Sample Letter of Intent for Nonprofits

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					        A               B                        C                          D                            E                             F                G                         H

  2                                                  Greater Kansas City LISC
  3                                                    Performance Metric
  4                                                                                                          Metric Date

  5    CDC SAMPLE PERFORMANCE METRIC                                              Metric Year and Beginning Month
      10% Board Governance                                      NA
  6
      10% Planning                                              NA
  7
      10% Resource Development                                  NA
  8
      20% Internal Management                                   NA
  9
      15% Community Connection                                  NA
 10
      35% Program Delivery                                      NA
 11
      100%
 12
             Overall Grade                                      NA
 13 Performance Metric:                                                                                                      revised 4/14/2005
        In October 2002, the CD2000 performance metric was revised to clarify CDC best practices and to create a development tool for CDCs
    in building organizational capacity and strengthening results in Kansas City neighborhoods. The metric measures six performance areas
    of relative weights: Board Governance (10%), Strategic Planning (10%), Resource Development (10%), Internal Management (20%),
    Community Connection (15%), and Program Delivery (35%). Although the metric describes a broad scope of CDC activity, it is not all
    inclusive. In instances when the metric does not adequately capture a CDC's community development programs and activities, CD2000
    will work individually with the CDC to evaluate performance. CDCs have the right to appeal the metric performance assessment score
 14 upon which the CD2000 investment tier is based.
        Each performance area is broken down into components. Each component has a relative weight between 1 and 4 based upon its
    importance. If the CDC is ranked as "Excelling" in one of these components, this corresponds to an "A" grade. If the CDC is ranked as
    Advancing in one of these components, this corresponds to an "B" grade, and so on. Attributes associated with a lower level are implied                                   NOTES
 15 in higher levels. Investment tiers are based on Excelling, Advancing, Operational and Developing performance levels.
 16                                                           download a copy from www.liscnet.org/kansascity/Resources/documentsandforms.htm
 17                                                                                                                                     Grade
                                                                                                                                                             Last year's grade:
      10%                                               Board Governance                                                                                NA
 18
 19 Weight                           Developing                 Operational                  Advancing                     Excelling
      4    Neighborhood              Board members consist      Board members consist        Board members consist         Board members consist             Last year's grade:
           Representation            of 25% neighborhood/       of at least 38%              of at least 51%               of at least 51%
                                     core city/target area      neighborhood/core            neighborhood/core             neighborhood/core
                                     residents or               city/target area residents   city/target area residents    city/target area residents
                                     stakeholders.              or stakeholders with at      or stakeholders with at       or stakeholders with at
                                                                least 1 resident leader      least 2 resident leaders.     least 3 resident leaders.
                                                                active in their
 20                                                             neighborhood.
        4    Participation Level     It is difficult to achieve A quorum or 50%              A quorum or 65%               A quorum or 75%                   Last year's grade:
                                     a quorum, as defined by (whichever is higher) is        (whichever is higher) is      (whichever is higher) is
                                     the organization and a     generally achieved at full   generally achieved at full    generally achieved at full
                                     committee structure is     board and committee          board and committee           board and committee
                                     yet to be formed, such     meetings.                    meetings.                     meetings.
                                     as Development and
                                     Executive/Finance
 21                                  committees.




