CONTENTS
a banner year in affordable housing
DC OPEN DOORS $100 MILLION MILESTONE CELEBRATION AND AWARDS CEREMONY.
OUR AGENCY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 MESSAGE FROM BOARD CHAIRMAN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 MESSAGE FROM INTERIM EXECUTIVE DIRECTOR . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 BOARD OF DIRECTORS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 DCHFA STAFF . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 MULTIFAMILY HOUSING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 PROJECTS DELIVERED IN FY 2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 INDUSTRY AWARDS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 SINGLE-FAMILY HOMEOWNERSHIP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 DC OPEN DOORS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 HOMESAVER . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 COMPLIANCE AND ASSET MANAGEMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 AUDITOR’S LETTER . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 FINANCIAL REPORT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
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OUR AGENCY
The District of Columbia Housing Finance Agency was created in 1979 to stimulate and expand homeownership and rental housing opportunities in Washington, D.C. For almost 40 years our mission has remained the same, though the housing challenges faced by D.C. residents are dramatically different. The cost of living, rental rates, home prices and the demand for housing are at all-time highs, while the inventory of housing, specifically quality affordable housing, has significantly decreased. Our Agency’s role is to ensure that the first-time homebuyer or the home shopper looking to upgrade or downgrade to a larger or smaller home has the financing they need to purchase the home. Through the financing of multifamily developments we invest in not only communities, but residents that are seeking quality rental units at affordable prices. We are here to provide aid to those that are in financial distress and unable to pay their mortgages or property taxes.
The District of Columbia Housing Finance Agency report for the fiscal year ending September 30, 2015, is respectfully submitted to: The Honorable MURIEL BOWSER, Mayor of the District of Columbia The Honorable PHIL MENDELSON, Council Chairman of the District of Columbia The Honorable KENYAN MCDUFFIE, Council Chair Pro Tempore The Honorable VINCENT ORANGE, Councilmember At-Large The Honorable ANITA BONDS, Councilmember At-Large The Honorable DAVID GROSSO, Councilmember At-Large The Honorable ELISSA SILVERMAN, Councilmember At-Large The Honorable BRIANNE NADEAU, Councilmember, Ward 1 The Honorable JACK EVANS, Councilmember, Ward 2 The Honorable MARY M. CHEH, Councilmember, Ward 3 The Honorable BRANDON T. TODD, Councilmember, Ward 4 The Honorable CHARLES ALLEN, Councilmember, Ward 6 The Honorable YVETTE ALEXANDER, Councilmember, Ward 7 The Honorable LARUBY MAY, Councilmember, Ward 8
DCHFA Board of Directors BUWA BINITIE, Chairman STEPHEN M. GREEN, Vice Chairman STANLEY JACKSON, Member BRYAN “SCOTTIE” IRVING, Member
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During Fiscal Year 2015 the Agency’s developments and programs have been covered by local and national news publications, industry blogs and in the U.S. Department of Housing and Urban Development’s newsletter, HUDLine News. In an effort to educate and inform the public about all of the Agency’s programs, DCHFA launched accounts on Facebook (www.facebook.com/dchfa) and Twitter (@DCHFA). Furthermore, the existing social media presence of DC Open Doors on Facebook (www.facebook.com/dcopendoors) and Twitter (@dcopendoors) was expanded.
