Homeownership The American Dream is Alive
2015 Annual Report
Letter from the President
To our San Gabriel Valley Habitat Family, Fiscal year 2015 had many challenges and brought much progress. We opened the new ReStore in Atwater Village January 2015, as a replacement for our Pasadena ReStore which closed at the end of 2014, after many years as a successful retail operation supporting our affordable housing mission. The new location had many challenges to open business, but it is a bigger, brighter store. We encourage all our SGVH family to visit our ReStores (Atwater and Azusa) to donate and to shop. All of this fiscal year, the Chestnut Build in Glendale has been a busy construction site with significant staff and volunteer effort, including the three selected families who will occupy the completed homes, many supportive corporate sponsor groups, and many individuals. These homes have three stories and have required more assistance from contractors than usual builds. The Chestnut Homes will be completed in early 2016, just as we initiate our Desiderio Build in Pasadena. The Desiderio Family Selection process began with seven information meetings and over 600 people attending. The Family Selection Committee was tasked with finding nine qualified families, including three Veteran families. The 340 applications distributed in these meetings show that the American Dream of homeownership is still alive with SGV Habitat’s help. Finally, a highlight of 2015 was the Desiderio Gala in June. The event was a success as a fundraiser and as a celebration of the new Desiderio community which will bring nine affordable homes and the new neighborhood Desiderio Park honoring Reginald B. Desiderio for whom the former Army Reserve Center was named. Special thanks go to all who attended and supported the event and the many volunteers who helped to plan and present this event. Chestnut and Desiderio are part of the affiliate’s construction continuum that the Board is seeking to touch more lives and to enable our volunteers to have ongoing opportunities at our build sites. Additionally, we have the Lomita Build in Glendale and the Manzanita Build in Pasadena queued up for construction during the next few years. The 20 new family homes in these four builds will add to the existing stock of 59 affordable homes built by SGV Habitat over the last 25 years. SGV Habitat is ensuring affordable homeownership for 79 families who could not otherwise afford to own a home. Six of these families have recently paid off their mortgages to SGV Habitat and own their homes outright. We are grateful for these successes, but our biggest challenges are escalating construction and production costs while complying with “affordability” limits on monthly costs of housing that are mandated by the State and Federal government. We can’t thank our staff, volunteers, donors, Board and committees enough for all their efforts for SGV Habitat. We are particularly grateful for our Construction Committee that has helped us through the Chestnut Build with ingenuity and perseverance. This year, 560 donors and 4,436 volunteers have helped us achieve our successes. They make our mission possible. With all this support, San Gabriel Valley Habitat has continued to achieve our goal of transforming lives and communities by bringing people together to build, renovate and repair affordable homes for families in need. Thank you.
Elaine Wilkerson
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Table of Contents Annual Report • fiscal year 2015 July 1, 2014 - June 30, 2015
This year SGV Habitat celebrated 25 years of Building Homes and Hope.
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Letter from the President
Pasadena ReStore Closing Atwater Village Opening
Construction Committee
Chestnut Homes Progress Desiderio Celebration
Outreach for Desiderio
New Build - The Lomita Homes Financials
Statement of Activities
Charity Navigator 4-Star Rating Leadership and Staff
When you volunteer, donate and advocate with Habitat, you open doors to a better life for each person who lives in a Habitat home.
ANNUAL REPORT FISCAL YEAR 2015
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Pasadena ReStore ends long, successful run
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n 2003, SGV Habitat’s Board of Directors embraced a new Builders Surplus Store model that originated with Habitat for Humanity in Dallas, Texas. A decision was made to lease a city-owned building at 770 N. Fair Oaks Avenue in Pasadena even though this site would be needed as soon as six months from the lease date to make way for the planned Heritage Square project for very low income seniors who needed decent rental units.
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welve years later, SGV Habitat’s Pasadena ReStore closed its doors, and keys to the building were returned to City of Pasadena on January 31, 2015. During this period of time, Habitat for Humanity International, Inc. saw the great value of having a program center that generated revenue to support the mission of Habitat affiliates across the nation. The name of builders surplus stores that were proliferating was changed to ReStore as part of a national branding effort.
