2021 Annual Report
Housing Development Fund
Dear Friends, We remain grateful for your support this past year. Despite the continued challenges faced by the communities we serve, we remain committed and hopeful as we look to the future. We are thrilled to share the progress on these initiatives in this year’s Annual Report, which features the launch of HDF’s new Community Land Trust, as well as the celebration of HDF’s 30th Anniversary. Thank you for sharing in HDF’s commitment to create stable, affordable housing for our neighbors; together we will continue to build stronger communities, one home at a time.
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Board Chair
AL SHEHADI is Founder of Shehadi Advisory and has more than 25 years’ experience in housing, healthcare and community development finance. He was Director of Originations for Enterprise Community Investment, where he helped lead Enterprise’s expansion into the community health sector. Al served on HDF’s board since 2006, and held the position of secretary from March 2016-March 2021. Al was an invaluable member of HDF's Board of Directors and brought his vast knowledge of impact investing and the CDFI industry. ROBIN GALLAGHER recently retired from her position of SVP of Commercial Real Estate Lending at Webster Bank, where she worked since 2005. Prior to Webster, Ms. Gallagher has an extensive background in lending including work at BNY Mellon, HSBC, and Chemical Bank. She is a past Chair of HDF’s Board and served on the board for over 18 years. Robin served on HDF’s Development Committee and was instrumental in planning HDF's yearly Benefit Breakfast.
Board of directors 2020-2021
The Housing Development Fund would like to thank Al Shehadi and Robin Gallagher for serving on HDF's Board of Directors.
FY2021 IN REVIEW
President and CEO
With all good wishes,
Clayton Fowler, Chair The Spinnaker Companies Robin M. Gallagher Webster Bank Scott Gerard Shipman and Goodwin Charles F. Howell Bert Hunter CT Green Bank Barbara Kelly Citibank Annie Lazarus Landmark Partners Willard Miley First County Bank Marjan Murray People’s United Bank Matthew Quinones Stamford Public Education Foundation Kathleen Romagnano M.Y. Safra Bank Lisa A. Sanders TD Bank Al Shehadi Shehadi Advisory Michael Weinstock M&T Bank
“HDF will need to pivot and innovate in order to meet the needs of the Connecticut communities we serve.” “the economic fallout from the pandemic has deepened the need for more housing stock that people can afford, both rental and home ownership opportunities. To that end, HDF has launched a Community Land Trust.” - Joan Carty
To read the full article, visit: https://www.finance-monthly.com/issues/2021/06/2/. HDF was featured in Finance Monthly Magazine's June 2021 Issue for a piece discussing the challenging real estate market in Connecticut and the ways in which HDF is helping to create home ownership opportunities for LMI households. .
HDF IN THE NEWS
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HDF was delighted to see our Community Land Trust project and April 7th Groundbreaking Event featured in The CT Insider and The Stamford Advocate. "Whereas families will own the condominiums, the trust owns the land and leases it out, typically in 99-year terms. The land trust, which is a not-for-profit, also manages any future resale of the property and ensures that future buyers are income eligible. The trust’s board will consist of both professionals and members of the community. They will be able to share in equity appreciation when they sell, so that they will be taking some of the equity with them to purchase something else — maybe something on the open market,” Carty told The Stamford Advocate. By default, land trusts cap the amount of money a seller can make to help keep the property affordable. For most CLTs, that stipulation is baked into the property’s deed restrictions."
“It works because we come together in partnerships like this, to create opportunities like this, which are really just win-wins across the board,” - U.S. Rep. Jim Himes. "We all know how important housing is. Home ownership in particular — it’s still the American Dream.” - HDF Board President Clay Fowler
Social Media Content
In 2021, HDF's commitment to digital outreach and marketing grew tremendously given both the Covid-19 pandemic and the need to reach areas of CT and New York where HDF does not have an easily accessible office. In an effort to reach qualified, potential homebuyers across CT and New York, the Communications team continues to improve upon its content design, scheduling, and outreach.
