2014 Annual ReportSMNC Statement of Financial PositionSYRACUSE MODEL NEIGHBORHOOD CORPORATION Statement of Financial Position: April 30, 2014, with Comparative Financial Information for April 30, 2013 ASSETS 2014 2013Current Assets Cash and cash equivalents 199,840 175,355 Rent receivable, net of allowance 27,863 30,388 Grants receivable 43,252 40,351 Note receivable, current portion 0 0 Other receivables 35,000 0 Construction in progress 77,834 165,149 Total Current Assets 383,789 411,243 Other Assets Tenant security deposits receivable 5,836 7,784 Note receivable, net of current portion 42,939 42,939 Security deposits held in trust 70,589 58,857 Escrow cash 35,729 33,400 Debt reserve cash 52,116 46,936 Total Other Assets 207,209 189,916 Fixed Assets Land 703,197 704,098 Buildings and improvements 15,082,748 14,926,785 Equipment 350,434 337,724 16,136,379 15,968,607 Accumulated depreciation (11,675,264) (11,211,163) Net fixed assets 4,461,115 4,757,444 Total Assets 5,052,113 5,358,603 LIABILITIES AND NET ASSETS Current Liabilities Current portion of long-term debt 125,227 107,518 Line of credit 171,042 203,002 Trade accounts payable 173,368 207,433 Deferred revenue 17,864 16,578 Accrued liabilities 48,281 0 Accrued compensated absences 34,569 38,237 Accrued payroll liabilities 1,331 1,916 Total Current Liabilities 571,682 574,684 Tenant Security Deposits 95,379 84,941

Long Term Debt, Net of Current Portion 1,719,311 1,800,237 Total Liabilities 2,386,372 2,459,862 Net Assets Unrestricted net assets, as restated 1,593,634 1,876,461 Temporarily restricted net assets 0 0 Permanently restricted net assets, as restated 1,072,107 1,022,280 Total Net Assets 2,665,741 2,898,741 Total Liabilities and Net Assets 5,052,113 5,358,603 Excerpt from final audited financial statements

Quality Housing People Can Afford.

•1721 South Salina Street

Syracuse, NY, 13205Phone: (315) 475-8437

New York State Division of Housing and Community Renewal (HCR)HCR operates the Neighborhood Preservation Program (NPP), a feder-ally funded HOME program and the NYS Main Street program. SMNC has been part of the NPP program since 1983. This year SMNC received $67,000 that was used to pay operat-ing costs. The NPP program makes it possible to participate in other state programs that do not have any operat-ing funds attached to them. Thanks to Commissioner/CEO Darryl C. Towns and Regional Director Dan Buyer and his staff for their support and a special thanks to Senator John De Francisco for his support of these essential pro-grams during the state budget process this year.

City of SyracuseThe City has supported SMNC since we were founded in 1973. Again, this past year, the City’s Department of Neighborhood and Business Development was SMNC’s largest contributor. This year SMNC received $303,000 to keep its 100 rental properties in top condition.Special thanks to Mayor Stephanie Miner, Commissioner Paul Driscoll and the Common Council for their as-sistance.

NeighborWorks America (NWA)SMNC is a NeighborWorks America (NWA) chartered member. NWA is a national corporation funded by Congress to work at TRANSFORM COMMUNI-TIES across the country. SMNC has received $111,300 from Neighbor-Works America for operations and for capital projects in 2014. Thanks to Deborah Boatright, the Northeast District Director, and Judith Kepner Rose, our Management Consultant for their financial support, encourage-ment and sound advice.

Thank you, to all those who supported

SMNC in the last year.Updates & Achievements

418 Midland Ave. was finished this year. It marks the conclusion of the Midland-Lincoln-Bellevue project that was funded by Onondaga County.

The house was abandoned with over 300 used tires in the basement, but some nice architec-tural features. The house is now owned by first time home owners

Solar Panels at 107 E. Kennedy St. 100 Solar Panels were installed on the building with financial help from NeighborWorks America and the New York Energy Research and Development Authority.

The panels have reduced the cost to power the elevator, hallway and exterior lights to zero.

414 Cortland Ave. was purchased by SMNC in 2012. The renovation of this two-story building was originally part of a New York State funded project but the funds ran out on that program.In August of 2014 the City agreed to fund the renovation with federal HOME funds. When complete, it will be added to SMNC’s rental portfolio.

226 Baker Ave. is undergoing renovations. The project is funded by

the City of Syracuse Community Development Block Grant.

SMNC has owned the rental property since 1997.

The staff and volunteers at Syracuse Model Neighborhood Corporation are the key elements to the success of the organization. Achievements in 2014 would not have been possible without everyone doing their part from rentals, to financials, to renovation and construction, everyone plays a vital role to carry out the mission.

Kitty Rice

The past year has certainly been an exciting and transformative time for SMNC. I have been honored to represent the Agency in the housing indus-

try and in the process have had the pleasure of working with a wonderful, dedi-cated group of people in the form of the SMNC Board of Directors. The work we do does make a difference

We’ve made progress on several important issues that we identified as priorities this year, which included collaborating with other agencies to create ongoing dialogue with government officials. This type of collaboration strengthens rela-tionships and educates so one understands and values the services we provide to the community.

