2019 Annual Report
1 2019 Annual Report
2019 IN REVIEW
Board of directors 2019 - 2020
President and CEO
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 E. Phillip McKain Willard Miley First County Bank Marjan Murray People’s United 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
In a changing landscape for affordable housing, HDF is proud to create options for hardworking families and individuals. In the past two years, we completed two downpayment assistance programs that infused over $6 million in downpayment assistance for first time homebuyers in Connecticut and New York. These programs - The Project Reinvest Homeownership Program, 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
financing to owners/developers of affordable properties. HDF's loan to Northeast Hartford Affordable Housing is an example of such financing at work. This particular loan has funded a full energy audit of a multi-site development in the North End of Hartford called 'Sheldon Oak'. Sheldon Oak includes 8 buildings with a total of 68 units, 48 of which receive Section 8 subsidy support. The properties were purchased in 2002 and each building has been rehabilitated. The project presents a promising opportunity for a substantial reduction in energy and water costs with a total yearly savings of $40,000 to $55,000.
Multifamily
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
Multifamily Energy Efficiency Financing
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. HDF continues to promote energy efficiency, in partnership with CT Green Bank and the MacArthur Foundation, by providing flexible
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Since 1989, HDF has financed affordable housing projects in the state of Connecticut through our Multifamily Lending Program, investing almost $45 million and adding over 2,000 units of 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 FY2019, our multifamily lending program invested more than $1.1 million in affordable housing in Connecticut. Fiscal year 2019 was also a time of organizational growth with the addition of new staff member, Ali Robinson, who joins the Department as a Portfolio Multifamily Loan Manager.
Sheldon Oak Properties: Hartford, CT
2 2019 Annual Report
Consortium lenders have banded together to finance affordable housing projects throughout CT.
MF Financing and Units: FY13 to Present
Multifamily Consortium
HDF's multifamily financing products have proven to be a powerful vehicle for expanding and preserving affordable housing opportunities across the State of Connecticut, and our latest project in Waterbury is no exception. In May 2019, HDF closed on a $468,000 loan to finance the rehabilitation of a mutlifamily building in Waterbury, Connecticut. The property had been severely damaged by a fire and was considered completely uninhabitable. HDF's Multifamily Loan Fund will finance a complete gut renovation of the building. The building previously included four units, but with the help of HDF's financing, it will be converted to an 8-unit property. The building will include 4 1-bedroom units, 2-2 bedroom units, and 2-3 bedroom units, all of which will be affordable for low-income households. The property is located on Hillside Avenue, steps away from public transportation and Waterbury's thriving downtown area.
Rehabilitation & Preservation
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125 Hillside Avenue Before Rehab
125 Hillside Avenue Waterbury, CT
4 2019 Annual Report
125 Hillside Avenue During Rehab
homeownership
Chelsea Groton Bank Citibank Fairfield County Bank First County Bank Ion Bank Liberty Bank M&T Bank Newtown Savings Bank People’s United Bank Savings Bank of Danbury Stamford Mortgage Company Thomaston Savings Bank Union Savings Bank United Bank Webster Bank
6 2019 Annual Report
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 2,900 first time homebuyers. In FY2019 we have continued to offer a number of downpayment and closing cost assistance programs, giving our homebuyers more choice and lower costs.
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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
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 13,500 first time homebuyers take the first steps on the path to homeownership. 6,300+ have gone through HDF one-on-one counseling and 1,900+ have completed homebuyer education. From 2016-2019, thanks to a new online application process, we have been able to reach more prospective homebuyers. We've also seen a steady increase in clients accessing our 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 Ulster Savings Bank Webster Bank
SmartMove NY
Thanks to a $3.96 million grant from NeighborWorks America, HDF launched the Project Reinvest Homeownership Program in the summer of 2017. The program offers 0% second mortgage loans of $10,500 to eligible homebuyers in Connecticut and New York with a recent expansion into Massachusetts and Vermont! Assistance is available to first-time buyers making less than 100% AMI who are purchasing their primary residence. To date, all Project Reinvest loans have been closed!
