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Measuring Up for the Future
MESSAGE
FROM THE CHIEF EXECUTIVE OFFICER |
Measuring Up for the Future The theme for this annual report and 2013 is “Measuring Up for the Future.� And by any measure, 2012 was an extraordinary year at NRHA. We have completed an intensive repositioning effort, a ground-breaking two-year study of the economic and qualitative impact of our operations, as well as a renewed partnership with the City of Norfolk. Highlights of 2012 are described elsewhere in this publication. These accomplishments and milestones provide the foundation for our
2013
plans. Later this
year, we will roll out our five-year strategic plan (2013-2017), based on significant input and feedback from our Board of Commissioners, as well as City and community partners. Sincerely,
Shurl R. Montgomery, CEO
2012 ANNUAL REPORT
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CONTENTS OF MEASURE
2
Message from CEO
8
Communicare Health Center
11 NRHA Measures its Impact 14 Quality Housing Opportunities for All
17 Sustainable Mixed-Income Communities
19 Strategic Business Approach 20 Community Engagement & Support
22 Energy Conservation Initiatives
24 Budget Overview 26 Statistical Summary
COVER: The renovation and rehabilitation of the historic Monroe Building in downtown Norfolk. This six-story, 52,000 SF building was originally constructed in 1915 and will be historically restored for the use of the Governor’s School for the Arts. The project will be complete in time for the 2014 Spring semester. ABOVE: Dusty old boxes of NRHA slides, photo negatives and prints were digitally converted into an online searchable database, which is accessible to the public. The digitized photo archive contains over 20,000 photos, which transport the viewer through over 140 years of Norfolk’s rich history. It can be viewed here: http://nrha.photoshelter.com/ RIGHT: Norfolk slums in 1951.
BOARD OF COMMISSIONERS
NRHA |
The Board re-elected Miller as chairman and Lee as vice-chairman. Norfolk City Council appointed Arrington and Musacchio. Arrington replaces Hattie Anderson, whose service began in 2000. Anderson passed away in 2012. Musacchio replaces L. Robert Layton, who served since 1998. Also Soble, on the board since 2004, was reappointed.
NRHA is headed by a board of seven commissioners, appointed by Norfolk City Council, who are responsible for determining policy and direction. NRHA Commissioners are residents of Norfolk and serve staggered four-year terms. The board elects a chairman and vice chairman, as well as selects an executive director who is responsible for NRHA’s activities and operations. To contact a Commissioner, call 314-1679.
FRONT ROW: Left to right.
Rose Arrington
President of Diggs Town Tenant Management Corporation
BACK ROW:
Trevor Robinson
Left to right.
Attorney, Robinson Law Group
Barbara Hamm Lee - NRHA Vice-Chairman Creative Services Officer and Executive Producer/ Host of Another View, WHRO
F. Nash Bilisoly Attorney, Vandeventer Black LLP
Robert J. Soble President and Owner, Pottery Art Studio
W. Sheppard Miller, III - NRHA Chairman Chairman of the Board, KITCO Fiber Optics President & CEO, Light Tech Fiber Optics Donald Musacchio
Retired Federal Service Consultant to several federal agencies
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2012 ANNUAL REPORT
FAREWELL
TO OUR OUTGOING COMMISSIONERS |
L. ROBERT LAYTON 1998-2012
Excerpt from
Resolution: WHEREAS, L. Robert Layton was appointed to the Board of Commissioners of the Norfolk Redevelopment and Housing Authority, serving faithfully and well from July 1998 until July 2012, having served two terms as vice chairman, chairman of the Board’s Finance Committee and as Board liaison to the St. Paul’s Quadrant Task Force; and WHEREAS, this Authority has benefited greatly from Mr. Layton’s many years of experience as an ethical and respected businessman, and valued civic advisor; and WHEREAS, during his period of service to this Authority, Mr. Layton intellectually achieved a deep operating knowledge and financial acumen for highly complex federal housing programs and real estate development transactions, such as East Beach and Broad Creek. WHEREAS, Mr. Layton was a reasoned yet passionate voice foremost on what was in the best interests of the citizens of Norfolk and the City itself throughout his tenure, while offering a sound perspective from his beloved Ocean View; and WHEREAS, Mr. Layton has faithfully served the residents of the City of Norfolk through his work on the City’s Planning Commission from 1992 to 1998 and Community Development Block Grant Committee; and
HATTIE ANDERSON 2000-2012 (Passed away July 25, 2012)
Tribute letter from NRHA Commissioner F. Nash Bilisoly, read at Hattie Anderson memorial dedication held at Diggs Town community Miss Hattie was a dear friend of mine. We couldn’t have been more different. I was a man, she was a woman; I was white, she was black; I was young, she was old; I had a pinstripe suit, she had a wooden leg. In all settings, I was ignorant, she was wise. She was known by some as the Mayor, and by others as the Sheriff of Diggs Town. I knew her as the Wise Woman of Diggs Town. If she were here today, she would have spoken directly to the residents; mostly to the women…and she would have minced no words: “Sit on this bench,” she would have said, “only to think about how to get off of it. Sit here and think about what it is you have to do to take responsibility for yourself.” At this point she would have started to jut her jaw out and point her finger. And don’t sit here long! There is education to get, jobs to apply for, parents to attend to. Use this bench as a way out of here. And, by the way, baby, I love you so!” Miss Hattie spoke to all with the authority that comes from having made the mistakes in life and the wisdom of blaming no one. She understood how hard it was for people out there, but would not countenance self-pity. She held everyone accountable, and then gave them a massive hug. She was a wonderful, wise woman and I miss her very much.