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hanks to sound ReStore leadership, the net operating income contributed by the Pasadena ReStore to support SGV Habitat’s affordable housing mission grew from $10,000 in FY 2004 to $421,500 in FY 2014.
When one door closes, another opens
Replacement location in Atwater Village opened January 15, 2015 A Grand Opening Celebration
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nowing that the day would come when relocation of the Pasadena ReStore would become a reality, SGV Habitat’s Site Development Committee, led by Board Vice President Greg Barsamian, searched for four years before finding a workable site at 5201 W. San Fernando Road in Atwater Village. This site promised easy access from Glendale at the Broadway/Brazil crossing and three times more parking stalls than the Pasadena location.
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wo of the five warehouse buildings on the site were renovated and brought up to code to create the new Atwater Village ReStore with 15,000 square feet of space. This tenant improvement work was started in December 2013 and completed in January 2015.
• A friendly, convenient place to reduce, recycle and reuse building materials and related products
Grand Opening Celebration was held on May 2, 2015, to promote community awareness of the benefits of bringing the new ReStore to Atwater Village . . .
• A place to find unique materials for creative home décor projects
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• A place to donate household cabinets, fixtures and gently used furniture and appliances • A place to find shopping bargains for home improvement projects
• A place where every purchase helps to build and repair affordable homes in the San Gabriel Valley ANNUAL REPORT FISCAL YEAR 2015
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The Power of Dedicated Nonprofit Volunteers in Action We salute the members of the Construction Committee
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arbara Hudson, one of SGV Habitat’s early ambassadors and leaders, shared that for every hour spent pounding nails at a Habitat build site, it takes at least 10 hours of behind-the-scenes volunteer work.
n this Annual Report, we salute the members of SGV Habitat’s Construction Committee: Board Members Bob Law (Chair), Scott Carpenter, Nimrod Johnson and David Van Wyk; business community members Jim Brain, Amanda Gallagher, Jeff Throop and Vince Quinones; and construction staff members Damien Allen (Director of Construction) and Lindsey Lesher (Construction Superintendent).
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his team meets monthly, and members spend hundreds of hours between meetings working with city officials and departments to expedite approvals, permits and inspections and to obtain gifts-
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in-kind of materials (GIK), pro bono services, and quotes for work that must be contracted.
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he Construction Committee is one of six Standing Committees for SGV Habitat. The other Standing Committees are Fund Development, Marketing and Public Relations, Site Development, Faith Relations, and Family Services and Selection. Committees of the Board include the Executive Committee and the Audit Committee. Operating Committees are the Nominating Committee and the Finance Committee.
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here is a place of volunteer service for all people of good will who want to transform lives through safe and decent affordable housing for this generation and for generations to come.
Chestnut Homes Progress
Chestnut Homes Construction was underway throughout this Fiscal Year
ANNUAL REPORT FISCAL YEAR 2015
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Celebration of the New Desiderio Community June 20, 2015 Building dreams Under the Stars
In the courtyard of the iconic Pasadena City Hall, over 250 citizens and supporters gathered to celebrate the new Desiderio Community.
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he former Desiderio Army Reserve Center property, located below the Colorado Street Bridge, will be transformed by addressing two complementary priority needs in Pasadena — the need for affordable housing and the need for more open space. This Reuse Plan was approved by the Pasadena Council in 2007 and later ratified by the U.S. Army, the U.S. Department of Housing and Community Development (HUD) and the U.S. Department of Parklands.
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s part of a Planned Development approved by the Pasadena Council, San Gabriel Valley Habitat for Humanity will build nine affordable, single family, craftsman style bungalows in a courtyard configuration. The city will build a passive neighborhood park that will include turf areas, trees, security lighting, walkways, picnic tables, benches, play equipment, drink-
ing fountains, waste and recycling receptacles and a parking area. At the Gala, District 6 Councilmember Steve Madison who has been a strong proponent of this reuse plan, shared the history of the decisions that resulted in the transformational construction projects that will unfold from 2015 through 2018.
