2020 Annual Report
Housing Development Fund
Dear Friends, The past year has been exceptionally challenging. The COVID-19 pandemic and resulting economic fallout have devastated millions of families across the country and thousands of families across Connecticut. However, despite the many challenges of the past year, HDF is determined to push forward and work diligently to launch new programs that help vulnerable households across the state. We are excited 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.
HDF's affordable rental project located at 10 Wooster St, Bethel, CT.
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Board Chair
Board of directors 2020-2021
2020 IN REVIEW
On January 8th, 2021, longtime HDF Board Member, E. Phillip McKain passed away. E. Phillip McKain was one of HDF’s longest serving Board Members, having been appointed in 1996 and remaining on HDF’s Board for 26 years. Mr. McKain was an exceptionally dedicated advocate for low-income families. He served as the President and CEO of CTE, Inc. since 1993. In this position, he led the federally designated anti-poverty agency for the Greater Stamford Area, serving Stamford, Greenwich and Darien. He was responsible for the direction, planning and overall administration of CTE's many programs. A graduate of Syracuse University Maxwell School, Mr. McKain received his Master's Degree in Political Science from the University of Pittsburgh. He pursued postgraduate work in the areas of Public Administration, Urban Community Development, and African American Politics at the University of Pittsburgh and Howard University respectively. Mr. McKain also served as a board member of the Stamford Chamber of Commerce, the Stamford Partnership, and the Stamford NAACP. HDF is immensely grateful to have had Mr.McKain as a Board member, friend, and advocate.
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 Bank Matthew Quinones Stamford Public Education Foundation Kathleen Romagnano Nexos National Bank Lisa A. Sanders TD Bank Al Shehadi Shehadi Advisory Michael Weinstock M&T Bank
“This pandemic has been a wrecking ball in the lives of Americans already struggling,†Ms. Scott wrote. “Economic losses and health outcomes alike have been worse for women, for people of color, and for people living in poverty. Meanwhile, it has substantially increased the wealth of billionaires.â€*
*https://www.vogue.com/article/7-things-to-know-about-philanthropist-mackenzie-scott *https://mackenzie-scott.medium.com/384-ways-to-help-45d0b9ac6ad8 *https://givingpledge.org/Pledger.aspx?id=393 *https://givingpledge.org/About.aspx
Every year, as part of HDF's routine organizational procedures, HDF staff are required to participate in a disaster recovery training day. The overall purpose of the training is to ensure that staff can carry out their regular job responsibilities remotely during a disaster, natural or otherwise. During this annual training, HDF staff:
emergency PREPAREDNESS at hdf
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COUNSELING CLIENTS FROM ABROAD
Associated Press article featured in 30+ publications across the country, including: NBC Connecticut, News 8, News Break, Washington Post, US News, Stamford Advocate, Ridgefield Press, Grand Island Independent, Westerly Sun, PIX 11, WFMZ News, WCN 24/7, WBNG 12 News, and more
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Thanks to HDF's annual disaster recovery training, staff are fully prepared to do their jobs remotely, from any location! In March 2020, HDF Senior Homeownership Advisor, Roxana Ubillus, departed on what she thought would be a week-long vacation to Peru to visit family. However, due to government travel restrictions resulting from the COVID-19 pandemic, one week turned into six months! Despite Roxana's inability to return home, she was able to access HDF's remote desktop and provide high quality homeownership counseling services to HDF's clients. She was also able to participate in HDF all-staff meetings and other essential department meetings.
ANNUAL DISASTER RECOVERY TRAINING
HDF Staff participating in annual disaster recovery day
In December of 2020, HDF received news that it was awarded a $4 million charitable donation from MacKenzie Scott. HDF received this gift along with 383 other non-profit organizations as part of an unprecedented effort to provide emergency funding to organizations serving economically disadvantaged households across the country. In Ms. Scott's announcement, she emphasized the devastating toll that the COVID-19 pandemic has had on financially vulnerable Americans: As part of the Giving Pledge, an organization aimed at setting "a new standard of generosity among the ultra-wealthy,"* Ms. Scott has pledged to continue her philanthropic efforts "until [her] safe is empty."* Although Ms. Scott has made it clear that she is far from completing her giving pledge, her $6 billion in charitable giving in 2020 alone represents the most given to charity in a single year by a living person.* HDF is honored to receive this donation which will support HDF's efforts to bring affordable housing opportunities to Connecticut's most vulnerable residents.