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HDF's October '21 content calendar
HDF social media report
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HDF also continues to prioritize outreach to communities of Color. This includes posting content in both Spanish and English.
Both free posts and paid ads are regularly scheduled and posted on Facebook, Instagram, LinkedIn, and Twitter - spreading the word about HDFs programs, Community Land Trust property, upcoming classes, or recent news coverage.
Bankwell Connecticut Community Bank First County Bank First Republic Bank Laurel Road Bank M & T Bank Newtown Savings Bank People's United Bank Savings Bank of Danbury Union Savings Bank Webster Bank
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During the COVID-19 pandemic, Connecticut became a popular destination for renters and potential homebuyers. Soon, demand for family homes and rentals soared, yet lower inventory and a competitive market resulted in rapid price inflation. In such a market, tenants reaped the fewest benefits of the boom. Many Connecticut residents now report they are behind on rent, with some facing eviction within the next two months. This has all happened as Covid-19 induced many economic and social hardships - pushing people into unemployment, to face eviction or growing debt, to care for loved ones, and to face overcrowding or homelessness in the most extreme cases. Now, in a post-moratorium state: More landlords are falling into foreclosure, leaving homes in need of preservation and renovation Landlords who remain are growing stricter about whom they will rent to in such a hot market Unfortunately, lower income neighborhoods and many communities of color are feeling the worst effects of the pandemic in the Connecticut housing market. Overall, Connecticut is in urgent need of affordable rental construction.
Project Spotlight - 10 Maple Avenue
Multifamily Consortium
In Bethel, CT - In 2021, HDF's multifamily lending team continued to focus on financing the creation and preservation of affordable rental units throughout Connecticut. Much of the State's affordable rental stock is aging and in need of significant repairs. In response, HDF provided permanent financing to help an HDF customer purchase and repair a 2-unit rental property located at 10 Maple Avenue, Bethel, CT. The Property contains an existing two family house that includes 2,514 square feet of livable space. This first floor has a vacant three bedroom unit and the second floor has an occupied two-bedroom unit. The current occupied unit will kept as an affordable rental unit and the second, vacant unit will be repaired and rented out to households earning less than 80% of the Area median income.
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COMMERCIAL LENDING
Market Update - Affordable Rental Housing
10 Maple Avenue, Bethel, CT
Consortium lenders have banded together to finance affordable housing projects throughout CT.
Counseling & Education
HOMEOWNERSHIP
Citibank M&T Bank People’s United Bank Ulster Savings Bank Webster Bank
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 identify and apply for downpayment assistance opportunities. Since 2004, 6,300+ families and individuals have recieved HDF's one-on-one counseling and 1,900+ have completed homebuyer education. Despite the COVID-19 pandemic, HDF counselors were able to reach hundreds more LMI households in 2020, thanks to HDF's online client portal. Most one-on-one counseling sessions took place remotely, ensuring that HDF's clients could continue to benefit from a high level of service from the safety of their homes.
SmartMove NY
Chelsea Groton Bank Citibank Fairfield County Bank First County Bank Ion Bank Liberty Bank M&T Bank Newtown Savings Bank Norcom Mortgage Patriot Bank People’s United Bank Savings Bank of Danbury Signature Bank Norcom Mortgage Thomaston Savings Bank Union Savings Bank United Bank Webster Bank
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rental relief program with The connecticut department of housing and the connecticut housing finance authority
Downpayment and Closing Cost Assistance
HDF provides a variety of low-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 3,200 first time homebuyers.
Member banks purchase a stake in sustainable homeownership in our community by supporting the SmartMove progrm and providing first mortgage lending to HDF homebuyers.
HDF has been selected to administer The Department of Housing and Connecticut Housing Finance Authority’s rental relief program, UniteCT. The program was launched to help renters and homeowners address the economic impact related to COVID-19. The program offers assistance to renters and homeowners in order to prevent eviction actions/foreclosures. This will address both the arrearage caused by income loss and/or the greater expenses due to COVID-19 that have negatively impacted a household’s ability to pay their full monthly rent over the next number of months.
