)

     Review Homeowner’s Manual section “Guidelines and Homeowner
     Also review this Mentorship manual and schedule of activities.

      Make a list of the highest priorities to cover or areas of need for the
      family during the mentorship meetings.






      Has family reviewed and signed Letter of Intent (LOI)?
      Review this together and remind them of the various types of
      Habitat purchases. See sample LOI in addendum.

        Has family signed up for their Individual Development Account
  (IDA) through NeighborImpact or the Valley Individual Development
Account (VIDA) through Housing Works to begin savings for the closing
costs? Is the family set up to take the related classes for the IDA/VIDA
program? Will you be attending these classes together?

                             Page 13 of 59
 Your Family has two options for setting up a mandatory matched savings plan:
 (See also appendix for “Matched Savings Program” Information)
        1. NeighborImpact. Visit for
            more information.
        2. Housing Works, contact Kelly Fisher at
            and ask about the Family Self-sufficiency program or visit

               Review and confirm the registration of the family on
               “VolunteerUP” located on our website:

        Review the Habitat website:
        Are you aware of the “Homeowners Blog”?

        Discuss any babysitting and/ or transportation needs for your family and
        assist them in finding a solution. See also Section 6.

 List any follow-up/unanswered questions here to be covered on or before next

                               Throughout the Program…

√ If comfortable, encourage and support your family through prayer.
√ Attend monthly Partnership meetings with your family and maintain no less than monthly
  personal contact with your family
√ Communicate with Family Coordinator if you suspect any misconceptions the family may
  have surrounding construction needs/ wants/ requirements

                                      Page 14 of 59
                             SECTION 2: Sweat Equity

                                                      Meeting Date: ____________
                                                 Length of meeting ____________
                                               Additional training time__________

        Follow up on unanswered questions from last meeting

             Review “Understanding, Tracking, Policy and Definition of Sweat
             Equity” in Homeowner’s Manual

             Related questions could include:

             1. Have you signed up for any classes (approved by Family
                Services Manager)?
             2. Do you know who to contact regarding public relations
             3. Do you have a copy of the Partnership Meeting Schedule?
             4. How do you organize your own and your family calendar of
                activities? Do you need assistance with other ways of personal

        Look at the Sweat Equity tracking form together (see appendix). Does
        the family know when the form is due?

        Has your family set up a schedule for Sweat Equity? Be sure to review
        how the hours are counted (See Homeowners Manual)

        Review the “Frequently Asked Questions” (see Homeowner’s Manual

List any follow-up/unanswered questions here to be covered on or before next

                                   Page 15 of 59
                   SECTION 3: Budgeting and Financial Literacy

                                                      Meeting Date: ____________
                                                 Length of meeting ____________
                                               Additional training time__________

Discussing money and debt is often a very personal and sometimes
uncomfortable subject for anyone. Assure your family that you are here to help
them. You are on their side. Encourage them to see you as a resource. BAHFH
requires families to complete and submit a Spending Plan/12-month Budget. See
appendix for examples. Be sure to discuss ahead of this meeting what items will
be needed to complete or review a budget.

 Follow up on unanswered questions from last meeting.

      Review budgeting and financial literacy concepts as taught by program
      partners at COLINK,, and through
      consumer credit counseling,
      Feel free to refer to information that you are comfortable using as a
      reference. For example, if your Family has computer and online access, is a free money management website.

 Review income, assets, and liabilities. Many Habitat families are about to own
 a home for the first time and these terms may not be familiar to them.

      Review concepts:
      √ Debt to Income Ratio (see appendix)
      √ “Pay Yourself First” (See appendix)
      √ Borrow from Yourself First (See article in appendix)
      √ Interest rates and the cost of borrowing money (see appendix)

       Review and/or complete together the family budget or 12 month
       spending plan (see appendix)
      √ Be sure this plan includes future mortgage amount and other debt
        payments, as well as fixed, variable, and periodic expenses.

                                   Page 16 of 59
  Discuss short, medium and long-term goals (financial or personal). See “Goal
  Setting” in appendix.

List any follow-up/unanswered questions here to be covered on or before next

                                   Page 17 of 59
                  SECTION 4: Matched Savings Plan and More Budgeting

                                                             Meeting Date: ____________
                                                        Length of meeting ____________
                                                      Additional training time__________

 Follow up on unanswered questions from last meeting

 Re-Review credit and debt including any concerns your Family might have for
 the future.

 Discuss budgeting for additional people in a family (See “Cost of Raising
 Children” chart in appendix)

      Check in again on the matched savings program.
 √ Understand Habitat requirements for matched savings
 √ Review the program options with the family
 √ Discus family goals (See “Goal Setting” in Appendix)

 List any follow-up/unanswered questions here to be covered on or before next

                                  Throughout the Program…

√ Monitor your family’s progress in accruing sweat equity and encourage your family to meet
  goals. The Family Coordinator will provide you with a copy of the family’s monthly sweat
  equity totals.
√ Act as a link or interface with Habitat committees and staff.
√ Look for opportunities to integrate your family in Habitat activities and events. There are
  often a lot of other ways to accrue sweat equity, like participating in events, landscaping at
  the office, mutually beneficial babysitting of other Habitat kids, for sweat equity.

                                          Page 18 of 59
                          SECTION 5: Construction of Your Home

                                                           Meeting Date: ____________
                                                      Length of meeting ____________
                                                    Additional training time__________
                                                    Additional training time__________

         Review the 12-month spending plan vs. actual spending. Are adjustments
     needed? Follow up on unanswered questions from last meeting

    Review June 3, 2000 Board Policy “Upgrades or Changes to Habitat Homes
    While Being Built” (See Homeowners appendix)

    Review Limited Warranty Agreement. (See Homeowners appendix)

    Review “Construction Terms” and Construction Site Policies (See Homeowners

    Do you have any questions regarding the Habitat basic home requirements?
    Please list these questions and contact the Family Services Manager.
    Note: construction updates will be given at the monthly Family Partnership

  List any follow-up/unanswered questions here to be covered on or before next

                                Throughout the Program…

√ Discuss with your family topics which are being covered in the required monthly
  partnership meetings.
√ Confirm that there is understanding and follow through with any related assignments or

                                        Page 19 of 59
                   SECTION 6: Community Relations
                        Resources and Contacts
                    and “The Power of Networking”

                                                 Meeting Date: ____________
                                            Length of meeting ____________
                                          Additional training time__________

Make an appointment with Community Relations Manager. Review the
Habitat community, funding, and behind-the-scene efforts of construction
and family support.

     Review the 12-month spending plan vs. actual spending. Are
     adjustments needed? Follow up on unanswered questions from last
     meeting Follow up on unanswered questions from last meeting.

Review List of Community Resources & Phone Numbers (See
Homeowners Appendix). Discuss concerns facing your Family (personal,
daycare, professional, financial, etc) and research agencies that can assist
your family. Ask the Family Services Manager for ideas as well.

Review the term “Networking”. See Mentor Appendix article
“Networking”. What forms of networking is your Family comfortable

Review the BAHFH Facebook site with your Family. There is also a
private group set up on Facebook called BAHfH Homeowners. It is
intended that this group be a socializing and networking spot strictly for
BAHfH Homeowners, and those working through the program toward
homeownership. Families can swap recipes or childcare, promote
businesses or services, request home repair tips. It is a members-only
group and is member lead. If you are a homeowner interested in joining,
become a fan of Bend Area Habitat and then request to join, or send the
email address of your Facebook account to Paula
( and she will initiate an invite from the
group’s page.

If you have a business you would like to promote, whether you are an
owner/sole proprietor or an enthusiastic employee of a company, BAHfH
would be happy to interview you. Please contact Paula

                              Page 20 of 59
         ( to make an appointment to discuss your
         work. The interview will be posted on the BAHfH blog, Habitalk, which is
         found on the affiliate website. It also cross-posts to the Bend Area Habitat
         Facebook profile and will be posted to the private homeowner group. It is
         highly encouraged that you and your friends share the post to create a
         viral (and free) ad campaign.

         Review “Definitions and terms. (See Homeowners Appendix)

 List any follow-up/unanswered questions here to be covered on or before next

                                 Other Notes As a Mentor…

√ Alert the Family Services Manager if you suspect any problems.
√ Visit your family’s construction site and become familiar with simple, decent, affordable
  building standards.