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OUR AGENCY
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OUR AGENCY MESSAGE FROM BOARD CHAIRMAN BUWA BINITIE
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When I was appointed by Mayor Muriel Bowser to serve on the Board of Directors of the DC Housing Finance Agency, it was a great honor to return to this body where I was previously a member from 2009-2011. After my second term began, my colleagues bestowed another honor upon me by electing me as the Board’s Chairman. This is a very interesting time to hold this position. Both the District of Columbia and DCHFA are experiencing unprecedented growth in development. As a developer that builds affordable and workforce housing, as well as a D.C. resident for 15 years, I have a first-hand view of the City’s transition from several perspectives. Vacant lots are now occupied by gleaming modern structures and formerly blighted neighborhoods now bustle with activity. In some places it is hard to remember what existed prior to the development and redevelopment boom. However, for the residents that are no longer capable of affording to live in these now trendy neighborhoods, it is not a distant memory. Instead, it is a daily reminder that the City seems to have moved on without them. This is where DCHFA plays a central role by financing the preservation and construction of affordable rental housing developments, providing funds to extinguish real property tax liens for single family dwellers and making mortgage loan payments for unemployed and underemployed residents, and providing mortgage products and down payment assistance programs to those who wish to become homeowners in the District. Both the multifamily and single family divisions of the DCHFA have expanded its impact on the City’s housing landscape. In fiscal year 2015, the Agency financed the development or preservation of more than 1,300 affordable housing units in seven of D.C.’s eight Wards. The HomeSaver Phase I – Mortgage Payment Assistance Program continued to save homes from foreclosure for non-payment of mortgage loans by unemployed and underemployed D.C. residents, and the HomeSaver Phase II – Tax Lien Extinguishment Program saved homes for residents at risk of foreclosure due to delinquent real property taxes. At the end of Fiscal Year 2015, both phases of the HomeSaver program, had saved 703 homes in the District, since inception. The mortgage and down payment assistance program, DC Open Doors, celebrated its second anniversary by reaching a $100 million milestone of funding below-market rate mortgage loans and down payment assistance to persons buying homes throughout the District. Moreover the Agency is looking to introduce innovative tools to facilitate the production of affordable units in the District. The District of Columbia Housing Finance Agency has been an advocate and provider of resources to construct, preserve, redevelop and fund housing options for D.C. residents for 36 years. I relish the position that I hold as Chairman of this Agency’s Board of Directors which allows me to be an active participant in the fulfillment of DCHFA’s mission. On behalf of the entire Board of Directors, I applaud this year’s successes and the Agency’s staff as it continues its work to keep D.C. affordable for all that live here. A BA N N E R Y E A R I N A F F O R DA B L E H O U S I N G • D C H F A F Y 2 0 1 5 A N N UA L R E P O R T • 7
OUR AGENCY MESSAGE FROM INTERIM EXECUTIVE DIRECTOR MARIA K. DAY-MARSHALL
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The District of Columbia is experiencing explosive growth. Nearly 1,000 people move into the City monthly. The Urban Institute projects that the City’s population will rise to 718,499 by the year 2030. Redfin named Petworth the top neighborhood for house flipping in the country. According to a study by the Metropolitan Washington Council of Governments, the District will add an additional 247,100 jobs over the next 30 years. The economic outlook for the entire Washington region outpaces the national average. As a lifelong D.C. resident, I welcome the progress my City is making. Yet, it is also hard to fathom that these statistics describe my hometown. The challenge to this transformation is that the demand for housing as well as the cost of housing will continue to escalate, making it even more difficult for the City to sustain its cultural as well as economic diversity. As D.C. welcomes more and more new residents, some of its longtime residents are involuntarily bidding farewell to the District because they can no longer afford to live here. Moreover, many aspiring Washingtonians who would like to become residents are priced out of the housing market. At a time when rental rates and the sales prices of homes in the District are at record highs it is imperative that we make a concerted effort to preserve, build and expand affordable housing and offer a means to homeownership. Although the situation may seem dire, 2015 has been a banner year for affordable housing in the District of Columbia and for the District of Columbia Housing Finance Agency. Mayor Muriel Bowser made affordable housing a top priority from the outset of her administration with a $100 million allocation to the Housing Production Trust Fund to finance new construction and the preservation of affordable housing in the City. The Mayor also created the Housing Preservation Strike Force to develop an action plan to preserve existing affordable housing in the District. I represent DCHFA as a member of this multi-agency advisory group, and as a body we are developing an action plan to best utilize the District’s resources to maintain affordable housing structures in the City. This Agency’s mission and affordable housing production in FY 2015 aligns with the City government’s objectives and the goals of residents for housing in D.C. to remain accessible to all. In Fiscal Year 2015, DCHFA closed 11 transactions leveraging $345 million in development activity. This marks the fifth consecutive year that the Agency’s production has consistently increased. The Agency’s investment in affordable rental housing and homeownership through the DC Open Doors and HomeSaver Programs is evident in every Ward of the City. DCHFA continues to be the City’s champion for renters, homeowners and future D.C. homebuyers.
