2015 ANNUAL REPORT

Developing Homes LivesTransforming

Our Staff

Our Board of Directors

Seila Mosquera Executive Director

Bonnie Ballantyne

Chief Financial Officer

Julie Savin Director of Real Estate

Development

Tammy Talton Director of Property

Management

Tricia McKusick Accountant

Lucinda Davis Accountant

Sylvia Hagans Accountant

Latrese Pringle Financial Admin Asst

Yves Galliotte Accounting Manager

Ella MauhsAsset Management /

Compliance

Clara IzaguirreCompliance Manager

Carmen Rodriguez Admin Asst

Valencia Williams Property Manager

Zuleika VichesAdmin Asst

Ann DeNutteProperty Manager

Jo-Anna MokbilAdmin Asst

Zoraida CrespoAdmin Asst

Debora AquinoProperty Manager

Melissa BryanProperty Manager

Jenny BermeoAdmin Asst

Cesar Pilco Maintenance Supervisor

Israel CorderoMaintenance Technician

Rafael Salgar Maintenance Technician

Pedro Cazon Hernandez Maintenance Technician

Radames Barriera Maintenance Technician

Joey Guzman Maintenance Technician

Julio Arroyo Maintenance Technician

Rhodric Randle Maintenance Technician

Nelson Rodriguez Maintenance Technician

Andrea Asprelli Grants & Fundraising

Coordinator

Jonathan Jordan Jr Project Manager

Thomas Cruess Sr. Project Manager

Jose Santos Financial Education & Counseling Services

Olivia Davis Resident Services &

Leadership Development Coordinator

Ivette Hernandez Resident Services

Coordinator

Pat VillanoMarketing & Media Assoc.

Marylis Lugo AmeriCorps VISTA

Ed SeibertPresident (2009-2015)

Business Member

Jose LopezPresident (current)Business Member

Paul BegemannVice President

Business Member

Steven DiazSecretary

Public Member

Thach PhamTreasurer

Business Member

Michael D. HawesBusiness Member

Jace D’AmicoBusiness Member

Steve MednickBusiness Member

Michelle Lee Rodriguez

Resident Member

Tanya SegelBusiness Member

A Message from our

Executive Director & Board Chair

Dear Friends,

At NeighborWorks New Horizons (NWNH) our goal is to provide families and individuals with quality homes that they can afford and to build opportunities for residents to grow and thrive. NWNH is proud to present the progress made towards that goal in 2015.

This past year 113 new and rehabbed units were added to our portfolio and the second small house was completed in partnership with the Yale School of Architecture and sold to a NWNH resident. In addition, there were 83 new units under construction, 42 existing units being renovated (preserved) and more than 200 units in our development pipeline. With the portfolio growth and a geographical expansion there was a need for a more robust property management technology platform and the redesign of the Property Management Department.

While we build structures, NWNH also provides support to over 1,600 residents who live in our communities. The after school program assists our youth improve their grades while the summer program provides fun educational and recreational activities. More exciting this year is a partnership we have developed with Junior Achievement. NWNH residents participate in financial coaching, leadership development, and first time homebuyer classes, as well as activities that they organize in their communities.

We are only able to do our work because we have partners that care about the future of many families and children that otherwise would not be able to have quality, safe, affordable homes. Today we want to celebrate those partnerships, from our funders to our volunteers.

Home is where it all starts!

Sincerely,

Seila Mosquera, Executive Director Ed Seibert, Board Chair 2009-2015

Funders & Partners

Alpha Community Services

Bank of America Foundation

Beth-El Center

Bridgeport Housing Authority

Chase Bank

Citizens Bank

City of Bridgeport

City of New Haven

City of Norwich

City of Waterbury

Community Foundation for Greater New Haven

Community Housing Capital

CT Department of Housing

Connecticut Children’s Medical Center

Connecticut Community Foundation

Connecticut Housing Finance Authority

Connecticut Housing Coalition

Connecticut Housing Investment Fund

Connecticut Trust for Historic Preservation

The Connection Inc.