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        A              B                        C                        D                               E                          F             G                        H
        4    Committee Structure     The board operates as a The board creates a            Committees demonstrate      Committees' written           Last year's grade:
             and Board Staff         whole, without a formal formal committee               major functions are         functions cover all
             Relations               committee structure.    structure and                  covered such as core        areas of core business
                                                             committees have                business, Finance,          and have clear lines of
                                                             written functions.             Executive and               authority to the full
                                                             Committee reports are          Nominating. Committee       board.
                                                             primarily verbal. The          chairs give written
                                                             Executive Director             reports and bring
                                                             primarily staffs               recommendations to
                                                             committees.                    the full board for
                                                                                            discussion and vote.
                                                                                            Board and staff have a
                                                                                            cooperative relationship,
                                                                                            with both ED and other
                                                                                            staff members engaged
                                                                                            at the committee level.
 22
        4    Education, Self         CDC begins to identify      CDC focuses on and         Board members               The board actively            Last year's grade:
             Assessment and          best practices and          provides regular           participate in board        participates in an
             Planning                opportunities for board     opportunities for board    development provided        annual board retreat
                                     development and             development. The board     both during education       and/or special planning
                                     researches available self   conducts a self            sessions at board           session to reflect on
                                     assessment tools.           assessment survey at       meetings and in outside     where they have been
                                                                 least every other year     trainings. The board's      and rethink where they
                                                                 to measure board           self assessment survey      are going. The board's
                                                                 performance and            reflects improvement in     self assessment survey
                                                                 member satisfaction with   performance and board       is conducted annually
                                                                 board service.             member satisfaction.        and reflects marked
                                                                                                                        improvement in
                                                                                                                        performance and board
 23                                                                                                                     member satisfaction.
        3    Diversity and Expertise Board researches            Board members are          At least 4 to 6 board       Board members also            Last year's grade:
                                     assessment tools for        diverse, racially and      members have diverse        include civic
                                     determining board gaps      economically, by           expertise in financial,     leadership who are able
                                     in diversity and            gender and age (with       legal, real estate          to provide access to
                                     expertise.                  more than 1                development, business,      other sectors.
                                                                 representative from each   asset management,
                                                                 group). At least 1 board   government and other
                                                                 member has financial       areas of core CDC
                                                                 expertise and 1 member     business. At least 2
                                                                 has expertise in the       members have financial
                                                                 CDC's core business,       expertise. Some
                                                                 e.g., housing or           members bring strategic
                                                                 commercial                 relationships with other
 24                                                              development.               organizations.




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        A                B                        C                            D                      E                           F               G                        H
        3    ED Evaluation and       The board's                  The board evaluates     The board's annual         Board deliberates and            Last year's grade:
             Policy vs. Operations   performance evaluation       the Executive           Executive Director         actively participates in
             Focus                   of Executive Director is     Director's performance  performance evaluation     policy formulation,
                                     tacit rather than a formal   each year, with a       includes performance       planning, financial
                                     procedure. The board         written evaluation. The against strategic          oversight, fund
                                     volunteers to assist the     board tends to focus itsplanning targets. The      development, executive
                                     CDC in operations,           deliberation on CDC     board provides ongoing     performance oversight,
                                     which are understaffed.      operations.             constructive feedback to   board development and
                                                                                          the ED. The board          forging strategic
                                                                                          begins to engage in        partnerships rather than
                                                                                          more oversight roles       operations.
                                                                                          such as fund
                                                                                          development, financial
                                                                                          oversight and planning,
 25                                                                                       rather than operations.
        2    New Member              Board roster renews        Board roster reflects     Board vacancies are        The board mentors as             Last year's grade:
             Recruitment,            memberships in spite of adherence to bylaws in filled in a timely               well as educates new
             Orientation and         term limits in CDC's by- member rotation and         manner. The board          members, using several
             Succession Planning     laws. The recruitment term limits but there is       recruits new members to    methods to ensure they
                                     process tends to focus delay in filling vacancies. meet organizational          are active and
                                     on potential members The recruitment and             needs and educates         knowledgeable
                                     available rather than      nominating process        using orientation          members. The board
                                     analysis of organizational reflects careful analysis materials.                 has a plan for rotation of
                                     needs.                     of organizational                                    leadership and plans for
                                                                needs.                                               leadership succession.
                                                                                                                     Committees are used
                                                                                                                     as a leadership
                                                                                                                     succession tool for the
                                                                                                                     full board, with chairs
                                                                                                                     often moving into elected
                                                                                                                     board leadership
 26                                                                                                                  positions.