WHEREAS, the Commissioners, Chief Executive Officer and staff of this Authority wish to express publicly their gratitude for the substantial contributions of time and talent given by L. Robert Layton, which have made this Authority a better organization and the City of Norfolk a better place to live, work, build, play and raise a family.
2012 ANNUAL REPORT
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EXECUTIVE LEADERSHIP TEAM
The Executive Leadership Team undertook an extensive organizational review of NRHA in 2012 to position us for future success.
Results are described later in this report.
6
FRONT ROW:
Julius Norman
Left to right.
Workforce Development Manager
2012 ANNUAL REPORT
BACK ROW:
Richard Archer
Left to right.
Human Resources Director
W. Ryan Snow
Clara Graves
Legal Counsel, Crenshaw Ware & Martin*
Chief Financial Officer
Donnell Brown
John Kownack
Chief Housing Officer
Chief Community Development Officer
James Hollomon
Jamie Jones
Real Estate Services Director
Information Services Director
Shurl Montgomery
Brenda Benn
Chief Executive Officer
Budget and Compliance Director
Nathaniel McCormick
Michael Clark
Senior Architect, Development
Neighborhood Services Director
Ed Ware
Donna Mills
Communications and Marketing Director
Property Management Director
*not pictured - Tim Coyle
ORGANIZATIONAL CHART Board of Commissioners
Executive Office
Administrative Operations
Housing Operations
Development Planning and Community Building
Finance
Property Management
Real Estate Services
Strategic Direction Team
Administrative Services
Housing Choice Vouchers
Planning/Project Management
Human Resources
Budget Management
Construction Management
Neighborhood Programs
Communications and Marketing
Program Compliance
Information Services
2012 ANNUAL REPORT
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MEASURING HEALTHY OUTCOMES CommuniCare Health Center Supporting the “Healthy Norfolk Initiative”
T
he new CommuniCare Health Center at the Young Terrace community was not quite ready for its first patients, but Nashae Slonaker and Kizzy Salter couldn’t wait to check it out. “What’s great is that this is right in our community. We don’t have to travel too far to see a doctor. I don’t have my own transportation, so having this right here is important,” Slonaker said as she and Salter toured the health center during its December 13 ceremonial opening, a few days before the December 17 official opening. The two young women, both residents of Young Terrace, smiled as they stood in the sand-colored waiting room and looked down the turquoise hallway to the medical examination rooms. Slonaker, a mother of three – with a fourth child due in 2013 – already spends much of her time traveling to work at a Food Lion supermarket and to Tidewater Community College for classes. “This is going to be really convenient for me,” she added. While having primary medical care in their neighborhood is important to residents of the 752-unit Young Terrace community, the convenient and accessible location is just part of the story for the CommuniCare Health Center. Situated in a remodeled section of the Young Terrace Recreation Center at 804 Whitaker Lane, the facility: • Is the first health care center located within a federally-assisted rental community in Virginia. • Represents a new planning and partnership model for housing authorities around the country.
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2012 ANNUAL REPORT
Nurse measures the blood pressure of a resident.
• Is the first fruit of a new effort to deliver a comprehensive array of services to Young Terrace, the largest public housing community in Norfolk, as part of an approach known as “collective impact”. • Complements Norfolk City Council’s “Healthy Norfolk Initiative”, which aims to use community collaborations to “support health and well-being by actively promoting health, environmental and educational policies.” “A facility such as this center will offer not only health services but also healthy lifestyles,” said Shurl Montgomery, CEO of the Norfolk Redevelopment and Housing Authority.
COMMUNICARE HEALTH CENTER
Left to right: Jerryl E. Bennett – Director, Public Housing Program Center for HUD, Shurl R. Montgomery – CEO of NRHA, W. Sheppard Miller, III – NRHA Board Chairman, Rose Arrington – NRHA Commissioner, Tracey L. Davis - Chairman of the Board for Hampton Roads Community Health Center.
A bevy of VIPs from the U.S. Department of Housing and Urban Development (HUD), Norfolk city government and the medical community of Hampton Roads joined NRHA officials and more than 100 Young Terrace residents in celebrating the opening of the CommuniCare Health Center. “This is one example of a lot of providers working together very seriously to provide an essential service to a part of our community that we feel has been neglected many times in receiving the proper health services.” Montgomery said, noting the NRHA’s partnership with the not-for-profit Hampton Roads Community Health Center, Sentara Healthcare and Norfolk Department of Recreation, Parks & Open Space. The new facility provides primary and pediatric medical care and is staffed by two doctors – a family health physician and a pediatrician – and a receptionist who lives in Young Terrace, according to Barbara Willis, CEO of the Hampton Roads Community Health Center, which manages the center. Services include obstetrics and gynecological care,
wellness assessments and dental services with a dentist and hygienist, who work aboard a specialized 40-foot van. Income-eligible patients are charged on a sliding payment scale, but insurance is also accepted. Earlier this year, the health organization received a $608,333 New Access Points grant from the U.S. Department of Health and Human Services – Health Resources and Services Administration for the Young Terrace center and another that recently opened in East Ocean View. The grant for CommuniCare was one of only 67 awarded nationwide from a pool of more than 900 applications, according to grant writer, Jennifer Jones Santos. “It’s truly amazing to see what a collaboration and a partnership can achieve . . . in moving a community toward better health and wellness,” said Meril Amdursky, executive director of the Sentara Health Foundation, which contributed $132,000 for building renovations.
