Westchester Residential Opportunities, Inc.

WRO gratefully acknowledges the underwriting of this Report by Peter Pauper Press, Inc.

Stepping Aside—But Not Away

Hello Friends,

Since this 2011 Annual Report is going to press in summer, 2012, I wanted to update our friends, contributors, partners, and others about a change in Board leadership.

At our recent June Annual Meeting, I asked to step aside as Chairperson of the Board. I was a co-founder of WRO in 1968 and served as its first Executive Director for five years. Since that time, I have been a member of the Board of Directors, and for the last 20 years or so have served as Chairperson.

In June, the Board elected Alan R. Wolfert, a board member since 1991, to be the new Chairperson. He has been an active board member in many ways, and will ensure that WRO continues on its upward path. I will remain as a committed board member, and if Alan needs any help or advice, I will be glad to give it.

We have also identified other board members who can be part of WRO’s board leadership, and will make sure that in the next few years they gain the experience and knowledge necessary to lead WRO.

Personally, I want to be around for WRO’s fiftieth anniversary in six years. I am convinced that, with Geoffrey Anderson and Andrea Klausner heading our staff, and with reinvigorated board leadership, WRO will have a bright future.

Nick Beilenson, Chairperson

WRO Is Here to Stay —For As Long As We Are Needed

Dear Friends and Supporters of WRO,

Not-for-profit organizations exist on a perpetual roller-coaster of funding, always subject to the ups and downs of their government, corporate and individual funders. WRO is no exception. While WRO has fared very well in maintaining and growing our programs, WRO is not exempt from the uncertainty that many social service agencies are facing as a result of the economic downturn, budget cuts, and politics. Our biggest challenge is to leverage our funding to provide the highest quality of free and much-needed housing counseling services while meeting our general operating costs and remaining fiscally sustainable. WRO continues to be awarded government contracts on a regular basis to carry out fair housing education and enforcement, eviction prevention, mortgage foreclosure prevention, senior housing assistance and independent living assistance for persons recovering from mental illness; however only a very small percentage of those contracts may be used for overhead and operating costs. This is why the continued support of our friends and supporters is so critical, and we thank you in advance for helping us to carry out our important mission.

We sometimes joke that we would be happy to put ourselves out of business because it would mean that our services are no longer needed. Unfortunately, that is not the case. At the end of 2011, WRO won a lawsuit that it brought before the Westchester Human Rights Commission against a New Rochelle management company and its superintendent for racial discrimination. Through our HUD-funded fair housing paired testing program, WRO discovered a stark pattern of unequal treatment in the way black and white apartment-seekers were treated. Because of the respondents’ willful, wanton and malicious discrimination, the administrative law judge awarded WRO both compensatory and punitive damages, and ordered the respondents to

engage in three years of fair housing training. This decision was recently affirmed by the full Westchester County Human Rights Commission on appeal. It is because of cases like this that we know WRO’s work is not yet finished.

We were fortunate this year to be able to retrofit and enlarge our office space at no additional cost to us. Not only has this enabled us to improve our facilities for our hard-working, dedicated staff members who spend the better parts of their days assisting clients here in the office, but it has also allowed us to better meet the needs of our clients. Our three new conference rooms provide greater opportunities for counselor/client privacy, and our new on-site kitchen provides staff members with an alternative to eating at their desks!Sincerely,

Geoffrey Anderson, Executive Director

Since 1968, Westchester Residential Opportunities, Inc. (“WRO”) has championed the expansion of non-discriminatory housing opportunities in our region for

low- and moderate-income people, minorities, senior citizens and persons with disabilities, including the psychiatrically disabled. WRO is a HUD-certified Housing Counseling Agency, a licensed real estate broker and a United Way agency. All of our housing services for consumers are free, and are funded by government grants, private contributions and corporate support. WRO collaborates with other agencies, Realtors®, managing agents, landlords, banks and other lenders to ensure that fair housing laws and fair lending procedures are practiced.

OUR MISSION: Westchester Residential Opportunities, Inc. (WRO) is a non-profit organization whose mission is to promote equal, affordable and accessible housing opportunities for all residents of our region.

WRO remains the ONLY private nonprofit agency doing fair housing work in Westchester and Putnam Counties.

Fair Housing Program • Mortgage Default Program • Senior Housing Assistance Program

Independent Living Program • First Time Homebuying Program • General Housing Program

“WRO AT THE MOVIES”

On April 26 of this year, WRO held a fun countywide event at The Pelham Picture House to raise both awareness

of and funds for WRO’s housing services. It was a huge success, and our guests enjoyed gourmet movie food, a feature documentary entitled “Brick By Brick” about the quest for civil rights and desegregation in Yonkers in the 1980’s, and an exciting keynote address by legendary Giants linebacker, hall-of-famer and social activist Harry Carson. Additionally, Ted Childs, an internationally-recognized expert on workplace diversity and former WRO Board Chair, presented awards to honorees Nick Beilenson, WRO co-founder and Board Chair, and Hudson Gateway Association of Realtors® for their longstanding commitment to the advancement of equal housing opportunities in the lower Hudson Valley region of NY. Ann Silver, a commercial real estate broker with Rand Commercial Services, was awarded the 2011 Harriet D. Goldberg Fair Housing Award. Congratulations to all our honorees and thanks to our sponsors for making this such a wonderful community celebration!