ANNUAL REPORT FISCAL YEAR 2015
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Outreach for Eligible Desiderio Homes Buyers
hopeful homeowners striving for a better future
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an Gabriel Valley Habitat’s Outreach Committee and staff worked from the beginning of this fiscal year to publicize the amazing Desiderio homeownership opportunity for local families earning no more than 60% of the Area Median Income (AMI). In cooperation with the Pasadena Unified School District, service organizations for veterans, faith communities and preschools, presentations were made to parent groups, and social media postings informed potential buyers about the Desiderio Homes build and SGV
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Habitat’s unique model that makes homeownership possible for lowincome families.
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he Desiderio build will provide three-bedroom single family homes for nine families. The homes will be built in a bungalow courtyard formation in the southeast corner of the property that once was the Desiderio Army Reserve Center.
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even informational meetings were held between January 24th and March 2nd. The need for
affordable housing in Pasadena was clearly demonstrated when 651 people attended informational meetings. In all, people representing 386 households attended one of the informational sessions; 369 households took applications; and 141 applications were completed and returned. Among the applicants were households of 28 veterans. A Legacy Gift from the estate of Charles Rouchka stipulated that proceeds from the sale of his home would be used to build three of the Desiderio Homes for families of veterans.
New Glendale Build Opportunity The lomita homes
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n May 19, 2015, the Housing Authority of City of Glendale approved a Disposition and Development Agreement (DDA) with SGV Habitat to build six new townhouse-style condominium homes on adjacent lots that will be joined following demolition of existing older
dwellings. The new homes will be located at 634-700 Lomita Avenue in Glendale.
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pleased to enter into this ninth partnership development with City of Glendale and the Housing Authority.
he need for affordable housing in Glendale continues to be great, and SGV Habitat is
ANNUAL REPORT FISCAL YEAR 2015
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FINANCIALS Assets Current Assets: Cash and cash equivalents Restricted Cash Investments
Contributions receivable
Mortgage loans receivable - current portion ReStore inventory
Houses Under Construction Other Assets
Non-Current Assets: Property and equipment, net of accumulated depreciation
Mortgage loans receivable - net or current portion, less discount Total Assets
June 30, 2014
$9,148
$9,084
7,000,000
$18,850
5,000,000
$112,207
3,000,000
$3,621,052 $961,257 $44,000
$232,890 $115,011 $826,552 $122,283
$5,932,193 $882,290
$2,567,950
9,000,000
$4,320,789*
8,000,000
$1,252,455
6,000,000
$246,476
4,000,000
$263,436
2,000,000
$134,079
$6,357,376 $170,852
$2,625,661
$9,382,433
$9,153,889
Accounts Payable
$27,821
$56,364
Deferred rent liability
$23,631
$15,911
Liabilities and net assets
Total Revenues and Net Assets
June 30, 2015
Net Asset Revenue
1,000,000 2008
2009
2010
2011
2012
2013
2014
2015
Total Expenses General & Administrative, 6%
Fundraising 3%
Current liabilities
Construction Payable
Accrued Expenses and other liabilities Amounts held for others
Note Payable - current portion Note Payable - net of current portion Net Assets Unrestricted
Undesignated
Board Designated
Total Unrestricted
Temporarily Restricted Total Net Assets
Total Liabilities and Net Assets
$183,877 $74,171
$106,910 $73,678
$490,088
$48,953 $96,393
$141,723* $70,419
$429,763
$620,598
$694,277
$2,049,543
$1,776,439
$6,638,192
$6,164,467
$1,110,686
$4,588,649
$1,633,555 $8,271,747
$9,382,433
$1,124,040
$4,388,028 $1,865,382 $8,029,849
$9,153,889
*Audit revision to reflect $141,723 held by SGV Habitat as impound account for property taxes.
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Program Services, 91%
Support and Revenue Imputed interest income on mortgage loans 4%
ReStores sales & donations 38%
Donated services 3%
Other Income 2%
Contributions & grants 14%
In-kind contributions 39%
statement of activities This financial information has been extracted from our audited financial statements. A complete set of financial statements, including footnotes, is available upon request. The complete financial statements have been audited by Capin Crouse LLP, Brea, California.