- continued 2012 ANNUAL REPORT
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COMMUNICARE HEALTH CENTER “It’s a wonderful opportunity for health and wellness to be part of a community, not a separate place but right here so they become part of everyday life and everyday living for the residents.” The CommuniCare Center also has the attention of HUD, which traditionally concentrates on the housing side of community revitalization efforts. By establishing an affordable health care center in the midst of a federally-assisted rental community, NRHA is helping to change how HUD addresses the needs of
public housing residents, said Jerryl E. Bennett, program director of HUD’s Virginia Public Housing Program. “This is a model for other housing authorities to learn from.” Bennett said that creating the CommuniCare Center in public housing communities is not only innovative but shows how housing can be used as a “platform to improve the quality of life” as well as a springboard for helping “to transform the way HUD does business.”
Jerryl E. Bennett, program director of HUD’s Virginia Public Housing Program.
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2012 ANNUAL REPORT
MEASURING OUR IMPACT Ground-Breaking Study Shows NRHA Delivers
Strong Return on Public Investment An economic impact analysis performed by the College
of William and Mary Mason School of Business for Norfolk Redevelopment and Housing Authority found the agency annually creates $121.5 million for the city’s economy, in addition to 1,148 jobs with an average wage of $46,434 at a time when the region was in the middle of an historically severe recession. NRHA enabled 7,065 Norfolk households to live in better quality housing than they could have afforded otherwise in FY 2010. These households included a total of 17,600 people or 7.25% of the total 2010 Norfolk population. The study was broken down into four components : 1. Central Brambleton neighborhood from 1991-2010 (a case of NRHA redevelopment efforts) 2. Housing Choice Voucher (HCV) Program in FY 2010 3. Eleven NRHA assisted-rental communities in FY 2010 4. Overall view of NRHA “These four related studies, over a two‐year period, are a rare comprehensive look at the quantitative and qualitative impacts of the many diverse activities of a redevelopment and housing authority”, said study professors Roy L. Pearson and K. Scott Swan. In fact, the New York City Housing Authority, the nation’s largest, has contacted NRHA on how to conduct a similar study. The study concluded: •
NRHA is not only an important driver of the local economy but also serves as a safety net for lower income citizens who can’t afford housing at prevailing market rates.
creativity and funding predominantly from U.S. Department of Housing and Urban Development, which lowers the need for tax support locally.
•
NRHA is vital to neighborhood stabilization and increasing tax revenues within in the city. NRHA helps improve the city’s infrastructure, along with the safety and quality of housing.
• NRHA revitalizes crime-plagued neighborhoods with low property values into quality, affordable housing choices for thousands of people. •
NRHA promotes economic self-sufficiency, education, training and asset development. All this adds up to an irreplaceable economic and social gain for Norfolk citizens.
• 93% of NRHA spending is captured and recirculated in Norfolk, which is among the highest percentages for a local area ever found in W&M’s long history of performing these studies. The professors noted, “It is clear that success of their programs is dependent on highly motivated, quality people and effective partnerships. One of the most important is NRHA’s continuing ability to work with the City of Norfolk. This seems to be a solid relationship -mutually admirable comments and success abound and their efforts match well with the city’s initiatives.” Additional information on the Mason School of Business can be found at http://mason.wm.edu.
• NRHA provides critical housing options through
2012 ANNUAL REPORT
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WILLIAM AND MARY STUDY What does Norfolk Redevelopment and Housing Authority (NRHA) do that needs to be measured? •
NRHA receives $90 to $100 million annually from federal and city sources as well as private equity to provide redevelopment, rental housing and property management services to citizens of Norfolk.
• What happens to this money when invested in the community? •
How do specific NRHA projects or services affect the larger local economy in the way of: jobs, income, output, capital investment, property values and tax revenue?
Ways to Measure Economic Impact: • Direct: changes tied directly to a project • Indirect: supplier purchases of inputs related to the project • Induced: local spending by workers related to the project • “Ripple” effects on community based on size of the multiplier • Total Impact = Direct+Indirect+Induced
Who Measured the Impact? A research team from the renowned Mason School of Business at the College of William and Mary. Professors Roy Pearson and Scott Swan have deep dive experience in economic impact analysis for major clients such as Virginia Port Authority, Phillip Morris USA and Richmond International Airport.
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2012 ANNUAL REPORT
What Was Measured in the Study? The study was divided into four parts of what NRHA does: redevelopment, housing choice voucher program, assisted-rental properties and supportive services for residents, as well as a final study tying it all together. 1) Redevelopment of the challenged Central Brambleton neighborhood from 1991-2010 • Since early 1990s, $22.7 million invested for infrastructure and residential lot development, with 90 homes built. About one-half of the $22.7 million came from Norfolk capital improvement funds and the remaining covered by HUD Community Development Block Grant (CDBG) and HOME funds. • Modeled direct, indirect and induced impacts, with total cumulative impacts of $55 million through 2010.
3) Eleven Assisted-Rental Communities • Helped 7,772 people in 3,115 public housing units for FY 2010 (3.2% of Norfolk’s population). • $21.5 million in local production of goods and services directly and indirectly attributable to $24.7 million in net new NRHA operating and capital expenditures. • Program also created $16 million in additional labor income earned by 320 workers.
• In 2010, the neighborhood generated $415,000 in annual property tax revenue with assessed valuation of $37.4 million (since 2001). • Improvements on NRHA-supplied lots increased by $15.3 million or 523% and underlying land values surged by $3.4 million or 420%. • 435 jobs created with average wage of $45,285. 2) Housing Choice Voucher (HCV) Program • Total vouchers in use 2,961. 6,844 Norfolk Residents or 3% of city population live in quality affordable private-market rentals, serving 79 of Norfolk’s 83 census tracts. • Average HCV household income $16,419. • FY 2010, NRHA provided $20.2 million for Housing Assistance Payments (HAP) to 1,260 property owners. • Elimination of blight through increased maintenance and rehabilitation, resulting from HCV quality inspections, resulted in improved property values. Ripple effect of this $20.2 million produced an additional $8.3 million in Norfolk spending, bringing the total to $28.5 million directly and indirectly supported by HCV program. This $28.5 million in new local spending supported production of $19.8 million in goods and services within Norfolk city limits, produced by 180 workers.