PROGRAM COMPLETED!
Project Reinvest Homebuyer Story
Meet the Castros!
Q: Why were you interested in becoming a homeowner? A: Our family was expanding, my wife was expecting our third child, and there was nothing more we wanted than to give our children an anchored place to grow and make lasting memories. Q: Please share your hopes and dreams about homeownership when you first started the process. A: We were hoping to find a nice home with space to raise and nurture our family. When we walked through our home for the very first time, we envisioned the meals, holidays, and happy chaos we could share in together there. Q: Please describe the ways in which HDF made the homebuying process easier or more manageable. A: HDF provided an advisor who guided us throughout the homebuying process. Additionally, HDF's loan requirements were more rigorous, which resulted in additional inspections that proved to be extremely valuable. Lastly, HDF made it possible to purchase the home, as we didn't have sufficient funds for a downpayment or to cover closing costs. Without HDF we would not be homeowners today. Q: Please tell us how you felt when you realized you had achieved your dream of homeownership? Who was with you? And how did you react? A: I was at work and immediately called my wife, who was with our children at the park. We were shocked and excited. We both couldn't believe our dream was coming true and we were entering the next stage of our life! Q: Please describe all the positive changes in your life since becoming a homeowner. A: It has brought our family closer as we work out in the yard, finish house projects together, and cultivate a warm, welcoming home. We are proud to have something to call our own and our children are thriving with more space to play and grow.
8 2019 Annual Report
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2019 Annual Report 9
The Castro Family
project reinvest with Neighborworks
Michelle Nieves, HDF Homebuyer and Entrepreneur
Jagjiwan Singh, Bob Hogan, and Fran Pastore
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Breakfast Sponsors and HDF Board Members Robin Gallagher (middle right), and Michael Weinstock (right)
Toren Murphy, HDF Homebuyer and Keynote Speaker
Breakfast Development Committee Member, Sara Tucker (left)
On May 19, 2019, HDF held our 10th Annual Benefit Breakfast at the Hilton Hotel and Executive Meeting Center in Stamford. This event brought together 240 community leaders - representatives from our banking partners, housing developers, local government, nonprofits, and other community leaders from across CT and NY who support affordable housing opportunities. All money raised goes to support HDF's homeownership counseling program, which provides free one-on-one
Panel Discussion Following the breakfast, attendees were invited to hear experts on entrepreneurship, small business lending, and financial literacy discuss their research and experiences in the field. Our panelists this year were Bob Hogan, Co-Chair and Mentor at SCORE Fairfield County Chapter, Fran Pastore, CEO of the Women's Business Development Council, and Jagjiwan Singh, Business Development Officer and Assistant VP, at First County Bank. The panel was moderated by Nancy von Euler, Executive Director of Horizons at New Canaan Country School. The panelists used their expertise to draw connections between entrepreneurship, financial education, and stable housing while fielding thoughtful questions from the audience.
Jagjiwan Singh and Bob Hogan
OVER $73,000 IN SPONSORSHIP FUNDING RAISED!
Benefit Breakfast 2019
counseling and education to eligible homebuyers. Each year, HDF chooses a different theme to explore in an effort to highlight the far-reaching effects of affordable and stable housing. The theme of this year's breakfast was 'Affordable Housing as a Platform to Entrepreneurship and Financial Stability'. The program featured success stories from HDF homeowners who are also entrepreneurs!