8/3/2011 11:21 AM                                                                            page 3 of 12                                                 09c985cb-d511-419d-9d82-738eee43f60f.xls
        A              B                       C                        D                            E                             F                   G                          H
 27                                                                                                                                                  Grade
                                                                                                                                                             Last year's grade:
      10%                                                       Planning                                                                             NA
 28
 29 Weight                          Developing           Operational                     Advancing                    Excelling
      4    Strategic Plan           CDC has a written    CDC has a current               CDC's strategic plan is      CDC's strategic plan is                Last year's grade:
                                    operating plan for the
                                                         outcomes strategic              updated with                 updated with
                                    year. CDC begins to  plan that assesses the          community input              neighborhood data
                                    design ways to obtainstrengths and needs of          annually. CDC places         trends analysis
                                    community input and  the neighborhood served         highest priority on          annually. CDC is highly
                                    feedback in strategicas well as CDC capacity         projects and programs        strategic reflected in
                                    planning.            issues. CDC regularly           that have the ability to     projects and programs
                                                         obtains community               maximize the                 clustered to achieve a
                                                         input and feedback in           organization’s impact on     clear impact on the
                                                         the strategic planning          neighborhood health and      neighborhood and its
 30                                                      process.                        market conditions.           conditions.
        3    Mission and         CDC's mission and       CDC's mission, vision,          CDC's mission is             CDC's mission, vision,                 Last year's grade:
             Neighborhood Change vision are articulated. values and strategies are       realistic, operational,      values and strategies are
             Results             CDC operates programs clearly articulated.              understandable and           reexamined, renewed
                                 consistent with its     CDC operates and                provides a basis for         or refined every two to
                                 mission.                develops new                    development of               three years. CDC's
                                                         programs true to its            performance targets and      strategic outcomes are
                                                         mission. Board minutes          interim milestones.          clearly focused on long
                                                         reflect the board               Performance targets          term neighborhood
                                                         directly tracks the             clearly reflect the          change and track both
                                                         strategic plan's                CDC's mission and            neighborhood and CDC
                                                         performance.                    begin to identify both       outcomes. CDC's
                                                                                         neighborhood level and       programs achieve
                                                                                         CDC outcomes.                outcomes that promote
                                                                                                                      neighborhood health.
 31
        3    Strategic Partnerships CDC identifies the       There is evidence of        Partnership is formed        Partnership achieves                   Last year's grade:
                                    stakeholders in target   informal strategic          with a Memorandum of         results which exceed
                                    areas as potential       alliances and/or            Understanding that           original plan and new
                                    partners and invites     partnerships with other     establishes a formal         projects are undertaken.
                                    them to CDC events and   nonprofits and              framework for strategy,      Partnership tracks and
                                    activities.              stakeholders, to advance    structure, results, &        measures impact of
                                                             a long term vision of the   roles, and determines        initiative and activities to
                                                             community. CDC              work, outcomes &             achieve identified
                                                             activities are engaged      measurements. CDC            outputs and outcomes.
                                                             by a widening circle of     staff either facilitate or   CDC forms multiple
                                                             stakeholders.               participate in alliances     formal partnerships,
                                                                                         and coalitions on issues     resulting in a
                                                                                         of interest to their         comprehensive
                                                                                         constituency which result    community
                                                                                         in additional or             development strategy.
                                                                                         improved resources
                                                                                         and programs that
                                                                                         demonstrate positive
 32                                                                                      community change.




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        A              B                      C                        D                          E                           F                  G                          H
 33                                                                                                                                            Grade
                                                                                                                                                       Last year's grade:
      10%                                         Resource Development                                                                         NA
 34
 35 Weight                         Developing               Operational                Advancing                   Excelling
      4    Diversity of Income     CDC is reliant on a      CDC begins to diversify    CDC relies on no more       CDC relies on no more               Last year's grade:
           Sources                 primary source of        its funding base,          than 60% of its operating   than 50% of its operating
                                   income.                  increasing charitable      budget from any single      budget from any single
                                                            donations and earned       source.                     source.
 36                                                         income.
        4    Fund Development      Fund development is      Fund development is     CDC has a fund                 CDC has staff who                   Last year's grade:
             Plan Implementation   primarily done by the    primarily done by the   development plan that it       assist the Executive in
                                   Executive Director.      Executive Director and  monitors to gauge              preparing grant
                                                            one to two board        results. Board takes           proposals on a schedule
                                                            members.                responsibility for raising     according to the fund
                                                                                    the targeted funding,          development plan.
                                                                                    with members active in
                                                                                    events, calling on
                                                                                    donors, or other
 37                                                                                 engagement.
        3    Days Cash Reserves    CDC has few day's        CDC has at least 30     CDC has at least 60            CDC has at least 90                 Last year's grade:
 38                                cash reserves.           day's cash reserves.    day's cash reserves.           day's cash reserves.
        2    Funder Reports        Funder reports tend to   Funder reports are not  Funder reports are not         Funder reports are                  Last year's grade:

 39                                be over 90 days late.    more than 60 days late. more than 15 days late.        consistently on time.
        2    Stewardship and       CDC begins to develop CDC has a few basic           CDC shows active            CDC's expanding donor               Last year's grade:
             Communication         basic materials for fund materials to make its      stewardship methods,        base reflects active
                                   raising.                 case such as a brochure,   regular and                 stewardship and
                                                            newsletter or website.     individualized              communication.
                                                                                       communication, to
                                                                                       cultivate continued
                                                                                       funding with donors.
                                                                                       CDC has an array of
                                                                                       communications
                                                                                       materials and methods
                                                                                       to make the case for
 40                                                                                    funding to its
                                                                                       organization.