San Gabriel Valley Habitat for Humanity for the Year Ended June 30, 2015 with Summarized Comparative Figures for the Year Ended June 30, 2014
2015
2014
Unrestricted
Temporarily Restricted
In-kind contributions
$1,461,132
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ReStore sales and donations
$1,448,013 $100,383
Support and Revenue Contributions and grants Sales to homeowners
Imputed interest income on mortgage loans Donated services
Interest income Other income
Net assets released from restrictions: Release of time restriction
Satisfaction of donor restrictions
Total Support and Revenue
EXPENSES: Program services
Supporting activities:
General and administrative Fundraising
Total Expenses Change in Net Assets
Net Assets, Beginning of Year Net Assets, End of Year
$483,656 -
$137,104
$21,162 $73,730
$15,281
$263,444
Unrestricted
Temporarily Restricted
$1,461,132
$1,593,663
-
$1,593,663
-
$1,448,013
$1,459,566
-
$1,459,566
-
$100,383
$69,020
-
$69,020
$46,898 -
-
-
($15,281)
($263,444)
Total
$530,554 -
$137,104
$21,162
$332,956 -
$152,380
$23,163
$382,921 -
-
-
Total
$715,877 -
$152,380 $23,163
$73,730
$171,331
-
$171,331
–
$5,293
($5,293)
–
–
$12,367
($12,367)
–
$365,261
$4,185,000
$4,003,905
($231,827)
$3,772,078
$3,819,739
$3,199,682
–
$3,199,682
$3,096,065
–
$3,096,065
$211,795
–
$211,795
$229,783
–
$229,783
$3,530,180
–
$3,530,180
$3,368,088
–
$3,368,088
$1,865,382
$8,029,849
$5,712,816
$1,500,121
$7,212,937
$118,703
–
$473,725
($231,827)
$6,638,192
$1,633,555
$6,164,467
$118,703
$241,898
$8,271,747
$42,240
$451,651
$6,164,467
–
$365,261
$1,865,382
$42,240
$816,912
$8,029,849
ANNUAL REPORT FISCAL YEAR 2015
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Charity Navigator’s 4-Star Rating SGV Habitat for Humanity ranks as top charity based on sound fiscal management For the eighth consecutive year, San Gabriel Valley Habitat for Humanity earned Charity Navigator’s 4-Star rating for sound fiscal management and commitment to accountability and transparency.
A mission you can believe in. A charity you can trust.
Only 1% of Charity Navigator rated charities have received eight consecutive 4-Star evaluations
Sonja Yates San Gabriel Valley Ha bitat for Humanity 400 South Irwindale Avenue Azusa, CA 91702 Dear Sonja Yates:
July 1, 2015
On behalf of Charity Nav coveted 4-star rating f igator, I wish to congratulate San Gabrie or sound fiscal mana gement and commit l Valley Habitat for Humanity on achievi ment to accountability ng our As the nonprofit secto and transparency. r co transparency and quan ntinues to grow at an unprecedented pac tifiable results from the e, savvy donors are de competitive philanthro man charities they choose t pic marketplace, Ch o support with their ha ding more accountability, arit work of efficient, ethi rd-earned dollars. In th cal and open charities. y Navigator, America's premier charity is eva needed to give them greater confidence in Our goal in all of this is to provide donor luator, highlights the fine the charitable choices s with essential inform they make. ation Based on the most rece nt i announce San Gabriel V nformation available, we have issued a new rating for your or of a possible four stars alley Habitat for Humanity has earned ou ganization. We are pr indicates that your or r eighth consecutive 4 oud to minimize the chance o gan -sta f unethical activities a ization adheres to good governance and o r rating. Receiving four out of the charities we ra nd c ther best practices tha ons istently executes its mi te have received at lea t ssion in a fisca Habitat for Humanity st 8 consecutive 4-star out evaluations, indicating lly responsible way. Only 1% Navigator differentiat performs most other charities in Americ tha t Sa n G abr iel V es San Gabriel Valle alley a. This “exceptional” y Habitat for Humanit worthy of their trust. designation from Ch y from its peers and d arit emonstrates to the pub y lic it is Forbes, Business We ek, method of applying da and Kiplinger's Financial Magazine, am ong others, have profil ta-driven