Neighborhood Housing Services of Chicago, Inc. FY16...Neighborhood Housing Services of Chicago, Inc....
Transcript of Neighborhood Housing Services of Chicago, Inc. FY16...Neighborhood Housing Services of Chicago, Inc....
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Neighborhood Housing Services of Chicago, Inc.
Annual Financial Report FY2016
1279 N. Milwaukee Avenue, 4th Floor
Chicago, Illinois 60622
(773) 329-4111 | nhschicago.org
Rooted in Neighborhoods, Investing in People
Neighborhood Housing Services of Chicago, Inc. | Annual Report 2016 2
Letter from NHS President Kristin Faust 3
2015 – 2016 Impact 4
NHS’ Major Areas of Program Activity 6
Leadership 7
Neighborhood Locations 12
Our Supporters 13
A Note from the President 14
Fiscal Year Ending March 31, 2016 (Financials) 15
Contents
Neighborhood Housing Services of Chicago, Inc. | Annual Report 2016 3
Thanks to the support of our many partners, Neighborhood Housing Services of Chicago has made tremendous strides in advocating for working families and revitalizing communities through community building, real estate development, mortgage lending, homeownership education and housing policy.By working together with corporate leaders and neighborhood leaders, long time partners
and new friends, NHS is eager to build off this year’s success and embark on a new strategic
plan. Our collective efforts will reimagine Chicagoland neighborhoods that continue to feel
the reverberations of an uneven housing recovery.
We know dynamic approaches to neighborhood revitalization are necessary to address the
challenges we face within our neighborhoods. In the past year, we have seen the needs of
our communities and the individuals we serve change. While foreclosure prevention was
once our primary focus, we are now seeing renewed interest in homeownership.
Individuals, community and civic leaders alike recognize that homeownership once again
plays a critical role in strengthening communities and families. We are excited about
the opportunity to return to NHS’ root work, and look forward to sharing our progress
throughout the coming year.
We thank you for joining us on this journey and look forward to continuing our partnership
in the years ahead.
Dear Friends,
Warm wishes,
Kristin FaustPresident Neighborhood Housing Services of Chicago
Neighborhood Housing Services of Chicago, Inc. | Annual Report 2016 4
Neighborhood Housing Services of Chicago, Inc. (NHS) is a nonprofit organization working in partnership
with businesses, government, and neighborhood residents to revitalize Chicago’s low-to moderate-income
neighborhoods. Formed in 1975, NHS is Chicago’s largest neighborhood revitalization organization.
NHS MISSION
NHS creates opportunities for people to live in affordable homes, improve their lives and strengthen their neighborhoods.
2015 – 2016 Impact
Educating &
preparing new
homeowners
for success
Lending to help
people buy, fix &
keep their homes
Sustaining home
ownership through
foreclosure
prevention services
Preserving,
rehabbing &
investing in housing
Building powerful &
enduring community
partnerships
WE DO THIS BY
Neighborhood Housing Services of Chicago, Inc. | Annual Report 2016 5
OUR ACCOMPLISHMENTS FY16* SINCE 1975
Clients Served 4,730 223,778
Number of Loans & Grants Closed 445 22,071
Funds Loaned $16,623,096 $613,809,510
Number of Units Financed, Built or Rehabbed 623 34,980
Participants in Homebuyer Education 1,947 40,816
New Homeowners Created 155 4,861
Vacant Properties Sold 32 743
Rental Units Owned & Managed 312 –
FY16* SINCE 2003
Homeowners at Risk of Foreclosure Counseled / Educated 1,180 32,552
Homeowners Saved from Foreclosure 494 9,630
Troubled Properties Recovered / Stabilized 202 1,424
* April 1, 2015 – March 31, 2016
2015 – 2016 Impact
Neighborhood Housing Services of Chicago, Inc. | Annual Report 2016 6
NEIGHBORHOOD STRATEGY / COMMUNITY BUILDING & ENGAGEMENT
NHS promotes community development through five
neighborhood-based and two regional programs
offering home ownership, lending, rehab services and
resident engagement: Auburn Gresham / Englewood,
Chicago Lawn / Gage Park, North Lawndale, Roseland,
West Humboldt Park, Woodlawn, suburban Elgin and
south suburban Cook County.
LENDING
Neighborhood Lending Services (NLS), a non-profit
affiliate of NHS and an Illinois Residential Mortgage
licensee, administers loan and grant programs
that finance home improvement, home safety
repairs, home purchase, purchase-rehab, and home
rehabilitation for low- and moderate-income families.
To support such activities, NHS has a Construction
Services team that manages repair, upgrade, or
retrofit projects for hundreds of clients each year.