                                         Page 21 of 59
                   SECTION 7: Mortgages and Closing Documents

                                                       Meeting Date: ____________
                                                  Length of meeting ____________
                                                Additional training time__________

      Review the 12-month spending plan vs. actual spending. Are adjustments
      needed? Follow up on unanswered questions from last meeting Follow
      up on unanswered questions from last meeting.

Define and discuss Home Owner’s Insurance. How do you use it properly?

Define and discuss Escrow.

Review Letter of Intent and “Option to Purchase” agreement. Be sure your
Family understands these documents.

Define and discuss Promissory Note.

Define and discuss Title.

Define and discuss Principle, Taxes, and Insurance (PTI). What goes in to the
mortgage payment?

Discuss Wills and Testaments.

Review Trust Deed.

List any follow-up/unanswered questions here to be covered on or before next

                                    Page 22 of 59
                       SECTION 8: Systems and Maintenance

                                                            Meeting Date: ____________
                                                       Length of meeting ____________
                                                     Additional training time__________

        Review the 12-month spending plan vs. actual spending. Are adjustments
        needed? Follow up on unanswered questions from last meeting. Follow
        up on unanswered questions from last meeting.

Before moving in the Family will do a walk-through with the Construction Manager and
the Family Services Managers to discuss the home systems in more detail. The Family
will also have a scheduled meeting with the company who installed the solar heating
system to be trained on the specifics of the system. The Family will also receive a folder of
warranties and repair information on their home. However, discuss some of the basic
concepts related to:

  Review and discuss Radiant Heat in home.

  Review and discuss Solar System in home.

       Review and discuss Basic Maintenance of a home. Help your Family
       create a schedule of routine maintenance dates. For example, when will
       your roof need to be replaced? Do the irrigation pipes need to be “blown
       out”? Gutters need cleaning? Are there appliances that need servicing?
       When should they consider repainting?

List any follow-up/unanswered questions here to be covered on or before next

                                         Page 23 of 59
                  SECTION 9: Reviewing Your Accomplishments

                                                     Meeting Date: ____________
                                                Length of meeting ____________
                                              Additional training time__________

       Review the 12-month spending plan vs. actual spending. Are adjustments
       needed? Follow up on unanswered questions from last meeting. Follow
       up on unanswered questions from last meeting.

 Review how far your Family has come in the Homeownership process. What
 changes have happened in the past year? Interview your Family and together,
 write a new “story” using any of the following questions:
  1. What positive changes have you noticed since you started the process?
  2. What changes, if any, have you made to your budget/spending plan?
      What have you learned about your budget?
  3. Was there anything that surprised you along the way?
  4. What challenges have you overcome so far?
  5. What are you most proud of since starting the Homeownership process?
  6. What other positive changes do you anticipate as a part of
  7. Talk about the impact on your children.
  8. What can you share with future Habitat Homeowners?

Submit your new story to the Family Services Manager.

Do you give permission for the use of your story in BAHFH marketing?
      □ Yes        □ No

List any follow-up/unanswered questions here to be covered on or before next

Do you give permission for the use of your story in BAHFH marketing?
      □ Yes        □ No

List any follow-up/unanswered questions here to be covered on or before next

                                  Page 24 of 59
                        SECTION 10: Planning the Home Dedication

                                                            Meeting Date: ____________
                                                       Length of meeting ____________
                                                     Additional training time__________

    Follow up on unanswered questions from last meeting

    Make another appointment with the Community Relations Manager to begin
    planning your Home Dedication!

                         During the Final Stages of the Program…

√ Help your family become acquainted with community resources, and neighborhood
√ Assist/ guide your family through various concerns as they arise that pertains to home
  maintenance or financial issues that directly deal with paying the mortgage

                                         Page 25 of 59
                            ADDITIONAL RESOURCES

Home Ownership/Community

Not sure where to turn? Central Oregon 2-1-1 is designed to help you find all the
services available to you. Still not sure? Visit for more
information on local agencies and what they can do for you.

NeighborImpact, for Utility Assistance, Home Weatherization, Home
Rehabilitation, Savings Programs (IDA) and more. For more information call, in
Bend, (541)318-7506 or visit

Financial Assistance & Education

Financial Peace University: Let us
know if you would like to take these budgeting and debt reduction classes. We
can offer you a membership kit, at no charge.

COLINK A nonprofit organization offering financial counseling classes and debt
consolidation for qualified applicants. For more information contact (541)848-
7960 or visit

For credit counseling, you can make an appointment with a credit counselor by
contacting this resource: Indicate that you
would like an appointment with Linda Young, in Bend, OR. Her office is at the
Rosie Bareis Campus, at 1010 NW 14th. She does not take walk-in clients, so call
first, for an appointment. We can run your credit at the BAHFH office, if you
would like a copy.

To set up a checking or savings account, even when you have a less than stellar
record with banks, Bank on Central Oregon can help you get back on track and
you'll save money on check cashing fees and more.

Matched Savings Programs are available for down payment, small business, and
education assistance. Contact Housing Works, Kelly Fisher (541-383.7411)
regarding their VIDA program for down payment or education assistance or
NeighborImpact, Yolanda Vanderpool (541.318.7506) for their IDA program for
down payment or business assistance.

                                   Page 26 of 59

For Rental Assistance contact NeighborImpact.

Housing and Urban Development has posted a list of common questions for
first time homebuyers.

Matched Savings Programs are available for down payment, small business, and
education assistance. Contact Housing Works, Kelly Fisher (541-383.7411)
regarding their VIDA program for down payment or education assistance or
NeighborImpact, Yolanda Vanderpool (541.318.7506) for their IDA program for
down payment or business assistance.

Housing Works offers HomeQuest a homeownership program and career help

Need a homeownership program in a rural area? Check out the USDA
programs. Look for the contact information for your county.

Educational and Volunteer Opportunities

See Central Oregon Community College to discuss foundation scholarships.
Contact… or visit…

Need help finding the right scholarships, loans and grants for colleges and
universities, including COCC? Talk to Richard Thompson at The College Place: or 541.550.4000. His office is on the COCC campus.

Look into a free application for federal student aid. Visit the following websites: or

Family News online keeps an updated list of resources and classes (usually free!)
going on in the community. Click on the "events calendar."

Are you a student or young person? Check with Volunteer Insights and find out
about service learning and volunteer opportunities. Volunteering and service
learning are great ways to learn new skills, to become marketable for
employment or for educational programs.

                                     Page 27 of 59
RSVP matches active and retired persons aged 55 and older with volunteer
opportunities. Visit

Health and Well-Being

For orthodontic needs, up to 50% of each office visit can be paid with a voucher
for community service with an approved organization redeemed at $10/hour, at
Smile Central Oregon. Contact information:

Check into how to apply for Bend Metro Parks and recreation District
Recreational Scholarship Program, covering 50% of program fees. For more
information visit

Adults may now register for Oregon Health Plan Standard. For more
information visit:

Home Ownership/Legal

For information about creating a will & testament visit

For information about divorce see

For information about immigration visit

For information about renter's rights visit

                                    Page 28 of 59

  Page 29 of 59
                       Homeownership Requirements and Process

Qualification Guidelines

   •   Applicants have lived and/or worked in Bend, Oregon for at least one
   •   Applicants are able to maintain the payment for a BAHFH home and can
       provide proof of income.
   •   Applicants are able to provide personal and employment references.
   •   Applicants are willing and able to attend and complete all designated
       workshops, classes and other sweat equity requirements (600
       hours/couple and 400 hours/single adult family - approximately 8-12 hrs
       per week for at least one year).
   •   Applicants are willing and able to enroll and successfully complete a
       savings program through NeighborImpact. This will require saving a
       certain amount of money for a minimum of 12 months toward a down
       payment. This will require budgeting!
   •   Applicants have a debt burden that is under control; no more than 40% of
       their annual income. (Add up all income, multiply by 40%, that amount
       equals maximum debt allowed. Add up all debt; totals-not monthly
       payments. The debt total should be less than the maximum debt allowed.)
       A credit report will be run.
   •   Applicants must not have declared bankruptcy within the last two years.
   •   Applicants must be legally qualified to purchase property in the State of
       Oregon. (For example: proof of legal residency and favorable outcome of
       existing court actions - divorce, felony, bankruptcy and/or judgments).
   •   Applicants' total gross (before taxes) household income must fall within
       current guidelines. (household income includes all income from individuals 18
       years or older who contribute to the overall financial status of a household. These
       individuals do not have to be related to be considered part of the household.)
       Please refer to the qualification guide for income guidelines. Remember
       these are guidelines and are subject to change from one open enrollment
       period to the next.