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OUR AGENCY
Every department within DCHFA plays a key role in carrying out the Agency’s mission of providing affordable housing for all that call the District of Columbia home. The staff is led and supported in these efforts by the DCHFA Board of Directors. FY 2015 DCHFA BOARD OF DIRECTORS
BUWA BINITIE, CHAIRMAN
STEPHEN M. GREEN, VICE CHAIRMAN
STANLEY JACKSON, MEMBER
BRYAN “SCOTTIE” IRVING, MEMBER
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OFFICE OF EXECUTIVE DIRECTOR Maria K. Day-Marshall INTERIM EXECUTIVE DIRECTOR Allison Ladd* ASSOCIATE EXECUTIVE DIRECTOR Nkosi Bradley DIRECTOR, GOVERNMENT AFFAIRS Yolanda McCutchen PUBLIC RELATIONS MANAGER Sandy Whitehorn* EXECUTIVE ASSISTANT Karen Harris EXECUTIVE ASSISTANT
OFFICE OF ADMINISTRATION Fran D. Makle DEPUTY EXECUTIVE DIRECTOR Heather Hart HUMAN RESOURCES OFFICER Jacqueline Reid PROCUREMENT OFFICER Thurston Ramey BUSINESS PROCESS MANAGER Marcus Thompson FACILITIES MANAGER Connell Young ADMINISTRATIVE ASSISTANT
OFFICE OF THE GENERAL COUNSEL Maria K. Day-Marshall GENERAL COUNSEL Michael Winter DEPUTY GENERAL COUNSEL Tracy Parker ASSOCIATE GENERAL COUNSEL Daniel Nuñez ASSOCIATE GENERAL COUNSEL Lillian Johnson RECORDS ADMINISTRATOR
PUBLIC FINANCE Anthony Waddell* DIRECTOR Edward Pauls* SENIOR DEVELOPMENT OFFICER Martin Lucero DEVELOPMENT OFFICER Dante’ Thomas* DEVELOPMENT OFFICER Soheila (Sue) Ghazizdeh CONSTRUCTION ENGINEER MONITOR Birol Yilmaz CONSTRUCTION ENGINEER MONITOR Patience Dean* DEVELOPMENT ANALYST Robin Moore* ADMINISTRATIVE ASSISTANT
DCHFA Staff SINGLE-FAMILY PROGRAMS Lisa G. Hensley DIRECTOR William Milko DEPUTY DIRECTOR Deborah Jones SINGLE FAMILY PROGRAM MANAGER Sherray Gibson ADMINISTRATIVE ASSISTANT Regina Moore* LOAN PROCESSOR
OFFICE OF THE CHIEF FINANCIAL OFFICER Sergei Kuzmenchuk* CHIEF FINANCIAL OFFICER Tatsiana Kurlovich* CONTROLLER Yong Ki Kim ACCOUNTING MANAGER Shujoen Lin* FINANCIAL ANALYST MANAGER Seyoum Gizaw BOND ACCOUNTANT Gloria San-Gil AP AND PAYROLL ACCOUNTANT Abiy Tamrat GENERAL LEDGER ACCOUNTANT Brooks Harrison PROJECT LEDGER ACCOUNTANT Valencia Anderson ACCOUNTING CLERK
COMPLIANCE AND ASSET MANAGEMENT Risha Williams DIRECTOR Jeree K. Turlington* ASSET MANAGER Deborah Bonner* ASSET MANAGER Charlene Clarke* ASSET MANAGER Jacqueline Langeluttig LOAN SERVICER Tameka Webb* COMPLIANCE COORDINATOR Fredericka Earle COMPLIANCE COORDINATOR
An asterisk (*) indicates someone who is no longer employed by the Agency, but who was employed during FY 2015.
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MULTIFAMILY HOUSING
Multifamily FY 2015 Highlights
DCHFA issues tax-exempt housing mortgage revenue bonds to lower a developer’s costs of acquiring, constructing and rehabilitating rental housing. The Agency offers private for-profit and non-profit developers low-cost construction and permanent financing that supports the new construction, acquisition, and rehabilitation of affordable rental housing in the District.
$345 million in total development activity Financed in part with $171 million in tax-exempt housing mortgage revenue bonds and $97 million in low income housing tax credit equity underwritten by DCHFA’s Public Finance Division Financed the development or redevelopment of approximately 1,325 affordable units in Wards 1, 2, 4, 5, 6, 7 and 8 Closed 11 transactions Fifth consecutive year of production increase
PUBLIC FINANCE
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FY 2015 Development Projects
Projects closed in FY 2015 • 7611 & 7701 Georgia Avenue Apartments (new construction) • Barrow Milestone Residential - 2321 4th Street, NE (new construction) • Brightwood Portfolio (preservation ) • Channing Phillips (new construction) • Edgewood Terrace (preservation) • The Grove at Parkside (new construction) • The Gregory - Highland Terrace (preservation) • Lincoln Westmoreland Apartments (preservation) • Hine School - North LIHTC Residential (new construction ) • Ontario Court (preservation) • Square 50 - West End (new construction) Seven of the nine projects delivered in FY 2015 are highlighted in this report. New construction development projects Twelve12 (The Yards D Building) and Park 7 were also completed during this fiscal year.