Corporation for Supportive Housing

Department of Mental Health & Addiction Services

Eversource

Federal Home Loan Bank of Boston

First Niagara Bank

Greater New Haven Community Loan Fund

Guilford Community Fund

Guilford Savings Bank

Hands, Inc.

Harold Webster Smith Foundation

Helping Hands

HUD

Hudson Housing Capital, LLC

J’Damelia Associates

Junta

Knights of Columbus

Leeway, Inc.

Liberty Bank

Liberty Bank Foundation

LISC

Livable City Initiative, City of New Haven

The Melville Charitable Trust

National Equity Fund

NeighborWorks® America

NeighborWorks® Capital Corporation

Neighborhood Housing Services of New Haven

New Haven Chamber of Commerce

New Haven Housing Authority

New Haven Promise

New Opportunities New Reach

Partnership for Strong Communities

People’s United Bank

People’s United Community Foundation

TD Bank

TD Charitable Foundation

Town of Branford

Town of Guilford

Town of Hamden

Town of Southington

Town of Stonington

United Illuminating Co. / Southern Connecticut Gas

Waterbury Development Corp.

Webster Bank

Wells Fargo Bank

West River Neighborhood Association

West River Neighborhood Revitalization Zone

Yale School of Architecture

Table of Contents

Celebrating Homeownership & Building Homes: Real Estate Development | 6-9

Sustaining Stewardship:Property Management | 10-11

Supporting Strong Communities:Community Building & Engagement | 12-13

Financials 14-15

6

The City of New Haven has many scattered sliver lots that are undevelopable due to their small size. To turn these lots into affordable housing for New Haven’s residents, NWNH partnered with the Yale School of Architecture for the second year in a row, with funding from the State of Connecticut’s Department of Housing and the City of New Haven, to task architectural students to design an energy efficient, cost effective home, adaptable to mass production for these small lots. Marketed to individuals earning 80% AMI this 1,000 square foot single-family home sold for $155,000 to 14-year NWNH resident.

THE INNOVATION HOMEA Partnership with Yale School of Architecture

Celebrating Homeownership

7

ABOUT THE HOUSE

The Innovation Home is a 3 bedroom, 2 bathroom home located on a corner lot in New Haven’s West River neighborhood. Students were challenged to develop a cost-efficient and flexible design prototype that could be adapted to similar sites in New Haven and other urban environments across the country. The design requirements included amenability to a sliver lot footprint; energy efficient design; energy efficient envelope; cost effective design for affordable construction; potential for prefabrication for mass production; adaptable modules for varying lots and orientation; adaptable roof line; multi-units; and flexible interior space.

ABOUT THE HOMEOWNER

A first-time homeowner, Jan Lewis has been a NWNH resident for 14 years. She has been active in the community for over 10 years, serving on the board of the West River Neighborhood Association and a former board member of NWNH. She has volunteered with block watch, voter’s registration drives, and neighborhood revitalization efforts. She has completed NWNH’s Leadership Training program, and has had an active role in her NWNH resident council. An early childhood provider at Yale for over 20 years, she is now attending Gateway Community College for early childhood education.

“I’ve always lived and worked in this neighborhood. I’m so happy to be able to stay and find a home here.”

- Jan LewisFirst-time homebuyer

8

REAL ESTATE DEVELOPMENTNWNH develops affordable housing opportunities for both rental and homeownership in New Haven, Fairfield, and and New London Counties. The majority of NWNH units are set aside for individuals earning between 25-80% of Area Median Income (AMI).

St. Paul’s Commons - Bridgeport, CT16 newly constructed affordable housing units for elderly residents earning 25-60% of Area Median Income, were completed as the first phase of a 56-unit project, which will have 12 set-asides for supportive housing. Funding provided by LIHTC, State of Connecticut Department of Housing, and the City of Bridgeport.

113 86 211UNITS

COMPLETEDNEW UNITS

IN CONSTRUCTIONUNITS

IN PIPELINE

COMPLETEDHighlights

Building Homes

The Hill Development - New Haven, CT56 units were rehabbed from a 65 unit scattered site development in the Hill neighborhood of New Haven.