2012 ANNUAL REPORT
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MEASURING THE PROGRESS The following goals were identified in the 2008-2012 strategic plan and were adopted by the Board of Commissioners. These goals will be revisited in the 2013-2017 strategic plan.
G OAL S
1
Quality Housing Opportunities for All NRHA is committed to providing a continuum of housing options for households of all incomes seeking housing.
2
Sustainable Mixed-Income Communities There is a need for a new housing model to create a healthy physical and social environment that would appeal to a wider range of incomes.
3
Strategic Business Approach
1. Quality Housing Opportunities for All • In late 2012, NRHA assisted-rental portfolio consisted of 3,535 multi-family units. Approximately 8,588 residents or 3.7% of the city’s population live in these communities. Average household income is $8,463. Some 2,000 applicants were wait-listed. • In late 2012, there were 2,851 housing choice vouchers in use. Approximately 6,844 Norfolk residents live in quality affordable private market rental, serving 79 of Norfolk’s 83 census tracts. There were 2,603 wait-listed. Average Housing Choice Voucher (HCV) household income is $16,419. Over 1,200 property owners participate in the program. NRHA’s HCV program continues to rank as a “high performer” by HUD. • HUD funding for HCV administration has not kept pace with increased program responsibilities. NRHA authorized $500,000 from its own resources to continue program quality assurance. This stop-gap measure is not financially sustainable going forward.
To meet changing requirements and to make the best use of our resources, we are developing a new approach for the delivery of products and services.
4
Community Engagement & Support Recognizing the interrelated nature of our mission, NRHA resolves to work to become a trusted partner that works collaboratively with Norfolk citizens, key stakeholders and partners.
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2012 ANNUAL REPORT
Residents take on Norfolk Police Department during a flag football event
QUALITY HOUSING OPPORTUNITIES FOR ALL • HCV program contributes to more mixed-income communities by enabling low-income families to select housing of choice throughout city. As a result, Brookings Institution recently reported that Norfolk neighborhoods, over past 10 years, experienced one of the highest de-concentration of poverty rates in the nation. • All in all, NRHA enables over 7,000 Norfolk households to live in better quality housing than they could have otherwise afforded. These households include almost 18,000 people or 7.25% of Norfolk’s population. • Average overall monthly market-rate apartment rents in the region ranged from $823 in Newport News to $1,042 in Chesapeake. Norfolk averaged $950. • NRHA was one of 12 housing authorities nation-wide to receive a HUD grant to coordinate regional efforts aimed at increasing jobs for lower income persons and assisted-rental housing residents on HUD-funded projects in Hampton Roads. This HUD program is known as “Section 3.” • The Annual Resident Forum was held October 13, 2012 at Ruffner Middle School. Ninety assisted-rental and housing choice voucher participants attended.
Photo Credit: Tymoff-Moss Architects
• The City of Norfolk and NRHA put together a parcel of land in Broad Creek for the Salvation Army Kroc Center. Slated to open Spring 2014, the estimated $90 million project includes 91,000 SF of education, creative arts and recreational space at the corners of Princess Anne Rd. and Ballentine Blvd. in Norfolk. This project was a vision of Mrs. Joan Kroc, widow of McDonald’s Corporation founder Ray Kroc. NRHA has already provided a $100,000 endowment to help with residents’ future membership fees.
• In the ongoing transformation of Grandy Village, NRHA is taking down and rebuilding 88 assisted-rental units over the next several years. The 18-phase project will start with energy-efficient townhomes with rear parking.
• NRHA, West Point Military Academy and Norfolk State University presented a workshop to highlight Father’s Day weekend entitled “Involved Dads…Contributing to Healthy Communities.” HUD Deputy Secretary Maurice Jones was the guest speaker.
2012 ANNUAL REPORT
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QUALITY HOUSING OPPORTUNITIES FOR ALL • NRHA Annual Recognition of Achievement Banquet was held on June 13, 2012 on the Spirit of Norfolk. Dr. Nicole Short Brown, the 1994 scholarship recipient, was the guest speaker. The former Tidewater Gardens resident is now a Professor at Bryant and Stratton College. This year’s celebration honored more than 177 residents in the following categories: Volunteering, Honor Roll, Completion of GED, Homeownership, Entrepreneurship, Economic Independence, College Graduates, Scholarships, Training and Employment. On June 14, the 2nd Annual Youth Recognition of Achievement Banquet was held at Harbor Park, for a Norfolk Tides Game.
E.L.Hamm annually awards a scholarship to a prospective ODU student that resides in an NRHA community.
NRHA recognizes that many assisted-rental housing residents and housing choice voucher students are unable to obtain formal education beyond high school because of financial constraints. Therefore, the annual banquet has a fund-raising component to help supplement college and vocational training certification costs.
• A $28,000 State Farm Youth Advisory Board grant will allow young residents of NRHA assisted-rental communities to sow the seeds for community gardens that improve access to fresh produce and healthy lifestyles.
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2012 ANNUAL REPORT
MEASURING THE PROGRESS
2. Sustainable Mixed-Income Communities
• The 14 contemporary and Earth Craft-certified Lamberts Point market rate townhomes have sold out.