   The Process

   1. Attend a mandatory orientation. You can check with DeeDee
      Johnson (541.385.5387 x227 - ) or check our
      website for the dates of the next orientation.

                                       Page 30 of 59
   2. Application must be submitted. The FULL applications are handed out at
       the orientations and you will have a designated period of time in which to
       complete and return that application. It will ask for financial information,
       personal information, housing and utility records, references and much
   3. Upon receiving the application, all applicants will have a financial
       underwriting take place to determine if they qualify financially. You will
       either advance to the next step or be counseled in your options if you do
       not qualify financially.
   4. For those moving to the next step, we will schedule a home visit to
       determine your willingness to partner with us in completing your sweat
       equity and determine the condition of your current housing situation.
       Both of these factors are part of the selection criteria.
   5. After these visits, each applicant is reviewed by a selection committee of
       volunteers from our community. They will determine if a family fully
       qualifies. Each applicant will receive notification of their acceptance into
       the program or their denial.
This process takes about 2-3 months to complete.

Those accepted will:
   1. Be scheduled to come to the office to sign a Letter of Intent. This letter
       outlines the homeownership process and tells the homeowner what their
       responsibilities will be and what Habitat for Humanity will be expected to
   2. Start their 400 - 600 hours of sweat equity. This will include:
       a) Attending mandatory classes and workshops
       b) Putting in the required construction hours on their home or another
       family's home
       c) Working at the Habitat ReStore
       Start a savings account that will help them save the closing costs and first
       year's taxes and insurance.
   3. Participate in fundraising events to help raise the funds needed to build
       their home.
This process takes 12-18 months, or longer, to complete.

                                    Page 31 of 59

Homeowners Name:

Date   Worker's Name    Activity/ Location        Sign-In    Sign- Out   Total   Habitat Rep. Signature

                                             Page 32 of 59
                        BAHFH SWEAT EQUITY TIMESHEET FOR DONATED                             HOURS
Homeowner Name:                                                         Month:

Donated hours at the construction
                                                    Activity/           Sign-    Sign-   Total
Date                                Worker's Name   Location            In       Out     Hours Habitat Rep. Signature

                                                        Page 33 of 59
                                         LETTER of INTENT
                                         Between BAHFH and

Dear xxxx

You have been selected by Bend Area Habitat for Humanity (BAHFH) as a potential home
Purchaser. The purpose of this Letter of Intent (this “Letter”) is to outline the general terms
and conditions under which BAHFH, an Oregon nonprofit corporation will offer
xxxx (“The Purchaser”) the opportunity to purchase a Habitat Home. BAHFH and The
Purchaser recognize that the transaction contemplated by this Letter will require further
documentation and approvals, including, without limitation,
       (i)         The execution of a Purchase Agreement, to be reviewed and signed 45-60
                   days prior to sale of home, officially assigning a property and lot to the
       (ii)        A Truth In Lending Statement outlining all costs both immediately and
                   over the term of the mortgage agreement
Nevertheless, this Letter contains the parties’ nonbinding expression of interest concerning
BAHFH’s current intention to offer The Purchaser the opportunity to purchase a home.

1. Purchase of Home. Subject to the terms and conditions contained in this Letter, Habitat
currently intends to offer The Purchaser a home within the city limits of Bend, OR.

        1.1 Financing of the Home: This home will be financed through one of several options,
        all favorable to any other financing available to the public:
                (i) Habitat financed fully at 0%
                (ii) Financed fully or partially through a third party lender at a very low
                interest rate, typically 1-2% depending on affordability.

        1.2 Type of Homes offered through Habitat for Humanity: The home that you will be
        offered may be either:
                (i)    a reconditioned home previously owned by a Habitat partner family,
                (ii)   A rehabilitated home that BAHFH acquires on the open market
                (iii)  A newly constructed HFH home.

        1.3 Timing of Sale - Habitat will work to place you in a home as quickly as possible, as
        homes/building lots become available. We hope to sell you a home within 12-18
        months, but this could take longer and other families will inevitably move into homes
        before you.

        1.4 Assignment of a Home: A home will also be assigned for you based on a payment
        which best fits your income level and the size of your family. If you chose NOT to
        accept a home that is offered to you, then the obligation expressed by this Letter of
        Intent will most likely become null and void.

2. Conditions to BAHFH’s Sale of the Home. In addition to any other condition BAHFH may
impose from time to time, The Purchaser agrees and acknowledges that BAHFH’s willingness

                                          Page 34 of 59
to provide The Purchaser the opportunity to purchase the home is contingent on The
Purchaser satisfying the following requirements:

         2.1 Sweat Equity. Commencing on The Purchaser’s execution of this Letter, The
Purchaser will contribute a minimum of 400 sweat equity hours toward the purchase of a
Habitat home. Sweat equity is volunteer labor and will be comprised of work on the
construction site, ReStore and other BAHFH projects. The sweat equity hour requirement
must be fulfilled by The Purchaser and The Purchasers’ immediate family members (spouse
or partner and/or children). However, up to, but not more than 100 hours may be completed
by The Purchasers’ extended family or friends. The Purchaser agrees and acknowledges that
The Purchaser (the immediate family members, extended family or friends) will not be
compensated for any volunteer labor provided to BAHFH, even if The Purchaser is never
given the opportunity to purchase a home. Prior to commencing any volunteer activities,
The Purchaser and all family members and friends must sign and return BAHFH’s Volunteer
Waiver and Release form. The Purchaser’s completion of the sweat equity hours described in
this section, will be deemed to impose such obligation or liability. No agreement will be
binding unless and until each party has executed and delivered the Purchase Agreements
(which will incorporate all the terms, conditions, and obligations of the parties). The legal
rights and obligations of each party will be only those that are set forth in the Purchase
Agreements. Not meeting these compliance standards can be cause for terminated our

         2.2 Attendance at BAHFH required classes/workshops, etc. BAHFH will offer or
arrange for The Purchaser to attend certain classes and workshops related to tool safety,
homeownership, home maintenance, budgeting, etc. BAHFH class/workshop participation
hours may be used toward the sweat equity requirement described in Section 2.1. Additional
classes and workshops may be considered toward the sweat equity requirement with prior
approval by BAHFH. NeighborImpact’s homeownership and Financial Fitness classes (5
classes) and a series of budgeting classes arranged by BAHFH must be completed before
purchasing a Habitat home. Not meeting these compliance standards can be cause for
terminated our agreement.

        2.3 Savings Program. Within 30 days of The Purchasers’ execution of this Letter,
The Purchaser will enroll in a BAHFH approved savings plan. BAHFH and The Purchasers
will agree upon an amount to be deposited monthly and term of the savings program.
BAHFH will periodically assess the compliance to this savings plan and determine if the
family is meeting the requirements to have suitable funds available at closing. Not meeting
these compliance standards can be cause for terminated our agreement.

       2.4 Financial Qualifications.     Prior to The Purchasers’ execution of this Letter,
The Purchaser met certain financial qualifications necessary to permit The Purchaser to have
the opportunity to purchase a home. The Purchaser agrees and acknowledges that
       (i) The Purchaser must submit to a financial review prior to the anticipated
       (ii) The Purchaser must maintain a stable work history and sufficient income to
       make monthly installments on The Purchaser’s Note, and
       (iii) The Purchaser may not accumulate debt above the amount accepted at the
       time of application without approval from BAHFH. A credit check will be run
       prior to the home purchase to substantiate that The Purchaser ’s credit status

                                         Page 35 of 59
        and financial situation has not had any materially negative changes since
        execution of this Letter.