9

Spruce Ridge MeadowsPawcatuck, CT

Spruce Ridge Meadows will feature 6 newly constructed buildings providing 86 rental units, including 1, 2, and 3-bedroom apartments. Designed to maximize community impact, Spruce Ridge Meadows will house two community rooms with full kitchens, playgrounds, tenant storage, a fitness center, outdoor recreational space, and a part-time resident services coordinator. The project will be completed in two 43-unit phases, with the first phase anticipated to complete in 2016 and the second in 2017.

Committed to a holistic approach to community development, NWNH has partnered with the Town of Stonington Department of Human Services to provide supportive services for the disabled and/or chronically homeless in the 18 units set aside as supportive units for individuals and families below 25% AMI.

Linden Street, Waterbury CT6 building scattered site rental project including rehabilitation and new construction.

Spring Rose Gardens, Hamden CTFormerly the Michael Whalen School, this 21 acre property will be developed into 99 newly constructed mixed income rental units and a rehabilitated community center, renovating the main school building and gymnaisum and constructing new townhome style housing.

River Breeze Commons, Shelton CT68 newly constructed units as part of Phase III of the Shelton River Front Development Project.

IN CONSTRUCTIONHighlights

PIPELINEHighlights

10

PROPERTY MANAGEMENT & ASSET MANAGEMENT

NWNH expanded its property management portfolio in 2015. By implementing best practices and upgrading our property management system through comprehensive, integrated software, NWNH is able to process applications quicker, get families housed sooner, and complete work orders more efficiently, making sure residents receive high quality service and care for their homes.

135NEW FAMILIES

MOVED IN

650APPLICANTSPROCESSED

2,785WORK ORDERS

COMPLETED

Every spring, Eunice Lasala, Branford Garden Club and Larry Appleton, Landscape Architect, team up with Quinnipiac students to perform a spring clean-up at Rosenthal Gardens.

Sustaining Stewardship

11

56UNITS

ADDED

135UNITS

LEASED

62UNITS

IN PRESERVATION

NWNH added 56 units to its property management portfolio in 2015, and now manages 573 affordable housing units in New Haven, Fairfield, and New London Counties. NWNH has also seen a steady rise in occupancy rates, indicative of the increasing demand for affordable housing in Connecticut.

NWNH added 40 units of elderly housing at Winter Grove in Southington, CT and 16 units of elderly, with a set aside for supportive housing, at St. Paul’s in Bridgeport, CT.

NWNH has leased 37 new units at Elias Howe in Bridgeport, 40 senior housing units at Winter Grove in Southington, 16 units at St. Paul’s Commons in Bridgeport, and 42 units at the Hill Development.

NWNH preserves the public and private investments that have been made in its affordable housing stock for the past 23 years. 29 units in Branford, 13 units in Guilford, and 20 units in Fair Haven are slated for comprehensive rehabilitation over the next year, including energy efficiency upgrades which reduce tenants’ utility bills while conserving our natural resources.

92%

94%

96%

90%

91%

92%

93%

94%

95%

96%

97%

2013 2014 2015

Occupancy Rates

441

517 573

0

100

200

300

400

500

600

700

2013 2014 2015

Managed Units

12

COMMUNITY BUILDING & ENGAGEMENT

At NWNH, we do more than just build the box. Our Community Building & Engagement department provides resident services such as homebuyer education, financial counseling, leadership training, resident councils, afterschool programming, and hosts special community events.

Financial Literacy

NeighborWorks Week

106HOMEBUYER EDUCATION

PARTICIPANTS

34CREDIT COUNSELING

PARTICIPANTS

14NEW HOMEOWNERS

IN 2015

Each summer, NWNH participates with NeighborWorks charter organizations nationwide in NeighborWorks Week, coordinating community activities to bring together NWNH residents, neighbors, staff, and volunteers. In 2015, NWNH had community gardening days at its Canterbury Gardens and Fair Haven developments in New Haven, and sponsored the New Haven Ballet’s “Dancin’ in the Streets” festival.