REAL ESTATE DEVELOPMENT & PRESERVATION
The NHS Redevelopment Corporation (NHSRC)
buys and redevelops single- and multi-family
properties and builds and sells new homes.
NHSRC is also responsible for administering the
City of Chicago’s receivership program for 1 – 4
unit buildings, securing distressed properties
and promoting neighborhood stabilization.
Redevelopment activity is strategically targeted
to support the work of the neighborhood-based
programs and promote neighborhood development.
NHSRC owns and manages 295 multi-family and 17
single-family units of low-income rental housing.
HOME OWNERSHIP EDUCATION & FORECLOSURE PREVENTION
As the State of Illinois’ largest HUD-approved
housing counseling agency, NHS offers Homebuyer
Education classes monthly at across its service area
including Chicago Lawn, North Lawndale, Roseland,
Wicker Park, East Hazel Crest, and Elgin. The classes
are an innovative approach to providing all the
services and training customers need to purchase,
rehabilitate, insure, and maintain a home. NHS’
Homebuyer Education classes are offered in English
and Spanish, and are also available online. NHS also
provides extensive foreclosure prevention services
at all of its office locations through the Home
Ownership Preservation Initiative.
INNOVATION & PUBLIC POLICY
NHS’ Innovation Department is responsible for
spearheading new solutions to the evolving
challenges in NHS’ target neighborhoods. NHS
partners and staff are pioneering efforts to respond
to revitalization issues and anticipate future needs.
NHS converts the knowledge and experience it gains
through its day-to-day work in the neighborhoods to
new programs and policy initiatives that can directly
benefit those communities. In addition to its major
activity areas, NHS manages and participates in a
number of special programs and initiatives, two of
which include: The Chicago Greystone & Vintage
Home Program® and the Micro-Market Recovery
Program (MMRP).
NHS’ Major Areas of Program Activity
7
Leadership
Neighborhood Housing Services of Chicago, Inc. | Annual Report 2016
Neighborhood Housing Services of Chicago, Inc. | Annual Report 2016 8
Kristin FaustPresident
Joel BoschChief Operating Officer
Anjanette BrownChief Financial Officer
Robin CoffeyChief Credit Officer
Mary CarlsonDirector, Resource Development & Public Affairs
Linda GreenDirector, Redevelopment Corporation
David KottmannDirector, Lending
Deborah MooreDirector, Neighborhood Strategy & Planning
Karen WoodsDirector, Homeownership Services
John YiDirector, Construction Services
Wendell WilliamsHuman Resources Manager
OFFICERS
President
Beth Witczak Managing Director, CRA & Fair Lending Officer, The PrivateBank
V.P. – Neighborhood Strategy
Robert V. McGhee V.P. – Community Development Manager, Citi
V.P. – Resource Development
Allen A. Rodriguez
Secretary
Betty Jo Swanson Community Representative, Auburn Gresham
Treasurer
Matthew Roth COO, IFF
Vicky Arroyo President, Community Development Corporation, MB Financial Bank
Dr. Michael Burnside Community Representative, South Suburbs, New Name Missionary Baptist Church
James Carr Senior Fellow, Center for American Progress
Steven J. Casey Manager – Grants & Budget, MacArthur Foundation
Ramon Cepeda Senior V.P. – Managing Director, Northern Trust Bank
Angela Hurlock Executive Director, Claretian Associates, Inc.
Abraham Lacy Executive Director, Far South Community Development Corporation
Bruce Martin Sr. V.P., Community Development Group JPMorgan Chase Bank
Don Meyer Executive V.P. – Head of Commercial Banking, Byline Bank
Andy Mooney Community Representative
Stephanie Seweryn Metro Board Representative, Latin School of Chicago
Tony Smith Community Development Banking Market Manager, The PNC Financial Services Group
William W. Towns Executive Director, Benefit Chicago
NHS of Chicago Executive Staff
NHS of Chicago Board of Directors
Neighborhood Housing Services of Chicago, Inc. | Annual Report 2016 9
The Trustee Committee provides NHS with an organized network of recognized leaders familiar with economic,
community development, and housing issues within their respective industry and geographic areas. Members
of the Trustee Committee are leaders who have demonstrated active support for community development and
housing issues and whose interest, leadership, and resources may be mobilized to provide ongoing support for
both NHS and the community development movement.