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        A               B                       C                         D                         E                         F                 G                          H
 41                                                                                                                                           Grade
                                                                                                                                                      Last year's grade:
      20%                                            Internal Management                                                                      NA
 42
 43 Weight                           Developing               Operational               Advancing                 Excelling
 44 10%                                                      Financial Management                                                                     Last year's grade:
        4    Accounting System       CDC has a cash           CDC has an accrual        CDC has established an    CDC has an accrual                  Last year's grade:
                                     accounting system.       based accounting          accrual based, cost       based, cost centered,
                                                              system.                   centered, integrated      integrated accounting
                                                                                        accounting system         system based on GAAP
                                                                                        based on GAAP             principles, fully
                                                                                        principles.               operational for all CDC
                                                                                                                  entities and highly
 45                                                                                                               efficient.
        4    Audit                   There is a financial      Clean audits are        Clean audits are           Clean audits are                    Last year's grade:
                                     review but not a formal produced within 9         produced within 6          produced within 4
                                     audit.                    months of fiscal year-  months of fiscal year-     months of fiscal year-
                                                               end. Compliance         end. Compliance            end. CDC's
                                                               reporting, such as IRS reporting, such as IRS management letters
                                                               Form 990, is generally Form 990, is timely and reflect no critical
                                                               timely and reflects     reflects accurate filing. issues.
                                                               accurate filing.        CDC audits meet
                                                               Treasurer and Exec      industry accepted
                                                               Committee meet with     standards. Audit
                                                               auditor annually.       management letters
                                                                                       show fewer issues
                                                                                       raised each year,
                                                                                       reflecting corrective
                                                                                       action in the financial
 46                                                                                    management system.
        4    Financial Reports and   The board approves an Board approves an           Board reviews financial Finance packages for                   Last year's grade:
             Annual Budget           annual budget, often      annual budget that is   reports at monthly board board, finance
                                     completed into the fiscal used to manage the      meetings including         committee and external
                                     year. The board and       organization. The board balance sheet, income      partners reflect
                                     staff are learning how to reviews the             statement, budget to       appropriate level of
                                     use the budget as a       organization's          actual, and cash flow      detail, easily read and
                                     management tool.          financials including    projection. Profit and     understood. At least one
                                                               balance sheet and       loss are clearly           half of board members
                                                               income statement on a reported for each CDC indicate they understand
                                                               monthly basis at each   entity (including          the financial reports.
                                                               meeting.                subsidiaries), project and
 47                                                                                    function.
        2    Internal Controls and   Some internal controls Internal controls are      Written financial          Written financial            B+     Last year's grade:
             Written Financial       are in place and the      fully in place, with    policies are in place.     policies and
             Policies                CDC is becoming           segregation of duties                              procedures are in
                                     familiar with standard    between board members                              place. Internal controls,
                                     accounting practice.      and staff.                                         financial system
                                                                                                                  operations and
                                                                                                                  organizational financial
                                                                                                                  policies are described in
                                                                                                                  detail, ensuring new
                                                                                                                  staff can be easily
                                                                                                                  trained from detailed
 48                                                                                                               procedures.




