Annual report 2012 2013 by Debbie Catalano

Community Housing Innovations, Inc. 2012-2013 Annual Report

Breaking New Ground in Affordable Housing for 22 Years.

G N I S U O H Y T COMMUNI C. N I , S N O I T INNOVA

Community Housing Innovations, Inc. provides the housing and human services that enable low and moderate income families and individuals to achieve the greatest social and economic independence at the lowest cost to society.

CHI property 2.

EXECUTIVE DIRECTOR’ S MESSAGE Breaking New Ground For 22 years, Community Housing Innovations, Inc. has provided unique and ground-breaking solutions to housing challenges in Westchester, the Hudson Valley, and on Long Island. This philosophy has never been more important. In 2012-2013, as our region emerged from the financial crisis, supports that kept many out of homelessness began to disappear. Housing subsidies fell due to the federal sequester, unemployment benefits were reduced, and local counties faced budget deficits forcing lower payments to parents for child care. Not surprisingly, these cuts hit the most vulnerable in our communities and homelessness soared. On Long Island, where CHI is the largest provider of emergency housing, our agency opened a new shelter in Suffolk County in January 2013. 109 rooms now serve up to 400 people daily, including 250 children. Later in the year, CHI took over a second shelter with 35 rooms to meet the growing need. CHI’s smaller supervised family residences for homeless families were converted into emergency and longer-term housing for single adults. In Westchester County, where CHI is the second-largest provider of housing and social services for homeless families, the number of families we serve doubled to 60. Responding to this crisis, CHI experienced the greatest growth in the agency’s history with a budget approaching $25 million. As executive director, I am proud of the herculean efforts made by our talented staff of 220, and yet sad there has been so much unnecessary suffering. Affordable Housing Development I had hoped that more of our resources could go into addressing the root problem—lack of affordable housing— instead of treating its casualties. But there is still hope, and with the expansion of our housing development arm, we are making a concerted effort to increase housing opportunities.

CHI Executive Director Alexander Roberts with HUD Deputy Secretary Maurice Jones and HUD Acting Regional Administrator Mirza Orriols.

The hard part is convincing suburban communities that they not only have the legal and moral obligation to provide affordable and workforce housing but that it is in their economic self-interest. Young people are leaving New York’s suburban counties by the thousands, taking their talent with them and leaving businesses without workers. Both Suffolk and Westchester Counties conducted studies that established the “regional need” for affordable housing in each of the counties, following the New York State Court of Appeals Berenson and its subsequent decisions that require all communities to meet their fair share. A 2008 study financed by Suffolk County determined a need of 16,500 units by 2020 and allocated “fair share” numbers to each municipality. But no one is tracking how many homes have been built and the report sits on a shelf. In Westchester County, the county has all but abandoned its 2005 study that established the need for 10,768 homes by 2015. The latest count from 2012 shows fewer than 3,800 built, under construction or approved. At least, while I am grateful and truly blessed to have a staff and Board of Directors who perform daily miracles for so many in crisis, my hope is that we will be able to build and/or rehabilitate several hundred units of housing within the next five years.

Alexander H. Roberts- Executive Director

Creating Affordable 0a over $63,00 — 8 .3 0 3 $ f age o apartment in an hourly w m s o e o k r d ta e t I -b o : e lk t for a tw Challeng u and Suffo a -market ren s s ir a fa N d r o in ff r a highe year — to . It’s even ty n u o C r te Westches $32.35. Counties at

Response:

Develop prog rams that p permanent, aff rovide ordable renta l housing in safe neighborh stable, oods.

Shavon Frost, Rental Assistance Program “RAP” As a single mother, Shavon Frost is determined to make a good life for herself and Christopher, 6. Raised in Tuckahoe, Shavon dropped out of Penn State at 20 to have Christopher but she quickly was back at work and school. With a BA from Mercy College, she will complete her MA in education in the fall and be ready to teach full-time, hopefully at the school she once attended. She credits qualifying for RAP’s rental subsidy with enabling her to move on with her life. “Thanks to RAP, I have been able to have a one-bedroom apartment in a safe neighborhood. I didn’t want any handouts — I just needed a little help while I finished my degree and was able to begin teaching. Without RAP, I wouldn’t have been able to raise Christopher, go to school, and plan a future for us both.”