BRIGHTWOOD PORTFOIO (PRESERVATION)
HINE SCHOOL (NEW CONSTRUCTION)
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MULTIFAMILY HOUSING
Projects Delivered in FY 2015 The SeVerna on K
(SEVERNA PHASE II) (NEW CONSTRUCTION)
The Severna on K brought 133 newly constructed mixed income housing units to the Northwest One community, a New Communities Initiative designated area. Seventyfive percent of the units are reserved for tenants earning 60 percent of the area median income (AMI). The remaining units are not leased according to income restrictions, creating a new vibrant mixed-income dwelling accessible to downtown D.C. In 2008, the Deputy Mayor’s Office for Planning and Economic Development (DMPED) created the New Communities Initiative, a public-private partnership designed to improve the quality of life for families and individuals living in four distressed neighborhoods within the City.
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FY 2015 Development Projects
Eastbrooke Apartments AT BEULAH CROSSING (NEW CONSTRUCTION)
This project encompasses some of the most sought after features that residents seek in apartments. Eastbrooke Apartments at Beulah Crossing consists of 39 brand-new units, with modern finishes. It was designed and built to meet the D.C. Green Communities Initiative standards, is located only a quarter mile from the Capitol Heights Metro station, and it is an 100 percent affordable residential complex. Eleven of the apartments are three bedroom units, which are ideal for families, but increasingly difficult to locate in the District. Eastbrooke Apartments at Beulah Crossing is located in the Deanwood Strategic Development Plan area, which was approved by the Council of the District of Columbia in 2008 for major revitalization efforts.
OFFICE OF THE EXECUTIVE DIRECTOR AND OFFICE OF THE GENERAL COUNSEL
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FY 2015 DEVELOPMENT PROJECTS
Trinity Plaza
(NEW CONSTRUCTION)
Trinity Plaza is a mixed-use development that combines affordable housing, retail, and office space in Ward 8’s Bellevue neighborhood in Southwest, D.C. The new four-story construction has 49 affordable housing (one, two and three bedrooms) rental units, and 5,300 square feet of commercial space.
Ontario Court
(PRESERVATION)
SINGLE FAMILY PROGRAMS
Preserving and maintaining the existing stock of affordable housing in the City is as important as building new affordable communities. At Ontario Court, all 27 of its residential units (one, two and three bedrooms) were rehabilitated. Located in Adams Morgan, which is known more for its night life than affordable housing, 100 percent of Ontario Court’s units are set aside for households earning at or below 60 percent of the area median income (AMI). The building’s HVAC, electrical, plumbing and laundry facilities were upgraded. The basement was also renovated and now houses a daycare center. The restoration of Ontario Court helps to maintain economic diversity in Ward 1 of the City.
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FY 2015 Development Projects Sheridan Station Phase III (NEW CONSTRUCTION)
Sheridan Station is a key element to the District’s initiative to revitalize the Historic Anacostia District of Southeast, D.C. In 2007, the District of Columbia Housing Authority (DCHA) was awarded a $20 million HOPE VI grant from the U.S. Department of Housing and Urban Development (HUD) for the redevelopment of the former Sheridan Terrace public housing project. The building of Sheridan Station Phase III is the final phase in the overall HOPE VI redevelopment of this complex located in the Barry Farm neighborhood of Ward 8. This entire master development project provides a new walkable, mixed-income and transit oriented community that is affordable to residents with a broad range of household incomes. It is located only two blocks from the Anacostia Metro station. Sheridan Station Phase III includes 133 low income housing tax credit (LIHTC) units, including 83 townhomes, 40 manor flats, and 10 cottages. The unit mix includes 65 public housing replacement units and 68 LIHTC units. Forty replacement units are slated for the Office of the Deputy Mayor for Planning and Economic Development’s (DMPED) Barry Farm redevelopment initiative as part of the City’s New Communities Initiative. The remaining 25 replacement units will be set aside for former Sheridan Terrace residents. Phase I of Sheridan Station, a 114 unit affordable housing rental project financed by DCHFA in 2010, is complete. Phase II of Sheridan Station consists of 80 for sale units.