        2.5 Purchase Documents. The Purchaser executing or entering into certain
instruments or agreements that BAHFH may require from time to time, including without
        (i) a Trust Deed and Security Agreement,
        (ii) an Option to Purchase,
        (iii) promissory notes (collectively, the “Note”), and
        (iv) any other instruments or documents that BAHFH may require.

3. Monthly Installments. The Purchasers agree and acknowledges that, in addition to the
payment of monthly installments under the Note, The Purchaser will be responsible for the
payment of:
       (i) certain property taxes,
       (ii) Homeowners insurance,
       (iii) homeowner’s association dues (if applicable),
       (iv) mortgage servicing charges.

4. Covenants, Conditions, and Restrictions. The Purchaser agrees and acknowledges that the
home will be purchased subject to certain liens and encumbrances, including, without
limitation, covenants, conditions, and restrictions (and a condominium declaration, if
applicable). The covenants, conditions and restrictions are designed to enhance and protect
the value and desirability of the home. According to the terms of the covenants, conditions,
and restrictions, The Purchaser will be required to, among other things:
        (i) maintain the home and surrounding landscaping in a neat, orderly, and
        inoffensive manner,
        (ii) have no more than one dog or cat and that pet cannot exceed 50 lbs. weight.
        All pets must obey local leash laws and be restrained in their yards by a fence or
        a humane restraint system,
        (iii) not conduct any illegal activities in the home or on the property.
        (iv) no building or any part thereof shall be used for any commercial purpose,
        provided that home occupations permitted in accordance with the City of Bend
        ordinances (such as home office or art studio) may be allowed, provided that such
        home occupation does not generate significant pedestrian or vehicular traffic.
        (v)no obnoxious, noxious, or offensive activity shall be carried on upon any lot, nor
        shall anything be done thereon which may reasonably become an annoyance or
        nuisance to other persons in the subdivision. Parking of machinery, equipment, motor
        homes, trailers, recreational vehicles, or other heavy duty equipment on the street or
        private road within a development shall be deemed a nuisance. No inoperable motor
        vehicles, vehicles in disrepair or not currently licensed, trailers or similar items shall
        be stored on the property.
        (vi)The exterior features of the home must be maintained in working condition and
        the cosmetic nature of the exterior features must be kept up to the expectations of the
        development. Any repair or maintenance that requires a permit from the City of
        Bend must be performed by a mutually acceptable licensed, bonded contractor. Any
        exception requires prior approval from the Bend Area Habitat for Humanity Board of
        Directors. The home must be kept sanitary without offensive odors due to improper
        trash disposal or unhealthy animal waste maintenance. All working equipment, (i.e

                                           Page 36 of 59
        cabinets, doors, electrical fixtures, plumbing, etc…) must be maintained in proper
        working order.

5. Use for Residential Purposes. The Home will be used for residential purposes only and no
trade or business of any kind may be conducted in or on any part of the Home. Only The
Purchasers and The Purchasers’ immediate family members may live in the Home. Lease or
rental of all or any portion of the Home, whether or not for residential purposes, is prohibited.

6. Application for Partnership. BAHFH’s willingness to consider The Purchaser as a
potential buyer of a home was based on the information contained and provided by The
Purchasers in The Purchasers’ application. The Purchaser agrees and acknowledges that if
BAHFH determines that any information contained in The Purchasers’ application was
materially inaccurate, or if there is a materially negative change in The Purchasers’ financial
situation (e.g., loss of employment, additional debt), The Purchasers may not receive any
further consideration as a prospective the Purchasers of the Home. The Purchaser agrees to
provide BAHFH both written and verbal notice prior to a change in The Purchaser’s
financial situation which would increase The Purchasers’ total debt by more than $500.00 .

7. Home Completion Date. If constructed, the Home will be built, in large part, with
volunteer labor and materials. Accordingly, although BAHFH will make a reasonable effort
to construct and complete the Home in accordance with its plans and timeline, BAHFH does
not guaranty that the Home will be build, or if built, built according to its plans and timeline.

8. Home Variation due to donations: Bend Area Habitat for Humanity receives both financial
and in-kind donations when raising support for the building of your home. Occasionally these
donations will result in one home having a different quality item installed than another house
may contain. Families must recognize that we built simple, quality, affordable homes and
every item in every home is a quality item. However, an individual house may have an
upgraded item due to the donors desire to showcase their craftsmanship.

9. Grants and other financing options: In order to reduce the price of your home, Bend Area
Habitat for Humanity may enter into contractual agreements with grantors and lenders, and
these agreements will be assigned to you, at the purchase and sale. These contractual
agreements which will be assigned to you, as the Purchaser, could necessitate that you pay
back a number of large loan amounts, if we exercise our option to purchase the home back, or
if you sell the home for a profit, during the retention period.

10. Trust for Affordable Housing. BAHFH may consider entering into an agreement with a
Trust for Affordable Housing. If this occurs, the underlying land upon which the Home is
situated will be held in trust for BAHFH. The Purchaser will lease the land from the trust
but will purchase those improvements constructed upon the land. The land will be held in
trust for 99 years, at which time The Purchasers’ lease on the land may be renewed, if desired.

11. Investigation.     The Purchaser has had an opportunity to ask questions and receive
answers concerning BAHFH and the terms and conditions under which The Purchaser may
be provided the opportunity to purchase a home. The Purchaser has received all the
information that The Purchaser believes is necessary or desirable in connection with The
Purchasers’ decision to further investigate The Purchasers’ purchase of a home and to sign
this Letter.

                                          Page 37 of 59
12. Miscellaneous. This Letter may be terminated by either party by providing the other
written notice. Neither this Letter nor any of the parties’ rights, interests, or obligations
under this Letter may be assigned by any party without the prior written consent of the other
party. This Letter is intended to be a confirmation of interest between The Purchaser and
BAHFH and does not constitute a binding agreement between the parties hereto. Neither
party intends, by setting forth in this Letter the provisions of BAHFH’s willingness to
consider The Purchaser as a buyer of a Home, to create for itself or any other person, any
legally binding obligation or liability. No subsequent oral agreement or conduct of the
parties, including, without limitation, partial performance or Purchasers’ completion of sweat
equity hours described in Section 2.1, will be deemed to impose such obligation or liability.
No agreement will be binding unless and until each party has executed and delivered the
Purchase Agreement (which will incorporate all the terms, conditions, and obligations of the
parties). The legal rights and obligations of each party will be only those that are set forth in
the Purchase Agreements.

BAHFH is about people working together, helping families purchase an affordable home, and
supporting those families in all possible ways. In turn, the families are expected to live up to
their responsibilities as a BAHFH homeowner, and to provide long-term support for the
Habitat ministry. If you understand and agree with the terms and conditions contained in
this Letter and wish to proceed with the potential purchase of a BAHFH home, please sign
this Letter where indicated.

Very truly yours,

Mark Quinlan, Executive Director

Accepted and agreed by:

______________________________                  _____________________________
Signature                                               Signature
______________________________                  _____________________________
(print name)                                            (print name)
Dated: ________________________                  Dated: ______________________

                                          Page 38 of 59
                           Debt to Income ratio Information

A debt-to-income ratio (often abbreviated DTI) is the percentage of a consumer's
monthly gross income that goes toward paying debts. (Speaking precisely, DTIs
often cover more than just debts; they can include certain taxes, fees, and
insurance premiums as well. Nevertheless, the term is a set phrase that serves as
a convenient, well-understood shorthand.) There are two main kinds of DTI, as
discussed below.

Two main kinds of DTI
The two main kinds of DTI are expressed as a pair using the notation x/y (for
example, 28/36).
    1. The first DTI, known as the front-end ratio, indicates the percentage of
       income that goes toward housing costs, which for renters is the rent
       amount and for homeowners is PITI (mortgage principal and interest,
       mortgage insurance premium [when applicable], hazard insurance
       premium, property taxes, and homeowners' association dues [when
    2. The second DTI, known as the back-end ratio, indicates the percentage of
       income that goes toward paying all recurring debt payments, including
       those covered by the first DTI, and other debts such as credit card
       payments, car loan payments, student loan payments, child support
       payments, alimony payments, and legal judgments.[1]
In order to qualify for a mortgage for which the lender requires a debt-to-income
ratio of 28/36:
    • Yearly Gross Income = $45,000 / Divided by 12 = $3,750 per month income.
           o $3,750 Monthly Income x .28 = $1,050 allowed for housing expense.
           o $3,750 Monthly Income x .36 = $1,350 allowed for housing expense
               plus recurring debt.