FAIR HOUSING PROGRAM

In the wake of the Westchester County Housing Settlement, WRO continued its rigorous outreach and educational efforts to raise awareness about fair housing rights and responsibilities in our region. In 2011, our counselors trained over 500 residents on the fair housing laws. We partnered with Pace Law School to offer a continuing legal education course to attorneys who wished to learn how to litigate a fair housing case in court in order to increase the pool of attorneys who can assist residents victimized by housing discrimination. We also partnered with Pace Law School to sponsor a very well-attended and well-received regional symposium on fair and affordable housing. Held at the New York State Judicial Institute on the campus of Pace Law School on October 21, 2011, and entitled “Welcome to My Backyard: Fair and Affordable Housing in the Lower Hudson Valley,” this half-day symposium brought together over 300 residents, attorneys, public officials, real estate professionals, business leaders and housing advocates to discuss the state of fair and affordable housing in our region and how to improve housing opportunities for all residents. HUD Assistant Secretary John D. Trasviña flew in from Washington D.C. to provide the keynote address, and County Executive Robert Astorino and Westchester County Board of Legislators Chair Kenneth Jenkins offered welcoming remarks. Pace Law Professor

and WRO Board Member Gretchen Flint moderated the two panel discussions that followed. The first panel, consisting of Dennis Parker, Esq., Director, Racial Justice Program, American Civil Liberties Union; Glenn Martin, The Fortune Society; J.T. (Ted) Childs, Ted Childs, LLC, a renowned workforce diversity expert; and Leah Caro, principal of Bronxville-Ley Real Estate, former President of the Westchester Putnam Association of Realtors®, and WRO Board member, examined the benefits of diverse and inclusive communities and how to overcome existing legal and social obstacles to true integration. The second panel, consisting of James E. Johnson, Esq., Federal Monitor overseeing Westchester’s compliance with the Settlement, and partner, Debevoise & Plimpton; Judith Myers, Westchester County Legislator; John Nolon, Esq., Pace Law School professor and counsel to Pace Land Use Law Center; Barbara Gerard, New Castle Town Supervisor; and Kevin Plunkett, Deputy County Executive for Westchester

County, focused specifically on the progress and implications of the Westchester County Housing Settlement.

WRO’s Fair Housing counselors also continued to promote the enforcement of the fair housing laws through complaint intake, investigation, testing and litigation. In 2011, we processed 235 fair housing complaints, and conducted both complaint and audit-based fair housing testing under grants awarded to WRO by the U.S. Department of Housing and Urban Development. WRO also received a favorable determination in an action brought by WRO against a New Rochelle property owner and management company and its superintendent for race-based housing discrimination. Westchester Residential Opportunities, Inc., v. Hoffman Investors Corp. and Bernard Kurtzke. In a strongly worded decision, Administrative Law Judge Lorenzo Delgado found not only that the respondents discriminated on the basis of race and color, but that Hoffman

and Kurtzke’s behavior was “willful, wanton and malicious.” Accordingly, he ordered punitive damages and civil penalties to “further the goal of deterrence of similar discriminatory acts and serve to effectuate the purposes of the Fair Housing Law.” Additionally, respondent Hoffman was ordered to provide fair housing training to its employees annually for three years and to display fair housing signs at all of its residential properties.

Case Study: Frank NarciscoMr. Narcisco, a disabled Army veteran, came to WRO seeking assistance in obtaining the accommodations he had been promised when he purchased his new condo on Harbor Lane, New Rochelle, as required by the fair housing laws. Specifically, he had been promised a parking spot that was on a level piece of property so that he could safely enter and exit his van’s wheelchair ramp. The only parking space on level ground was being used by another tenant who refused to give up the parking space, although her new parking space would have been a mere 10 feet further from the front door of the building. With WRO’s assistance, Mr. Narcisco brought the issue to the attention of the condo board, which voted to grant Mr. Narcisco the spot. Ironically, the tenant who refused to give up her parking spot was a member of the condo board, and the only dissenting vote.

Fair Housing works to eliminate discrimination in the housing market through the handling of complaints, paired testing, the provision of education for consumers, the training of real estate professionals, and the training of co-op boards.

HUD Assistant Secretary for Fair Housing and Equal Opportunity John Trasvińa; WRO Executive Director Geoffrey Anderson; WRO Deputy Director Andrea Klausner; and Sr. Advisor to Assistant Secretary Trasvińa Janet Hostetler at the WRO/Pace Law School Symposium.

WESTCHESTER COUNTY AVERAGE ADVERTISED RENTS – 4TH QUARTER 2011Average Rent by Number of Bedrooms

Community 0 1 2 3Bedford 978 1379 1867Buchanan 990 1585 1857Cortlandt / Montrose 750 1171 1456 1646Croton 983 1354 1535 1969Dobbs Ferry 1261 1666Elmsford 1225 1650 2300Goldens Bridge 825 1100 1781 2443Harrison 1158 1331Hawthorne 1220 1422Katonah 895 1433 1877Mohegan Lake 950 1155 1412 1869Mount Kisco 1367 1617Mount Vernon 995 1080 1360 1695New Rochelle 1017 1285 1600 2054North Salem 975 1116 1995Ossining 940 1205 1440 1818Peekskill 853 1145 1411 1688Pleasantville 1100 1350 1740 1816Port Chester 1350 1430Sleepy Hollow 1615 1900Somers 1105 1378 1783South Salem 1436 2020 2225Thornwood 900 1315 1635Valhalla 1270 1750White Plains 941 1370 1870 2265Yonkers 860 1095 1370 1560Yorktown / Shrub Oak 1016 1040 1610 1852

0 1 2 3

Average County Rent $949 $1,250 $1,630 $1,928

Yearly Income needed to spend (30%) on rent $37,960 $50,000 $65,200 $77,120

Notes:• Westchester Residential Opportunities, Inc. (WRO) tracks

apartment listings advertised in two local newspapers, from private landlords and via the internet without brokers or other fees. This report is drawn from WRO’s apartment listing service. Listings are compiled 2-3 times per week and distributed at no cost to consumers seeking rental housing throughout the calendar year.