NHS of Chicago Trustees
MEMBERS
Dane Cleven President & Chairman, Community Savings Bank
Marsha Cruzan Chicago Market President, U.S. Bank
Charles L. EvansPresident & CEO, Federal Reserve Bank of Chicago
William M. Farrow III President & CEO, Urban Partnership Bank
Mitchell FeigerPresident & CEO, MB Financial Bank
Philip B. Flynn President & CEO, Associated Bank
Peter Gillespie President & CEO – Chicago Region, FirstMerit Bank
Steve ‘Mac’ MacLellan Executive V.P., Wealth Management Business, The Northern Trust Company
Alberto Paracchini CEO, Byline Bank
Larry Richman President and CEO, The PrivateBank
Andrew Salk President, First Eagle
Peter Sticker CEO, Inland Bank
Robert Sullivan President & CEO, Fifth Third Bank
Scott Swanson Regional President Illinois, PNC
Ed Wehmer CEO, Wintrust Financial Corporation
Neighborhood Housing Services of Chicago, Inc. | Annual Report 2016 10
Helen Alexopoulos MB Financial Bank
Jeff Allen BMO Harris Bank
Edward Beavers COUNTRY Financial
Dustin Bernstein Silverman Consulting
Rachel Evans Deloitte
Edgar Flagg Baker Tilly Virchow Krause
Erica Frazier BBVA Compass
John Gholar JP Morgan Chase
Sarah Greenberg EZRA Multi-Service Center
Damion Heron JP Morgan Chase
Chelsea Huzsar Sinai Health System
Brad Jaffe HomeScout Realty
Karl Riley II US Bank
Alonzo Rushing American Family Insurance
Dan Ruzich The PrivateBank
Marlon Sanders Citibank
Stephanie Seweryn Latin School of Chicago
Bobby Thapar Anchor Tree Development, LLC
Alexandria Willis Truven Health Analytics
The Metro Board of Neighborhood Housing Services of Chicago (NHS) is comprised of emerging civic and
business leaders who assist NHS by raising funds and awareness of NHS and its commitment to affordable
housing and to promoting Chicago’s great neighborhoods.
OFFICERS
President
Manuel Jimenez Marquette Bank
Vice President
Thomas FitzGibbon
Secretary / Treasurer
Robert Tucker
BOARD MEMBERS
Sheila Barber Associated Bank
Faruk Daudbasic First Eagle Bank
Bruce Martin JP Morgan Chase
Karen Thomas MB Financial Bank
Robert Tucker Chicago Community Loan Fund
Terry Young Urban Partnership Bank
NHS Metro Board
Neighborhood Lending Services Board of Directors
Neighborhood Housing Services of Chicago, Inc. | Annual Report 2016 11
OFFICERS
President
Kristine Jurmu Illinois Housing Development Authority
Secretary
Christine Kolb Focus Development
Treasurer
Paul Vlamis JP Morgan Chase
BOARD MEMBERS
Molly Ekerdt Preservation of Affordable Housing (POAH)
Allison Porter-Bell BMO Harris Bank
Daniel Siadak Bank of America
Adrienne Whitney
Paul Wilkowski Equity Lifestyle Properties
Matt Williams JP Partners
OFFICERS
President
Allen Rodriguez
Vice President
Carl Pietraszewski Bank of America
Chair of Finance
Tuan Nguyen First Midwest Bank
Chair of NeighborWorks Day
Stephanie Burks
BOARD MEMBERS
Frank Binetti Inland Home Mortgage
Laura Ann Spencer Perma-Seal Community Foundation
Rick M. Zonts Elgin State Bank
NHS Redevelopment Corporation Board
Fox Valley Board
Neighborhood Housing Services of Chicago, Inc. | Annual Report 2016 12
CENTRAL OFFICE* 1279 N. Milwaukee Avenue
4th Floor
Chicago, IL 60622
AUBURN GRESHAM /ENGLEWOOD
449 W. 79th Street
Chicago, IL 60620
CHICAGO LAWN / GAGE PARK*
2609 W. 63rd Street
Chicago, IL 60629
ROSELAND
11001 S. Michigan Avenue
Chicago, IL 60628
WEST HUMBOLDT PARK*
3601 W. Chicago Avenue
Chicago, IL 60651
NHS OF THE FOX VALLEY*
One American Way
Elgin, IL 60120
NORTH LAWNDALE
906 S. Homan Avenue
4th Floor
Chicago, IL 60624
NHS OF THE SOUTH SUBURBS
1920 W. 174th Street
East Hazel Crest, IL 60429
WOODLAWN RESOURCE CENTER
6144 S. Cottage Grove Avenue
Chicago, IL 60637
* El personal habla espanol en estas localizaciones.
Neighborhood Locations
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Thank you to our supporters!
NHS deeply appreciates the many individuals, community bank, corporate, foundation and government partners whose generosity strengthens our neighborhoods.
