HomeMy WebLinkAboutPeninsula Community Federal Credit Union MC Contract #19 -'51U 13
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MEMORANDUM of UNDERSTANDING
Peninsula Community Federal Credit Union Mason County Commission
521 W. Railroad Ave. 411 N 5th St
Shelton,WA 98584 Shelton,WA 98584
ALLIANCE
The mission of the Mason County Commission(Partner)is to provide essential and mandated services which
will preserve and benefit the health, safety, and welfare of the general public in a professional and courteous
manner through the effective and equitable management of available public resources. Partner recognizes that
its employees and volunteers are the foundation upon which these services are provided.
Originally created in 1935,Peninsula Community Federal Credit Union(Credit Union)is one of the nation's first
community chartered, member-owned credit unions. Serving more than 19,000 members, Credit Union is
committed to community development and involvement through various outreach programs. Credit Union is
applying for a US Treasury Community Development Financial Institution (CDFI) Financial Assistance
(FA) Grant and is seeking to bring up to one million dollars into the community.
COMMUNITY CHALLENGES AND NEEDS
More housing inventory needs to be built in order to increase workforce housing availability and affordability.
First mortgage fmancing is bleak in Mason County. This compounds the need for the development of additional
housing stock which is constricting the fmancing of first mortgages by mainstream lenders, shutting people of
modest means out of the market. There was a 56%reduction in loans funded between 2016 and 2017 (Callahan
Mortgage Analyzer, 2018). The volume of funded first mortgages in 2016 was 1,954 which reduced to 1,100 in
2017. Of the 176 fmancers, 129 produced no mortgages or had negative loan growth in Mason County,45 of
which had negative growth.
Mason County's median home value and homeownership cost increased by 88%in the past 20 years (Zillow
2018). In the five years from 2012 to 2017,rents increased by nearly 20%(Zillow). Hourly wages in Mason
County increased 7%over the same five years (Employment Security Department, State of Washington 2018).
There is a critical need for primary and secondary housing stock. Affordable housing inventory drives the crisis.
Mason County's housing underproduction has seen a significant decline. From 2000-2016, 1.20 housing units
were built for each new household formed, compared to 0.54 units built for each new household between 2010-
2016(Washington Office of Financial Management Data on Housing Units and Population 2010 and 2016). A
byproduct of this reduction is the 60%reduction in purchase inventory occurred between Q1 2010 to Q2 2018
(Tableau NWCUF). The towns of Allyn, Grapeview,Hoodsport, Skokomish and Union have zero affordable
housing rentals, zero rent assisted properties and zero low income apartments. In Hoodsport 100%of renters are
housing burdened and 28%of residents rent(HUD 2018).
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PARTNER RELATIONSHIP
Credit Union will be seeking to expand their work addressing the affordable housing crisis in Mason
County with the Affordable Workforce Housing Program. Partner will support Credit Union by acting for the
advancement of permitting and zoning beneficial to affordable workforce housing in Mason County. Credit
Union will provide financial education and Affordable Workforce Housing products and services Credit
Union and Partner will plan on meeting regularly regarding their partnership, facilitated by Credit Union.
TERMS:
1. This MOU does not create any right or benefit, nor does it create any employment relationship between
the parties.
2. Both parties are responsible for their own expenses related to this MOU.
3. No liability will arise or be assumed between the parties as a result of this MOU.
4. This MOU is not a legally binding contract. It is an agreement on the potential scope of work based on
the success of Credit Union's US Treasury Department CDFI Fund FA Award Application.
5. This MOU is effective from date signed and valid for the life of shared activities.
Peninsula Community Federal Credit Union Mason County Commission
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James M. Morrell, President& CEO Name/Title: '{(2_00A,(7")\C1u}J-3t-j i Chc r