What DTI limits are used in qualifying borrowers?
In the United States the Current limits include
Conforming loans
In the U.S., for conforming loans, the following limits are currently typical:
    • Conventional financing limits are typically 28/36.
    • FHA limits are typically 31/43.
    • VA limits are only calculated with one DTI of 41. (This is effectively equal
       to 41/41, although VA does not use that notation.)
    • USDA 29/41

                                    Page 39 of 59
Nonconforming loans
Back ratio limits up to 55 have become common in recent years for
nonconforming loans. The recent spate of defaults by subprime borrowers may
produce a market correction that revises these limits downward again. However,
how large the adjustment remains to be seen.

Historical limits
The business of lending and borrowing money has evolved qualitatively in the
post-World-War-II era. It was not until that era that the FHA and the VA
(through the G.I. Bill) led the creation of a mass market in 30-year, fixed-rate,
amortized mortgages. It was not until the 1970s that the average working person
carried credit card balances. Thus the typical DTI limit in use in the 1970s was
PITI<25%, with no codified limit for the second DTI ratio (the one including
credit cards). In other words, in today's notation, it could be expressed as 25/25,
or perhaps more accurately, 25/NA, with the NA limit left to the discretion of
lenders on a case-by-case basis. In the following decades these limits gradually
climbed higher, and the second limit was codified (coinciding with the evolution
of modern credit scoring), as lenders determined empirically how much risk was
profitable. This empirical process continues today.

                                    Page 40 of 59
                      What Does Pay Yourself First Mean?

A phrase commonly used in personal finance and retirement planning literature
that means to automatically route your specified savings contribution from each
paycheck at the time it is received.

Because the savings contributions are automatically routed from each paycheck
to your investment account, this process is said to be "paying yourself first"; in
other words, paying yourself before you begin paying your monthly living
expenses and making discretionary purchases.

This simple system is touted by many personal finance professionals and
retirement planners as a very effective way of ensuring that individuals continue
to make their chosen savings contributions month after month. It removes the
temptation to skip a given month's contribution and the risk that funds will be
spent before the contribution has been made.

Regular, consistent savings contributions go a long way toward building a long-
term nest egg, and some financial professionals even go so far as to call "pay
yourself first" the golden rule of personal finance.

                    Article on “Borrow From Yourself First”

How to Get Unstuck From Debt …Short of not getting into it to begin with,
here's a way to manage your business debt.
By: Chia-Li Chien | 12/29/2009

I recently met a successful woman business owner I'll call Anna. Anna has been
in business about 20 years and has weathered the economy's ups and downs. But
nothing she's seen before equals the problems facing businesses like hers today.
Ann has bid on jobs for state and federal governments and for private
companies, with little to show for it. Even the bid she won will only serve to keep
the business going. When Anna came to me, she felt stuck, unorganized and

                                     Page 41 of 59
Anna is not alone. Many of my clients and business colleagues feel as though
they've hit the wall. In most cases, their top priority is short-term working capital
or some type of short-term loan. This will help them fill the gap until they get
paid for completed work, or they need the capital to innovate their product.
They're stuck because they can't move one way or the other.

When it comes to finding money in today's banking environment, feeling stuck is
a common complaint. Financing simply isn't easily available.

My best advice: "If you don't need to borrow money, don't!" Call me old-fashioned
and conservative, but I really don't want my company to be in debt. Nor do I
want a lender or investor to interfere with how I run my business.

But if you have no choice, you want to get the best deal you can work out. So
before you jump into a relationship with an alternative financing firm, consider
the following questions:

   1. What is the purpose of the money you borrow? Is it working capital,
      capital investment or a line of credit to purchase necessary inventory?
   2. What is the cost or interest you're willing to pay? Is it 5 percent, 18
      percent, 40 percent or even a portion of your company?
   3. How long do you need the money? When can you begin to pay back both
      interest and principal?
   4. What is the payback or return on investment? This is the most important
      question to answer.

The rule of thumb in the sequence of borrowing is to borrow from yourself first,
before reaching out to third-party lenders. Consider the following borrowing

   1. Your business or personal cash, savings, checking or CD in the bank.
   2. Non-qualified or non-retirement accounts such as brokerage accounts,
      fixed or variable annuities and life insurance with cash value. For
      example, you can pledge a variable annuity up to a percentage of the
      contract value as collateral.
   3. Qualified retirement accounts such as a 401(k) or IRA--but watch out for
      current tax liabilities and penalties if you're younger than 59½.
   4. A home equity line, if you have enough equity in your home to refinance.

                                     Page 42 of 59
   5. Business line of credit--if you still have it, keep it up.
   6. Business or personal credit cards--18 percent and up

One of my clients had over-leveraged many years ago before working with me.
He asked me recently, "How do I get out of this debt cycle?" The short answer is,
"Don't get into it in the first place." But if you really need that short-term loan,
ask your CPA, attorney, business advisors, financial advisors or even business
colleagues if they can help you find at least three firms to interview. That way
you can compare the cost for each and pick the right one for you. The bottom line
is that your net profit will be eaten up by the cost of the capital. You need to find
a way to pay the loan back in a short time.

Other creative ways include looking for grants. That's what my client Joan did. I
introduced her in the column, "Successful Entrepreneurs Reconceptualize." She
found a company to help her write a grant and shop it to agencies and
organizations. She got her $100,000 grant to write software for her business.

Most CPAs will advise you to take all the net profit out of the company after the
tax season. They say that for a good reason, because you already paid the taxes.
However, I have my own philosophy--have your own banking system. Yes, I
take all the net profit out of my company, but I keep it separate for a rainy day.
My company does not have a line of credit, and I don't want one. If I need to
borrow the money from my own banking system, yes, I pay it back. Many of my
clients are doing the same.

The bottom line about "feeling stuck" is that money is not the root cause, it's a
symptom. Take a look at your business model and ask yourself why you are
where you are today. If you don't want to get to this point again, re-
conceptualize your business, as I advised in my column, "Now's the Time for

                                      Page 43 of 59
                       The Total Cost of Borrowing Money
                Published September 14, 2009 by: Christina Pomoni

In a free economy, the interaction between those who can supply funds and
those who need to borrow money determines the cost of money, which is, in
effect, the rate borrowers pay to lenders. For debt, this rate is called interest rate.
For equity, it is called cost of equity and consists of the dividends and the capital
gains that shareholders expect.

The cost of money is affected by five fundamental factors that influence the rate
at which one can borrow on a certain period. In particular:

Production Opportunities
Production opportunities are related with the capacity to turn capital into
benefits. For instance, if a company raises capital, the expected rates of return on
its production opportunities will determine the expected benefits. If a student
borrows money to finance his/her education, the expected benefits are
determined by expected higher salaries from future employment. Therefore, the
production opportunities are subject to different expected benefits that
determine the upper limit on how much borrowers pay to lenders.

Timing of Consumption
Lenders can use their current funds for consumption or saving depending on
their expectations. If they expect that future consumption will be higher, they
prefer saving today and give up today's consumption. If they have a strong
preference for immediate consumption, it means that they expect that today's
interest rates are higher than future interest rates and therefore, they prefer
trading current consumption for future consumption.

If the expected rate of return on an investment is high, it means that the
investment is risky and that investors need to take an extra risk in order to enjoy
an extra return. This increases the cost of money.

                                      Page 44 of 59
Inflation is another factor that affects the cost of money. For instance, if an
investor earns 10 percent on an investment, but inflation causes prices to increase
by 20 percent, it means that the investor cannot consume as much as he/she
could when the money was originally invested. If expectations were for an
inflation rate of 20 percent, then the expected rate of return would also be higher
than 10 percent.

Interest Rates
There is a price for each type of capital and these prices change according to
supply and demand shift. For instance, short-term interest rates typically rise
during market booms and decline during market recessions. This is explained as
follows: when the economy is expanding and firms need capital, interest rates
increase; when economy is shrinking and firms reduce the demand for credit,
interest rates drop.

