NHPF Annual Report 2019

NHPF Fiscal Year 2019 Annual Report Celebrating 30 Years of Investing in Affordable Housing

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

The Mark Twain Chicago, Illinois

Strand Residences Washington, DC

A complete copy of our 2019 audited financials is available upon request to the office of the: Chief Financial Officer 122 East 42nd Street, Suite 4900 New York, NY 10168 or by calling 646.336.4940

30 Years of Investing in Affordable Housing

IN 2019, NHPF CELEBRATED ITS 30TH YEAR creating and preserving America’s affordable housing. The anniversary was marked by many achievements, including the organization’s 100th acquisition.

This past year saw NHPF completing the purchase of nine properties totaling an additional 1,350 units. We also broke ground on the construction of The Strand, 86 units of much- needed affordable housing in Washington, DC’s Deanwood section in Ward 7. The development will also include the repurposed restoration of an historic theater. This effort is a superb example of our development team’s skill in revitalizing an area while preserving a community. This work is made possible through fostering partnerships with multiple entities aligned around increasing the value of an underserved area with a green, sustainable development. Investing in affordable housing was also the theme of our 3rd Annual Symposium, Affordable Housing Investment: Impactful Returns Realized . There, NHPF brought together bi-partisan legislators, institutional investor/fund managers, and other experts to discuss investing in affordable housing as a reliable asset class. NHPF joined forces with Kingsley Associates, leaders in institutional real estate industry research and top real estate investment publisher, IREI, to produce a study examining the barriers to private investment in affordable housing. The findings, which were delivered at the Symposium, revealed the most crucial impediment to institutional investment was “onerous government regulation.” Equipped with the results from the study and its own experience, NHPF is better able to anticipate the needs of potential affordable housing investors while continuing to work diligently with its financial partners to make the application process easier to navigate. NHPF has developed an excellent reputation for attracting both private and public investors and creatively packaging financial sources across its footprint. These include the various JV deals NHPF completed in 2019 with Jonathan Rose and TPI, Inc., as well as the combination of federal, state, city, and private financing that went into the redevelopment of The Mark Twain, a storied SRO property in Chicago. Richard F. Burns Ralph F. Boyd, Jr

This past year, we also documented a stellar example of implementing an ESG-guided strategy in the successful acquisition and rehabilitation of Cleme Manor apartments in Houston.

By focusing on current investor satisfaction while attracting new investors to the industry, NHPF looks forward to many more decades of successful affordable housing preservation and creation.

No one can predict the future; however, affordable housing is a stable investment with solid returns that make it a favorable real estate asset class in which to invest.

Richard F. Burns

Ralph F. Boyd, Jr.

NHPF President & Chief Executive Officer


The NHP Foundation | Fiscal Year 2019 Annual Report 3

The Mark Twain Chicago, Illinois

The Mark Twain is NHPF’s first affordable SRO property in Chicago. It is also the first property in the portfolio to be awarded Enterprise Green Communities (ECG) Certification, the country’s only national green building certification program designed explicitly for the affordable housing sector featuring a comprehensive set of guidelines to encourage green building practices. The building is 29% more efficient than it is required to be by the energy code and achieved a 29% indoor water use reduction. In addition to bringing this high level of sustainability to the preservation of an historic building, The Mark Twain is notable for other reasons: • It was the first SRO property of this size that was purchased and preserved under Chicago’s SRO Preservation Ordinance that passed in November 2014. • T he Mark Twain is a prime example of a highly effective private-public partnership to preserve a critical affordable housing resource in an increasingly gentrifying neighborhood of Chicago

• T he mixed-use nature of the property in addition to significant capital needs required an innovative and robust financing structure. Approval of 100% Project- Based Vouchers from the Chicago Housing Authority and the use of the FHA 220 loan that is designed for urban, mixed-use properties were unique financing features of this transaction. To quote Preservation Chicago, a civic organization dedicated to the city’s historic architecture, “The Mark Twain Hotel project is more than just a substantial reinvestment in a historic Art Deco building, but also an investment and commitment focused on equity and affordability in one of Chicago’s most affluent communities. This renovation project also preserves the building’s SRO-Single Room Occupancy status, which has been a goal of the City of Chicago and residents of many communities, to preserve this type of affordable housing, which has disappeared at an alarming rate in recent decades.”

The NHP Foundation | Fiscal Year 2019 Annual Report


Strand Residences Washington, DC

The Strand Residences is more than an affordable housing community. With this undertaking, NHPF is:

The Strand Residences is a textbook case of how public and private entities come together to do their part to create and preserve much needed affordable housing. This project benefited from District Mayor Bowser’s New Communities Initiative, which provided $15M. The HFA issued $19M in tax-exempt bonds, DHCD allocated the Low Income Housing Tax Credits and the DC Housing Authority administered the operating subsidy. The private sector also stepped up via funders RBC, Citibank, JLL, Enterprise Community Partners and M&T Bank. National Housing Trust provided a critical pre-development loan to help us bridge capital early in the project. Construction is well under way and we are also happy to report that The Strand has received pre-build approval from Enterprise Green Communities (ECG) Certification.

• B uilding replacement housing for residents at Lincoln Heights and Richardson Dwellings. • B ringing jobs to DC Residents and contracting opportunities to DC’s small businesses. • P roviding opportunities for neighborhood retail along Nannie Helen Burroughs Avenue. • Implementing Operation Pathways after-school programs and financial literacy training and other classes to all our residents. • R emediating a brownfield that prevented development on this site and the surrounding parcels. And we’re doing it all without displacing a single resident and helping a community business, The China Café, move down the block so it can continue to operate in the neighborhood.

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122 EAST 42ND STREET, SUITE 4900, NEW YORK, NY 10168 • 646.336.4940 1090 VERMONT AVENUE, NW, SUITE 400, WASHINGTON, DC 20005 • 202.789.5300 150 N. MICHIGAN AVENUE, SUITE 2800, CHICAGO, IL 60601 • 312.216.5103 nhpfoundation.org

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