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FY 2015 DEVELOPMENT PROJECTS
The Gregory
(HIGHLAND TERRACE - PRESERVATION)
OFFICE OF ADMINISTRATION
The Gregory Apartments was originally built in 1970 and many of its nine buildings had fallen into disrepair. A number of the units had damage, water infiltration and mold development. In Fiscal Year 2015, Highland Terrace Apartments underwent a redevelopment and transformed into The Gregory. The development’s 124 units now have new kitchens, bathrooms, doors, windows and flooring. A new roof was installed on each building; exterior improvements to downspouts and sewer connections, landscaping, fencing, signage, and lighting were also completed.
Tyler House (PRESERVATION)
The Tyler House Apartments complex is located in NoMa an area teeming with new development. This year Tyler House Apartments was renovated and it now reflects the modern standards set by its neighbors. The 284-unit mixed use building provides affordable options in an area where rental rates have escalated rapidly.
OFFICE OF THE CHIEF FINANCIAL OFFICER
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FY 2015 Development Projects
DCHFA Development Projects Honored with Five Housing Industry Awards The District of Columbia Housing Finance Agency gained local and national acclaim for the funding of senior and affordable housing, historic preservation, and multifamily projects. The award winning developments are located in four of the City’s eight Wards (5, 6, 7 and 8). The Affordable Housing Tax Credit Coalition (AHTCC) TWENTY-FIRST ANNUAL CHARLES L. EDSON CREDIT EXCELLENCE AWARD - SENIOR NEEDS HOUSING HOUSE OF LEBANON
Affordable Housing Conference of Montgomery County (AHCMC) ARCHITECTURAL DESIGN AWARDS - RENOVATION SO OTHERS MIGHT EAT (SOME) SCATTERED SITE DEVELOPMENT, PHASE II
District of Columbia Historic Preservation Office (DCHPO) DISTRICT OF COLUMBIA AWARD FOR EXCELLENCE IN HISTORIC PRESERVATION FOR DESIGN AND CONSTRUCTION HOUSE OF LEBANON
Housing Association of Nonprofit Developers (HAND) HOUSING ACHIEVEMENT AWARD - BEST LARGE AFFORDABLE HOUSING PROJECT BASS CIRCLE
National Association of Local Housing Finance Agencies MULTIFAMILY EXCELLENCE AWARD TWELVE12 (THE YARDS D BUILDING)
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SINGLE FAMILY PROGRAMS
Single Family Programs
DC Open Doors FY 2015
A part of DCHFA’s mission is to stimulate and expand homeownership opportunities in the District. The Agency’s Single Family Programs division executes this part of our mission through the DC Open Doors mortgage loan program, the HomeSaver Phase I Mortgage Payment Assistance Program and the HomeSaver Phase II Tax Lien Extinguishment Program.
The program celebrated its second anniversary and reached a milestone of $100 million in mortgage loans funded since the inception of DC Open Doors. Funded 236 mortgage loans in an amount of $65,183,395 along with $1,775,612 in down payment assistance loans for a total of $66,959,007 in financing. Number of Total Closed Loans: . . . . . . . . . . . 235 Average Purchase Price: . . . . . . . . . . . . . . . . $286,475 Average Loan Amount: . . . . . . . . . . . . . . . . . $276,318 Average Age of Prospective Homebuyer: . . . . 33 Average Number in Household: . . . . . . . . . . . 1 Average Borrower Income: . . . . . . . . . . . . . . $80,455
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DC Open Doors Mortgage Assistance Loans by Ward
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SINGLE FAMILY PROGRAMS
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DC Open Doors KEOSHA BURNS, became a firsttime homeowner in 2015. She purchased a condominium in Washington, D.C. with assistance from the DC Open Doors program. At the time she was a Senior Manager, Corporate Communications, for Fannie Mae. Burns chronicled her homebuying journey and included her experience with DC Open Doors, in a series of blog posts entitled #ReadySetHome: An Insider’s Journey to Buying a First Home. The series was published by The Home Story, a Fannie Mae blog. In the blog post “City Living and the Housing Finance Agency” Burns credits DC Open Doors with assisting her with becoming a homeowner in the District of Columbia.