The interest paid on borrowed assets may be simple, which is calculated on the
principal amount or compounded, which is calculated after unpaid interest is
added to the balance due. Generally, the nominal interest rate (r) is determined
by the risk-free rate (r*), which the rate that would exist on an inflation-free
security plus the inflation premium (IP) that, in effect, wears down the
purchasing power of consumers and lowers the real rate of return of
investments. However, there are also other premiums that affect the interest rate
levels such as the default risk premium (DRP) that reflects the possibility that the
borrower defaults on debt, the liquidity premium (LP) that reflects the possibility
that some securities cannot be liquidated at a reasonable price and the maturity
risk premium (MRP) that reflects the fact that some bonds are exposed to a
significant risk of price drops.

Overall, the total cost of borrowing money is subject to many factors and not just
the interest rate. A variety of monetary and non-monetary costs are involved in
the process and should be taken into consideration for determining the real cost
of borrowing.

                                     Page 45 of 59
                                                                      12-Month Spending Plan/Budget

              Month 1       Month 2       Month 3       Month 4        Month 5       Month 6        Month 7       Month 8       Month 9       Month 10      Month 11      Month 12

              budg   actu   budg   actu   budg   actu   budg   actu   budg   actu    budg   actu    budg   actu   budg   actu   budg   actu   budg   actu   budg   actu   budg   actu
              et     al     et     al     et     al     et     al     et     al      et     al      et     al     et     al     et     al     et     al     et     al     et     al
roperty tax

Total          $             $             $             $             $              $              $             $             $             $             $             $
              -             -             -             -             -              -              -             -             -             -             -             -

meals out
cell phone

                                                                                    Page 46 of 59
dr. bills

Total          $         $         $         $         $          $              $         $         $         $         $         $
              -         -         -         -         -          -              -         -         -         -         -         -

Back to

Total          $    $    $    $    $    $    $    $    $    $     $      $       $    $    $    $    $    $    $    $    $    $    $    $
              -    -    -    -    -    -    -    -    -    -     -      -       -    -    -    -    -    -    -    -    -    -    -    -

Total          $         $         $         $         $          $              $         $         $         $         $         $
Monthly       -         -         -         -         -          -              -         -         -         -         -         -
Surplus/Def    $         $         $         $         $          $              $         $         $         $         $    $    $
icit          -         -         -         -         -          -              -         -         -         -         -    -    -

                                                                Page 47 of 59
                                   Goal Setting

Financial Goal Setting
Here are four steps you can apply to any financial goal setting exercise:

Step 1: Identify and write down your financial goals, whether they are saving to
send your kids to college or University, buying a new car, saving for a down
payment on a house, going on vacation, paying off credit card debt, or planning
for you and your spouse’s retirement.
Step 2: Break each financial goal down into several short-term (less than 1 year),
medium-term (1 to 3 years) and long-term (5 years or more) goals; which will
make this process easier.
Step 3: Educate yourself and do your research. Read Money magazine or a book
about investing, or surf the Internet's investment web sites.
Step 4: Evaluate your progress as often as needed. Review your progress
monthly, quarterly, or at any other interval you feel comfortable with, but at least
semi-annually, to determine if your program is working.

If you're not making a satisfactory amount of progress on a particular goal, re-
evaluate your approach and make changes as necessary.

Sometimes when people write down their goals, they discover that some of the
goals are too broad in meaning and nearly impossible to reach, while others may
seem smaller in scope and easier to achieve.

Break your goals down into three separate time categories. B y placing a time
frame on your goals you are motivating yourself to get started and helping to
allow you the chance to succeed. Just remember that you can adjust the time
frame whenever you want to.

Long-term goals (over 5 years) are those things that won't happen overnight, no
matter how hard you work to achieve them. They make take a long time to
accomplish (hence the reason they are called long term goals), so give yourself a
reasonable amount of time, that are based on your best estimates of what it will
take to achieve them.

Examples of long-term goals might include college education for a child,
retirement plan or purchasing a home. Whatever the case, these goals generally
require longer commitments and often more money in the end.

                                     Page 48 of 59
Intermediate-term goals (1-5 years) are the type of goals that can't be executed
overnight but might not take many years to accomplish. Examples might include
purchasing/replacing a car, getting an education or certification, or paying off
your debts like credit cards etc. (depending on the amount).

Short-term goals (within one year) generally take one year or less to achieve,
based on the date the task is needed, the total estimated cost, and the required

What are your goals? To find out, you need to make up a list, decide which
timeline your goal fits into, detail the steps necessary to achieve your goals, then
take action toward reaching those goals. It’s that simple.

You might be wondering where to start with your financial goal setting plan.
These are some basic tips to help you in making the best choices for you.
After looking at these tips, it is best for you to go out and do some research to
find the method(s) that suit you best.

• Begin by taking 5%-10% out of each pay check and put it in a savings account
• Look into different investment strategies such as IRA’s, stocks, RRSP’s, mutual
Funds, personal investments etc. There are many more and all can assist you in
short and long term goals.
• Start making a budget for yourself that leaves you with some extra money and
follow it
• Use your coupons; that is why they are there. It seems like small savings, but
add together you could save 20-30 dollars at each trip to the market
• Shop around for bargains
• Do not live outside of your means
• Work with a credit counselor to get help in lowering your monthly expenses
and get rid of your debt

These are just some of the things that you can do when beginning your financial
goal setting plan. The steps to setting goals successfully don’t change, only the
methods that you use to go about it. For example: when it is career wise, work to
get noticed; for relationships, work on maintaining your intimacy or getting it
back; in financial goal setting, work to save and invest money etc.

                                     Page 49 of 59
10 Tips for Personal Goal Setting

Does personal goal setting work? Many people want things, situations or
accomplishments, call these goals, and then are disappointed when they don't
get them. Call desires goals if you want, but just naming your desires sure isn't
effective goal setting. Good goals have some or all of the following:

1. They are specific. "I want to be healthy" is too general. "I want to lose weight
and walk three times a week," is better.
2. They are measurable. How many pounds do you want to lose? How much
money do you want to make? How will you know if your relationship is better?
3. They are in writing. There is power in writing down your goals. It makes them
more real, and this influences your subconscious mind, especially if you review
the goals regularly.
4. They are realistic. Sorry, but even if it is possible that you could become an
astronaut, if you're already 55, you better try for becoming a pilot for now.
Unrealistic goals set you up for failure.
5. They have deadlines. You'll have a new job by when? Setting dates really helps
your progress.
6. They become plans. Making a goal into specific steps makes it much more
likely. It isn't overwhelming to take one step at a time.
7. They are motivated. Having the goal for the right reasons is a good start. You
should also learn how to re-motivate yourself, and reward yourself when you
make progress.
8. They consider personal factors. Can you really get what you want if you feel
like you don't deserve it? Maybe, but good goal setting takes into account
personal changes that are necessary or useful.
9. They are followed by action. One of the keys to motivation and to getting
where you want to be is to start with any movement towards the goal. Action
begets action. Start slow if you must, but start.
10. They are not written in stone. Goals naturally evolve. Why would you
become a doctor once you learned that you liked doing lab work better?

The last one is a tough one. An excuse and a change of course are not the same
thing, but to know the difference means you need a certain level of self-
awareness. Develop that, apply the keys to personal goal setting above, and
you'll get to where you want to be.

                                     Page 50 of 59
                                                                         The Cost of Raising Children

Having a baby is one of life’s miracles. But in uncertain economic times, parents may think twice about having their first child, or expanding their existing
family. More and more Americans are facing food scarcity, unemployment’s up and the cost of a private, college tuition can top $40,000.

And, the costs of raising a child from infancy through age 17 are nearly a quarter of a million dollars, according to government data. For families with incomes
of under $60,000, having a baby can consume up to one fifth or more of their total pre-tax income.

Free online Calculators Give Costs of Raising a Child
A free online calculator, called the Cost of Raising a Child Calculator estimates how much a given American family will spend, on average, per child. Of
course, the sky's the limit if a family buys extravagant toys, goes on expensive trips, or elects for private school. The calculator can be used to project at
minimum what it might cost to have a one-, two- or three-child family.