• Where apartments are advertised without an asking rent included in the listing, WRO attempts to learn the asking rent and includes the unit if the asking price is ascertained.

• There must be three or more units advertised by bedroom size and community in order to be included in this report. Blank spaces next to communities, therefore, indicate that there were insufficient advertised units to be included in the average. In some communities where no average rent is listed by bedroom size, there were no vacancies at all in our data, or too little data to compile an averge.

• Note that community designation is based on how advertisers describe the unit’s location. Advertisers often use post office designation as opposed to municipality. For example, a unit advertised in White Plains might be located in Greenburgh or Harrison; a Bronxville mailing address might refer to a unit in Yonkers, units advertised with a Scarsdale address may be located in Eastchester, New Rochelle or Yonkers and Mohegan Lake vacancies could be in Yorktown or Cortlandt.

• Total of 1,832 advertised units were used to compile averages for this report.

Letter from Frank and Theresa Narcisco to WRO dated 9/20/11:“Thank you so much for what you did for me. I don’t know what I would have done without WRO. Your organization is helping people who need help against meanness. I will never forget.”

MORTGAGE FORECLOSURE PREVENTION PROGRAM

According to the Federal Reserve, 1 in 10 mortgages in the Hudson Valley continue to be seriously delinquent, and the rate of foreclosure in the Hudson Valley (4.7%) is higher than the national average (4%). While statistics show that fewer people lost their homes to foreclosure in the lower Hudson Valley region in 2011, housing experts attribute this plunge to new government regulations, a lengthy court-ordered settlement process, a crackdown on “robo signing” and a clogged court system causing severe backlog, not an improvement in residential stability. Rather, property owners are just remaining in legal limbo longer while their cases drag on for years. And despite the drop in the number of foreclosure filings and judgments, more than 4,800 local homeowners, about 3% of the region’s active mortgages, were at least 90 days late on their loan payments as of March 1, 2011. Westchester continues to have the 6th highest rate of foreclosures among New York State’s 62 counties.

In 2011, WRO’s mortgage counselors received 800 intakes through its Emergency Homeownership Loan Program (EHLP) and 712 intakes through our core mortgage default program. Of those, many involved allegations of lending discrimination and were resolved by our mortgage counselors. Four of those cases were referred to WRO’s Fair Housing Department for investigation and enforcement. All in all, WRO helped 88

homeowners achieve successful permanent loan modification in 2011 so that they could remain in their homes. Our mortgage counselors also administered a HUD fair lending grant in 2011 to test whether unfair lending practices continued to cause denials of mortgages to minorities at a higher rate than caucasians. We continue to provide comprehensive education and outreach to combat the consequences of lending discrimination, including training in mortgage/predatory lending education, financial literacy, first-time homebuyer education and mobility counseling to all current and potential homeowners who may wish to qualify and apply for the new AFFH housing units being developed pursuant to the Housing Settlement. WRO continued to require attendance at weekly orientation meetings and monthly financial workshops for all clients seeking mortgage assistance. WRO counselors also attended 249 settlement conferences at the Westchester County Court to assist homeowners attempting to work out a settlement with their lenders prior to the initiation of foreclosure proceedings and contacted over 3,000 homeowners in pre-foreclosure through a unique partnership with the New York State Banking Department. Finally, in April, 2011, WRO began the use of HomeLoanPort, a web portal available only to housing counselors and lenders that allows supporting documents to be uploaded quickly to lenders and saved, so work-outs are not delayed by misplaced or stale supporting documents.

WRO assists homeowners who are experiencing temporary interruptions in income or financial hardship, such as for illness or unemployment, causing nonpayment of the mortgage. WRO works with homeowners and the lender for all possible options available to resolve financial hardships they are facing. Early intervention is highly encouraged to obtain the best results from default counselors.

Case Study: James Fountain and Georgia Grant When my husband lost his job in February 2008, we didn’t know how we were going to maintain our home on one income. In 2008 we paid our mortgage in full while my husband searched for a job. We exhausted our savings and when we turned to our mortgage company for help they offered us nothing. Scared, frustrated, angry, confused, and in debt we didn’t know where to turn. I was watching Channel 12 News and there was a man speaking about how WRO helped save his home. I called the number listed and in days I received a package to submit for review. It was the best call I ever made. Amrita Narasimhan, Mortgage Default Counselor, worked diligently on our case. She kept in constant contact and was always available to answer any questions or concerns we had. It took almost two years after contacting WRO before my mortgage company offered a modification. We believe if it weren’t for WRO, we would have lost our home. Even when we felt like giving up, Amrita encouraged us. Words cannot express how thankful my family is. With our sincere gratitude,James and Georgia

Rick and Hillary DettwylerAmrita Narasimhan Mortgage Default Counselor What a pleasure it has been to work with you. Our lender, Litton Loan Servicing, has been impossible to reach, difficult to work with, when we could reach them, and even turned down our application because they failed to obtain a broker’s opinion and run a credit check on us. Their mistakes = our misfortune. It was only when you engaged them on our behalf that things finally began to progress. We now have our first mortgage with Ocwen, as Litton sold it to them, and Ocwen gave us no problems, again, as a direct result of your diligence and professionalism.We have a modification on both our first and second mortgages (second is through Chase), and would have lost the house, if it were not for you and WRO. I had been out of work since November 2008,

our savings were depleted, we sold my car and were getting farther behind. We can now afford to stay in our home, as our monthly mortgage payments have gone down by about $800.To say thank you doesn’t seem enough; our gratitude to you and WRO extends far and wide. We have told everyone about our experience with you and how fortunate we are to know you. You are a consummate professional, wonderful to work with, and

