Korean Churches for Community Development

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Korean Churches for Community Development
Transforming Lives and Communities Mortgage
Industry Emerging Markets and Diversity
Conference October 3 -5, 2007Marriott Crystal
City, Washington DC
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Message

• KCCD Introduction
• Korean Community Introduction
• Homeownership Tool for Empowerment
• Lessons Learned Program Implementation,
  Partnerships, Funding Opportunities Advocacy
  Areas
• Outreach Strategies

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KCCD Mission

• KCCD is a national non-profit faith-based
  organization, which serves as a bridge between
  the Asian American community and the greater
  community at large in connecting and creating
  private and public collaborations. Our mission is
  to maximize the capacity of Asian American
  faith-based organizations and other community
  non-profits to remove the cultural, language and
  economic barriers by increasing their access to
  resources and funds in order to assist low income
  individuals and revitalize neighborhoods.

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Affiliates

• California
• Texas
• Missouri
• New Jersey
• Virginia
• Washington, DC
• Michigan
• Philadelphia
• Washington State

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How We Help Organizations

• Build capacity of individual organizations
• Demonstrate Models of Success and Help
  Organizations Implement Programs
• Seek National Funding and Subgrant

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New Program Workforce Development
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KCCD Initiatives

• Homebuyer Center
• Financial Literacy/IDA
• Marriage Family Strengthening
• Workforce Development for Youth Young Adults
• Organization Capacity Training Program
• Church and Community Research Institute
• AmeriCorpsVista Leadership Fellowship
• Health

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KCCD Homeownership Program Successes

• Started in October 2002
• 7 Homeownership Fairs
• Trained over 4,000 interested homebuyers
• Many Partnerships

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Over 1000 Participants Turn Out for KCCD's 6th
Homeownership Fair
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KCCD Teams up with Freddie Mac, AREAA,
Countrywide, and KYCC to Help Asian Americans In
Los Angeles Become HomeownersCongressman Xavier
Becerra Supports Homeownership Efforts
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KCCD First Time Homebuyer
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Understanding the Community
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Highest Rate of Entrepreneurship
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Class of Worker for Selected Groups in the U.S.,
2000
Self-Employed () Government ()
White 10.43 14.31
Black 4.46 20.81
AIAN 6.93 22.28
Asian 9.58 12.63
Native Hawaiian / Pacific Islander 6.08 16.97
Hispanic 6.73 11.20
Asian Indian 9.29 11.00
Chinese 9.57 12.78
Filipino 4.73 15.76
Japanese 10.65 18.57
Korean 19.91 9.95
Taiwanese 13.65 12.23
Vietnamese 9.71 8.34
SOURCE U.S. Census Bureau, Census 2000 Advanced
Query
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Educational Attainment in the United States, 2000
(Population 25 years and over)
The measure for educational attainment is
having at least Bachelors Degree.
SOURCE U.S. Census Bureau, Census 2000
Supplementary Survey PUMS Data Set
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Median Household Income in the United States, 2000
SOURCE U.S. Census Bureau, Census 2000
Supplementary Survey PUMS Data Set
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2nd Highest Language Barrier
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Percent of Population in Linguistically Isolated
Households by Race, Hispanic category, and Asian
ethnicity, 2000-Population 5 Years and older
United States  
Total Population 4.1
White Alone 2.5
Black of African American 1.3
American Indian and Alaskan Native alone 5.4
Asian Alone 26.5
Asian Indian alone 10.8
Chinese alone 35.3
Filipino alone 11.1
Japanese alone 21.7
Korean alone 41.0
Vietnamese alone 46.1
Native Hawaiian and Other Pacific Islander alone 6.2
Some other race alone 26.6
Two or more races 12.4
Hispanic or Latino 26.4
Non Hispanic White 1.0
Source U.S. Census Bureau, 2000 Census of
Population and Housing. Table produced by
Eui-Young Yu and Steven T. LeeKorean American
Coalition Census Information Center, 2005
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• 75 of Korean Americans are affiliated with the
  Korean American church

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Number of Korean American Churches

• 4000 Korean American churches in U.S.
• 1100 Korean American churches in LA/Orange County

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Los Angeles Metropolitan Korean Mega Churches Los Angeles Metropolitan Korean Mega Churches January 2001 Korea Times