• In 2012, sales prices for new residences, built on NRHA parcels, ranged from $150,000 to $1.5 million. • A public hearing was held October 10, 2012 on the NRHA application to City of Norfolk to provide $24 million in neighborhood redevelopment, residential rehabilitation and homeownership programs for FY2014. • Under a $250,000 HUD Choice Neighborhoods Initiative (CNI) planning grant, NRHA and the City of Norfolk are in the second year of filling in the details of the Saint Paul’s Area redevelopment vision, which covers neighborhoods just east and west of downtown. • A key component of the St. Pauls planning process is formation of community partnerships. Of particular note is one modeled after the Harlem Children’s Zone that is being facilitated by Norfolk Public Schools, United Way and NRHA. • Norfolk led the region in 2012 with a 3.5% increase in the median sales price of existing homes. The average sales prices of newly constructed homes in Norfolk were $305,020, up 4.7% from 2011.
• NRHA and the City are revisiting and revising the Broad Creek redevelopment vision/master plan in light of improvements such as the new Tide light rail stop, Kroc Center, emerging “Broad Creek Station” commercial area, as well as pending library and elementary school construction. • Efforts are proceeding for a new mixed income development on 11 acres at 2500 Jamaica Ave., former site of Moton Circle apartments.
2012 ANNUAL REPORT
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SUSTAINABLE MIXED-INCOME COMMUNITIES • East Beach was the Hampton Roads region’s top subdivision for revenue in 2012. There were 45 closings recorded, totaling over $23 million. • Pursuing 72 additional two and three bedroom units at Oakmont North Apartments, which currently consists of 408 garden style units on 21 acres. • Norfolk Public Schools and NRHA entered into a proposed joint land exchange covering about 46 acres that will accommodate future school construction and residential development in the Broad Creek area.
In 2012, Hampton Roads Ventures, LLC (HRV), an affiliate program of NRHA, was among 282 other organizations to apply for the $3.5 billion New Markets Tax Credit (NMTC) allocations, as part of the Tax Relief, Unemployment Insurance Authorization and Job Creation Act of 2012.
• Finalized $7.8 million in financing to add 43 senior residences at Robert Partrea apartments. This was done through winning an allocation of housing tax credits from Virginia Housing Development Authority (VHDA) and Federal Home Loan Bank Board grant. Ground breaking is expected summer 2013.
In this highly competitive allocation process, HRV received $45 million, the highest award in Virginia. HRV was chosen over larger entities in New York, San Francisco, Phoenix, Dallas and other major cities.
• Efforts continue to reposition the highly visible Monticello Ave. corridor (from the Norfolk Southern overpass to 27th St., located in the Midtown Industrial Conservation Area) for commercial development. • Ten new single-family residences are under construction between Cecelia and Hanson Ave. in Central Brambleton with prices from $160,000 to $210,000. • Seven parcels awarded on West Ocean View Ave. and Little Bay Ave. for market rate unit development. • First phase of private development of five former NRHA parcels along East Ocean View Ave., 1st Bay and 2nd Bay Streets is moving forward with an 18 unit market rate apartment building. • A new YMCA Family Center is underway at the corner of 29th and Granby Street in Park Place. This facility is the first step in a bold vision plan for the neighborhood covering 500 acres. • NRHA Builders & Designers Guild, which consists of the area’s top builders and designers, held two education/networking events during 2012.
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2012 ANNUAL REPORT
HRV has identified three project types that will receive their continued support: light industrial, retail and healthcare. HRV will continue to focus its allocation on projects that will increase jobs, provide significant positive impact within low income communities and offer a catalytic effect to spur additional private investment in underserved communities. To date, HRV has successfully competed for and deployed $160 million in NMTC allocations from four previous funding rounds. HRV has closed 12 projects totaling over $100 million in Qualified Low Income Community Investments (QLICI) during the past five years, with six of the 12 during 2011 alone. These projects have created 2,815 construction jobs and 1,240 jobs at tenant businesses.
• NRHA is project manager for the $10 million renovation of the historic Monroe Building on Granby St. that will consolidate the Governor’s School for the Arts and provide offices for the Virginia Stage Company.
MEASURING THE PROGRESS 3. Strategic Business Approach • Board of Commissioners adopted a balanced FY 2013 budget of $89.3 million, down $14.2 million from $95.8 million in FY 2012. • The College of William and Mary Mason School of Business completed a comprehensive two-year economic impact analysis of NRHA operations, highlighted elsewhere in this report. • A strategic capital plan and needs assessment of all NRHA rental property concluded that capital improvement needs over the next 10 years will be at least 2.5 times the amount that can be anticipated from traditional funding sources. • Average age of NRHA properties is 59 years. Needs assessment indicates $213 million in repair/renovation required over next 20 years ($10.7 million/year) to maintain at current level. HUD’s assisted-rental capital fund provided $4.9 million in 2012, which is lowest level in program history. • Board of Commissions to consider moving forward with $18 million in improvements to Merrimack Landing apartments. • NRHA returned fund balances of $4.8 million to City
from completed CDBG & CIP projects. • Moving to obtain and execute service agreements with City of Norfolk for property acquisition services, relocation services, residential development and assigned grounds maintenance. • NRHA is the City of Norfolk’s largest retail water customer, followed by Old Dominion University and Virginia International Terminals. • A $13.1 million energy performance contract with Ameresco is expected to be approved by HUD in spring 2013. The anticipated $30 million in energy and water conservation savings can be used for capital improvements. Water consumption currently accounts for 65% of NRHA’s annual utility bill. This would be reduced to about 39% under the performance contract. • Human Resources launched a web-based employment recruitment system and will implement a new performance management system for 2013. • Participation in a joint employee benefit consortium gives organization leverage and chance to stay abreast of changes coming from the Affordable Care Act.