For example,
                                                     Housing    Food     Transportation     Clothing   HealthCare      Child Care and Education            Other    Total

 Overall Estimated Costs (Household Type = Two
 Parents, Income = Less Than $56,650, and Region =

 Your Results                                          $7,120   $3,660             $2,490     $1,210          $1,190                              $1,860   $1,530    $19,060
 National Results                                      $5,920   $3,530             $2,280     $1,130          $1,290                              $1,970   $1,250    $17,370

                                                     Housing    Food     Transportation     Clothing   Health Care     Child Care and Education            Other    Total

 First Child`s Estimated Annual Costs . Age 9
                                                       $3,560   $1,960             $1,250       $610            $620                              $1,120     $760     $9,880

                                                     Housing    Food     Transportation     Clothing   Health Care     Child Care and Education            Other    Total

 Second Child`s Estimated Annual Costs . Age 7
                                                       $3,560   $1,700             $1,240       $600            $570                               $740      $770     $9,180

                                                                                      Page 51 of 59
Important legal information: This is an educational tool based on USDA`s Expenditures on Children by Families, most recent report. This tool is not a
recommendation to buy or invest in any particular product or security.

Housing expenses consist of shelter (mortgage payments, property taxes, or rent; maintenance and repairs; and insurance), utilities (gas, electricity, fuel,
cell/telephone, and water), and house furnishings and equipment (furniture, floor coverings, major appliances, and small appliances).

Food expenses consist of food and nonalcoholic beverages purchased at grocery, convenience, and specialty stores; dining at restaurants; and household
expenditures on school meals.

Transportation expenses consist of the monthly payments on vehicle loans, down payments, gasoline and motor oil, maintenance and repairs, insurance, and
public transportation (including airline fares).

Clothing expenses consist of children’s apparel such as diapers, shirts, pants, dresses, and suits; footwear; and clothing services such as dry cleaning,
alterations, and repair.

Health care expenses consist of medical and dental services not covered by insurance, prescription drugs and medical supplies not covered by insurance, and
health insurance premiums not paid by an employer or other organization. Medical services include those related to physical and mental health.

Child care and education expenses consist of day care tuition and supplies; baby-sitting; and elementary and high school tuition, books, fees, and supplies.
Books, fees, and supplies may be for private or public schools. The average child care and education expenses used in the Calculator are based on families who
have these expenses. If you do not have these expenses, expenditures on a child should be adjusted to account for this.

Miscellaneous expenses consist of personal care items (haircuts, toothbrushes, etc.), entertainment (portable media players, sports equipment, televisions,
computers, etc.), and reading materials (nonschool books, magazines, etc.).

                                    For More information visit:

                                                                           Page 52 of 59
                            Matched Savings Programs and Accounts

NeighborImpact Individual Development Account (IDA):

Are you trying to save money to purchase a home or create or expand your own business?
NeighborImpact, Central Oregon’s only HUD-certified counseling center, administers a unique
savings program that matches the dollars you save with state funds to help you attain your goal.

Why Should I Participate?
  • For every $1 you save, you receive a match of $3 additional dollars.
  • If you save the maximum matched savings amount of $2,000 of your own money during the
     course of the program you will receive $6,000 of matching funds to be used for your savings
     plan goal.
  • The IDA program can help you accelerate the timeline for achieving your goal of
     homeownership or business development/expansion.
  • By attending the required classes related to your savings plan, you will be better prepared
     for the challenges associated with homeownership and running a business.

How Does the Program Work?
  • NeighborImpact has limited slots available to offer individuals who want to participate in
     the matched savings program.
  • Interested parties must fill out an application and meet with a NeighborImpact counselor
     to determine if they are qualified for the program (see program requirements below).
  • NeighborImpact will take applications for the IDA program until all slots are filled.

What are the Program Requirements?
  • You must earn 80% or less than area median income for your household size and have a net
      worth of less than $20,000. (Net worth equals the value of what you own minus the value of
      what you owe. The value of your home and one vehicle is excluded from the total of what
      you own).
  • You must complete homebuyer education, financial fitness and other appropriate classes as
      determined by the goal you set out in your savings plan.
  • You must save a set minimum amount of your own money every month.
  • You must participate in the program for a minimum of six months and a maximum of three
  • You must live in Deschutes, Jefferson or Crook County to participate in NeighborImpact’s
      IDA program.
  • You must use your savings dollars for the stated purpose indicated in your savings plan.

                                            Page 53 of 59
Housing Works Self-Sufficiency Program                 From Website:
Promoting employment that will lead to economic independence and self sufficiency, the Family
Self-Sufficiency (FSS) program focuses on the family’s determination, motivation, written goals,
and their decision to make a change.

Families participating in the Housing Choice Voucher program voluntarily enter into a
partnership with Housing Works. They work with community service agencies, schools,
businesses, and other local partners to develop an action plan to achieve their personal goals. The
action plan guides the participating FSS family members in acquiring the knowledge, skills and
experience they need to enable them to obtain employment that pays a living wage.

Our staff, administration, and Board of Commissioners salute FSS graduates and current program
participants. Through their hard work and commitment to reach their goals, these individuals
have and will reach their goals. We are privileged to be involved in their success.

Is Family Self-Sufficiency for you?
If you answer “yes” to any of these questions, the FSS program may be for you!
* Do you want to change your life for the better, but you’re not sure where to get the help you
* Do you have a goal or dream you want to achieve?
* Are you ready, able, and willing to work?
* Do you want to increase your income?
* Would you like to build assets to make your dream come true?

How to Join the Family
The Family Self-Sufficiency program can help you get there. If you want to earn more income,
become independent of the Housing Choice Voucher program and other assistance, FSS can assist
you with:
* Setting goals
* Job search or job training
* Establishing a savings account (without depositing money!)
* Repairing bad credit
* Preparing to buy your own home
* And much, much more!

For more information on the Family Self-Sufficiency Program and how to become a participant,
download the file above, or call our Resident Services Manager at 541-923-1018.

                                             Page 54 of 59
                                     Create a Personal Networking Plan
                                             By Wendy S. Enelow

Creating a structured plan and process is vital to any successful venture, whether launching a new
business, orchestrating an organizational turnaround or managing your job search networking campaign. It
is critical that you clearly identify your network contacts, develop a personalized networking plan and
build an administrative process to manage it all.

Before starting to create a two-tiered networking system, remember the most important concept underlying
the networking process: Ask your network contacts for their help, not for a job. People are delighted to
help, but few will have jobs to offer you.

Tier-One Contacts

These are the hottest prospects and people you know best -- other executives and senior managers, current
and past colleagues and managers, vendors, consultants, recruiters with whom you have an established
relationship, bankers and venture capitalists.

Process: Your initial contact will likely be via phone -- a quick call announcing you're in the job market and
would appreciate advice, assistance, recommendations or referrals.

Follow-Up One: At the end of each conversation, tell your contacts you'd like to send them a resume to
have on file and ask if they prefer mail, fax or email. Immediately forward your resume with a brief,
friendly cover letter, thanking them for any help they can offer and mentioning the positions and industries
in which you are interested.

Follow-Up Two: If you have not heard back from contacts within three weeks, call and inquire if they've
reviewed your resume and if they have any recommendations.

Tier-Two Contacts

These are people you know casually. This list will largely fall into the same categories as the tier-one
contacts, but you do not know these individuals as well. They may include commercial Realtors and
developers, local newspaper publishers, attorneys, accountants, investors, Chamber of Commerce directors,
state licensing personnel and others who know what's happening within a particular business community
or have clients who may be interested in your talent.

Process: Your initial contact will most likely be 50 percent by phone and 50 percent by mail or email,
depending on how comfortable you are in these relationships and how easy it is to connect with each
individual. Whenever possible, it's best if the initial contact is a phone call, allowing you to establish a more
personal relationship. However, if that's not possible, mail or email is fine. Your conversation will be more
formal than with your tier-one contacts, but your objective is the same -- to quickly communicate that
you're in the job market and would appreciate their help.

                                                   Page 55 of 59
Follow-Up One: If you've called a contact, follow up immediately by sending a resume. If you've mailed or
emailed a contact, include your resume. Also forward a cover letter including the positions and industries
in which you are interested and several of your most notable achievements.