  Church Name Congregation Budget
1 Young Nak Presbyterian Church 4,100 6,910,000.00
2 Grace Korean Church 2,228 6,000,000.00
3 Sa-Rang Community Church 4,000 6,320,000.00
4 The Oriental Mission Church 3,084 5,500,000.00
5 Torrance First Presbyterian Church 3,500 5,500,000.00
6 Yul Lin Mun Presbyterian Church 2,087 3,810,000.00
7 Light of Love Mission Church 1,210 2,750,000.00
8 Berendo St. Baptist Church 1,500 2,500,000.00
9 L.A. Christian Presbyterian Church 1,100 2,300,000.00
10 Holy Hill Community Church 950 2,000,000.00
11 Glory Church of Jesus Crist 1,400 2,000,000.00
12 Samsung Korean Presbyterian Church 1,200 1,500,000.00
13 All Nations Church 1,300 1,500,000.00
14 Valley Christian Presbyterian Church 1,100 1,320,000.00
15 Choong Hyun Mission Church 1,450 1,400,000.00
16 L.A. Korean Methodist Church 1,000 1,000,000.00
31,209 52,310,000.00
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Asian Americans Model Minority Myth
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US Homeownership Rates
The Homeownership Gap
76
59.8
49.1
48.1
Source US Census Bureau, 2005
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National Homeownership Rates
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Median Household Income
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Per Capita Income is Lower
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Homeownership A Tool for Community Empowerment
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Why Homeownership ?

• American Dream
• Political Empowerment
• Wealth Building
• Family Stability/Health
• Great Funding Partners

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Dont Reinvent the Wheel

• Learn from those who have already succeeded

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1st Homeownership Fair
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1st Homeownership Fair

• 600 Participants!
• Major Ethnic Media Coverage
• Vendors with Korean speaking representatives
  popular

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Findings

• 95 of 125 individuals had FICO scores over 750
• 95 of 175 individuals had FICO scores over 700

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Survey Findings

• 88 never had homebuyer education
• 91 qualified 1st time Homebuyers
• 95 intended to purchase home next 6 months.

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Key Strategic Outreach Partners

• Media
• Churches

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(No Transcript)
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Partnership with Freddie Mac
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Various Homeownership Partners

• U.S. Department of Housing and Urban Development/
  Elected Officials
• HUD Affiliate
• United Way
• Fannie Mae
• Freddie Mac
• Financial Institutions including Countrywide,
  Wells Fargo, Bank of America, Washington Mutual,
  Chase, GMAC Others
• State Farm Insurance, NHS, LA Housing Department,
  County Housing Department, Affordable Clearing
  House Others

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New Initiatives

• Countrywide
• Freddie Mac
• AAREA
• KCCD
• KYCC

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Other Partnerships

• Media Korea Daily weekly media advertisement
  and educational facility
• PSA development media partners

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Program Mechanics

• Neighborworks Certification
• Downpayment Financial Assistance

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Homeownership Assistance Programs

• Downpayment Assistance
• Homebuyer Education
• Consultation Guidance
• Financing Options
• IDA Program
• Certificated LA Housing Department Partner

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Financial Assistance

• Downpayment Assistance
• City of Los Angeles 90,000 downpayment, 15,000
  for improvements
• Matched Savings Money (IDA, IDEA, Wish) - 5k
  saving, up to 23,000 additional match
• Closing Costs

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Homebuyer Education

• Required for downpayment assistance and special
  financing programs
• Great Helpful Insights
• 12-Hour Curriculum, Certified

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First Graduating Class
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Financing Options

• CalHFAs below market interest rates
• Fixed rate Interest Only programs 30, 35 and 40
  years
• Acorn (no PMI, low credit, good history, below
  market)
• Lease to Purchase
• Stated Income

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IDA Program Financial Literacy Program

• Couple can save 5000 and receive up to 23,000
  free money for downpayment.
• Financial Education 8 hour class

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Strategies for Partnerships

1. Knowing Who We Are and Our Offerings (Strengths)
2. Turning Weaknesses into Strengths and
   Opportunities
3. Creating Win-Win Situations
4. Borrowing Capacity

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Challenges Undocumented Income/Assets

• Real Business Income
• Income from outside the country
• Korean Internal Savings System Gye
• Cash under the bed
• Gifts from family members
• Immigrant Life Style

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Loan Products that Work

• No Docs
• Stated Income
• No Income or Asset Verification Forms

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Disconnects in the Market Place

• Lender Income and Asset Qualifications
• Korean/Asian Immigrant Lifestyle and Income/Asset
  Stream
• Thriving Broker Market

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Program Funding Opportunities

• U.S. Department of Housing Urban Development
  (Counseling Agency, Exhibits)
• Subgrant Opportunities
• IDA
• Financial/Mortgage Institutions (Marketing
  Agreements, Per Loan, Sponsorships, Brokers
  Fees)
• Corporations
• Government Agencies

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Opportunities in the Asian American Community
Marketplace

• Fastest Growing Population
• Opportunities for Growth
• Low Homeownership Rates
• Untapped Unserviced Market

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KCCD Contact Information

• Jin Kim/Hyepin Im
• [phone]
• jinkim100_at_gmail.com/hyepin_at_gmail.com
• www.kccd3300.org
• 3550 Wilshire Blvd. Suite 922
• Los Angeles, CA 90010