Historic Monroe Building in transformation. 2012 ANNUAL REPORT
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MEASURING THE PROGRESS
4. Community Engagement & Support • Elizabeth River Project awarded NRHA the Sustained Distinguished Environmental Performance Award. • NRHA was a leader among the real estate community in difficult opposition to the Constitutional Amendment on Eminent Domain, which eventually passed the General Assembly and was approved on the November 2012 ballot.
• A mobile version of NRHA’s website, designed in-house, received the National Association of Housing and Redevelopment Officials (NAHRO) 2012 Award of Excellence, the industry’s highest award. Awards of Merit were received for a fire safety program in assistedrental communities, digital photo archive and marketing tool kit for Builders and Designers Guild. Fire safety and mobile website advanced to Award of Excellence consideration.
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2012 ANNUAL REPORT
continued
NRHA joined with Tidewater Builders Association to host Fall Homearama in East Beach for an unprecedented third time and attracted more than 70,000 visitors. Today, this 100 acre residential bay front development is valued at more than $313 million, a nice return for an initial $55 million investment. East Beach has won national awards for its design, it has hosted two Coastal Living Idea Houses and even in a difficult housing market, lot and home sales are robust.
Congressman Bobby Scott chats with a constituent at Homearama reception, hosted by NRHA Board of Commissioners.
COMMUNITY ENGAGEMENT & SUPPORT
• NAHRO Award of Excellence for mobile optimized website • Seldon Gallery Reception NRHA recognized by the League of American Communications Professionals, LLC (LACP) with a Bronze Spotlight Award for Digital Photo Archive. It was created as a way to make historical photos available to the public and a centralized resource that captures Norfolk’s evolution from 1868 to the present. NRHA’s Communications and Marketing Department began the project in 2009 with a vision to transform an estimated 23,000 images in the form of photo negatives, slides and prints into an accessible and searchable online format. The archive features 76 galleries and a rich full-size, full-screen version of each image, including an augmented reality section, in which a past-era photo is inserted in the center of a present-day photo of the same area, making the transformation of time all the more apparent and breathtaking to the viewer.
Casey Scalf, NRHA’s Web Developer/Designer was featured in a Selden Gallery exhibit titled “Augmented Norfolk”. Augmented Reality is when a past-era photograph is inserted into the center of a present day photo of the same area. “My intention with these photographs was to give viewers a glimpse of Norfolk’s past while highlighting the city’s amazing transformations,” said Scalf, who brings her 12 years of professional photography experience. She was first inspired by the idea of an augmented reality collection when she began the process of creating NRHA’s digital photo archive. “I began to see Norfolk in a new light and I wanted others to experience that as well,” said Scalf.
“Nearly 1,500 entries were submitted, representing a dozen countries and 300 entities, so competition was exceptionally tough. “We are flattered to be recognized in this Global Competition,” said NRHA Chief Executive Officer Shurl Montgomery. Other winning entries included adidas Group, Audi AG, Cisco Systems, Kennedy Space Center and UPS. Photo Archive can be found here: http://nrha.photoshelter.com
2012 ANNUAL REPORT
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MEASURING OUR BTUs TO SAVE GREEN
Energy Conservation Initiatives GREEN BUILDING FOR MULTIFAMILY RENTAL & SINGLE-FAMILY RESIDENCE
The discrepancy in expenditures between lower and middle income households results in part from lower income households residing in poorly insulated and outdated homes. Source: PHA Sustainability Blog
Multi-family assisted-rental housing projects, on average, waste 40 percent more energy than the typical U.S. home. Source: GreenBiz.com
Lower income households spend three to seven times more on energy costs than middle income households. Source: American Council for an Energy Efficient Economy
Reducing the $6.8 billion annual utility bill paid by the U.S. Department of Housing and Urban Development (HUD), 15 percent of its annual budget alone, justifies a scaled national retrofit initiative. Source: What Works Collaborative, Scaling the Nationwide Energy Retrofit of Affordable Multifamily Housing: Innovations and Policy Recommendations.
• NRHA contracted with Ameresco, an energy services company, on an energy services contract that will result in more than $14 million in energy conservation and capital improvement in its assisted-rental communities and projected to save $35 million in energy costs over 20 years. Contract is pending HUD approval.
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The Maplewoods@ Olde Huntersville
• Grandy Village Learning Center (GVLC) strikes LEED gold by becoming first U.S. Green Building Council (USGBC) Leadership in Energy & Environmental Design (LEED) Gold certified building in Norfolk. GVLC features include: ~ 30-40% more energy efficient than the average building ~ 70% of its construction materials recycled ~ Students planted smooth cord grass for wetlands restoration along the Elizabeth River, behind the Learning Center • Other awards received for GVLC include NAHRO Awards of Merit and Excellence, Norfolk Environmental Commission Green Building Pioneer Award and the Elizabeth River Projects River Star Award. • NRHA mandated that all new construction receive green certification from USGBC, Earth Craft or National Association of Home Builders (NAHB). • The Maplewoods in Huntersville is one of the largest Earth Craft townhome communities in Virginia. Prices ranged from $175,000 to $235,000, proving that energy efficiency doesn’t have to be expensive. • Lambert’s Point Earth Craft townhomes ranged from $175,000 to $215,000, another example of affordable homes built with energy conservation in mind. • NRHA built 22 Earth Craft and Energy Star-certified duplexes at Grandy Village, the first such multifamily complex in Hampton Roads. Eighty-eight more are on the way.
