2016-2017 Annual Report
1 2016-2017 Annual Report
2016-2017 IN REVIEW
Board of directors 2017-2018
President and CEO
Jessica Fogg Clearview Investment Management Clayton Fowler, Chair The Spinnaker Companies Robin M. Gallagher Webster Bank Scott Gerard Murtha Cullina Reyno Giallongo, Jr. First County Bank Charles F. Howell Bert Hunter CT Green Bank Barbara Kelly Citibank E. Phillip McKain Marjan Murray People’s Bank Margaret Powers Newtown Savings Bank Kathleen Romagnano Lisa A. Sanders TD Bank Luke Scott Madison Mott Al Shehadi Vital Healthcare Capital Michael Weinstock M&T Bank
In a changing landscape for affordable housing, HDF is proud to create options for hardworking families and individuals. In the past two years, we've also introduced two new downpayment assistance programs which will infuse $6 million in downpayment assistance for first time homebuyers in Connecticut and New York. These programs - Project Reinvest: Homeownership, and Connecticut Statewide Downpayment Assistance - are the result of longstanding collaborations with our partners at NeighborWorks America and the State of Connecticut, respectively. Such collaborations are key to addressing our affordable housing crisis on the local, state, and national levels. We've expanded our multifamily rental financing programs, with more than $3.7 million invested over the past two years in affordable rental housing in Connecticut. We're working with CT Green Bank and the MacArthur Foundation to invest $5 million in affordable multifamily rentals for energy efficiency and sustainability. Internally, we're reaping the benefits of several years of innovation, including investments in our staff, our technology, and our internal infrastructure. We have the capacity and resources to help more first time homebuyers and finance more affordable rentals than ever before - and we're doing it. Thanks are due to our partners, our supporters, our staff, and most importantly the hardworking families and individuals who are able to purchase homes with HDF's guidance. We couldn't do it without you. Onward to 2020!
Board Chair
Millport Apartments complex in New Canaan .
Manchester Housing Authority's Mayfair Gardens. From manchesterha.org
mul t i fami l y
Bankwell Connecticut Community Bank Darien Rowayton Bank First County Bank First Republic Bank M & T Bank Newtown Savings Bank Peoples United Bank Savings Bank of Danbury Signature Bank Union Savings Bank Webster Bank
Together with CT Green Bank and the MacArthur Foundation, HDF is bringing energy efficiency solutions to affordable multifamily housing. The $5 million program related investment by the MacArthur Foundation will target funding towards three programs: energy opportunity assessments, audits, and project scope definitions, remediation of health and safety measures term financing to bridge gaps and increase affordability for affordable multifamily energy efficiency projects. Thanks to the MacArthur program, the Manchester Housing Authority in Connecticut has provided energy efficiency upgrades and renovations to a total of 275 units of elderly housing over three properties. Westhill Gardens, Westhill Gardens Annex, and Mayfair Gardens all received plumbing and lighting upgrades like interior and exterior LED lighting and more efficient toilets and showers. Westhill Gardens, the largest upgrade at 100 units, additionally received a boiler retrofit, and a new 125 KW photo-voltaic system. Through the MacArthur funding, CT Green Bank and HDF provided financing for $1.3 million of the total $2.9 million dollar project cost.
Multifamily Energy Efficiency Financing
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Since 1989, HDF has financed affordable housing projects in the state of Connecticut through our Multifamily Lending Program, investing over $44 million and adding more than 1,400 units of affordable housing. Our programs finance the development of new affordable units, preserve existing units, and support the renovation of units to a more energy-efficient and sustainable standard. In FY2016 and 2017, our multifamily lending program invested more than $3.7 million in affordable housing in Connecticut, supporting more 378 units of affordable housing.
2 2016-2017 Annual Report
Consortium lenders have banded together to finance affordable housing projects throughout CT.
MF Financing and Units: FY13 to Present
Multifamily Consortium
$600,000 in HDF financing supported the construction of 33 new affordable units in the Millport Avenue Apartment complex in New Canaan, CT. Together with The Housing Authority of the Town of New Canaan, Connecticut Housing Finance Authority, The State of Connecticut, People’s United Bank, Bankwell Bank and Eversource energy, HDF financed the first of two phases of construction at the complex. The first phase of construction was completed in December of 2016. The new rental homes are available to households making less than 80% of area median income. The project's ground-breaking was attended by Governor Dannel Malloy and a host of other local, state, and elected representatives.