Follow-Up Two: If you have not heard back from contacts within three weeks, call or email them and
inquire if they've reviewed your resume and if they have any recommendations.

Managing the Process

Once you've developed your list of contacts and determined how to connect with each individual, set up a
paperwork system to track all your calls, contacts and follow-up commitments. Referred to as your
networking management system, it can be PC-based, on paper or a combination of both.

Here's a tried-and-true, if not old-school, method: Create a 3-inch by 5-inch index card for each contact,
noting how the contact was made, what information you provided, any follow-up commitments you've
scheduled and the person's complete contact information. If you hear back from a specific contact, set up a
page in your active-lead three-ring binder where you record all communications, referrals and actions
related to that contact. Obviously, this system can easily be adapted for your PC using Access or any
contact management system.

Be forewarned: No matter how sharp your memory, if you do not keep track of your networking campaign,
you will get lost in the process, forget important commitments and potentially lose great opportunities.

                                 Seven Tips for Social Networking Online
                                            By Allan Hoffman

Just when you've mastered the art of handing out your business card, along comes another way to make
connections -- social networking online.

Social networking sites help you make connections for business, dating or personal interests. Specifics vary,
but they generally work as follows:
• A friend or contact invites you to join the service. You may also join by visiting the site and signing up
    on your own.
• You create a profile describing yourself and your interests.
• You connect to your friend's or colleague's network and then expand your own network via message
    boards, blogs and connecting to members with similar interests.

By joining via an invitation from someone you know -- someone with interests similar to yours -- you could
easily be connected to a network of hundreds of people within seconds. An easy way to find job leads,
right? Well, not so fast.

                                                 Page 56 of 59
Avoid These Social Networking Gaffes
As you would expect, newfangled ways to network also mean plenty of chances for faux pas and breaches
of etiquette. To help you navigate the new world of social networking, heed these seven tips:
• Choose Your Flavor: Don't jump at every offer to join a social networking service. Some focus on
    dating, while others are devoted to professional interests. Many mix business and pleasure: One
    moment you may marvel at a newfound friend's taste in tunes; the next you realize she works at the
    company of your dreams. But you probably don't want to devote your time making contacts with 20-
    something music fans when you're a 50-something sales exec with no interest in post-ABBA bands.
• Understand Site Culture and Rules: Social networking sites can be like high school, with arcane social
    customs and rules. Before contacting the colleagues of the friend who invited you to the site, get to
    know the site's culture. A casual email introduction may suffice at one site but could peg you as gauche
    -- or worse -- at another.
• Hone Your Profile: Even social networking spots devoted to fun over work can lead to career
    connections. Make sure your profile doesn't include anything you wouldn't want a would-be boss to
    see. This is especially true if you are using a site primarily for professional purposes. Potential
    employers may find your online profile and make judgment calls based on what they find. Keep this in
    mind and tailor your profiles based on what you would want potential employers to see.
• Don't Be Pushy: Many members of social networking groups have had bad experiences with pushy
    types. "Be sensitive to individuals' networks," says Jenna Gausman, a career counselor with Kerwin and
    Associates. "Do not be overly aggressive in trying to 'get in' with someone's network. Someone who is
    too persistent can be annoying and actually will damage their own reputation if they try too hard."
• Do What You Say You Will: To preserve your reputation, keep your promises when offering to
    facilitate a personal introduction or find a phone number. "You must follow through," says Gausman.
    And if you express interest in another individual's help, be sure to follow up on the person's assistance.
    "They are giving up a piece of their network, and their reputation is now on the line, so to speak,"
    Gausman says. "At least reach out to that person."
• Prepare for Face-to-Face Introductions: Just because your network is developed online doesn't mean
    relationships stay there. Social networking sites often connect people offline through individual
    meetings or group events. Just remember: A face-to-face meeting requires you to respond without the
    time afforded by email to craft your message. Know what you want from a meeting. Career coach Lynn
    Berger recommends a brief, prepared introduction for group events. "This way, the individual does not
    fumble around and miss the opportunity to make a good impression," she says.
• Help Yourself by Helping Others: Networking is reciprocal, so do unto others as you'd want done to
    you. If you're able to help people, they'll be more likely to remember you and return the favor.

                  It might be helpful to know the types of online social networks, too…

Online Communities
Friendster, MySpace, Facebook, Downelink, and Ryze are the most popular online communities.

                                                  Page 57 of 59
Ryze: The first of the online social networking sites, Adrian Scotts founded Rzye as a business-
oriented online community in 2001. Business people can expand their business networks by
meeting new people and join business groups, called Networks, through industries, interests, and
geographic areas.

Friendster: Friendster, made by Jonathan Abrams (a former Ryze member) in Mountain View, CA,
emphasized sociologist Stanley Milgram's concept of six-degree separation, whcih stated that
everyone is connected to any person by six-degrees or less. There are no exact numbers indicating
the number of members on Friendster, but an information page showed more than 20 million
members; however, the more popular number used is the one by the press at 2 million members.
When first started in 2002, Friendster was beta-tested. This caused a slowdown of the user's
computers; Friendster then switched to PHP in July 2004.

Some features include a blog service that was implemented in February 2005, photo albums, and
Friendster just recently included the profile tracking feature (allows you to see who has viewed
your profile) in October 2005.

MySpace: had already been running as a virtual drive service until it was shut down
years before 2003 due to the dot-com bubble burst. In July 2003, Mypace was then founded by Tom
Anderson. It currently has 41.5 million users. Many mainstream music bands have promotion

Some features of Myspace include HTML, CSS, videos, and Flash Animations as well as those
shared by Friendster.

Facebook: In February 2004, Mark Zuckerberg along with a small team of programmers founded
The Facebook at Harvard College. This was first introduced to students, alumni, faculty, and staff
at only the top universities, and eventually expanded to smaller colleges, community collegs, and
even twenty-one universities in Britain. On September 2, 2005, The Facebook was etended to High
Schools; however, high schoolers are not allowed to browse college student webpages. As of
October 2005, The Facebook includes 1530 institutions with over 4 million users. Without a valid
school e-mail, however, one would

Some features include your own profile, friends, groups, messages, wall, advertising, and a new
feature, My Photos, that was added on October 7, 2005.

Downelink: Downelink is "the gay Friendster" as many call it. This website was founded in 2004
for the lesbian, gay, bisexual, and transgender community.

Some features include social networking, weblogs, internal emails, a bulletin board, DowneLife
and in the future, a chat.

                                            Page 58 of 59
I n sta n t M e ssa g in g

ICQ: ICQ ("I seek you") was the first Internet-wide instant messaging program, created by the
Israeli startup company Mirabilis in November 2006. In 1998, ICQ was bought by AOL for $287
million in cash. By June 2004, there was over 300 million users. ICQ Lite upgraded to a new
version, ICQ 5, on February 7, 2005, targeted at a more younger market, offering games and other

AOL Instant Messenger: Created by AOL in October 1997, AOL Instant Messenger (AIM) has
reached 195 million users worldwide as of January 2003. Since 1997, there has been many new
versions; each version with new features, such as text messaging, chatroom messaging, share files
peer-to-peer, and play games with one another.
AOL also has another version, AIM Express, for people who cannot sign onto AIM or download
AIM otherwise onto their computers. It is run DHTML on a web browser. It serves the same
purpose as AIM, but with limited features.

MSN Messenger: Microsoft's MSN Messenger 1 was first released on July 22, 1999 with the most
basic features - plain text messaging and buddy contacts list. Many more versions followed,
expanding the features to voice conversations, webcams, full screen audio video conversations,
transferring files, and built in multi-user games. On October 13, 2005, Yahoo! Instant Messenger
teamed up with MSN to form the second most used instant messaging program (40% of all users),
as opposed to AIM's 50%.

                                  What about Support Groups

Sometimes we don’t even know the questions to ask and/or the support that is all around us in our
community? Begin a conversation with yourself about your needs and desires…
   • Are you a single mom?
   • Do you want to exchange recipes?
   • Would you benefit from joining a local support group?
Do you want to start your own group for employment transitions?

                                            Page 59 of 59

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