2012 ANNUAL REPORT
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MEASURING UP TO A BALANCED BUDGET NRHA FY 2013 |
The FY 2013 Consolidated Annual Operating and Capital Budget sets forth both revenue and expenditures. It delineates operating and program budgets for specific initiatives within conservation, redevelopment and special districts, as well as neighborhoods and assisted-rental communities.
The budget reaffirms NRHA’s: • Commitment to fiscal responsibility with limited resources while providing quality housing services. • Prudent objectives to ensure affordable housing, promote homeownership and provide community development opportunities to Norfolk citizens. Details in NRHA’s budget are categorized by three components and their numerous programs. The Authority approves FY 2013 budget expenditures of $89,272,284 which represents a (-6.5 percent) net decrease under previous year’s $95.8 million budget. NRHA believes the approved budget addresses all fiscal needs, while also putting us on the path to greater future accomplishments.
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2012 ANNUAL REPORT
TOTAL FY 2013 BUDGET $89,272,284
80.7% Housing
Provides an ongoing stream of funding that closes the gap between what lower-income tenants can afford to pay in rent and cost of operating housing and resident services programs.
16.5% Community Development
Partners with the community and private sector to disperse existing land inventory, assemble new properties for future development and provide first-time homebuyer preparation and residential rehabilitation products.
2.8% Other
This includes cost to support internal and external initiatives that are otherwise ineligible under federal programs and do not fit within a specific division.
DEVELOPMENT $14,731,155 16.5%
OTHER $2,486,425 2.8% HOUSING $72,054,704 80.7%
Revenue Picture: Overall, revenues reflect little growth, presenting significant budgetary challenges in view of general inflationary pressures. Anticipate minimum increases in Housing Choice Voucher Administrative fees, and Low Income Public Housing (LIPH) subsidies. HUD Capital Fund Program was drastically reduced for this fiscal year’s allocations. City of Norfolk federal grant programs declined at a rate of 17% for Community Development Block Grant (CDBG) and 43% for the HOME program. The City’s borrowing capacity for general obligation bonds impacted budgeting resources for neighborhood conservation. Listed below are other revenue highlights: • Utilization of approved increase in the City’s General Fund appropriation for NRHA program delivery and administration from $550,000 to $1 million. • Use of $650,000 from NRHA operating reserve for federally aided programs. • Use of $657,671 from NRHA operating reserves for Central Office Cost Center (COCC) projects. • Use of $708,834 from NRHA operating reserves for other programs. • Dedication of balances remaining from Urban Development Action Grant activities for urban design and site planning activities. • Utilization of $1.6 million earnings from operation of NRHA owned, privately managed apartments.
Expenditure Picture: FY 2013 budget has been balanced through a combination of strategic budget reductions and use of non-recurring funds. It is the result of significant deliberations and difficult choices by senior management. It continues the practice of conservative and prudent fiscal planning in the face of a challenging economic climate. The approved budget provides continued funding of all services at a base level, but with notable changes from FY 2012. Following are a few highlights: • Elimination of 23 full-time positions, including 11 filled and 12 vacant positions. • Reassignment of Housing Reinvention staff into other Divisions. • Suspension of merit pay increases for fourth consecutive year. • Inclusion of a general wage increase of 2.4% for all NRHA employees, the first since FY 2008. • NRHA’s health insurance premiums increased by 8.28% in January 2013. NRHA absorbed nearly all the premium increase. • Implementation of the State of Virginia requirements for 5% employee contributions to the Virginia Retirement System (VRS) as well as salary adjustments to make our employees whole for this new requirement. • Decrease of management fees to be assessed to LIPH and HCV programs in the amount of $400,000, to be made up from internal service fund reserves. • Deferral of costs related to the implementation of security cameras and monitoring in assisted-rental communities. • Staffing costs will continue to be controlled through attrition and position control measures. Total number of employees is anticipated at 311 in FY 2013, a net decrease of 17.