WRO is very lucky to have you. Thank you again for saving our house and keeping our family intact. You helped us through a very difficult period in our lives and we are extraordinarily grateful.Sincerely,Rick and Hillary Dettwyler Amawalk, NY

SENIOR HOUSING ASSISTANCE PROGRAM

Despite funding and personnel cuts in 2011, WRO’s Senior Housing Assistance Program served 1,342 unduplicated clients, an 11.3% increase over the prior year. Seniors in need of subsidized housing, always our largest counseling population, grew significantly as market rental rates continued to be unaffordable for many Westchester residents living solely on Social Security. Requests for housing through Project Share during the year also increased, as waiting lists for subsidized housing grew and low income seniors were forced to consider renting rooms, often the only affordable housing option other than a homeless shelter. [See Case Study #1.] Through our Reverse Mortgage Counseling outreach, we saw repeated requests for a type of assistance that has became more prevalent during the downturn in the economy -- counseling seniors facing property tax foreclosure. More and more people are falling behind on their property taxes, and communities with low income populations are more likely to have large property tax defaults. Senior citizens, especially single female seniors, are disproportionately represented in this group. Many seniors who are behind on their taxes

don’t understand that tax foreclosure puts them in jeopardy of losing their homes and often their entire net worth. At the end of 2011 we began concentrating our outreach to this population in Yonkers (the third largest city in New York, with a population of 197,000) as we received generous grants from the Helen Andrus Benedict Foundation and Jarvie Commonweal Service to address this problem there. WRO is the only housing agency in Westchester that does property tax foreclosure counseling, and we are confident that through this counseling we can prevent many more seniors from becoming homeless and losing their financial security. [See Case Study #2.]

WRO continued its outreach in 2011. Senior Housing Director and HECM (Reverse Mortgage) Counselor Jane Lindau spoke at Westchester County Senior Law Day, at the Healthy Yonkers Initiative meeting, and many town hall meetings in towns and cities throughout the county. We also continued to participate in events such as the Hispanic Heritage Festival, the Yonkers Riverfront Festival, and the Westchester County Salute to Seniors.

Case Study #1: Antimina and Anna Antimina Garmley is a 66-year old retired nurse who turned to WRO for assistance in locating an affordable apartment. Anna Novak, age 82, was living alone in White Plains, and her 44-year old son Kevin was getting increasingly concerned about the state of her physical and mental health. Given Antimina’s professional experience and limited resources, WRO suggested that she consider a house share with Ms. Novak. After a meeting between the women, Ms. Garmley moved in. The arrangement was an immediate success. Ms. Garmley, who lost her mother when she was very young, gained both a “mother” and an affordable home. Ms. Novak gained financial assistance with her housing costs, as well as caregiving and companionship. With seniors on fixed incomes wishing to age in place, and with many other residents experiencing a loss of income during our economic downturn, WRO’s “Project Share” offers a creative housing solution for both seniors and other residents experiencing housing difficulties.

We provide a comprehensive housing counseling program to residents of Westchester County who are age 60 and over to assist them in solving their individual housing or housing related issues. WRO employs the only certified Reverse Equity Mortgage (HECM) Counselor on HUD’s HECM Roster in the County.

Case Study #2: HelenHelen, age 84, is one of WRO’s senior clients being assisted through our Yonkers Senior Foreclosure Tax Prevention Initiative. Helen is widowed, and became addicted to gambling as a way to pass the time. Helen became the victim of a con man who moved in with her and took advantage of her vulnerability to fleece her out of a significant amount of money. As a result, Helen fell behind on her property taxes and was at risk of losing her home. Thanks to a family member who notified the police, the con man was arrested, and WRO is now working with Helen to help her obtain a reverse equity mortgage so that she can pay off her debts and keep her home.

WRO mortgage counselors Amrita Narasimhan, Mernys Calero, and Pat Ossino, and law intern Michael Linker at an outreach event.

INDEPENDENT LIVING PROGRAM

WRO’s Independent Living Program (ILP) is dedicated to serving the housing needs of Westchester residents recovering from mental illness. In 2011 WRO provided rental assistance and case management services to over 85 adults and children. With funding from the New York State Office of Mental Health, WRO provided rental assistance to help clients secure permanent independent housing units throughout the County. For clients not yet ready to live on their own, WRO operates a single room occupancy (SRO) house in White Plains. With 24/7 staff the 10 residents live with the security of knowing someone is always on call for assistance and support. Additionally, with funding from the U.S. Department of

Case Study: April McClemmy has been living in WRO’s supported housing residence on Waller Avenue since August 2010. April found out in 2002 that she had bipolar disorder, and spent the next 7 years in and out of hospitals and homeless shelters, shuttling back and forth between family members to house her in between periods of hospitalization. Prior to the onset of her illness, April was married and working in sales jobs, completely self-sufficient and living a “normal” lifestyle. She never imagined that she would ever find herself in the situation of being mentally ill and homeless. “Now I know it can happen to anyone,” April says.

