Cornerstone Partnership (CP) interviewed Chris Flood, Program Director, and Cheryl Key, Program Officer, at First Homes in Rochester, Minnesota, for its Member Profiles series. 

CP:  How would you describe First Homes?

CK:   First Homes provides fast, flexible, responsive leadership to create a permanent, adequate supply of workforce housing in healthy, sustainable neighborhoods working with community partners throughout the greater Rochester area.

CP:  What is your target geography and population?

CK:  Low and moderate-income working families (earning up to 80% of the area median income) in Rochester and surrounding area- within a 30 mile radius.

CP:  What mechanisms do you use to preserve affordability?

CK: During the first few years, First Homes provided gap financing to assist families purchase a home of their own in First Homes’ approved subdivisions.  Those loans were made at a low interest rate (2%).  At the same time, First Homes began the work of setting up its community land trust. Once created, the community land trust became First Homes primary means of providing and maintaining affordability.

We have 210 units in our portfolio, and we also have 389 outstanding gap assistance loans as well.

CP:  How many units do you steward?

CK: We have 210 units in our portfolio, and we also have 389 outstanding gap assistance loans as well.

CP:  When were you established as an organization?

CK: First Homes was created in 1999, and the First Homes Community Land Trust was launched on July 18, 2001.

First Homes has created the model to insure access for working low and moderate income families in a revitalized Rochester. 

CP:  What’s your vision for First Homes in the next several years?

CF:  First Homes will be an important part of the community planning effort for the revitalization of downtown Rochester.  The plan calls for 4,000 new housing units – ranging from workforce housing to market rate housing. First Homes has created the model to insure access for working low and moderate income families in a revitalized Rochester. 

Our model is to rely on what’s already there – we don’t do the construction or development ourselves, but rather we partner with businesses already in the community.

CP:  What is the biggest success story that you have seen as a program?

CF:  As a program, our success is our record.  We are a lean organization.  First homes started producing in 2001 – and we have provided access to housing for well over 1000 households.  Our model is to rely on what’s already there – we don’t do the construction or development ourselves, but rather we partner with businesses already in the community.  That has allowed us to cut down costs and time for production. 

On an individual level, one story stands out.  First Homes helped a woman who had been a long-term renter purchase a condominium through the Community Land Trust.  For the first time in her new home, she had the space she needed to set up the home-based tailor business that she had always wanted.  Her home-based business was so successful, that she recently quit her day job and moved her business to a bigger commercial space in one of the tax credit projects also sponsored by the Rochester Area Foundation! 

CP:  What is the biggest lesson learned or challenge your program has faced?

CF:  The biggest lesson and the biggest challenge are the same:  capital. The Rochester Area Foundation had no housing experience when it launched First Homes, but there was enough of a crisis that the foundation was able to raise the $14 million needed to capitalize the initial pool.  We now need to recapitalize.

CP:  Is there a program out there that you turn to as an example?

CF:  All of the Minnesota land trusts.  We are always impressed by the larger organizations that are developers – even though our model is to not do the development ourselves, we admire the folks who have all those different skill and get it done. 

You are making a long term commitment to people’s lives, so you also have to make a long term commitment to the organization – and to organizational sustainability.  Striking a balance between sources of revenue and sustainability is necessary for effective stewardship.

CP:  What is one word of advice you would give to other homeownership programs that preserve long-term affordability?

CF:  You are making a long term commitment to people’s lives, so you also have to make a long term commitment to the organization – and to organizational sustainability.  Striking a balance between sources of revenue and sustainability is necessary for effective stewardship.

CP:  What burning question do you have for your other Cornerstone members? 

CF:  How are people changing and adapting to the current economy and the potential larger changes?  What if Fannie Mae ceases to exist?

HomeKeeper Interview Questions

First Homes has been piloting HomeKeeper: The Homeownership Program Manager.  CP asked Cheryl Key (CK) what her first impressions were as the organization transitions into using HomeKeeper to manage their program.

CP: What are your first impressions of HomeKeeper?

CK: Love it!  Before I had to go to six different places to gather the information I needed to put together one report. Homekeeper is a great piece of software; it is very customizable and I have always been able to input the data I need to track.  Support also is great – there is always someone to call! 

CP: Describe your transition to HomeKeeper?

CK:  We’re not done transitioning.  We still have files that we are putting in – but looking at the hard files and hand entering have allowed for greater accuracy in our data.

The structure of Homekeeper has forced us to ask questions that we never asked ourselves before.

CP: What would you tell other organizations thinking about signing up for HomeKeeper?

CK: It’s wonderful.  There has not been any piece of data that needs to go in that we haven’t been able to put in.  HomeKeeper is also useful for the field because it has allowed us to standardize, use the same language, and approach things the same way.  The structure of Homekeeper has forced us to ask questions that we never asked ourselves before.

Thank you, Chris and Cheryl, for your time!    

First Homes Properties was launched in 1999 as an initiative of the Rochester Area Foundation with the goal of assisting individuals and families in the purchase of homes. From the beginning, First Homes has been organized to provide and develop fast, flexible, responsive leadership to create a permanent, adequate supply of workforce housing in healthy, sustainable neighborhoods through collaborative efforts in the greater Rochester area.  First Homes has been a Cornerstone Partnership member since November, 2010.  Visit their website or email Chris Flood at chrisflood@rochesterarea.org or Cheryl Key at cheryl@rochesterarea.org.