REPRINT OF BLOG POST “CITY LIVING AND THE HOUSING FINANCE AGENCY” WITH CREDIT TO FANNIE MAE
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SINGLE FAMILY PROGRAMS
HomeSaver FY 2015 Highlights Nine homeowners continued to receive mortgage payments (Phase I) Assisted 696 D.C. residents avoid foreclosure (Phase I) Launched HomeSaver Phase II – Tax Lien Extinguishment Program Assisted seven homeowners (Phase II) Funded $40,920 in real property tax lien extinguishment payments (Phase II)
HomeSaver Phase I In FY 2015 the Single Family division continued to administer mortgage payments to Washington, D.C. homeowners through Phase I of the federally funded, HomeSaver foreclosure prevention program. HomeSaver is an initiative of the Hardest Hit Fund, and is funded by the U.S. Department of Treasury. During FY 2015 the second phase of the HomeSaver program was launched to assist homeowners facing foreclosure due to delinquent real property tax payments.
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HomeSaver Recipient Testimonies I resigned my job in 2005 to care for my ailing mother. My savings were exhausted during this process. I did not work for four years. I am presently employed full time but underemployed. I have no way of paying this tax bill. We are brother and sister co-owners of a home… unable to re-enter the work force at his prior level after the years spent as a fulltime caretaker for our mother….lost her job when the division was eliminated….Continuing unemployment and underemployment caused our current tax delinquency. I can make payments once I am current, but I need help with the back payments. I have lived in this home for 30 years; have a nine year old daughter who I want to raise in the same family home. I was born and raised in D.C. and want the same for my child. I purchased my home in 1998. While I am very happy about the increase in value, the taxes have also significantly increased as this once working class neighborhood has become very desirable.
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COMPLIANCE & ASSET MANAGEMENT
The Agency’s Compliance and Asset Management Department (CAM) is responsible for monitoring all multifamily developments financed by DCHFA. CAM’s primary objective is to preserve and enhance the value of DCHFA financed assets and ensure safe, clean and quality housing standards. COMPLIANCE AND ASSET MANAGEMENT
As of the end of September 2015, DCHFA’s multifamily portfolio consisted of 127 multifamily developments with a total of 18,186 affordable rental units. DCHFA’s portfolio includes all active multifamily loans and LIHTC developments for which we provide compliance monitoring and support. • Developments 127 • Units 18,186
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AUDITOR’S LETTER
Independent Auditor's Report on Summary Financial Statements Board of Directors District of Columbia Housing Finance Agency The accompanying summary financial statements, which comprise the summary statements of net position as of September 30, 2015 and 2014, and the summary statements of revenues, expenses and change in position and cash flows for the years then ended, are derived from the audited financial statements of District of Columbia Housing Finance Agency as of and for the years ended September 30, 2015 and 2014. We expressed an unmodified audit opinion on those audited financial statements in our report dated January 15, 2016. The audited financial statements, and the summary financial statements derived therefrom, do not reflect the effects of events, if any, that occurred subsequent to the date of our report on the audited financial statements. The summary financial statements do not contain the disclosures required by accounting principles generally accepted in the United States of America. Reading the summary financial statements, therefore, is not a substitute for reading the audited financial statements of District of Columbia Housing Finance Agency. Management's Responsibility for the Financial Statements Management is responsible for the preparation of the summary financial statements in accordance with accounting principles generally accepted in the United States of America. Auditor's Responsibility Our responsibility is to express an opinion about whether the summary financial statements are consistent, in all material respects, with the audited financial statements based on our procedures, which were conducted in accordance with auditing standards generally accepted in the United States of America. The procedures consisted principally of comparing the summary financial statements with the related information in the audited financial statements from which the summary financial statements have been derived, and evaluating whether the summary financial statements are prepared in accordance with accounting principles generally accepted in the United States of America. We did not perform any audit procedures regarding the audited financial statements after the date of our report on those financial statements. Opinion In our opinion, the summary financial statements of District of Columbia Housing Finance Agency as of and for the years ended September 30, 2015 and 2014 referred to above are consistent, in all material respects, with the audited financial statements from which they have been derived, in accordance with accounting principles generally accepted in the United States of America.