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Nancy von Euler and Fran Pastore
FY2018
Net Equity in Furnishings, Building, Equipment, and Land
$1,259,504
$23,029
Board Designated
$16,444,419
$13,814,050
Undesignated
$1,446,368
$2,312,145
With Donor Restriction
$2,670,180
$2,672,576
Total Net Assets
$21,820,471
$18,821,800
Total Liabilities and Net Assets
$60,247,331
$60,000,034
FY2019
Cash and Cash Equivalents
$7,197,645
$8,840,550
Unrestricted Investments
$117,503
$620,706
Accrued Interest Receivable
$120,520
$135,683
Loans Receivable, Net
$35,140,468
$33,475,030
Leasehold, Furnishings, & Equipment
$425,553
$439,920
Buildings, Net of Accumulated Depreciation
$326,986
$0
Land
$910,150
Grants, Contracts, & Other Receivables
$786,516
$786,285
Investment in Custodial Receipts
$1,288,231
$1,310,476
Investments for Deferred Compensation
$196,175
$298,494
Other Assets
$54,957
$49,100
Assets Restricted for Long Term Purposes
$13,682,627
$14,043,790
Total Assets
Net Assets
Supporters FY2019
Fairfield County Community Foundation (FCCF) First County Bank Foundation The Goodnow Fund M&T Bank People's United Community Foundation Webster Bank
($250+)
Assets
Financing Expenses
Financing Revenues
Leaders
Connecticut Housing Finance Authority Eversource Energy NeighborWorks America
Builders
Maria Alves Christopher Brighindi Leslie Brown Christine Chivily Anthony Cirone Kimberly Clark Joseph DiGuiseppi Ted Ferrarone Beth Ann Fetzer William Finger Nicholas Gazetos Michele Grull Griffith Harris Roberto Hunter Valencia Taft-Jackson James Lane Cathleen Miller Laura Murphy Robert Palermo Kathleen Romagnano Christie Stewart Kelly Trahan Mark Weiss Dave Zamary
Bank of America Bankwell Bank The Per and Astrid Heidenreich Foundation Liberty Bank TD Bank
Net Financing Revenues
$1,111,576
$1,007,061
Contributions, Grants & Other Support
$5,537,437
$4,118,371
Total Net Revenues, Contributions, and Other Support
$6,649,013
$5,125,432
($500+)
Visionaries
Neighbors
Partners
($1,000+)
Bruce Beinfield Frank Caico CT Green Bank Scott Gerard Donald Gustafson Guy Mazzola Willard Miley Debbie Robertson Deirdre Segerson Michael Weinstock Women's Mentoring Network David Zieff
Interest Expense
$441,617
$424,073
Provision for Loan Losses
$515,198
$511,254
Total Financing Expenses
$956,815
$935,327
($5,000+)
Expenses
FY2019 financials
Revenues
Charter Oak Communities Connecticut Community Bank Diamond Properties, LLC EMJ Construction Consultants Griffith E. Harris Insurance Services Heritage Housing, Inc. NeighborWorks America Newtown Savings Bank Penn Johnson Al Shehadi Spillane Consulting Associates, Inc. Union Savings Bank
Statement of Financial Position
Building and Land Technology (BLT) /Harbor Point Business Council of Fairfield County Charles Howell Citibank Emmett Marvin & Martin LLP Fairfield County Bank Federal Home Loan Bank of Boston First County Bank Ginsburg Development Companies Hunt Capital Partners, LLC Kim Morque Laurel Road Bank Nexos National Bank Robin Gallagher Savings Bank of Danbury Shipman & Goodwin Signature Bank Spinnaker Real Estate Partners, LLC The Herbert and Sarah M. Gibor Charitable Foundation Union Savings Bank United Bank Webster Bank Wells Fargo Foundation Wofsey, Rosen, Kweskin & Kuriansky, LLP
Notes Payable
$23,950,438
$24,730,181
Refundable Advances on Grants
$277,074
$2,058,489
Accrual Expenses and Other Liabilities
$1,163,645
$1,067,955
Deferred Compensation
Agency Liabilities
$12,839,528
$13,023,115
Total Liabilities
$38,426,860
$41,178,234
Liabilities
Total Program Services
$2,313,777
$1,946,149
Total Administrative Costs
$1,308,477
$1,174,295
Total Expenses
$3,650,342
$3,133,804
Change in Net Assets
$2,998,671
$1,991,628
Interest on Loans
$1,273,059
$1,303,151
Investment Income, Net
$128,258
$95,934
Contracts and Fees
$667,074
$543,303
Total Financing Revenue
$2,068,391
$1,942,388
($10,000+)
Statement of Activities
($500,000+)
Icons
Friends