In 2009, after another hospitalization, April received a phone call that changed her life. She was offered the opportunity to move into WRO’s SRO at Waller Avenue. “You can’t imagine what it means to come out of hospitalization and have a home. It is stabilizing. It made all the difference. The other residents are kind, and we do fun things together. And Karen Scott, the Director, has done a great job of being my support system.”

April is now able to plan for the future. Before she got sick, her goal was to leave sales and become a TV interviewer. In May, April learned of an opportunity to create television programs on public access TV. The only requirement was to be a White Plains resident. Now that April is no longer homeless and has a White Plains home, she qualifies. Additionally, while she was at the station, she met someone who asked her to work part-time writing a newsletter for the White Plains Housing Authority.

Says April, “All these new doors have opened for me because of WRO. People don’t understand how important it is for people with mental illness to have stable housing. When you have programs like WRO’s Independent Living Program, it makes all the difference. Without stable housing, it’s hard to hold a job, develop relationships, and create a life. I can really vouch that this program works to help the mentally ill.”

Our Independent Living, Shelter Plus Care, Supported Housing and Single Room Occupancy Programs provide help to psychiatrically disabled and/or homeless individuals with obtaining safe, affordable and supervised housing.

Housing and Urban Development, WRO is able to provide rental assistance and case management services for previously homeless adults living in the Westchester County shelter system or on the streets.

In 2011, with dedicated funds from the NYS Office of Mental Health, WRO was able to totally renovate the basement of our SRO on Waller Avenue. As a result, we can now offer meeting space and leisure space for the residents who previously had little common living space to socialize, providing an enhanced quality of life for the residents. Additionally, the renovation enabled WRO to gain much-

needed secure and waterproof locked storage space for agency files. Congratulations also go out to Julia Valles, one of WRO’s ILP clients, who graduated from the Hope House Peer Case Management Training Program in March of 2011. HOPE House is a clubhouse in downtown Port Chester operated by Human Development Services of Westchester (HDSW) where people recovering from mental illness find the support and resources they need to pursue their goals and dreams. Through their Peer Case Management Services, HOPE House members are trained to provide outreach, advocacy and case management services to persons recovering from mental illness.

GENERAL HOUSING PROGRAM

As the economic downturn continues to wreak havoc in the job market, many residents are experiencing income reduction and job loss, including the loss of health insurance to pay for spiraling health costs. In 2011, 484 Westchester residents turned to WRO to help them avoid homelessness and housing disruption. WRO responded with help from a variety of housing programs we administer. Under our Emergency Food and Shelter Program, WRO was able to provide eviction prevention grants totaling $26,680 to 28 clients, with 8 other clients receiving grants to avoid utility shut-off. Ten additional clients were referred to other agencies participating in the county’s homelessness prevention network to help them obtain payment agreements with Con Edison. WRO also awarded $7,864 in Emergency Shelter Grants to 7 additional clients. 325 households were assisted in their search for affordable apartments by utilizing WRO’s weekly vacancy and subsidized housing lists. Our housing counselor also provided counseling on landlord-tenant issues and section 8 inquiries, and referred clients to legal services when warranted. Our Homelessness Prevention and Rapid Re-housing (“HPRP”) Program enabled WRO to provide a wide array of services to our clients this year. HPRP has been essential in assisting clients to pay off their arrears and make them current with their rent for up to 6 months until they become sustainable again. Without this program, it is likely that many more residents would have become homeless. In Mt. Vernon, WRO processed applications and conducted budgeting counseling for 55 HPRP applicants. In Yonkers, WRO provided 36 clients with rental arrears assistance and ongoing subsidies totaling $147,757.43. And, finally, through our Westchester County HPRP Program, WRO provided 15 clients with rental arrears and utility assistance totaling $55,226.85.

Case Study: Ms. RMs. R, an office manager for a national insurance company, came to WRO for rental assistance when she went on maternity leave and was given only $160/month in disability payments to cover her living expenses, including her rent. She appealed to her social security office to increase her benefits, but was denied. Falling behind on her rent, Ms. R said “it was hard to go to sleep at night with my new baby, not knowing how I was going to be able to pay my rent. I was completely stressed.” Her landlord took her to court to try to evict her. A friend referred her to WRO, and Ms. R came in to meet with Delores Palmer, WRO’s general housing counselor. “Delores told me not to worry, and that she would walk me through the whole process.” As a result of WRO’s assistance, Ms. R was able to catch up on her arrears and get rental assistance until she was able to return to work. In addition, because the court ordered the landlord to make necessary repairs on the apartment before he would entertain an eviction proceeding, Ms. R was able to get the improvements that had been promised to her when she signed her lease – new paint, a smoke detector, and guardrails on the windows. Ms. R says that “WRO was definitely there for me in a time of need. Without them, I would have lost the home I had lived in for 12 years at a time when I needed stability for my baby.” Ms. R is now back at work, and she and her beautiful baby boy are doing very well.

In 2011 WRO entered into a partnership with the Rural Ulster Preservation Company (RUPCO) to represent the New York Energy Research and Development Authority (NYSERDA) Green Jobs – Green NY Program for the Mid-Hudson region. NYSERDA is a public benefit corporation created in 1975, charged with the mission of helping New York meet its energy goals: reducing energy consumption, promoting the use of renewable energy sources, and protecting the environment. The Green Jobs - Green New York (GJGNY) Program is a statewide program, designed to promote energy efficiency and the installation of clean technologies to reduce energy costs and reduce greenhouse gas emissions. The program supports sustainable community development and creates opportunities for green jobs, and provides New Yorkers with access to free or low-cost energy audits (to assess the home for air leakage, heat loss, combustion, equipment efficiency and health and safety issues), installation services, low-cost financing for residential energy efficiency upgrades and pathways to training for various green-collar careers.