Rental Housing Here’s how: ✓ CHI owns more than 500 housing units in Westchester and Long Island — purchased

and renovated with local, state and federal grants as well as low-interest bank loans — and makes them available to qualified, low-income working families at rents they can afford. Having affordable housing means that families can put down roots in the community, instead of facing constant moves due to rent pressures.

✓

CHI’s Rental Assistance Program (RAP) provides grants for Westchester’s working families who earn 125-200% over the federal poverty line. Last year, RAP worked with 22 families and 17 individuals, providing average grants of $700 per month toward rent. Nearly 200 families have been helped since the program began in 2001.

✓CHI’s Homeless Housing and Assistance Program enables homeless families on Long

Island to pay 30% of their income for housing – and when they get jobs, as most do, that percentage stays the same. Families don’t have to move out of their neighborhood just when things become more stable. The program reaches 80 families a year.

Housing for People with Special Needs The federal Substance Abuse and Mental Health Administration estimates that 26% of people in homeless shelters have severe mental illness, 35% have chronic substance abuse problems, and veterans make up 10% of shelter populations. CHI has successfully partnered with local and federal governments to provide cost-effective, permanent housing solutions for these vulnerable populations. Today, CHI is the largest provider of HUD supportive housing on Long Island. Thanks to CHI’s most recent partnership — with United Way and the Town of Islip, which provided a $1 million grant — two homes were purchased and renovated for low-income persons with AIDS. Each house will be home to five people, providing them with the case management services, handicapped accessibility(like the bathroom shown ) and ongoing support they need to remain at home and not be forced into institutional care.

Developing Workforce Housing ost mong the m a is a e r a etro that ew York m you ensure N o d e w h o T H . : y e g tr Challen in the coun ublic sector p e v e li th to d s n e a c la stry expensive p private indu in th o b — s r rk? local worke ere they wo h w e v li to — can afford

Response: CHI is partnerin

g with local gov and private dev ernment elopers to build affordable hou This value-add sing. ed approach is n’t a handout, community-dri it’s ven developmen t.

Here’s how: ✓ Minerva Place: Located in downtown White

Minerva Place

Plains, this landmark development has 14 one-and two-bedroom condominium units, and was built with state-of-the-art geothermal energy technology that makes it very efficient to operate. Priced below market to enable working families to live where they work, Minerva Place’s residents include local teachers, healthcare workers, and municipal employees. In 2013, the last unit was sold and the building is completely occupied.

✓

Waterwheel Condominiums: CHI raised more than $2.8 million in state and federal grants — including a $640,000 NYS Affordable Housing grant — to build the 22-unit site in Ardsley. Scheduled to open in 2014 and conveniently located in the center of town, this new development will have 17 affordable units and 5 workforce units. It is being built by a respected developer on a piece of land the town wanted to develop Waterwheel Condominiums for this purpose.

✓ Funded in part by the City of Yonkers, CHI is converting a storefront into studio apartments for

permanent housing. The project met two challenges: providing new housing while updating existing housing stock.

Preventing Foreclosure Challenge: Despite gov ernment in foreclosure c tervention, risis continu the ed to impact one in ten m New Yorkers ortgages clas with sified as serio usly delinqu ent.

rs r homeowne te a w r e d n u elp n Response: H achieve loa to e p ta red . their homes cut through in in a m e r d s an modification

Here’s how: ✓ CHI’s Foreclosure Prevention Program, started in 2009 at the height of the crisis, offers free individual and group counseling to homeowners with mortgages from $200,000 to $2 million. In 2012, the program worked with nearly 200 homeowners. More than one-third of them successfully received loan modifications, with a number of cases still pending.

✓ At CHI’s Fast Track® events, homeowners meet with bank representatives who hold

their mortgages to find a quick resolution. Last year, Chase and Bank of America partnered with CHI in Fast Track sessions for 75 homeowners.

✓ CHI partnered with Fannie Mae to hold outreach sessions that provided quick access,

up-to-date information and individual counseling for nearly 100 mortgage holders.