Supporting Strong Communities

13

After-school Programs

Resident Leadership

10NWNH LEADERSHIP

TRAINING GRADUATES

35RESIDENT COUNCIL

PARTICIPANTS

359RESIDENT VOLUNTEER

SERVICE HOURS

Residents at three New Haven sites are served with afterschool programs, providing kids with a safe place to play and learn, and allowing working parents to have a free afterschool alternative. Focusing on financial literacy, reading, and leadership skills, 90% of afterschool students in 2015 increased their grades in literacy and mathematics.

Pink Lady Day was held on Jan 30, 2015 at Highwood Square, when residents in leadership training took an active role in helping to recognize their neighbor, Cheryl White, who was diagnosed with breast cancer. Mayor Toni Harp declared this event to be Pink Lady Day in honor of Ms. White. Partners for the event included the Bigelow Tea Company in Fairfield, CT and Yale University.

Resident-Led Events

14

2015Mutual Housing Association of South Central Connecticut, Inc. and Affiliates

dba NeighborWorks New HorizonsConsolidated Statement of Financial Positions

as of December 30, 2015 (Projected) and December 31, 2014 (Audited)Balance Sheet

ASSETS Cash Grants and other receivable Tenant receivable Prepaid expenses Other assets Property, Furn. & Equip., net Restricted cash Resident security deposits Notes receivable Deferred costs Development costs

TOTAL ASSETS

2015700,161337,47967,41491,443

292,47767,188,0611,191,760

285,42090,000

652,19614,309,799

85,206,210

2014342,309

1,399,19990,23289,32558,088

59,497,0581,336,688

274,28290,000

695,94013,989,186

77,862,307

LIABILITIES Accounts payable - operating Accounts payable - construction Accrued expenses Accrued interest payable Other liabilities Line of Credit Mortgages payable Security deposits Membership fees Deferred revenue

TOTAL LIABILITIES

NET ASSETS 28,862,609

2014429,612

2,667,795300,071

4,807,75031,628

350,00039,449,196

284,638103,072

4,625,370

53,049,132

24,813,175

2015358,691

3,263,241366,970

5,356,63217,375

175,00042,251,245

302,848104,316

4,147,283

56,343,601

2015529,289

7,344,93334,271

3,777,93559,871

168,090-

28,50075,000

12,017,889

15

Financials

LIABILITIES Accounts payable - operating Accounts payable - construction Accrued expenses Accrued interest payable Other liabilities Line of Credit Mortgages payable Security deposits Membership fees Deferred revenue

TOTAL LIABILITIES NET ASSETS

EXPENSES General and administrative expenses Program services Fundraising expenses TOTAL EXPENSES

CHANGE IN NET ASSETS-OPERATIONS NON OPERATING INCOME (EXPENSE)

Forgivable loans Loss on investment in partnership Sale of units/less cost of properties sold Depreciation and amortization Interest expense Amounts attributed to non controlling interest CHANGE IN NET ASSETS

2014429,612

2,667,795300,071

4,807,75031,628

350,00039,449,196

284,638103,072

4,625,370

53,049,132

24,813,175

2014305,616

4,687,937108,932

5,102,485

6,680,400

104,936(269,547)(269,547)

(2,466,429)(971,164)

1,696,435

2,772,990

2015358,691

3,263,241366,970

5,356,63217,375

175,00042,251,245

302,848104,316

4,147,283

56,343,601

28,862,609

2015294,432

4,517,982104,946

4,917,360

7,100,529

REVENUES Foundation grants and corp cont. Government grants Investment income Rental income Other income Management fees and reimbursements Developer's fee Donated services Permanently restricted net assets

TOTAL REVENUE

2015529,289

7,344,93334,271

3,777,93559,871

168,090-

28,50075,000

12,017,889

2014333,205

7,613,3375,573

3,343,415337,18467,42628,43230,00024,313

11,782,885

334,017

(1,835,608)(2,881,753)

(659,251)1,991,500

4,049,434

Mutual Housing Association of South Central CT, Inc. d/b/a/ NeighborWorks New Horizons

235 Grand Ave.New Haven, CT 06513

203-562-4514 | www.nwnh.net

NWNH mission is to strengthen neighborhoods by developing quality, affordable homes and supporting community building initiatives.