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SmartMove CT
SmartMove Loan Pool
Seila Mosquera-Bruno, Commissioner of CT's DOH
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Clay Fowler, HDF Board Chairman
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CLT GROUNDBREAKING
Jagjiwan Singh, Bob Hogan, and Fran Pastore
Congressman Jim Himes
Joan Carty, HDF's President and CEO
APRIL 7TH,2021
Mayor David Martin, Mayor of Stamford
on April 7th, 2021, hdf celebrated the launch of our community land trust with a virtual groundbreaking ceremony. The event took place in the South End of Stamford, at the site of HDF's first Community Land Trust project. It marked the start of construction on the project, which will bring 22 permanently-affordable condo-style homes to the neighborhood. Families with a households income at or under 50% of the area median income will be eligible to purchase these homes and HDF is currently taking applications. The entire event was live-streamed using YouTube Live as well as video-taped to allow for distribution after the event concluded. The live event was viewed by over 200 of HDF's supporters, business partners, and affordable housing industry advocates. The program included: Remarks by elected officials: Mayor David Martin Congressman Jim Himes Commissioner Seila Mosquera-Bruno, CT Department of Housing Blessing of the CLT site. Presentation of the CLT time capsule. Shoveling ceremony.
Shoveling ceremony
Builders
Builders, Cont.
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Supporters FY2021
NeighborWorks America MacKenzie Scott
Christopher Brighindi Tyler Brockinton The Ferguson Library William McAndrew Robert & Patricia Phillips Janet Pilz Cynthia Russell Kathleen Walsh
Stephen Hoffman Kenneth Olson
($500,000+)
Bankwell Bank Citi The Goodnow Fund People's United Bank
First County Bank Foundation M & T Bank Webster Bank
Financial Management During the age of covid-19 A special update from HDF's CFO, Gina Delano The past year presented a number of significant financial challenges to HDF and to the non-profit sector as a whole. HDF's finance team worked diligently to mitigate possible negative financial impacts to the Organization while still operating at full capacity. To that end, HDF took the following steps to ensure the stability of the Organization during the COVID-19 pandemic: 1) HDF invested in remote technology, so the transition to remote work was seamless. Management allowed staff to take work equipment home where needed (HDF even had a staff member working at full capacity from abroad in Peru!) 2) HDF's commercial lending portfolio was at risk for significant losses – affordable properties faced reduced rental payments due to the tenants' inability to pay. Initially, HDF was facing the prospect of severe financial pressure. However, the Commercial Lending Department worked tirelessly with customers to monitor payments and work out payment plans where necessary. 3) HDF's management team worked closely with Executive Committee and Board of Directors for scenario planning and contingency planning for FY21 given the continuation of COVID-19. 4) HDF staff developed and implemented protocols for return to work to ensure employees' safety. 5) HDF applied for and received a grant from NeighborWorks America to offset our lost rental income. Rental income from HDF-owned properties in Darien and Westport slowed as tenants were unable to pay rent, and HDF was unable to fill vacant apartments. 6) HDF adjusted staff salaries to 80% and took advantage of CT Shared Work Program. 7) HDF applied for and received $292K in support from the Payroll Protection Program.
($10,000+)
Spillane Consulting Associates, Inc. United Way of Western Connecticut
Leaders
Icons
Charter Oak Communities CT Green Bank Eileen Hynes Antoinette Lazarus Kathleen Romagnano Shehadi Advisory
Friends
Neighbors
DR Bank Fairfield County Bank Federal Home Loan Bank of Boston Clayton Fowler Griffith E. Harris Insurance Elizabeth McGroarty Shipman & Goodwin Spinnaker Real Estate Partners, LLC Union Savings Bank Wofsey, Rosen, Kweskin & Kuriansky, LLP
Visionaries
FY2021 financials
Partners
($250+)
($1,000+)
($500+)
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Statement of Financial Position
($5,000+)