NHPF Annual Report 2021: Creating Opportunity
COLUMBIA HEIGHTS VILLAGE, WASHINGTON, DC
NHPF Fiscal Year 2021 Annual Report Creating Opportunity
Mission The NHP Foundation is a not-for-profit real estate organization dedicated to preserving and creating sustainable, service-enriched multifamily housing that is both affordable to low and moderate income families and seniors, and beneficial to their communities.
Vision A future where
communities flourish because attractive, sustainable housing options and life- enhancing services are ensured for income-challenged Americans. Values NHPF seeks to promote greater diversity, inclusion, racial equity, and social justice in addition to its long- established mission of providing sustainable, service-enriched affordable housing. NHPF is committed to increasing access to opportunities for historically underrepresented individuals and businesses in the development and operation of affordable housing communities.
GROUNDBREAKING, TEMENOS PLACE, HOUSTON, TX
NHPF leveraged its excellent standing in the industry and array of positive partnerships to create exciting, new, and unprecedented affordable housing opportunities in 2021, with more to come in 2022. Much of this successful work is owed to relationships NHPF has developed and nurtured thorough the years and our reputation for seeing past obstacles to construct the ideal situation for residents, communities, and investors. We are also so proud of the NHPF departments responsible for creating these exceptional opportunities, principally Development, Asset Management, and Resident Services. Some of our proudest accomplishments this past year include: • With the groundbreaking of Temenos Apartments, 95 units of PSH, NHPF is creating housing uniquely designed for residents facing chronic homelessness, including treatment rooms for bedbugs (a common affliction for those who have lived on the streets) as well as highly resilient and easy-to-clean flooring for a population that is often ill while working through addiction issues. • The development and construction of 17 Mississippi, which began in 2021, consisting of 41 units of affordable housing in Washington, DC showcases another first for NHPF. We are providing nine units of housing designated for artists. This building is also unique for NHPF as it includes funding from first-time partner, Aetna, a CVS Health company, which invested $9.2M in the development. • Another first-time investor in an NHPF affordable housing deal is Amazon which granted $3.75M to City of Falls Church for affordable housing initiatives to be entirely managed by NHPF. This unique opportunity is borne out of our organization’s long-standing relationship with the City of Falls Church. NHPF created and implemented several internal and external DEIJ initiatives, some of which were outlined in media coverage from print and online interviews, articles, and podcasts: • The opportunity to share some of NHPF’s work in social justice was made possible via two prestigious Telly Video Awards, we were honored with in 2021. The Gold Telly award in “Non-Broadcast: Diversity and Inclusion” and the Silver Telly Award in “Non-Broadcast: Social Impact” were given to NHPF for its “Unconventional Affordable Housing: Yes! In My Backyard” video created for the 5th Annual NHPF Symposium. • NHPF produced the 5th Annual Symposium, which offered so many in the affordable housing ecosphere the opportunity to network and learn at a hybrid in-person/remote event. • Opportunities to showcase other accomplishments came via honors for staff as well as properties. Mansur Abdul-Malik, NHPF’s lead developer on Hollander Ridge, received three different industry awards. Hollander Ridge, NHPF’s scatter- site single-family rental home development, garnered four industry awards. We continue to build and maintain a highly professional, motivated, and resilient team at NHPF pulling together to create opportunities for a brighter future.
Richard F. Burns
Ralph F. Boyd, Jr.
Richard F. Burns
Ralph F. Boyd, Jr.
Chief Executive Officer
The NHP Foundation | Fiscal Year 2021 Annual Report 3
Industry Trends & Takeaways for 2021
2021 will long be remembered as a year when hardship, renewal, ingenuity, and elbow grease combined to bring about positive outcomes and a favorable outlook for the future. Not every trend that we encountered was a winning one (The Great Resignation, for example?) but in the aggregate we believe in an upswing for the affordable housing industry in 2022. Here are some of the 2021 trends and takeaways we have kept in mind as we navigate the challenges of this year: THE GREAT RESIGNATION: Twelve million Americans left their jobs in the 3rd quarter of 2021 and the affordable housing industry at large wasn’t spared. However NHPF retained and added new employees continuously, something we owe to more than a simple combination of reliably competitive pay and benefits. “Creative Leadership” led to many of our staff expanding their roles, trying their hands at assignments out of their proscribed wheelhouses, and accomplishing new tasks with aplomb. This “shake-up” instilled confidence, prevented burnout and refreshed our entire staff. Ready for whatever lies ahead? Yes! INCREASING CONSTRUCTION COSTS: A major refrain heard throughout the year was how to grapple with supply shortages and inflated operating expenses. While much of the cost of hard materials remains out of anyone’s control, not so with many other costs of doing business. For example, we found simple measures such as earlier inclusion of our Construction Team in design reduced time and costs accordingly. As well, performing audits on all of internal systems and processes unearthed cost savings. MORE AMERICANS CONCERNED ABOUT AFFORDABLE HOUSING: Pew Research in 2021 demonstrated that housing concerns outpaced respondent worries about other local issues. The percentage of adults labeling affordable housing a major problem where they live is larger than the percentage saying the same about drug addiction (35%), the economic and health impacts of COVID-19 (34% and 26%, respectively), and crime (22%). IMPACT OF COVID-19: Frankly, across the board from Development to Asset Management to Resident Services, we feel work in 2021 was unimpeded by ongoing Covid-19 concerns. NHPF staff had already incorporated health and safety concerns seamlessly into daily tasks as well as remote work, and 2021 was a very smooth year in that regard for residents and employees. Having a very adaptable, unflappable team gives us confidence that 2022 will be more of the same. NEW INDUSTRY TECHNOLOGY: The rapidity with which new tech comes online is amazing. Organizations which embrace it all will be winners in 2022. Some of the innovations we have adopted that save time, money, and resources include Otter AI, the automated note- taking software, and On-Site IQ which provides constantly updated, virtual, visual pictures of construction sites, helping reduce construction management oversight and administrative costs for projects. RISE IN AFFORDABLE MULTIFAMILY FUNDING: A marvelous statistic from 2021: According to Fannie Mae, the funding of multifamily affordable housing rose more than 23% in 2021 to the highest volume in the history of its 33-year-old Delegated Underwriting and Servicing program. What a great outlook for 2022 and incentive to do all we can to grow that number in the months to come.
The NHP Foundation | Fiscal Year 2021 Annual Report
Trustees Ralph F. Boyd, Jr. Chair Glynna K. Christian Vice Chair Robert H. Abrams Richard F. Burns Sarah E. Feinberg Cherie Santos-Wuest Sheldon L. Schreiberg Charu Singh Frank L. Sullivan, Jr.
Grace Torres Adam Weers
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