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       A               B                 C                         D                            E                            F              G                         H
 49   10%                                         Organizational Management                                                                 NA   Last year's grade:
        4    Management and   CDC has basic             CDC has appropriate         CDC management              CDC board and staff              Last year's grade:
             Teamwork         management in place       organizational              actively and adeptly        form highly effective
                              and begins to form a      structure, with             manages staff and           teams, separately and
                              teamwork approach.        delegation of program       workload issues,            jointly, as evidenced by
                              CDC staff are             responsibility to           continuously assessing      CDC programs and
                              developing job skills.    managers. CDC has           program effectiveness       neighborhood impact.
                                                        current personnel           and efficiency, making      Staff contributions are
                                                        policies and procedures,    appropriate adjustments.    sought as part of the
                                                        with individual staff job   Personnel policies and      CDC's continuous
                                                        descriptions and            procedures are up-to-       improvement and
                                                        performance                 date and CDC staff          learning, e.g., CDC
                                                        evaluations. Regular        understand the policies.    Executive Director and
                                                        staff meetings and          CDC staff are highly        Senior Staff performance
                                                        individual staff            effective and skilled in    evaluations include
                                                        conferences are held.       individual job              feedback from
                                                        CDC staff are skilled       assignments and as a        stakeholders and
                                                                                    team, reflected in both     subordinates at least
                                                        and effective in
                                                                                    management and line         every other year.
                                                        individual job
                                                        assignments, as             staff performance
                                                        demonstrated in             evaluations. Teamwork
                                                        performance                 is promoted with annual
 50                                                     evaluations.                staff retreats.
        4    Professional     CDC researches            CDC demonstrates it has     CDC staff are rewarded      CDC staff tend to                Last year's grade:
             Development      recruitment and           a strong, talented, and     with public recognition     demonstrate senior
                              professional              diverse workforce           for achievement and         level expertise as a
                              development models to evidenced by effective          performance. CDC staff      result of excellent staff
                              increase staff expertise programs and                 performance evaluations     development, coaching
                              and to recruit and retain operations. CDC staff       are tied to the strategic   and retention by CDC
                              an ethnically diverse     professional growth is      plan's achievement.         management.
                              staff. CDC staff          supported and staff are
                              professional growth is    coached.
 51                           self-initiated.
        2    MIS System       CDC begins to develop CDC has basic                   CDC management              CDC's management                 Last year's grade:
                              and build its             management                  information systems and     information systems,
                              management                information system and      filing systems are highly   filing systems and use of
                              information and filing filing systems in place.       reliable. CDC uses          advanced technology
                              systems.                                              technology effectively      demonstrate the CDC's
                                                                                    and is guided by written    outstanding efficiency,
                                                                                    technology policies.        reliability and
                                                                                                                innovation in the use of
 52                                                                                                             technology.




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        A                      B                       C                           D                           E                           F                 G                          H
 53                                                                                                                                                        Grade
                                                                                                                                                                   Last year's grade:
      15%                                                  Community Connection                                                                            NA
 54
                     Community             Community connections program delivery is defined below, showing a range of CDC approaches including
                     Connections Program   neighborhood capacity building, block organizing, resident leadership training, and specialized education to
 55                  Delivery:             neighborhood residents.
                     Community             CDC obtains community resident input and engagement in its work.
                     Engagement and
       Definitions


 56                  Communication
 57                  Advocacy              CDC acts as an advocate for the neighborhood and the community development industry.
                     Neighborhood          CDC engages in capacity building of neighborhood associations in the CDC's community and economic
                     Association and       development target area. CDC also engages, directly or through referrals, in leadership capacity building of
 58                  Leadership Capacity   neighborhood residents, as documented by CDC with LISC.
                     Building:
                     Block Capacity        CDC engages in capacity building of neighborhood blocks.
 59                  Building:
                     Education:            CDC provides community education for residents such as homebuyer education, financial literacy or other
 60                                        specialized programming.
                                           CDC will be graded on required components and can choose to be graded on one or more
 61                                        optional components.