Hold a disaster recovery day where all staff are reminded of what to do and practice various scenarios Review results of practice scenarios to see if any improvements can be made to the plan Review and update HDF's Disaster Recovery Packet, a company manual with a recovery plan and supporting how-to documents Send new packet to all staff members to either save on a flash drive or print a hard copy for storage in a secure location Test and troubleshoot personal equipment such as laptops, iphones, etc. to ensure that they are operational and can successfully connect to the HDF network Practice connecting to any third party technology needed to complete essential job tasks
A message of GRATitude
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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
125 Hillside, After Construction
125 Hillside, Before Construction
Multifamily Consortium
HDF's multifamily financing products are a powerful vehicle for expanding and preserving affordable rental housing across Connecticut. HDF's project at 125 Hillside Ave in Waterbury reflects HDF's commitment to both financing new affordable rental units and improving communities. In May 2019, HDF closed on a $468,000 loan to finance the rehabilitation of a multifamily building in Waterbury. The property had been severely damaged by a fire and was considered completely uninhabitable. HDF's Multifamily Loan Fund financed a complete gut renovation of the building. HDF is delighted to report that the rehabilitation work has been completed, and with the help of HDF's financing, the property has been converted from an uninhabitable 4-unit building to an 8-unit property. The building includes 4 1-bedroom units, 2 2-bedroom units, and 2 3-bedroom units. All units are affordable to low-income households under 80% of the area median income. The property is located on Hillside Avenue, steps away from public transportation and Waterbury's thriving downtown area.
Since 1989, HDF has financed affordable housing projects in the state of Connecticut through our Multifamily Lending Program, investing almost $51 million and adding over 2,000 units of rental housing. HDF's Multifamily Lending Program is unique; we offer a variety of financing options including the development of new affordable units, preservation of existing units, and supporting the renovation of units to a more energy-efficient and sustainable standard. In FY2020, our Multifamily Lending Program invested more than $1.6 million in affordable housing in Connecticut.
Commercial Lending
Project Update - 125 Hillside Avenue
Consortium lenders have banded together to finance affordable housing projects throughout CT.
Rendering of 10 Wooster Street - (below)
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10 Wooster Street, During Construction - (below)
Project Spotlight - 10 Wooster Street
HDF is proud to report on the progress of 10 Wooster Street in Bethel, Connecticut. HDF financed the construction and development of this ten-unit property with $1.26 million in multifamily consortium financing and $150,000 in financing from HDF. The project includes the redevelopment of two preexisting units and the construction of eight more at 10 Wooster St. The project brings needed affordable rental units to the area with 30% of the units being designated for households at or under 100% of the area median income. The property is located in a highly desirable area of Bethel and is located directly in front of Bethel Town Hall and other municipal offices. It is within walking distance of downtown shops, restaurants, and the train station, making it a transit-oriented development. The project received full support from the town of Bethel and is located in the town’s "VC Zoning†area whose purpose is to maintain, enhance, and promote a mixed-use, pedestrian-scale downtown area with a strong sense of place. Property owners and managers, Adriano Echavarria and Krystyn Gatto, report that despite COVID-related challenges throughout the construction industry, this project will be completed on schedule. The progress on the construction has been steady and is nearing completion. Tenants are expected to move in throughout the month of December and 9 out of 10 units have been leased.
Counseling & Education
Homeownership
HDF's SmartMove Connecticut Program helps first time homebuyers overcome the obstacles of downpayment and closing costs by providing low-interest downpayment assistance loans for up to 20% of the purchase price. Participating homebuyers may be able to put down as little as 1% of the purchase price. In FY2020, HDF helped our 2,000th SmartMove customer purchase their first home! The map below represents all 2,000+ SmartMove homebuyers. The darker shaded the area, the more homebuyers assisted by SmartMove loans!
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.
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"HDF helped me to become a home owner! The people were extremely patient with my never-ending questions, knowledgeable, and courteous. The required class was very informative & I am glad I took it." - Amy, HDF Homebuyer
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 BankÂ
Downpayment and Closing Cost Assistance, cont.
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 3,000 first time homebuyers.
Member banks purchase a stake in sustainable homeownership in our community by supporting the SmartMove program and providing first mortgage lending to HDF homebuyers.
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SmartMove CT
SmartMove Loan Pool
PROJECT HAS BEEN LAUNCHED!