analysis to the competitor and curren ed and celebrated ou r un tly attract more visito charitable sector. We evaluate ten times us the leading charity rs to our website than a more charities than o ique eva ur nearest before viewing our fin luator in America. Our data shows that u ll other charity rating groups combined, thu dings, and in fact, it is estimated that last ye sers of our site gave more than they plann s making billion in charitable gifts. ed t ar Charity Navigator i nfluenced approximat o ely $10 We believe our service will enhance your org of San Gabriel Valle aniz ation's fundraising an y Habitat for Humanit d pu blic relations e y's fiscal health and co visible on our website. mmitment to account fforts. Our favorable review ability & transparen cy is now We wish you contin ued success in your ch aritable endeavors. Sincerely,
John P. Dugan Founder and Chairman of the
Board
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Leadership and Staff Board Members Elaine Wilkerson Board President Former Director of Planning City of Glendale
Gregory Barsamian Board Vice-President Managing Principal Coldwell Banker Commercial Alliance Nicolas Alparaz Board Treasurer Finance Omnia Media, Inc. John Mac Lean Associate Treasurer Senior Loan Consultant Chase Bank Andrew Pittroff Secretary Family Business House of Printing Tom Bunn Attorney Lagerlof, Senecal, Gosney & Kruse, LLP Glen Dawes Vice President and Controller Kaiser Foundation Health Plan, Inc. Ann Dougherty Management Consultant George Hernandez Community Lending & CRA Analyst Luther Burbank Savings Bob Law Chief Estimator Pankow Builders Scott Carpenter Director of Engineering & Facilities Technicolor Herb Rim Marketing Consultant BrainTree Concepts CEO / Founder TrueXO Inc. David Van Wyk Project Management & Integration Walt Disney Imagineering
Otis W. Marston Jr. Owner Smart Water Irrigation and Landscaping
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Nimrod Johnson Accountant/CPA Kaiser Permanente
Director of Construction Damien Allen
Joshua Kreinberg Attorney/Consultant Digital Room, Inc.
Accountant Sayaka Ota
Hard Hat Council
The Hard Hat Council is a key support group which gives and secures major gifts to support our affordable housing mission.
John Mac Lean, Chair Alex Agajanian Donna Baker Christopher Burau Tom Doud Joan McCarthy Bob Picardo Vince Quinones George Smith Jeff Throop
Honorary Board
Comprised of long-term supporters who have shaped and built the effectiveness of our organization. Honorary Board members are dedicated leaders who continue to support the mission and building efforts of San Gabriel Valley Habitat for Humanity.
Supervisor Michael Antonovich Jon Barstad Jack Conroy Merwyn Fair Charlotte Hogan Barbara Hudson Senator Carol Liu Mary Jane Macy Anthony Portantino
Executive Director Sonja L. Yates
Office Manager Catalina Velez
Marketing Manager Brenton Kelly Volunteer & Youth Programs Manager Chelsea McHenry Grants & Partnerships Manager Audrey Booth-Edwards
Catalina Velez Celebrating 20 Years of Service
Family Services Coordinator Marty McBride Construction Assistant Superintendents Lindsey Lesher Michael Escarzaga ReStore Managers Matt Vincent, Azusa Merrick Drake, Atwater Village ReStore Assistant Managers Cesar Baltazar, Azusa Michael Springs, Atwater Village
Walter Rea Jr.
Sherri Cubangbang
ReStore Donor Relations Coordinator Christopher Kahl ReStore Administrative Assistant Jenifer Gonzalez ReStore Drivers Walter Rea Jr. Emory Davis III ReStore Sales Associates Craig Chew Brian Ewing Ismael Flores Carlos Hernandez Erik Kristiansen Mark Leyva Don Meeker Phillip Pasos Joshua Rosa Lucas Mark Wainscott
Audrey Booth-Edwards and Matt Vincent ANNUAL REPORT FISCAL YEAR 2015
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Acknowledgments StapenhillPhoto, Building Dreams Under the Stars Photographer ASCE Los Angeles Younger Members (LA YMF), Photography
400 South Irwindale Avenue • Azusa, CA 91702 Office: (626) 387-6899 Fax: (626) 387-6890 sgvhabitat.org • info@sgvhabitat.org