For a full list of supporters, visit nhschicago.org/support/supporters
Neighborhood Housing Services of Chicago, Inc. | Annual Report 2016
Neighborhood Housing Services of Chicago, Inc. | Annual Report 2016 14
Fiscal Year 2016 (ending March 31, 2016) provided Neighborhood Housing Services of Chicago (NHS) with the opportunity to begin laying the framework for our FY 2017 – 2020 strategic plan. Thanks to the generosity of our supporters we served 4,730 clients. We are proud to
have created 155 new home owners, which is a 70% increase from our previous fiscal year.
The increase in lending contributed to a large balance in loans held for sale at the end of
the fiscal year.
We made important progress on setting the foundation to strengthen our organizational
position. Our annual financial statement demonstrates how we sought to position the
organization for future stability. We began by making accounting adjustments to generate
a more accurate balance sheet that reflects assets that generate a yield, a result of
thorough analysis of allowance variations, receivable collectability and the recording of
the related adjustments.
This upward trend continued into fiscal year 2017. We were awarded $1.15 million in federal
funding from the Community Development Financial Institutions (CDFI) Fund. In addition,
we were a grantee of $1.5M from a Department of Justice settlement with a large bank, and
will be receiving the release of $1M as the sub-recipient of an older foundation grant. These
grant funds combined with an increasing demand for NLS’ mortgage products and a slight
increase in the average loan size to $125k (up from $117k last year) will position us to reach
our goal of returning to a solid financial position.
We thank you for your continued support and look forward to an exciting year ahead.
A Note from the President
Neighborhood Housing Services of Chicago, Inc. | Annual Report 2016 15
Fiscal Year Ending March 31, 2016(Parent Company Financial Statement Information)
NEIGHBORHOOD REDEVELOPMENT
COMMUNITY LENDING
PROGRAM
COMMUNITY CONSULTATION
& ASSISTANCE
MANAGEMENT& RESOURCE
DEVELOPMENTTOTAL
REVENUE
SUPPORT & REVENUE
Contributions, Private
& Public Grants $ 66,075 $ 514,885 $ 344,265 $ 1,726,527 $ 2,651,752
Contractual Services 761,162 1,986,916 2,335,422 – 5,083,500
Lending Revenue – 1,241,038 – – 1,241,038
Interest on Loans Receivable 116,989 711,647 – – 828,636
Rental Income 283,551 – – – 283,551
Development & Property
Preservation Fees 557,997 – – – 557,997
Other 9,429 – 41,688 – 51,117
TOTAL 1,795,203 4,454,486 2,721,375 1,726,527 10,697,591
STATEMENT OF FUNCTIONAL EXPENSES
Personnel & Staff Expenses 568,126 2,190,581 2,188,193 2,385,702 7,332,602
Program Expenses 102,274 800,388 134,893 597,643 1,635,198
Marketing, Fundraising
& Special Events 7,582 68,054 65,079 268,177 408,892
Occupancy & Supplies 39,102 222,171 465,092 443,574 1,169,939
Insurance & Financial Expenses 15,982 45,186 22,794 125,464 209,426
TOTAL 733,066 3,326,380 2,876,051 3,820,560 10,756,057
OTHER EXPENSES
Forgivable Grants & Loans
(to homebuyers)– 587,899 – – 587,899
Bad Debt Expense 180,729 1,063,803 35,461 – 1,279,993
Direct Costs of Property
Rented or Sold 200,450 – 13,075 – 213,525
Interest 95,101 294,200 10 146,373 535,684
Depreciation 74,327 1,118 – 53,522 128,967
TOTAL $ 550,607 $ 1,947,020 $ 48,546 $ 199,895 $ 2,746,068
Neighborhood Housing Services of Chicago, Inc. | Annual Report 2016 15
Neighborhood Housing Services of Chicago, Inc. | Annual Report 2016 16Neighborhood Housing Services of Chicago, Inc. | Annual Report 2016 16
ASSETS
Cash & Cash Equivalents $ 7,087,815
Accounts, Fees, & Contracts Receivable 4,018,413
Accounts & Loans Receivable – Partnerships 2,737,437
Loans Held For Sale 8,071,983
Loans & Deferred Loans Receivable – Net 5,202,919
Property Held For Rental & Development 1,462,381
Other Assets 845,943
TOTAL 29,426,891
LIABILITIES
Accounts & Program Receipts Payable 3,644,582
Deferred Revenue & Funds Held For Agency Transfer 1,400,586
Notes Payable 12,053,088
TOTAL 17,098,256
NET ASSETS
Unrestricted 1,256,535
Temporarily Restricted 6,053,439
Permanently Restricted 5,018,661
TOTAL NET ASSETS 12,328,635
TOTAL LIABILITIES & NET ASSETS $ 29,426,891
Fiscal Year Ending March 31, 2016(Parent Company Financial Statement Information)