HDF’s Community Land Trust, located at 287 and 297 Washington Blvd in Stamford, represents a unique, affordable housing initiative that will be the first of its kind in Fairfield County. Located in Stamford’s South End, the property consists of two adjacent vacant buildings that will be redeveloped into 22 new homeownership units for families earning less than 50% of the area median income. A community land trust is a nonprofit, community-based organization whose mission is to provide affordable housing in perpetuity by owning land. HDF's Community Land Trust project has received significant support from the City of Stamford, the private industry, and the South End community. HDF is delighted to report that we have made significant progress in the project, despite the potential for delays due to the COVID-19 pandemic. First, HDF incorporated the HDF Community Land Trust as of June 28, 2020, and subsequently took title of the property in August 2020. Second, HDF has hired a dedicated Project Manager, Jonathan Cohen from J. Forrest Development in Stamford, to oversee the project. Most recently, HDF selected a general contractor for the project. HDF continues to push the project forward and anticipates completion in the Spring of 2022.
Site of Future Community Land Trust South End, Stamford
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Plans for Community Land Trust
The majority of program applicants work in several hard-hit industries. These include: manufacturing, retail, the service industry, and the beauty industry Single-parent households where the parent has been laid off or forced to reduce hours and stay home for homeschooling Families down to one income as one parent has to be home with the children or day care is too expensive Caregiver for a sick family member or person exposed and unable to work for weeks at a time Employees told to stay home due to weakened immune systems City Public works employees from various cities Households who are unemployed and unable to find work because few places are hiring at this time Households who have run out of unemployment benefits and are no longer receiving any income
HDF COMMUNITY LAND TRUST
"I've lived in the South End for 32 years, we've been trying to do this for 25 years..." - Elise Coleman "This is something that we can really be proud of in the South End." - Jon Wooten
rental relief program with The connecticut department of housing and the connecticut housing finance authority
WHO IS APPLYING FOR RENTAL ASSISTANCE?
HDF has been selected to administer The Department of Housing and Connecticut Housing Finance Authority’s Temporary Rental Housing Assistance Program (TRHAP). The program was launched to help renters and homeowners address the economic impact related to COVID-19. This program allows up to $4,000.00 in assistance and is specifically for households under 80% AMI. The launch of the TRHAP follows the announcement of a comprehensive state response by Governor Lamont authorizing the use of state and federal resources. 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. The demand for this program has been robust, and HDF has received 625 applications as of November. Fortunately, the program has been extended into 2021 and a second round of funding will become available to organizations after the first round of funding has been exhausted.
Jagjiwan Singh, Bob Hogan, and Fran Pastore
On October 29, 2020, HDF held our 30th anniversary virtual Benefit Breakfast celebrating "30 years of housing impact." The event was HDF's first-ever virtual benefit, held on HDF's new Events website (hdfevents.org). The virtual event attracted over 215 site visitors across CT and NY, including representatives from our banking partners, housing developers, local government, fellow nonprofits, and other community leaders who support affordable housing. All the money raised from the benefit supports HDF's First Time Homebuyer Program, which provides downpayment assistance, one-on-one counseling, and free educational classes to eligible homebuyers. Client Testimonials The virtual form of the benefit allowed the event to take a more unique shape than ever before. Benefit participants were toured through three HDF homebuyers’ houses, learning how HDF helped each person on their homeownership journey. We heard from Amy Luviano, a delivery nurse and mother of three, Jeff Rodriguez, an ICU Nurse, and Rebecka Oliver, a 24-year-old homebuyer and landlord.
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Mendi Blue-Paca, Fairfield County Community Foundation
Amy Luviano, Delivery Nurse and HDF Client
Clay Fowler, Spinnaker Real Estate Partners
Bob Palermo, Bankwell Bank
Cynthia Russell, The Goodnow Fund
Marjan Murray, People's United Bank
Jeff Rodriguez, ICU Nurse and HDF Client
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Messages from hdf supporters HDF Sponsors and Partners discussed HDF's landmark 30 years in affordable housing. Cynthia Russell of the Goodnow Fund and Marjan Murray of People's United spoke to HDF's growth and commitment over the past three decades. Mendi Blue-Paca of the Fairfield County Community Foundation and Greg Schiefelbein of Citibank discussed the importance of homeownership in closing the racial equity gap. Mayor of Stamford David Martin and Clay Fowler of Spinnaker Real Estate Partners spoke about the importance of homeownership in building communities. Bob Palermo of Bankwell and Roxana Ubillus of HDF discussed HDF's SmartMove and Counseling Programs. John Wooten of Laurel House and Elise Coleman from Stamford's Board of Representatives discussed the upcoming Community Land Trust in Stamford's South End.