Lack of Afforable Housing Harrison, in Westchester County, shows the devastating result of lack of affordable housing with a decline of 12.4% of its population aged 25-34. In one zip code, the town lost 64% of this population since the last census.

Providing ople homeless pe f o r e b m u n s, the grew ast two year Long Island p n e o th d n In a : r e g te hes ediate Challen nce in Westc d needed imm ta n is a s s s n a o t ti h p g o u who so ging demand ted all their s n u a a h h c x te e a d a ip c h y ts anti by 30%. The l governmen a tion? c lo n a c w o h humane solu d n a e v ti c shelter. But e ff t-e the most cos and plan for

Response: Beca use of its prov en ability to qu develop effect ickly ive prog ram

s that meet co needs, CHI be mmunity came the “go -to solution” counties. in both

Vyolet Cirko, Emergency Services When Vyolet Cirko’s East Patchogue rental was condemned because of mold, she was forced to split-up her five children among relatives. But that wasn’t a long-term solution, and the family found itself at the CHI emergency shelter. For seven months they stayed there because Vyolet didn’t want them split up again and it wasn’t easy to find a place big enough for her family. She credits her “very caring” CHI case worker with coming up with a solution Vyolet and her kids never thought would happen — their own, four-bedroom house. One of twenty-eight houses CHI owns that are designated for the homeless, Vyolte can remain there once she gets back on her feet, finishes the one year she has left on her BA, and gets back to working in healthcare. She will pay 30% of her income in rent and her family will have the stability to thrive in a safe and stable neighborhood. “This is a miracle for us. The kids love it here. They are settling into new schools. I can’t wait to plant a garden out back. We finally have a home we can take care of and be proud of. It really is a dream come true.”

Emergency Shelter Here’s how: ✓ In Suffolk County, CHI opened the largest shelter on Long Island in January 2013,

taking just six weeks to fully staff the 108-room facility with a capacity of nearly 500 people. The program’s size permits extensive support services, including case managers, GED prep, a registered nurse family practitioner, a housing specialist, and recreational activities. The goal: to assist families into permanent housing.

✓

In Westchester County, where homeless families spiked 25% in 2012, CHI doubled its Emergency Housing Apartment Program in three months to 60 scatter-site apartments. When the crisis subsides, the program can be scaled back as necessary.

✓

CHI provides 20 emergency shelter beds in Orange County primarily for families. At local government‘s request, CHI purchased and renovated a four-family apartment building: half for emergency housing, half for permanent affordable housing at a reduced rent.

✓ In Dutchess County, CHI operates two shelters that served over 200 people, including

90 families, in 2012. Both have extensive support services to help residents move on to permanent housing.

✓

To enable homeless families to live closer to their communities, CHI closed its Hidden Cove shelter in Southampton and relocated 340 families in less than two years.

Rebuilding Lives, Restarting Futures Emergency housing is more than just a bed for the night. It’s the support services and caring relationships that help people in crisis stabilize their lives and move on to the next step. Through its own onsite programs and by partnering with local community organizations, CHI helps people successfully break the homeless cycle. Thanks to volunteers and organizations like Birthday Wishes, CHI tries hard to make every child feel special during a stressful time. In July, twenty-four youngsters from a CHI shelter were treated to an unforgettable day at Yankee Stadium, thanks to Birthday Wishes and the team’s HOPE Week. Players like Mariano Rivera (shown at right) saw to it that the children had a day they’d always remember. Pitcher CC Sabathia, who grew up poor in the inner city, saluted CHI’s work and the importance of providing affordable housing.

Making Home ion most peo is c e d l ia c n a est fin at me is the bigg Long Island o n h o a e g m in o y h u a B ice of Challenge: requirements e average pr e g th a h tg r it o W m . e d k n 00, a of ple ever ma slipping out hester $547,0 is tc s ip e h W s r in e n d n w a ome o $379,000 t than ever, h e e m to lt u c more diffi ing families. k r o w y n a m reach for

Response: CHI

programs prov ide millions of in downpaymen dollars t assistance an d consumer ed programs to qu ucation alified buyers to ensure that they equipped to ma are ke wise decisio ns.