 62 Weight                                 Developing                   Operational                Advancing                   Excelling
      4    Community                       CDC utilizes an active       CDC periodically           CDC obtains broad           CDC expands its circle              Last year's grade:
           Engagement and                  neighborhood                 obtains community          based community             of community input and
           Communication                   volunteer core to carry      feedback on its            feedback on its             cooperation by recruiting
           (Required)                      out activities and CDC       programs and input on      programs and input for      new community
                                           events are attended by       neighborhood assets and    the strategic plan annual   representation on
                                           neighborhood residents.      needs in development of    update. CDC creates         advisory or ad hoc
                                           The community is kept        the strategic plan. CDC    communication               board committees.
                                           well informed of CDC         communicates through       exchange with               CDC creates
                                           and neighborhood plans       regularly distributed      community stakeholders      communication
                                           through CDC staff            communications to          through such processes      exchange with
                                           reporting at                 neighborhoods, public      as listening sessions,      community stakeholders
                                           neighborhood                 officials such as          study circles, task force   annually.
                                           meetings.                    newsletters, flyers, and   groups, and forums at
                                                                        forums.                    least every 2 years.
 63
        4            Neighborhood          CDC reports to               Stronger relationship is   CDC assists 50% of          CDC assists 100% of                 Last year's grade:
                     Association and       neighborhood                 formed between             neighborhoods and at        neighborhoods and at
                     Leadership Capacity   association(s) and           neighborhood(s) and        least 4 residents           least 6 residents
                     Building (Required)   begins building a positive   CDC in opinion of both     graduate from               graduate from
                                           working relationship,        parties. CDC assists at    leadership development      leadership development
                                           identifying and referring    least 1 neighborhood in    program(s).                 program(s).
                                           residents to leadership      target area with 1 event
                                           development programs.        held, facilitates a
                                                                        capacity building
                                                                        assessment and plan,
                                                                        and at least 2 residents
                                                                        graduate from
                                                                        leadership development
 64                                                                     program(s).




8/3/2011 11:21 AM                                                                                   page 8 of 12                                                       09c985cb-d511-419d-9d82-738eee43f60f.xls
        A              B                         C                          D                        E                            F                G                        H
        3    Advocacy (Required)    CDC identifies critical    CDC board and staff       CDC board and staff         CDC board and staff               Last year's grade:
                                    community                  locally advocate for      expand advocacy role        mentor community
                                    development needs,         policy issues through     to federal level issues     leaders and fellow CDCs
                                    gaps, issues and           letter writing and        through letter writing      on how to effectively
                                    identifies arenas for      personal meetings on      and personal meetings       advocate for change and
                                    advocacy work.             behalf of the CDC,        as well as locally          support. CDC board and
                                                               neighborhood(s), or       testify on behalf of the    staff are active leaders in
                                                               community development     CDC, neighborhood(s),       the industry, e.g.,
                                                               industry.                 or community                attending and speaking
                                                                                         development industry.       at local, state and
                                                                                                                     national conferences,
 65                                                                                                                  forums and panels.
        0    Block Capacity         10 block contacts or       At least 8 blocks         At least 10 new blocks      At least 15 new blocks            Last year's grade:
             Building (Optional)    CDC attends block          organized with plans      organized. 7 blocks         organized; existing
             Use 3 or 0 as weight   events.                    and signed petitions      achieve 50% of goals; 5     blocks
                                                               (51% of occupied          blocks sustain progress     upgrade/establish new
                                                               residences on block). 4   & achieve long-term         goals and majority
                                                               blocks achieve 50% of     goal.                       (51%) of existing
                                                               goals.                                                organized blocks
 66                                                                                                                  sustain progress.
        0    Education (Optional)   Program planned with       Measure results           Tracking indicates          Tracking indicates                Last year's grade:
             Use 3 or 0 as weight   target number of           through tracking of       positive results with 50%   positive outcomes of
                                    participants; discussion   participants.             of first year graduates.    66% of graduates. 20%
                                    on partnership                                       15% growth over             growth is achieved
                                    progresses.                                          previous year is            over previous year &
                                                                                         achieved & progress is      progress is seen on
                                                                                         seen on other               other measurable
                                                                                         measurable outcomes.        outcomes.
 67




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              A                         B                        C                         D                          E                           F               G                           H
 68
                                                                                                                                                                         Last year's grade:
       35%                                                                Program Delivery                                                                      NA
 69
 70    20.0%                                                                   Physical Production                                                               NA      Last year's grade:

 71                          Physical Production:    The definitions below define a range of CDC physical production and "other" community development activity.
                             Lending:                CDC makes a mortgage loan to an individual for the purchase of a new or rehabbed home; or CDC makes a
                                                     mortgage loan to an individual for the rehab of an owner-occupied unit, or CDC is an NRC affiliate and
 72                                                  processes loan application through that affiliate.
                             Minor Home Repair:      CDC provides funding and/or technical assistance for the repair of a home. Cost of repairs are over $1,000 in
 73                                                  actual home-owner grant or loan or in-kind services by the CDC.
                             Housing - New:          CDC owns and develops a lot or purchases a fully developed lot and contracts for a new home to be
             Definitions