Rebecka Oliver, Landlord and HDF Client
Virtual Benefit 2020
$52,500 in sponsorship funding raised!
Presenter ($7,000+)
Supporters FY2020
NeighborWorks America Eversource Energy
Stephen Hoffman Kenneth Olson
($500,000+)
Bankwell Bank People's United Bank
Citibank The Goodnow Fund M & T Bank Webster Bank
Kathleen Romagnano Shehadi Advisory Spillane Consulting Associates, Inc.
Icons
Leader ($5,250+)
Friends
Partner ($1,250+)
DR Bank Fairfield County Bank Federal Home Loan Bank of Boston First County Bank Clay Fowler Griffith E. Harris Insurance Pitney Bowes Foundation Savings Bank of Danbury Shipman & Goodwin Spinnaker Real Estate Partners, LLC The Tokeneke Foundation Union Savings Bank Wofsey, Rosen, Kweskin & Kuriansky, LLP
($250+)
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($1,000+)
($500+)
Builders
Builders, Cont.
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Builder
Christopher Brighindi William McAndrew Elizabeth McGroarty Cheryl Milukas Janet Pilz Cynthia Russell
Virtual Benefit Sponsors
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+)
Leaders
Charter Oak Communities CT Green Bank Eileen Hynes Antoinette Lazarus
Neighbors
Investor ($2,750+)
Visionaries
Partners
($5,000+)
Assets
Short-Term Liabilities
Accrued Expenses and Other Liabilities
$469,699
$270,129
Deferred Revenue
$37,000
$0
Other Short-Term Liabilities
$2,507,662
$1,236,483
Total Short Term Liabilities
$3,014,361
$1,506,612
Long-Term Liabilities
Deferred Compensation Obligation
$81,507
$196,175
Other Long-Term Liabilities
$23,810,463
$23,950,438
Total Long-Term Liabilities
$23,891,970
$24,146,614
Other Liabilities
$12,565,291
$12,765,322
Total Liabilities
$39,471,622
$38,418,547
Net Assets
$21,947,855
$21,820,472
Total Liabilities and Net Assets
$61,419,477
$60,239,019
FY2020 financials
2020
Current Assets
Cash and Cash Equivalents
$7,622,261
$7,850,985
Total Accounts Receivable, Net
$30,697
$31,115
Accrued Interest Receivable
$106,162
$119,592
Prepaid Expenses and Other Assets
$82,920
$56,957
Escrows and Reserves
$966,138
$746,016
Total Other Current Assets
$1,155,220
$922,564
Total Current Assets
$8,808,178
$8,804,665
Loans Receivable Net of Allowance
Manchester Housing
$1,330,000
MacArthur Loans
$2,318,413
$976,826
Holding Gain/Loss - Investment
$8,293
$41,769
Loans Construction
$995,342
$0.10
Loans Permanent - Consortium
$16,464,717
$18,569,627
Loans Permanent - Non Consortium
$1,950,463
$3,706,393
Loans Construction - Non Consortium
$71,635
COVID Non-Performing
$2,531,105
Deferred Loan Origination
$124,445
$138,721
Deferred Construction Costs
$351,000
Allowance for Losses - MF Loan Cons
$736,148
$750,690
Allowance for Losses - MF Loan Non Cons
$388,779
$160,460
Total Loans Receivable Net of Allowance
$24,682,375
$23,562,842
Total Commercial Lending Loans Receivable
Homebuyer Assistance Loans
$16,145,257
$16,370,675
Allowance for Loan Losses - HBA
$2,498,249
$3,123,349
Total Homebuyer Assistance Loans (Net of Allowance)
$13,647,008
$13,247,326
Property & Equipment
$12,863
$22,368
Total Other Long-Term Assets
Total Agency Assets
Leasehold - 100 Prospect
$548,240
$538,240
Total Leasehold, Net of Accumulated Authorization
$389,478
$403,185
Total Long-Term Assets
$51,378,521
$50,197,217
Unrestricted Investments
$1,232,777
$1,237,137
Total Assets
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Statement of Financial Position
2019
Liabilities and Net Assets