Lori & Steve Andrews, Down Payment Assistance Program Lori and Steve Andrews got a wonderful 15th anniversary present this year when they were able to purchase their first home after years of apartment-living with their three daughters. Both Lori, a stay-at-home mom, and Steve, who works for the DMV, grew up on Long Island and wanted to stay near family and friends. But saving proved tough with three growing kids, and mortgage requirements were constantly changing. It wasn’t until Steve learned about CHI’s Home Ownership Program from a colleague that the couple learned how to budget, save for a down payment, improve their credit rating, and apply for available home-ownership grants. They looked at hundreds of houses, but thanks to what they learned in a CHI home-buying seminar, they got the house of their dreams in Rocky Point. With three bedrooms, two baths, and a kitchen “big enough to dance around in,” the whole family is thrilled. “We are so excited to buy a home after all these years. We couldn’t have done it on our own. Having an advisor at CHI made the whole process happen. This is a house the kids can grow up in and it’s in a community that’s perfect for us. What’s most amazing is that our mortgage payments come out to just $50 more than we were paying in rent! We tell everyone we know, it is still possible to buy a home. You just need good advice.”

10.

Ownership Possible Here’s how: ✓ CHI’s Down Payment Assistance Program distributed more than $1 million in grants last year in Westchester and Long Island — more than $11 million in total to 450 qualified families since the program started in 1997.

✓ CHI’s First Home Club partners with local banks to help new buyers save for a down

payment and receive a $7,500 matching grant at closing. This combination of peer support and regular savings has proven very successful for many first-time homebuyers.

✓

Last year, 200 people participated in CHI’s home buying seminars— eight hours of intensive how-to-advice — enabling them to successfully move on to the next step: home ownership. CHI purchases and rehabilitates foreclosed homes for first-time buyers. Not only does this give working families the chance at home ownership, it also helps preserve and sustain neighborhoods. Positive longtime relationships with a variety of lending institutions have enabled CHI to move quickly on workable properties, getting them on the market and out of foreclosure in record time.

CHI Employees of the Year

We are very proud to salute the contributions of three outstanding members of the CHI team. Mary Denning, Alexander Abramowicz, and Nicole Falkman (shown above) were instrumental in making Hidden Cove an outstanding emergency shelter, housing over 300 families last year, and helping move many into permanent housing. Mary, Alex, and Nicole worked tirelessly for the vulnerable homeless population and served at Hidden Cove, shaping a program that garnered widespread community support.

11.

MENT E T A T S G N TI CONSOLIDA TION I S O P L A I C OF FINAN 2012 DECEMBER

ASSETS Current Assets Cash and cash equivalents Certificate of deposit Accounts receivable and accrued revenues, net of allowance $295,850 Due from consolidated organizations Prepaid expenses Property held for resale Other current assets

CHI Not-for-Profit Entity-Total Entity Total $

Total Current Assets Noncurrent Assets Security deposits and other assets Deferred fees, net Property and equipment, net Investments in partnership, at cost

1,068,378 -

CHI Consolidated Totals

Eliminations -

1,982,170 177,675

3,275,627 870,333 14,795 404,888 82 939 82,939

155,559 867,280 -

142,404 -

(1,012,737) -

3,431,186 14,795 1,272,168 82 939 82,939

5,740,049

2,091,217

142,404

(1,012,737)

6,960,933

278,661 180,178 22,191,208 1,361,960

(1,361,960)

278,661 180,178 22,191,208 -

(1,361,960)

22,650,047

2,091,217

142,404

(2,374,697)

$ 29,610,980

58,676 1,012,737 -

(1,012,737) -

24,012,007

2,112,804 256,899 478,060 40,017 165 000 165,000 215,332

1,071,413

10,243,958 204,457 1,256,606 3,420,000 5,663,738

Total Noncurrent Liabilities

20,788,759

Total Liabilities

24,056,871

1,071,413

(1,012,737)

24,115,547

5,420,059 275,126

1,019,804 -

142,404 -

(1,361,960) -

5,220,307 275,126

5,695,185

1,019,804

142,404

(1,361,960)

