The DSR Covenant Update

UPDATE

December 27
Totals so far.  
Good News!!!!!  With pledges (amounts pledged but still awaiting arrival) and amounts received, we reached our goal.  Thank you, family, for rallying and supporting.   What a wonderful end to 2016.  Special thank you to friends of Lighthouse: YWAM-San Francisco and GRX-San Francisco who jumped in and gave to help us get over the threshold!  


$15,000 (a little over this amount has come in already)
 $7,000 (has been pledged by December 31).
_____________
$22,000 TOTAL with all pledges and received gifts

Giving Portals
TEXT "Give" to the number (669) 900-1084
MAIL: 1337 Sutter Street  SF CA 94109
ONLINE: http://www.sflighthouse.org/give/
KIOSK: 1337 Sutter Street

 

December 21
Totals so far.  
$12,000 has been pledged so far.
 -$7,000 to go before December 31.

Giving Portals
TEXT "Give" to the number (669) 900-1084
MAIL: 1337 Sutter Street  SF CA 94109
ONLINE: http://www.sflighthouse.org/give/
KIOSK: 1337 Sutter Street

December 9

Favor and Grace.  Today the bank informed us that they would meet us half-way by lowering the DSR number from 1:5 to 1:25.  In real numbers, this means instead of raising $57,000 by the end of the year we only need to raise $19,000.

Giving Portals
TEXT "Give" to the number (669) 900-1084
MAIL: 1337 Sutter Street  SF CA 94109
ONLINE: http://www.sflighthouse.org/give/
KIOSK: 1337 Sutter Street
 

 

October 20

 A couple months ago Bridge Bank (formerly Torrey Pines), who holds our 1337 Sutter Street mortgage, informed us that our debt-to-service ratio (DSR) numbers were several points below our loan covenant agreement.   We made a covenant with them that we would be at 1:5 and we are at 1:08. In real numbers, we were $57k short for the year.

What does this mean?  (1) A DSR number flags the bank indicating that we are not in a safe financial zone.  It gives them insight into our financial trends so that they can warn us when we are close to defaulting on the loan.   (2) In a very real sense, it's a wake-up call to our 10% decrease in contributions over the last 3 years.  

How does this impact us as a church?   We cannot refinance and take advantage of lower interest rates, which are 2 points lower than what we are currently paying.    Should the trend continue we could default on the note.

In recent years there has been an epidemic in San Francisco of worship spaces being bought out and converted into condos, houses, and Academy of the Art school spaces. 

There is a real value for us to do whatever we can to provide a sacred place for worshipping Jesus for our children and grandchildren and the next generation of Christians who come to live out the Kingdom in San Francisco.  This building has a miracle story all of its own as to the redemptive nature of God.  One of our tasks is keeping lore alive, telling and retelling how God foresaw the property challenges, called us to purchase an old synagogue, and then miraculously provided for us along the way.