WRO promotes the GJGNY program through public outreach events throughout Westchester and Putnam counties, as well as one-on-one customer discussions and referrals from strategic partnerships. On average, WRO is a featured speaker at three public outreach events per month, averaging 45 referrals to the program monthly. The focus of GJGNY is to help potential customers navigate through the (sometimes tricky) state sponsored incentive programs. WRO follows-up with every homeowner who attends an event, helps customers fill out applications and gather the necessary paperwork, and finds reliable building contractors to provide the energy audit, as well as implement home renovations.

These programs provide apartment listing services, as well as grants, mediation, advocacy, counseling and/or referrals for renters facing eviction, utility shut-off, landlord-tenant problems and issues of domestic violence.

GREEN JOBS - GREEN NY, a project of NYSERDA

Elyssa Rothe directs the WRO Green Jobs-Green NY Program.

FIRST-TIME HOMEBUYER COUNSELING AND ASSISTANCE

WRO believes that one of the key components of residential stability is financial literacy. In 2011, WRO saw 40 Homebuyer Counseling clients graduate from our Homebuying Training Program. Of those, 16 enrolled in our First Home Club Savers Program which provides $7,500 to be used at the closing, and 13 of our graduates became successful homebuyers for the first time! We continue to have a 100% success rate – every homebuyer who has graduated from our program has remained sustainable, and none have defaulted on their mortgage payments.

Our trained and experienced counselors thoroughly review consumers’ household financial situations and make recommendations to help them prepare to become home buyers, and also recommend down payment and closing cost assistance programs to help first time homebuyers bring their dreams to fruition.

2011 At a Glance

Individuals

Paul and Mary AdlerAdvantech ConsultingDavid and Francine AlexanderCharles AngelilloDolores and William BattagliaDeborah and Steven BeckerBarbara BeckerAnthony and Dolores BeilensonJohn and Wanda BeilensonLaurence and Esther BeilensonNick and Evelyn BeilensonSuzanne Beilenson and Robert WiesenbergArnold and Susan BeilesJ. Thomas BenekScott and Robyn BermanAnn BernsteinJohn and Marjorie BeyersdorfEllen C. BlaunerKaren BlumenthalJoy R. BorgosJoanne Huitt BrownMiriam BuhlHenry J. CarnageLeah Caro/Bronxville-Ley Real EstateDavid ChaoJ. T. Childs, Jr.Joseph and Joanne DiSalvoGerald and Katherine EisnerTony M. EttingerBarry and Barbara FeidenLinda FeldmanRhoda W. FidlerRichard and Judith FinamoreStuart and Beth FinkelsteinGretchen M. FlintSharlene FormanRita FreedmanKen FuirstAngelique FuscoRalph Campbell GeeslinDavid and Judith Cohn GilbergRichard and Carolyn GlicksteinVictor Goldberg and Patricia WaldeckGloria and Arthur GoldsteinRichard and Linda GoldsteinGerry and Bonnie GolubLinda Grace-HeywardJane and Fred GreenmanHelen GreerPeter Hess and Debra KenyonBobbi and Herb GstalderJMJ Realty Co.Mary Helen JordanStan JosephsonDaniel and Gail Kabakoff

Judy and Bruce KaminsteinGloria KarpArleen and David KemlerChris KesickeBonnie Lee KivelJonathan and Leslie KochDoreen and Stephen KushelSusan B. Koehn/ Habermann FoundationMichael and Barbara KornfieldAlice and Douglas KrausDoug and Wendy KreegerAnthony J. LembeckConnie Levene /Conri ServicesDonna and Richard LeroyLowell and Elizabeth LifschultzRafael Maceira and Pastora GoldnerJodee MacDonaldBarbara and Robert Mann, Jr.James and Jacqueline MannHarris MarkhoffEmilie and Marie McCarthyDennis McDermottAnn and Patrick McEvilyMary Jane McKeanRichard and Debra MarkNorman and Joanne MatthewsDavid and Katherine MooreFlorence NadlerTheodore NygreenJanine O’ConnorRich and Lee Ann O’DonnellJack OisherDennis ParkerHarry and Marjorie PhillipsCarl H. Pforzheimer IIIPeter J. Riolo Real EstatePeter and Kathleen RioloDeena RosenthalWinston RossMichael and Karla RubingerChet SafianTed SattlerElizabeth SchildkrautArthur and Susan SchwarzPaul K. SchwarzShulman, Jones & CompanyAnn D. SeligsohnAnn K. Silver and Marty KatzMark StaggCarol H. StixPeter and Laura StraussClarence C. StrowbridgeOliver SwiftElizabeth Szpylka and Gary BernsteinOren J. Teicher and Alison GreeneIan TeixeiraJune Tooni

Tri-Crest RealtyJacqueline TuggleBeth and Brian WallachMary Ellen WalshBarbara Kohn WelshLucy Pullen WernerSharon and Jonas WeinerMarc Weinstein and Linda RodneyGeoffrey WienerLynton C and Joan WienerMartin and Ruth WiesenbergBarbara and Alan R. WolfertGary and Suzanne ZenkelPaula and Jeffrey Yormak