 74                                                  constructed on the site, and the home is sold and closed.
                             Housing - Rehab:        CDC purchases a home and provides substantial rehab... over $15,000 and over 40% of acquisition costs and
 75                                                  the home is sold and closed.
 76                          Multi-family housing:   Substantial rehab or new construction of project with 4 or more units.
 77                          Commercial:             Substantial rehab or new construction of a project, including the following:
                                                     Day Care Center, Health Care Facility, Retail Operation, Warehouse, Office Building, Community Center,
                                                     Charter School, Industrial/Manufacturing, or Subdivision Residential Lot Development (Subdivision
                                                     development is different from new housing in that the CDC develops lots with the intent to sell them to builders.
                                                     If the CDC also contracts for the home construction, as is most typical, this would be captured in new housing
 78                                                  development.)
                             Other:                  Economic Development in the form of job creation will be weighed when this is a primary CDC community
                                                     development activity and will be negotiated individually with the CDC. Other CDC primary community
 79                                                  development activity not captured in this chart will also be negotiated individually with the CDC.
      Weight                                         For the below grade, the CDC can score a grade through achievements in certain components
 80                                                  without achievements in ALL components. The below line describes these levels.
 81                                                  Developmental:            Operational:               Advancing:                 Excelling:
                                                     1 Developing Level        2 Developing Level or      4 Developing Level or      4 Operational Level or
                                                                               1 Operational Level        2 Operational Level or     2 Advancing Level or
 82                                                                                                       1 Advancing                1 Excelling
                             Lending                            20                       21 - 50             Not Eligible as 1 at       Not Eligible as 1 at             Last year's grade:
      components here have




 83                                                                                                           Advancing Level            Excelling Level
        All program area




                             Minor Home Repair                                          61 - 120             Not Eligible as 1 at       Not Eligible as 1 at
          equal weight




 84                                                          15 - 60                                          Advancing Level            Excelling Level
 85                          Housing (new & rehab)             2-5                        6 - 10                  11 to 20                   Over 20
 86                          Multi-Family Projects              1                           1                         1                          2
 87                          Multi-Family Units              4 to 36                    Over 36                   Over 75                   Over 125
 88                          Commercial Projects                1                       1 or over                 1 or over                   Over 1
 89                          Commercial Sq Ft              1,000-3,000                3,001-15,000             15,001-30,000             30,001 and over




8/3/2011 11:21 AM                                                                                          page 10 of 12                                                     09c985cb-d511-419d-9d82-738eee43f60f.xls
        A              B                      C                        D                       E                          F               G                        H
 90   5.0%                                  Physical Development Pipeline and Expertise                                                       Last year's grade:
        4    Pipeline and Staff   CDC pursues a real         Asset management and    CDC manages              CDC staff are proficient        Last year's grade:
             Development Skills   estate transaction in      market information is   development process      at development,
                                  partnership with others.   accurately captured     with a pipeline          managing with ease
                                                             when developing a       developed in the         multiple, financially
                                                             project.                strategic plan,          complex projects at
                                                                                     reflecting community     once.
                                                                                     input and goals. CDC
                                                                                     has successfully
                                                                                     managed a tax credit
                                                                                     development with at
                                                                                     least 50% ownership
                                                                                     stake and collects
                                                                                     development fees. CDC
                                                                                     has been recognized
                                                                                     for its development
                                                                                     skills, for example,
                                                                                     receiving award
 91                                                                                  recognition.
        3    Project Management   CDC does not               CDC actively            CDC manages              CDC has institutionalized       Last year's grade:
                                  participate in             participates in         individual projects on   its development
                                  development process.       development process,    time and on budget,      expertise. Development
                                                             selecting the           reporting to the board   capacity and expertise
                                                             development team and    each development's       is shared among staff
                                                             financing package and   progress and budget to   and is therefore not
                                                             overseeing project      actual financials.       reliant on just one
                                                             progress.                                        person.
 92
        4    Community            CDC is not engaged in      CDC actively advocates The pipeline reflects     CDC has produced, over      A   Last year's grade:
             Transformation       neighborhood real          for neighborhood real increased activity and     time, a body of work
                                  estate needs.              estate needs.          skill by the CDC; the     that is exemplary
                                                                                    CDC knows which           within the industry and
                                                                                    projects will work and    has considerably
                                                                                    which will not.           contributed to the
                                                                                                              community's
                                                                                                              transformation, beyond
                                                                                                              individual projects. CDC
                                                                                                              is sought for its
 93                                                                                                           development expertise.