Baltimore, Maryland October 3, 2016
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1
FINANCIAL STATEMENT
DISTRICT OF COLUMBIA HOUSING FINANCE AGENCY STATEMENTS OF NET POSITION YEARS ENDED SEPTEMBER 30, 2015 AND 2014
ASSETS
2015
CURRENT ASSETS Unrestricted current assets: Cash and cash equivalents Mortgage and construction loans receivable Other receivables Accrued interest receivable Prepaid fees Total unrestricted current assets Restricted current assets: Cash and cash equivalents Mortgage-backed securities at fair value Mortgage and construction loans receivable Accrued interest receivable Other receivables Total restricted current assets TOTAL CURRENT ASSETS NON-CURRENT ASSETS Unrestricted non-current assets: Investments Mortgage and construction loans receivable Total unrestricted non-current assets Restricted non-current assets: Investments held in trust Mortgage-backed securities at fair value Mortgage and construction loans receivable Loans receivable McKinney Act loans receivable Total restricted non-current assets Capital assets: Land Property and equipment Leasehold improvements Less accumulated depreciation and amortization Total capital assets, net TOTAL NON-CURRENT ASSETS TOTAL ASSETS
$
DEFERRED OUTFLOWS OF RESOURCES Unamortized deferral on bond refundings Total deferred outflows of resources
40,169,724 75,095 2,092,988 16,450 144,508 42,498,765
2014
$
32,672,832 135,360 3,014,048 16,827 152,874 35,991,941
158,284,283 1,211,215 33,610,178 3,245,424 196,351,100 238,849,865
92,737,196 10,694,801 22,372,780 3,824,798 66,248 129,695,823 165,687,764
3,426,760 4,988,427 8,415,187
3,216,887 5,073,864 8,290,751
15,040,254 74,707,470 838,052,060 2,143,605 1,738,603 931,681,992
24,716,301 95,081,007 676,887,853 2,309,116 1,455,883 800,450,160
573,000 5,723,505 (4,283,804) 2,012,701 942,109,880 $ 1,180,959,745
573,000 3,971,449 1,745,285 (4,071,066) 2,218,668 810,959,579 $ 976,647,343
$ $
$ $
230,521 230,521
238,080 238,080
(Continued)
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DISTRICT OF COLUMBIA HOUSING FINANCE AGENCY STATEMENTS OF NET POSITION - CONTINUED YEARS ENDED SEPTEMBER 30, 2015 AND 2014
LIABILITIES AND NET POSITION CURRENT LIABILITIES Current liabilities payable from unrestricted assets: Accounts payable and accrued liabilities Accrued salary and vacation payable Prepaid fees Total current liabilities payable from unrestricted assets Current liabilities payable from restricted assets: Accounts payable and accrued liabilities Project funds held for borrower and other liabilities Interest payable Loans payable Bonds payable Certificates of participation Total current liabilities payable from restricted assets TOTAL CURRENT LIABILITIES NON-CURRENT LIABILITIES Non-current liabilities payable from restricted assets: Bonds payable Certificates of participation Total non-current liabilities payable from restricted assets TOTAL LIABILITIES NET POSITION Net invested in capital assets Restricted for: Bond Fund, collateral and Risk Share Program McKinney Act Fund Total restricted net position Unrestricted net position TOTAL NET POSITION TOTAL LIABILITIES AND NET POSITION
2014
2015
$
513,174 311,363 1,073,816 1,898,353
$
451,990 285,024 996,426 1,733,440
44,472 106,502,039 6,570,677 9,037,412 34,674,393 156,828,993
48,727 61,509,007 6,782,997 23,997,780 150,000 92,488,511
158,727,346
94,221,951
925,341,022 925,341,022 1,084,068,368
791,371,623 500,000 791,871,623 886,093,574
2,012,701
1,568,668
32,659,022 7,900,345 40,559,367
32,915,935 8,645,549 41,561,484
54,549,830 97,121,898 $ 1,181,190,266
47,661,698 90,791,850 976,885,424
$
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FINANCIAL STATEMENT
DISTRICT OF COLUMBIA HOUSING FINANCE AGENCY
STATEMENTS OF REVENUES, EXPENSES AND CHANGE IN NET POSITION YEARS ENDED SEPTEMBER 30, 2015 AND 2014
2015 OPERATING REVENUES Investment interest income Mortgage-backed security interest income Interest on mortgage and construction loans McKinney Act interest revenue Application and commitment fees Other Total operating revenues
$
OPERATING EXPENSES General and administrative Personnel and related costs Interest expense Depreciation and amortization Trustee fees and other expenses Total operating expenses OPERATING INCOME NON-OPERATING REVENUES/EXPENSES Decrease in fair value of mortgage-backed securities