2016: Adams Gardens - Greenwich, CT (bottom right)
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2016: Millport Apartments - New Canaan, CT (top right)
HDF provided $615,000 in financing for the Adams Gardens development, which added 11 units of affordable housing to the existing 80 units of the Adams Gardens Housing Complex off of Sound Beach Avenue in Greenwich, CT. HDF was joined by partners First Bank of Greenwich to finance the project, which was developed by the Housing Authority of the Town of Greenwich. The 11 units are across four new buildings, which were manufactured off-site. The units are permanently restricted affordable. They comprise five two-bedroom and six three-bedroom units. Construction began in the fall of 2016 and proceeded swiftly thanks to the use of a manufactured structure. Apartments were finished in early Summer 2017 and are already leasing up.
2017: Fairfield Commons - Stamford, CT
HDF provided $1.225MM in financing to Mutual Housing Association of Southwestern Connecticut (MHASWCT) for the preservation of affordable housing units at Fairfield Commons located in Stamford. Fairfield Commons provides 19 units of supportive, affordable housing to a very low income population.
4 2016-2017 Annual Report
Preservation & New Construction
homeownership
Bankwell Chelsea Groton Bank Citibank Connecticut Community Bank Fairfield County Bank Farmington Bank Ion Bank Liberty Bank M&T Bank Newtown Savings Bank People’s United Bank Savings Bank of Danbury Stamford Mortgage Company Signature Bank Union Savings Bank United Bank Webster Bank
HDF provides a variety of low- and 0% interest homebuyer assistance loans to income-eligible first time homebuyers. Funded through the SmartMove Loan Pools and a variety of grants, these loan programs help make homeownership affordable by lowering the cost of financing. Since 1994, our residential lending programs have helped more than 2,500 first time homebuyers. In FY2016-2017, we introduced a number of new downpayment and closing cost assistance programs, giving our homebuyers more and lower-cost options.
6 2016-2017 Annual Report
SmartMove CT
Member banks purchase a stake in sustainable homeownership in our community by supporting the Smart Move program and providing first mortgage lending to HDF homebuyers.
Downpayment & Closing Cost Assistance
Counseling & Education
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HDF’s First Time Homebuyer Program (FTHB) is designed to help hardworking families buy a first home they can afford. Our one-on-one homebuyer counseling and homebuyer education classes are provided completely free of charge. Homebuyers work one-on-one with their homeownership advisor to develop an action plan, increase savings, reduce debt, and improve credit. Advisors also help clients to identify and apply for downpayment assistance opportunities. Since 2004, we've helped more than 10,000 first time homebuyers to take the first steps on the path to homeownership. 5,600+ have gone on to one-on-one counseling and 1,200+ have completed homebuyer education. From 2016-2018, thanks to a new online application process, we oriented more than twice as many prospective homebuyers. We've also helped steadily more client to access education and counseling products - both in real terms and as a proportion of those coming in the doors.
Smartmove Loan Pools
Citibank M&T Bank People’s United Bank Webster Bank
SmartMove NY
With a $3 million grant from CT DOH, HDF was proud to launch the new Connecticut Statewide Downpayment Assistance Program in September 2016. The program offers 0% second mortgage loans of up to $15,000-25,000 to eligible homebuyers across the state. Funds can be used for downpayment and/or for closing costs. Assistance is available to first-time buyers making less than 100% AMI who are purchasing their primary residence. The amount of assistance depends on where the homebuyer purchases: if it is in High or Very High Opportunity census tract, up to $25,000 is available. All other tracts are eligible for up to $15,000. The program launched in September 2016 and interest has been strong! 65 families have purchased their first homes using more than $1 million in downpayment assistance, leveraging more than $10 million in first mortgages.
Thanks to a $3 million grant from NeighborWorks America, HDF launched Project Reinvest: Homeownership in the summer of 2017. The program offers 0% second mortgage loans of $10,500 to eligible homebuyers in Connecticut and New York. Assistance is available to first-time buyers making less than 100% AMI who are purchasing their primary residence. The program launched in the summer of 2017 and so far 13 families have received over $136,000 in assistance. This downpayment help has leveraged over $1.6 million in first mortgages. Like Statewide DAP, Project Reinvest funds can be used in combination with other HDF loan products, giving homebuyers more and better options to finance their home.