Corporations / Foundations

Citi BankThe Durst OrganziationFowey Light Fund (Rick Hobish)GMS Associates, Inc.Helen Andrus Benedict FoundationHudson City Charitable FoundationHudson Gateway Association of Realtors ®Hudson Valley BankJarvie Commonweal ServicesJP Morgan ChaseKohlberg FoundationLederer, Levine and AssociatesMas De Contractors, Inc.Milton Pollack Family FoundationM&T BankRegent Publishing CompanySpencer-AdamsTD Charitable FoundationThe Glickenhaus FoundationThe Jandon FoundationUnited Way of WestchesterWebster BankWells Fargo FoundationWestchester Community Foundation

Government

City of Mount VernonCity of White PlainsCity of YonkersNYS Energy Research and Development Authority (NYSERDA)NYS Mortgage Authority/NYS Housing and Community RenewalU.S. Dept. of Housing and Urban DevelopmentWestchester County Department Of Community Mental HealthWestchester County Department of PlanningWestchester County Department of Senior Programs and Services

2011 DONORS

WESTCHESTER RESIDENTIAL OPPORTUNITIES, INC. AND AFFILIATE AS OF DECEMBER 31, 2011 AND 2010

AssetsCurrent Assets Cash and Cash equivalents (Notes B and H) $291,896 $88,647 Investments (Notes B and E) 28,959 28,910 Accounts receivable, net (Note B) 507,432 605,418 Prepaid expenses 3,896 4,265 Restricted deposits (Note D) 30,256 24,973 Security deposits 32,213 50,524 Total Current Assets 894,652 802,737 Property and equipment, net (Notes B, C and D) 563,759 522,408 Total Assets $1,458,411 $1,325,145 Liabilities Current Liabililties Accrued expenses and other payables $68,282 $162,591 Refundable advances 65,433 9,164 Loans payable – current portion (Note D) 33,230 30,836 Total Current Liabilities 166,945 202,591Loans payable – noncurrent (Note D) 105,294 138,525 Total Liabilities $272,239 $341,116 Commitments and Contingencies (Note F) Net Assets Unrestricted $1,067,617 $934,779 Temporarily restricted (Note I) 118,555 49,250 Total Net Assets 1,186,172 984,029 Total Liabilities and Net Assets $1,458,411 $1,325,145

2011 2010

Foundations/Banks/

Corporations

Individuals Grants Renatal Income

Fees for Services

Region 1 39260 73092 3267964 179441 45253

1.1%2.0%

90.7% 5.0%1.3%

Revenue

Foundations/Banks/Corporations IndividualsGrants Rental IncomeFees for Services

General & Administrative Exspenses

Program Services

Fundraising

Region 1 182118 1006467 29921

15%83%

2%

Expenses

Personel Program Services Fundraising

** If you wish to see the accompanying notes to any financial data, please contact WRO’s White Plains office.**

Foundations/Banks/

Corporations

Individuals Grants Renatal Income

Fees for Services

Region 1 39260 73092 3267964 179441 45253

1.1%2.0%

90.7% 5.0%1.3%

Revenue

Foundations/Banks/Corporations IndividualsGrants Rental IncomeFees for Services

General & Administrative Exspenses

Program Services

Fundraising

Region 1 182118 1006467 29921

15%83%

2%

Expenses

Personel Program Services Fundraising

Cash Flows From Operating Activities Change in net assets 202,143 97,729 Adjustments to reconcile change in net assets to net cash provided (used) by operating activities: Depreciation and Amortization 23,250 23,362 Changes in operating assets and liabilities: (Increase) decrease in assets: Accounts Receivable 97,986 (240,158) Prepaid Expenses 369 (2,884) Security Deposits 18,311 36,954 Increase (decrease) in liabilities: Accrued expenses and other payables (94,309) 112,971 Refundable Advances 56,269 (133,189) Net Cash Provided (Used) by Operating Activities 304,019 (105,215)

Cash Flows From Investing Activities Property and Equipment Acquisitions (64,601) (14,800) Increase in Investments (49) (53) Additions to Restricted Deposits (5,283) (4,224) Net Cash Used by Investing Activities (69,933) (19,077)

Cash Flows From Financing Activities Principal repayments of loans payable (30,837) (28,616) Net Cash Used by Financing Activities (30,837) (28,616)

Net (Increase) Decrease in Cash and Cash Equivalents 203,249 (152,908)

Cash and Cash Equivalents – Beginning of Year 86,647 241,555

Cash and Cash Equivalents – End of Year $291,896 $88,647

Supplementary Disclosure of Cash Flow Information:Cash paid during the year for interest $11,464 $13,699

2011 2010

WESTCHESTER RESIDENTIAL OPPORTUNITIES, INC. AND AFFILIATE CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2011 AND 2010

CONSOLIDATED STATEMENTS OF ACTIVITIES AS OF DECEMBER 31, 2011 AND 2010

REVENUEContributions-Individuals $73,092 - 73,092 $63,280 – $63,280Corporate contributions 39,260 - 39,260 37,750 6,000 43,750 Grant income 3,267,964 118,555 3,386,519 3,147,815 43,250 3,191,065Contributed Services (Notes B and G) 435,584 - 435,584 – – –Rental Income 179,441 - 179,441 193,028 – 193,028 Program fees and other 45,253 - 45,253 14,577 – 14,577Interest income 86 - 86 121 - 121Net assets released from restrictions 49,250 (49,250) - - – - Total Revenue 4,089,930 69,305 4,159,235 3,456,571 49,250 3,505,821EXPENSES EXPENSES Program services 3,579,413 - 3,579,413 3,024,704 – 3,024,704Management and general 339,206 - 339,206 343,507 – 343,507Fundraising 38,473 - 38,473 39,881 – 39,881 Total Expenses 3,957,092 - 3,957,092 3,408,092 – 3,408,092 Change in net assets 132,838 69,305 202,143 48,479 49,250 97,729Net Assets – Beginning of Year 934,779 49,250 984,029 886,300 – 886,300 Net Assets – End of Year 1,067,617 118,555 1,186,172 $934,779 $49,250 $984,029