8/3/2011 11:21 AM                                                                    page 11 of 12                                                09c985cb-d511-419d-9d82-738eee43f60f.xls
       A                    B                       C                          D                          E                          F              G                         H
 94   10%       0% if no Asset Mgmt                                Asset Management                                                                 NA   Last year's grade:

 95             NOI                     Net Operating Income: Total Income less Operating Expenses (before reserves payments and debt payments).



      Defini-
       tions
                DCR                     Debt Coverage Ratio: Net Operating Income divided by required debt service. This is after reserve payments
 96                                     are added in. This is expected to be 1.15 or greater.
 97 Weight                              Developing                 Operational                Advancing                  Excelling
      4    Financial Performance        NOI is negative            NOI is positive            DCR of 1.10 or greater     DCR of 1.15 or greater          Last year's grade:
 98
      4    Occupancy (Economic)         Occupancy is less than Occupancy is 84% - 87%         Occupancy is 88% - 92% Occupancy is 93% or                 Last year's grade:
 99                                     84%                                                                              greater
      3    Asset Mgmt Reporting,        Written board report   Written board report           Written board report       Written board report            Last year's grade:
           Board Reporting, and         includes occupancy.    includes occupancy,            also includes collections, also includes evictions,
           Board Functioning as                                income statement               tenant receivables.        turnover, and make
           verified in Quarterly                               summary. Board                 Board is planning to       ready info. Board's
           Board Reports to LISC                               meetings discuss the           incorporate the Asset committee structure
                                                               performance of tax credit      Mgmt function in its       oversees Asset Mgmt
                                                               properties. Asset              committee structure        and provides at least
                                                               Management staff meet          and has AM expertise.      quarterly reports to the
                                                               regularly with Property        CDC is planning for a      Board. CDC is planning
                                                               Management. ED or              capital needs study or for Year 15 and capital
                                                               CFO reviews and                has in place. CDC has need planning is current.
                                                               responds timely to             plans in place for non-
                                                               financial reports of each      performing properties
                                                               property.                      through property mgmt
                                                                                              systems or refinancing.
100
        3       Tenant Files and        Files in poor condition.   Files in fair condition.   CDC monitors tenant        CDC monitors tenant             Last year's grade:
                Compliance (NA for non- CDC is learning            CDC has taken classes      files and compliance       files and compliance and
                NEF property)           compliance issues and      and active in              and gets good              gets excellent
                Use 3 or 0 as weight    is taking classes.         supervising property       performance reviews        performance reviews
                                                                   management roles in        when files are audited.    when files are audited.
101                                                                compliance.
        3       Physical Property       Property is in fair        Property is in good       Property in good            Property is in excellent        Last year's grade:
                Characteristics         condition and make         condition but make        condition and make          condition and make
                                        ready and turnover         ready and turnover        ready and turnover          ready and turnover
                                        times unknown.             times not tracked         times are 15 and 20         times are 10 and 15
102                                                                                          days.                       days.
        3       Management of LP        Audit is delivered later   Audit is delivered within Audit is delivered within   Audit is delivered on           Last year's grade:
                Audit (NA for non-NEF   than 20 days of            20 days of February 28. 10 days of February 28.       time (Feb 28).
                property)               February 28.
103             Use 3 or 0 as weight
        3       Reporting Timeliness    Less than 70% on time      70%-79% on time for        80%-89% on time for        90%-100% on time for            Last year's grade:
                                        for Quarterly Reports,     Quarterly Reports,         Quarterly Reports,         Quarterly Reports,
                                        Budgets, and State         Budgets, and State         Budgets, and State         Budgets, and State
104                                     Certs.                     Certs.                     Certs.                     Certs.
        2       Accounts Payable        Accounts payable are       Accounts payable are       Accounts payable are       Accounts payable are            Last year's grade:
                                        greater than $1500 per     between $1000 and          between $400 and           less than $400 per unit.
105                                     unit.                      $1500 per unit.            $1000 per unit.




8/3/2011 11:21 AM                                                                              page 12 of 12                                                 09c985cb-d511-419d-9d82-738eee43f60f.xls

				
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Description: Sample Letter of Intent for Nonprofits document sample