5,495,433

(2 374 697) (2,374,697)

$ 29,610,980 29 610 980

Net Assets (Deficiency) Unrestricted Temporarily Restricted Total Net Assets

$ 29,752,056 29 752 056

2 091 217 2,091,217

142 404 142,404

(1,012,737)

2,171,480 256,899 478,060 40,017 165 000 165,000 215,332

3,268,112

Total Current Liabilities Noncurrent Liabilities Grants payable Notes payable Line of credit Bond payable Mortgages payable

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CHI Realty Division

$ 29,752,056

Total Noncurrent Assets

LIABILITIES AND NET ASSETS Current Liabilities Accounts payable and accrued expenses Deposits payable Due to consolidated organizations Revolving grant payable Current portion of notes payable Current portion of bonds payable Current portion of mortgages payable

913,792 177,675

CHI For-Profit Subsidiaries

3,326,788

UNRESTRICTED NET ASSETS Support and Revenue Rental income Scattered site housing Revenue from government contracts Management and social service fees In-kind HUD supportive services revenue Gain on sale of property Decrease in value of property held for resale Interest Special events, net of expenses of $42,025 Contributions Other grants Development fee income Gain on disposal of property and equipment Other

$ 3,924,029 10,365,971 2,463,866 110,764 31,000 2,050 96,156 96,829 6,648 390,018

Net assets released from restrictions Total Support and Revenue Expenses Program Services County funded Permanent housing Home grant programs Other programs Total Program Services Supporting Services Management and general Total Expenses Change in Net Assets Before Other Changes

Change in Unrestricted Net Assets (Deficiency) Unrestricted Net Assets (Deficiency) Beginning of year

47,192 26,240

(110,764) -

$ 4,394,374 10,365,971 2,463,866 61,863 2,269,726 (68,000) 4,194 96,156 96,829 6,648 498,488

206,730

2,740,116

73,432

(110,764)

20,396,845

10,683,871 4,209,611 2,391,241 1,176,116

571,969

30,868

(110,764)

10,683,871 4,209,611 2,391,241 1,668,189

18,460,839

571,969

30,868

(110,764)

18,952,912

1,327,936 19,788,775

26,779 598,748

30,868

(110,764)

1,354,715 20,307,627

2,141,368

42,564

89,218

146,296 2,288,378 2,434,674

(2,288,378) (2,288,378)

146,296 146,296

339,960

2,141,368

42,564

(2,288,378)

235,514

428,436

99,840

(623,582)

4,984,793

5,080,099

Distributions

470,345 14,671 2,238,726 (68,000) 2,144 82,230

17,694,061

(2,094,714)

Other Changes Capital assets released from regulatory lien Change in North Kensico investment Total Other Changes

End of year

(1,550,000)

$ 5,420,059

1,019,804

142,404

1,550,000

$ (1,361,960)

$ 5,220,307

TEMPORARILY RESTRICTED NET ASSETS Contributions Net assets released from restrictions Change in temporarily restricted net assets

200,000 (206,730) (6,730)

Temporarily Restricted Net Assets Beginning of year

281,856

End of year

275,126

Change in Net Assets

333,230

2,141,368

42,564

NET ASSETS (DEFICIENCY) Beginning of year Distributions End of year

5,361,955

428,436

$ 5,695,185

99,840

(1,550,000)

1,019,804

142,404

200,000 (206,730) (6,730)

281,856

275,126

$ (2,288,378)

228,784

(623,582) 1,550,000 $ (1,361,960)

5,266,649 $ 5,495,433

13.