$
1,247,223 5,481,058 31,340,466 66,101 283,132 17,856,302 56,274,282
10,244,470 4,350,260 32,846,970 212,737 908,154 48,562,591
9,748,101 4,450,169 35,345,822 247,504 4,217,805 54,009,401
6,852,631
2,264,881
(522,583)
CHANGE IN NET POSITION Net position, beginning of year Net position, end of year
1,143,975 4,214,679 31,573,895 234,088 288,762 17,959,823 55,415,222
2014
$
(460,211)
6,330,048
1,804,670
90,791,850 97,121,898
88,987,180 $ 90,791,850
The accompanying notes are an integral part of these financial statements. 14
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DISTRICT OF COLUMBIA HOUSING FINANCE AGENCY STATEMENTS OF CASH FLOWS YEARS ENDED SEPTEMBER 30, 2015 AND 2014
2015
Cash Flows from Operating Activities Interest received on loans Other cash receipts Payments to vendors Payments to employees Net mortgage and construction loans (disbursements) receipts Principal and interest received on mortgage-backed securities Purchase of mortgage-backed securities Other cash payments Net cash (used in) / provided by operating activities Cash Flows from Capital and Related Financing Activities Acquisition of capital assets Payments of bonds and long-term debt Net cash used in capital and related financing activities
2014
$ 32,341,934 $ 31,880,350 111,577,026 63,474,867 (10,348,668) (9,608,571) (4,323,725) (4,431,360) (172,483,358) (29,640,704) 120,000,052 82,595,280 (84,256,364) (53,782,456) (49,791,827) (36,130,385) (57,284,930) 44,357,023 (196,261) (650,000) (846,261)
(15,464) (140,000) (155,464)
Cash Flows from Non-Capital Financing Activities Interest paid on bonds and loans Proceeds from bond issuances Principal payments on issued debt and loans Net cash provided by / (used in) non-capital financing activities
(33,455,936) 229,172,100 (75,190,029) 120,526,135
(37,653,610) 132,161,561 (157,303,501) (62,795,550)
Cash Flows From Investing Activities Interest received on investments Sale of investments Purchase of investments Net cash provided by investing activities
1,172,344 33,824,242 (24,347,551) 10,649,035
1,441,418 26,975,162 (15,852,634) 12,563,946
73,043,979 125,410,028 $ 198,454,007
(6,030,045) 131,440,073 $ 125,410,028
NET INCREASE / (DECREASE) IN CASH AND CASH EQUIVALENTS Cash and cash equivalents, beginning of year Cash and cash equivalents, end of year
(Continued)
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FINANCIAL STATEMENT
DISTRICT OF COLUMBIA HOUSING FINANCE AGENCY STATEMENTS OF CASH FLOWS - CONTINUED YEARS ENDED SEPTEMBER 30, 2015 AND 2014
Reconciliation of Operating Income to Net Cash (Used in)/Provided by Operating Activities Operating income Depreciation and amortization Amortization of deferred items Interest on bonds Amortization of discount on investments Provision for uncollectible other revenue Provision for uncollectible interest revenue Contingent loss expense Decrease (increase) in mortgage and construction loans Decrease in mortgage-backed securities Purchase of mortgage-backed securities Decrease (increase) in fair value of investments Interest received on investments Decrease (increase) in assets: Receivables Other current assets Other receivables Increase (decrease) in liabilities: Accounts payable and accrued liabilities Prepaid items Project funds held for borrower and other liabilities Accrued interest payable Net cash (used in)/provided by operating activities
2015 $
2014
6,852,631 $ 2,264,881 212,737 247,504 (1,796,410) (1,397,996) 33,455,937 37,653,610 31,135 39,958 19,445 256,095 62,890 1,765,858 1,863,122 (172,373,113) (27,748,703) 38,740,235 75,173,790 (9,410,543) (53,782,456) (10,517) 27,003 (1,172,344) (1,441,418) 556,968 8,366 987,308
719,276 (26,075) 7,281,947
(247,374) 77,390 44,993,032 (212,321) $ (57,284,930)
(2,222,901) (186,571) 7,830,057 (2,020,339) $ 44,357,024
The accompanying notes are an integral part of these financial statements. 16
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Written by Yolanda McCutchen, Public Relation Manager, DCHFA Edited by Maria K. Day-Marshall, Daniel NuĂąez and Tracy Parker, DCHFA Designed by James Neal, Azer Creative Photography by Chris Spielmann, Spielmann Studio Printed by Gary Page, House of Printing