Unrestricted Total TotalTemporarily Restricted

Temporarily Restricted

Unrestricted

2011 2010

EXPENSES Salaries $1,006,467 $182,118 $29,921 $1,218,506 $900,544 $172,581 $29,921 $1,103,046Payroll Taxes 111,245 20,104 2,680 134,029 89,874 17,753 3,328 110,955Employee Benefits 112,983 20,418 2,722 136,123 91,749 18,123 3,398 113,270 Total Personnel Costs 1,230,695 222,640 35,323 1,488,658 1,082,167 208,457 36,647 1,327,271Professional Fees and Consultants 467,192 67,350 - 534,542 31,938 93,989 – 125,927 (Notes B and G)Supported Housing Rent and Client 1,616,831 - - 1,616,831 1,629,183 – - 1,629,183 AssistanceRent 67,838 18,745 2,678 89,261 70,349 19,438 2,777 92,564Office Expenses 14,319 2,475 - 16,794 13,025 2,251 – 15,276Relocation Expenses - 7,770 - 7,770 - - - -Repairs and Maintenance 22,969 - - 22,969 35,760 – – 35,760Office Supplies 12,981 2,659 - 15,640 11,578 2,372 – 13,950Postage 8,812 1,805 - 10,617 6,961 1,426 – 8,387Printing 8,978 1,839 - 10,817 14,464 2,962 – 17,426Telephone 13,980 2,671 472 17,123 13,522 2,589 457 16,568Insurance 29,295 3,045 - 32,340 28,339 3,045 – 31,384Travel, Conferences, Dues and 23,382 7,820 - 31,202 25,107 6,398 – 31,505 PublicationsInterest Expense 11,464 - - 11.464 13,699 – – 13,699Utilities 16,558 - - 16,558 15,749 – – 15,749Advertising 3,371 - - 3,371 5,638 – – 5,638Depreciation and Amortization 23,250 - - 23,250 23,362 – – 23,362Real Estate Taxes 429 - - 429 428 – – 428Miscellaneous 7,069 387 - 7,456 3,435 580 – 4,015

Total Expenses $3,579,413 $339,206 $38,473 $3,957,092 $3,024,704 $343,507 $39,881 $3,408,092

CONSOLIDATED STATEMENTS OF FUNCTIONAL EXPENSES FOR THE YEARS DECEMBER 31, 2011 AND 2010

Program Services

Program Services

Total TotalMgmt & General

Mgmt & General

Fundraising Fundraising

2011 2010

Mr. and Mrs. Marmolejos become successful first-time homeowners after graduating from WRO’s Homebuying Training Program!

STAFF BOARD OF DIRECTORS

WRO’s 16-person volunteer Board of Directors is drawn from diverse professional and personal backgrounds. The full Board meets quarterly, and Board committees meet monthly, providing continuous oversight of all of WRO’s activities. WRO’s Finance Committee provides regular financial oversight.

Alan Wolfert, Esq., ChairLeah Caro, Vice-Chair Margaret M. Flint, Esq., Vice-Chair Henry J. Carnage, TreasurerDennis McDermott, SecretaryNick Beilenson, Founder

Joy R. BorgosJoseph A. DiSalvo, Esq.Linda M. Grace-HeywardRichard S. Hobish, Esq.Jodee MacDonaldDennis D. Parker, Esq.Winston A. Ross Ann SilverElizabeth A. SzpylkaIan Teixeira

Geoffrey Anderson, Executive DirectorAndrea Klausner, Deputy Executive Director

Human Resources/Access To Home Nneka Reed, Manager

Fiscal Department Galina Shapiro, Fiscal DirectorUpton Sterling

Fair Housing Marlene Zarfes, Program DirectorGina DeckerAfshan KhanSteven CahnAriana Calderon

General Housing / Eviction and Utility Shut-off PreventionDelores Palmer, Program Director

First Time HomebuyingNicole Burton, Coordinator

Independent Living / Shelter Plus CareMaureen Lahey, Program DirectorGeorge Orphanides Leah BundyAnika Ryan

Senior HousingJane Lindau, Program DirectorEsperanza Marte

Green Jobs - Green New YorkElyssa Rothe, Coordinator

Apartment Vacancy Listings/Administrative AssistantMaureen Davis

WRO staff members Laura Neil, Marlene Zarfes, Gina Decker, Afshan Khan and Mernys Calero.

Mortgage Default Program - White PlainsVeronica Raphael, Program DirectorAmrita Narasimhan Carline Pierre-Lys Patricia Ossino Mernys Ealy

Mortgage Default Program - Mount VernonCarline Pierre-Lys Patricia Ossino

CONSOLIDATED STATEMENTS OF FUNCTIONAL EXPENSES FOR THE YEARS DECEMBER 31, 2011 AND 2010

HEADQUARTERS470 Mamaroneck Avenue, Suite 410White Plains, New York 10605

Phone (914) 428-4507Fax (914) 428-9455

Mortgage Default Hotline:1-877-WRO-4YOU (4968)

Email: housinghelp@wroinc.orgWeb: www.wroinc.org

SATELLITE OFFICEMount Vernon Armory Building144 N. Fifth AvenueMount Vernon, New York 10550Phone (914) 668-4424Fax (914) 668-9515

Westchester Residential Opportunities, Inc.