"New Haven was hit hard by the foreclosure crisis. When we had the opportunity to help, we ran with it," says HDF President and CEO Joan Carty, of HDF's recent HomeLIFT New Haven program. HomeLIFT is a national program from Wells Fargo and NeighborWorks America. It provides eligible home buyers with a $15,000 in 0%, forgivable loan to purchase a home in New Haven, East Haven or West Haven. With HomeLIFT, HDF helped 219 families to purchase homes in New Haven, West Haven, and East Haven - a total of $3.28 million of forgivable loans. HomeLIFT borrowers were also able to access HDF's other lending programs. Together, HomeLIFT and HDF downpayment assistance funds leveraged over $30 million in first mortgages. The program stayed ahead of the 2-year schedule for deployment, with the last funds reserved in early 2017. HomeLIFT New Haven was a partnership between the HDF, NHS of New Haven, NeighborWorks America, and Wells Fargo. Says Ms. Carty: "When organizations collaborate effectively, we can multiply our impact in the communities we serve. The 219 families helped by HomeLIFT funds are proof!"
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Statewide DAP with CT DEPARTMENT OF HOUSING
HomeLIFT new haven with NeighborWorks , Wells Fargo, and NHS New Haven
project reinvest with Neighborworks
Supporters 2016-2017
Citi Foundation Bank of America The Goodnow Fund M & T Bank People's United Community Foundation Webster Bank
($250+)
On May 25, 2017, HDF held our 8th Annual Benefit Breakfast at the Hyatt Regency in Greenwich. 250 representatives from banks, housing developers, local government, nonprofits, and other community leaders across CT and NY enjoyed an update on HDF's impact and a keynote talk from Dr. Megan Sandel on "Housing as Vaccine." After the breakfast, attendees met for a Heath and Housing panel discussion to further explore the effects of stable and quality housing on the health of families. Moderator Nancy von Euler (Fairfield County Community Foundation) and panel participants Megan Sandel, Brenda Torpy (Champlain Housing Trust), and Sara Tucker (First County Bank) illustrated the intersection of health and housing.
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Leaders
CDFI Fund Connecticut Housing Finance Authority Eversource Energy NeighborWorks America
Bridgeport Neighborhood Trust Cacace, Tusch & Santagata Carmody Torrance Sandak & Hennessey, LLP Catholic Chariites of Fairfield County Farley Enterprises Fuller Development, LLC Hoffman Investment Partners Hoopes, Morganthaler, Rausch & Scaramozza Housatonic Habitat For Humanity Merrill Lynch Wealth Management New Neighborhoods, Inc. Optimus Healthcare Perkins Eastman Redniss & Mead, Inc. Robinson & Cole LLP Stamford Downtown Special Services District Stewart Title Guaranty Company Supportive Housing University of Connecticut William R. Finger Company Laura Bard Nicholas Bochicchio Carmen Domonkos Doug Dylla Sandy Goldstein Priscilda Ines Dahlia Johnson Nancy Lawrence Elizabeth McGroarty Kim Morque Erna Olson Jack Penfield Robert Phillips Deirdre Segerson Nathaniel Shipp Charlotte Suhler Richard Taber Mark Weiss Dave Zamary
Builders
Bankwell Chelsea Groton Bank People's United Bank TD Bank Wells Fargo Foundation
($500+)
Visionaries
Neighbors
Partners
($1,000+)
Benerofe Properties Corp. Charter Oak Communities CironeFriedberg LLP Connecticut Community Bank CT Green Bank Cushman & Wakefield Diamond Properties, LLC E.A. Group LLC FD Rich Newtown Savings Bank The Housing Authority of the Town of Greenwich The Rich Foundation, Inc. WIHEAD, Inc. Al Shehadi
($5,000+)
Business Council of Fairfield County Citibank Darien Rowayton Bank Fairfield County Bank Griffith E. Harris Insurance Services LLC Murtha Cullina LLP Signature Bank Union Savings Bank Val Executive Resources Group Robin Gallagher
Federal Home Loan Bank of Boston First County Bank Savings Bank of Danbury Spinnaker Real Estate Partners, LLC Stamford Hospital The Herbert and Sarah M. Gibor Charitable Foundation United Bank Wofsey, Rosen, Kweskin & Kuriansky Stephen Woodward