TAFF

S EXECUTIVE Alexander H. Roberts Executive Director

Karen Anderson Director, Human Resources

Jerome J. August Chief Financial Officer

Abigail Garcia Manager, Foreclosure Prevention Counseling

Rosemary Dehlow LMSW, CASAC, Chief Program Officer

Julie Stern Senior Manager, Homeownership

Debbie Perkins LMSW, Senior Director, Hudson Valley Programs

Juan Santana Senior Manager, Homeownership Counseling

Deborah Post Senior Director, Housing Development & Finance

Vivek Bassi Senior Manager, IT, Safety, Security & Risk Management

Richard Ross Director of Real Estate

Magdalena Rivera Senior Manager, Long Island Properties

Christine Selario LMSW, MPS, Director, Long Island Emergency Housing

Scott Mendelson Senior Manager, Mid-Hudson Valley Programs

Kim Livingston Director, Supportive Housing Programs

Libby Hightower Executive Manager, Office Administration

Thank You, Beth Elizabeth Starr Thomas, who retired this year, joined CHI is 1993. At that time, CHI had less than 10 employees and a budget of $1 million. Beth, who began her career as a social worker at child protective services in New York, was hired to develop and run all agency case management and programming. Our approach was patterned after an innovative model Beth had developed for the U.S. Department of Housing and Urban Development. Called Project Self Sufficiency, it introduced a revolutionary new concept — opportunity contracts — that created a partnership between client and case manager to achieve specific goals. Creating a relationship based upon mutual accountability, opportunity contracts continue to be a core strategy at CHI, influencing every aspect of our programming. During her nearly 20 years at CHI, Beth was truly the heart of the agency. She had a role in every aspect of social service delivery and was instrumental in our growth. Over the years, the programs she helped develop have given thousands of families the tools they need to ensure a brighter future. Every one of us at CHI will miss Beth’s daily presence but look forward to continuing to utilize her wisdom as an ongoing consultant. Beth, you have inspired and guided us. On behalf of all of those whose lives have changed by your work, we thank you.

14.

BOARD OF

DIRECTORS

COMMUNIT Y HO DEVELOPM USING ENT ORGANIZAT ION BOARD S

Alexander H. Roberts President

Mt. Vernon Steven C. Brill, Esq. Chairman of the Board

Yonkers Steven C. Brill, Esq. Chairman of the Board

Steven C. Brill, Esq. Chairman of the Board

Alexander H. Roberts President

Mary Brinson Secretary Gerry Feinberg, Esq. Sharlett Fraley Michael F. Puntillo, Jr.

Gerry Feinberg, Esq. Vice Chairman Michael F. Puntillo, Jr. Jackie Berkeley

Gerry Feinberg, Esq. Vice Chairman Michael F. Puntillo, Jr. Yesenia Gell Latoya Johnson

DONORS Connie Baez Benchmark Title Agency Birthday Wishes Catfish Annie’s Citizens Bank Foundation Citi Community Development Roberta Davis & Family The Dornfeld Family Joe Shirley Sleep Shoppe Kismet Shrine Center Medford Chemists Michael F. Puntillo Middle Island Fire Department – Ladies Auxiliary Pajama Program People’s United Community Foundation Jamie Rapfogel & Family Rock Can Roll Saint John’s Evangelical Lutheran Church TD Charitable Foundation Total Management Corporation Toys for Tots United Way Wells Fargo Foundation Whole Foods HSBC

FUNDERS

City of Yonkers City of Mt. Vernon Dutchess County Dept. of Social Services Nassau County Dept. of Social Services Nassau County Office of Intergovernmental Affairs National Grid Weatherization Program NYS Affordable Housing Corporation NYS Attorney General NYS Homes & Community Renewal NYS Office of Temporary & Disability Assistance Orange County Dept. of Social Services Suffolk County Dept. of Social Services Suffolk County Girl Scouts Town of Islip Community Development Agency US Dept. of HUD Westchester County Dept. of Planning Westchester County Dept. of Social Services

15.

CHI OFFICES CORPORATE HEADQUARTERS Westchester County 190 East Post Road • Suite 401 White Plains, NY 10601 914-683-1010 Dutchess County 2 Linden Lane Hyde Park, NY 12538 845-229-9070 Nassau County 175 Fulton Ave. • Suite 211B Hempstead, NY 11550 516-280-3243 Orange County 5180 Route 9W Newburgh, NY 12550 845-562-5093 Suffolk County 55 Medford Avenue • Suite B Patchogue, NY 11772 631-475-6390

Community Housing Innovations, Inc. If you’d like to support our mission with a tax deductible contribution, You may contact us at 914-683-1010 x 284

Visit us on the web: www.chigrants.org