2012 ANNUAL REPORT
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STATISTICAL DIGEST
OF HOUSING AND COMMUNITY REVITALIZATION | ASSISTED-RENTAL APARTMENTS (OWNED BY NRHA) Community Names
Units
Occupied
Acres
Bobbitt Apartments (Senior) *Broad Creek
84 300
1980 2006
3 87
Calvert Square Diggs Town Franklin Arms (Senior) Grandy Village Hunter Square (Senior)
310 422 100 363 91
1957 1952 2003 1953 1978
19 30 3 44 3
North Wellington Place Oakleaf Forest Partrea Apartments (Senior)
25 257 114
1988 1942 1979
7 24 6
Scattered Site Transitional Sykes Apartments (Senior)
15 84
1993 1980
N/A 2
618 746 3,529
1955 1953
44 36
Tidewater Gardens Young Terrace TOTAL Assisted Rental Units *managed by the Community Builders
NRHA-OWNED APARTMENTS (UNDER PRIVATE MANAGEMENT) Merrimack Landing Mission College Oakmont North Park Terrace TOTAL Units
492 260 407 81 1,240
1941 1990 1971 1977
56 13 21 5
HOUSING CHOICE VOUCHER PROGRAM (AS OF 6/30/11) Vouchers Participating Landlords
2,808 938
HOMEOWNERSHIP SERVICES HomeNet 2012 First-Time Buyer Closings 30 Total Sales $4.48 million Total Private Funding Leveraged $3.5 million
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2012 ANNUAL REPORT
continued MULTI-FAMILY DEVELOPMENTS Community Names
Units
Berkley II Sumler Terrace Apartments Carney Park Beechwood Apartments
126
Central Brambleton Area Condominium Conversions Downtown West Redevelopment
PierPointe Condominiums Freemason River Park Condominiums
The Heritage at Freemason Harbour Educational Center Bowe Apartments Ghent (includes Ghent Conservation) Ghent on the Square Apartments Ghent Village Apartments
136 32 52 72 44 180 16 110 140
Grace Covenant Scattered apartment projects Huntersville Village Apartments
79 150 180
Huntersville II Paradise Gardens Apartments Rosemont Baily Parker Townhouses Cedarwood Village Apartments Dundale Apartments Oakmont Apartments Ramblewood I and II Apartments St. Andrews Place Condominiums Spartan Village Townhouses TOTAL Multi-Family Units
84 114 104 100 128 300 184 69 2,400
2012 ANNUAL REPORT
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STATISTICAL DIGEST SINGLE-FAMILY & TOWNHOME PRODUCTION Area 8th to 9th Bay 17th to 19th Bay Attucks Square Attucks Square West Bay Oaks Place Bell Diamond (6-15) Broad Creek Carney Park Central Brambleton Arch Cottage Place *East Beach Gatewood Square Ghent Square Ingleside Lamberts Point Lincoln Gardens Meadowbrook Woods Middle Towne Arch Osborne Road Park Place East at Broadway Pinewell by the Bay StoneBridge Crossing The Maplewoods @ Olde Huntersville Townhouses @ East Church Wellington East Wellington Oaks Westchurch Scattered Site In-Fill (new and rehabilitated) TOTAL Single-Family Units
Units
First Occupied
Acres
5
2001
1
25 28
2002 1990
3 4.5
24
1992
5
10 74 70 72 122 11 247 10 462 23 16 54 120 188 8 21 73 108 27
1994 1973 2005 1976 2001 1999 2004 2000 1976 1995 2012 1981 1979 1986 1997 2006 1990 1997 N/A
1.4 8 86 25 77 2.3 100 1.3 65 4.9 18.8 32 62 1 12 19 51 3
12 19 300 31 4,642 6,802
2007 1991 1974 2004
3 3 31 3.7
No. 1 76 30 1 1
Units N/A N/A 5,879 246 278
$million $9.9 $184.9 $149.6 $53.2 $56
*Under Construction
REVENUE BOND ACTIVITY (SINCE 1977) Type East Ocean View Acquisition Bond Commercial Industrial/Other Development Bonds New/Rehabilitation Multi-Family Harbor’s Edge CCRC ODU Student Housing
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2012 ANNUAL REPORT
continued CONSERVATION PROJECTS Acres
Started
Ballentine Place
244
1987
Bayview Rehabilitation District
733
1989
Berkley II Berkley III
8 200
1972 1986
80 77 234 299 33 571 155 67 386 89 106 28 221 83 362 138 4,114
2001 1991 1973 1988 1974 1989 1969 1986 1979 1994 1988 1983 1973 1986 1981 2000
Area
Campostella Heights Central Brambleton *Colonial Place-Riverview Cottage Line *Downtown West East Ocean View *Ghent Kensington/Dominion Place *Lafayette-Winona Lamberts Point Mid-Town Industrial *North Titustown Park Place Villa Heights West Ocean View Willoughby TOTAL PROJECTS: 20 *Inactive projects
Special Service Districts Fairmount Park Wards Corner Campostella
Started 2007 2008 2010
TOTAL Rehabilitation Loans/Grants made in conservation areas since 1969: 3,408 (Valued at $94.4 million)
2012 ANNUAL REPORT
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STATISTICAL DIGEST
REDEVELOPMENT PROJECTS Project Atlantic City (R-1) *Bell-Diamond (A-1-3) Berkley II (A-1-5) Berkley IV Church Street *Downtown East (R-18) Downtown North (R-8) Downtown South (R-9) Downtown West (A-1-6) E. Ghent North (A-1-2) E. Ghent South (A-1-1) East Ocean View *Educational Center (A-1-4) Hampton Blvd. Huntersville I (R-70) Huntersville II Old Dominion (R-28) Project #1 (UR1-1) Rosemont (R-25) South Brambleton *Wood Street TOTAL Projects: 21
Acres 141 28 68 36 29 20 106 72 70 90 69 150 118 66 28 71 37 123
Start 1957 1969 1972 1994 1977 1961 1958 1961 1973 1969 1969 1989 1969 1997 1971 1980 1963 1951
305 142 10 1,779
1962 1991 1978
Primary Land Use medical center residential residential residential commercial commercial, public commercial, public commercial, public residential, commercial residential, schools residential residential residential, schools commercial, residential residential residential campus expansion, commercial, residential commercial, public residential industrial public
*Closed-Out Projects
Special Projects Attucks Theatre MacArthur Center Tidewater Community College- Norfolk Campus Waterside Festival Market Place
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2012 ANNUAL REPORT
Completed 2004 1999 2000 1983
SENIOR HOUSING DEVELOPMENTS Project Carney Park Tucker House Educational Center COGIC Ghent John Knox Towers Huntersville II Calvary Towers Medical Facilities of America Nursing Lamberts Point Village Pointe Apartments Village Gardens Middle Towne Arch Annetta Lane Grace Place Rosemont Braywood Manor TOTAL
Developed by NRHA, now under different management or ownership
Units 127 150 150 112 180 60 40 40 40 228 1,127
2012 ANNUAL REPORT
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201 Granby Street Norfolk, Virginia 23510-1816 Main Phone Number: 757.623.1111 TDD for Hearing Impaired: 800.545.1833 Fax: 757.314.2105 www.nrha.us
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