We must continue to come together again and again as a community, putting egos and competition aside to address the housing industry’s greater good. This type of networking will help to ensure future funding for SMNC.

Although we have faced many challenges along the way, by using strategic plan-ning, out of the box thinking and brainstorming, which included both Board and staff, we managed to have a successful year. There is, however much work to be done in our neighborhood and we will continue to focus on areas where we have been successful in the past; “Providing Quality Housing People Can Afford.”

I’d like to give special thanks to Tom Francis and the staff of SMNC for their sacrifices as well as to the Syracuse Model Neighborhood Board of Directors for their continued support.

Chairperson, Kitty Rice

Annual Report Photographs by: Chamar Otis Design: Kelly Gaggin

Chairperson and Neighborhood Resident

Message from the Chairperson

2014 SMNC Board of DirectorsOfficersChairperson: Kitty Rice, Neighborhood Resident Vice Chairperson: Cleo Brown, Neighborhood ResidentTreasurer: Jack Salisbury, CPA, DiMarco, Abiusi & PascarellaSecretary: Kelly Gaggin, Science Academies of NY Charter Schools

DirectorsDorothy Adams, Neighborhood ResidentDeputy Chief David Barrette, Syracuse Police DepartmentGwen Battle, Neighborhood ResidentKhalid Bey, Neighborhood ResidentSteven Coker, SUNY Upstate Medical CenterLori Covington, Neighborhood ResidentPaul Driscoll, City of Syracuse

Walter Eiland, Neighborhood Resident Carolyn Evans-Dean, Neighborhood ResidentJim Gaffey, City of SyracuseD. Michelle Golembieski, J.P. Morgan Chase BankEmma Johnston, Neighborhood ResidentKathleen Joy, AttorneyNancy McCoy, Neighborhood ResidentStephen Markley, KeyBank NADavid Michel, Syracuse Resident

Staff

Tom FrancisExecutive Director

David Bass

Eustacius Donai

Kathy Fennell

Tracy Gossiaux

Will Holland

Will Maldonado

Rosemary Oleson

Louis Osbourne

Chamar Otis

L. Pierre

Billy Rice

Dave Rivera

Ruel Vassell

Midainys Lopez Rodriquez Volunteer

Our Staff Makes It Happen!

Rosemary Oleson

Midainys Lopez Rodriquez

Dave BassTracy Gossiaux

Will Holland & Dave RiveraEustacius Donai & Ruel Vassell Kathy Fennell

SMNC Board Member, Emma Johnston, was honored in 2014 with the Volunteer of the Year Award. Emma is a founding member of P.E.A.C.E. Inc. and volunteers at the “Emma Johnston Senior Center” located at 124 Martin Luther King, W., an SMNC apartment building.

CONGRATULATIONS EMMA!!!

Volunteer of the Year Award

Chamar OtisWill Maldonado

Treasurer’s ReportWritten by: Jack Salisbury, TreasurerOctober 2014

Syracuse Model Neighborhood Corporation (SMNC) has received an unqualified audit opinion from Cuddy & Ward CPAs on both its financial statements for the fiscal year ending April 30, 2014 and its compliance with U.S. Treasury and U.S. Housing and Urban Development (HUD) Department regulations. FYE 4/30/2014 highlights 1. Rental revenue was $1,436,000, exceeding our projected amount, and it was $43,000 higher than the prior year 2. Rent collection efforts were effective, resulting in a decrease in uncollected rent while, at the same time, more properties were available for rent 3. Aggregate government grants from the City of Syracuse, NeighborWorks America, and the Neighborhood Preser-vation Program increased by $33,000, although grants specifically designated to help bridge the day-to-day operations cash flow gap decreased by $58,000 4. Operating expenses excluding depreciation decreased by $114,000 attributable mostly to a decrease in employee wages, insurance, and property repairs and maintenance

5. The aforementioned revenue increases and decrease in operating expenses allowed SMNC to: a. Give raises to its employees, thus maintaining a healthy work atmosphere b. Reduce its liabilities by $73,000 including significant drops in the line of credit and accounts payable balances c. Increase its cash position by $24,000, a good sign of financial strength if, at the same time, liabilities decrease FYE 4/30/2015 and beyond highlights 1. The board of directors voted to increase the executive director’s salary, his first raise since 2007 2. A balanced budget is projected 3. Monthly mortgage payments are scheduled to decrease significantly beginning in 2016 due to gradually paying off mortgages 4. Continued support from government agencies mentioned above 5. Continued community involvement by means of improvements to the existing housing stock and property rental and management in the targeted area of Syracuse

Treasurer, Jack Salisbury, CPA

The mission of SMNC is to provide quality affordable housing services to low and moderate-income families located in the Southside neighborhoods of the City of Syracuse, N.Y. Through responsible property manage-

ment, maintenance, and new construction, SMNC seeks to promote goodwill, a decent standard of living, and a model for communities to follow.