10 2016-2017 Annual Report
($10,000+)
($500,000+)
Icons
2017 Benefit breakfast
Friends
2016
Net Equity
$43,372
$53,213
Board Designated
$9,751,331
$8,840,979
Undesignated
$2,527,026
$1,381,712
Temporarily Restricted
$3,234,088
$1,857,293
Permanently Restricted
$1,274,355
$1,938,755
Total Net Assets
$16,830,172
$14,071,952
Total Liabilities and Net Assets
$56,088,049
$53,711,670
Dahlia "Pobie" Johnston
Cash and Cash Equivalents
$7,482,692
$7,924,188
Unrestricted Investments
$1,409,479
$1,371,258
Loans Receivable, Net
$29,629,723
$27,532,129
Leasehold, Furnishings, & Equipment
$473,969
$497,516
Permanent Loan Funds
Grants, Contracts, & Other Receivables
$917,026
$703,069
Investment in Custodial Receipts
$1,315,503
-
Investments for Deferred Compensation
$256,688
$187,540
Other Assets
$57,886
$48,698
Agency Assets
$13,270,728
$13,508,517
Total Assets
Phyllis Kapiloff
2017
Net Assets
Assets
Financing Expenses
Financing Revenues
Pobie Johnston joined HDF's board in 2004 and served for more than 13 years. Pobie's passion for and service to her community, her city, and her country were an inspiration to everyone who worked with her. Pobie ran for Mayor of Stamford three times. Her work for the city included urban redevelopment, the Citizens Action Council, and serving on more than 4 city charter commissions and maby other boards. "Pobie was the original energizer bunny. Her enthusiasim and commitment knew no bounds," says Joan. "I will always picture her with her snappy military bearing, her big smile and her appetite for tasks! She was a terrific board member."
Net Financing Revenues
$1,211,252
$822,784
Contributions, Grants & Other Support
$4,751,245
$3,302,338
Total Net Revenues, Contributions, and Other Support
$5,962,497
in memory
As the founder of Compuledger, a firm that provides accounting and business management services to nonprofits, Mary Grace helped to set up HDF's internal accounting infrastructure and safeguards in 1994. HDF grew alongside Compuledger and Mary remained closely involved with our operations. HDF CEO Joan Carty recalls that "from the beginning, Mary was always very hands-on with us. She was smart and thoughtful, with an enormous attention to detail. She was my secret weapon." According to her husband, Michael, Mary always had a warm place in her heart for HDF, and even looked forward to reviewing our audit each year. We thank her for her generous bequest to HDF.
In 2016 and 2017, HDF said farewell to some of our most dedicated and passionate allies. These three women have shaped our work and our organization in countless ways. We are grateful to have known them.
12 2016-2017 Annual Report
Interest Expense
$(407,388)
$(388,069)
Provision for Loan Losses
$(291,430)
$(643,850)
Total Financing Expenses
$(698,818)
$(1,031,919)
As a member and board chair of the Stamford Zoning board from 1995 to 2009, Phyllis Kapiloff helped to create Stamford's affordable housing regulations, including inclusionary zoning. Says Joan Carty, "Phyllis was not only an ardent champion of affordable housing, but also a champion of HDF's programs and services. She understood the value and importance of having an array of affordable housing available to Stamford residents." We thank her for directing gifts to HDF in her will.
Expenses
2016-17 financials
Mary Washburn Grace
Revenues
Statement of Financial Position
Notes Payable
$21,606,512
$20,776,138
Refundable Advances on Grants
$2,938,495
$4,252,753
Accrual Expenses and Other Liabilities
$1,185,454
$890,970
Deferred Compensation
$210,340
Agency Liabilities
Total Liabilities
$39,257,877
$39,638,718
Liabilities
Total Program Services
$2,146,209
$2,184,065
Total Administrative Costs
$1,058,068
$1,088,286
Total Expenses
$3,204,277
$3,272,351
Change in Net Assets
$2,758,220
$29,987
Interest on Loans
$1,292,779
$1,228,962
Investment Income, Net
$61,652
$40,307
Contracts and Fees
$555,639
$585,434
Total Financing Revenue
$1,910,070
$1,854,703
Statement of Activities
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