NHPF Fiscal Year 2023 Annual Report Dynamic Growth: Past is Prologue
Note from the Chair of the Board of Trustees
AS WE REFLECT ON THE PAST YEAR, I am proud to present The NHP Foundation (NHPF) Annual Report and to note that it will be the last report I present as I transition from the role of Board Chair to Trustee. This report highlights our achievements, challenges, and the significant strides we have made in our mission to provide affordable housing to those in need. Our work is a testament to the dedication and commitment of each member of our organization, including the vital role played by NHPF’s Board of Trustees. The responsibilities of Trustees are multi-faceted and essential to our organization’s success. Among these, fundraising stands out as a cornerstone of our efforts. The financial health and sustainability of our organization rely heavily on the active participation and support of our Trustees. Their engagement in identifying, cultivating, and securing donations, grants, and other sustained revenue streams/sources is instrumental in enabling NHPF to pursue the Foundation’s goals illuminated by our mission statement—“Being 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.” Fundraising is not merely about financial contributions; it is about fostering relationships, advocating for our cause, engaging influencers, promoting thought leadership, and galvanizing all meaningful forms of community support, material and otherwise. Each Trustee’s unique network and influence play a critical role in our ability to raise awareness and generate the resources necessary for our projects. The organization is deeply grateful for the time and effort Trustees invest in these endeavors, particularly on behalf of NHPF’s unique annual gathering, the Symposium. Beyond fundraising, the Board of Trustees is tasked with governance, strategic planning, and risk oversight. Your guidance ensures that we remain true to our mission while navigating the complexities of the affordable housing sector. Through your expertise and vision, we have been able to implement effective policies, maintain fiscal responsibility, and uphold the highest standards of transparency and accountability. As I reflect back on my 13 years as Chair of the NHPF Board of Trustees, I know continued success will depend on the unwavering support and active involvement of all stakeholders. I encourage each of you to remain engaged, bring forth innovative ideas, and leverage your networks to further our mission. Together, we can create more opportunities for those in need of affordable housing and continue to make a meaningful impact in our communities. Thank you for your dedication and service and for this most meaningful chapter of my professional life. I look forward to supporting Glynna Christian and Cherie Santos- Wuest, the new Chair and Vice Chair respectively, while also remaining a part of this organization’s continuing achievements in the coming years. Ralph F. Boyd, Jr., Chair
RALPH F. BOYD, JR., CHAIR
2023 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 Grace Torres Adam Weers
2 THE NHP FOUNDATION | FISCAL YEAR 2023 ANNUAL REPORT
Letter from the CEO
ONE OF NHPF’S PROUDEST ACCOMPLISHMENTS IN 2023 was earning Standard & Poor’s (S&P) AA– “stable” rating, the highest rating to be obtained by not-for-profit “social housing” providers, potentially offering NHPF access to increased sources of funding to fulfill our mission, helping to ensure a future with abundant affordable housing options. This recognition led to the receipt of a $75 million social bond issuance, underwritten by Morgan Stanley, to fund affordable housing projects that fulfill the organization’s goals of providing safe, clean affordable housing with a robust array of resident services, while reducing the carbon footprint of our residential buildings. Yet, as welcome as this news was, challenges abound in the affordable housing industry, from restrictive zoning policies, to shortages in skilled labor and higher construction costs, to higher interest rates, and dramatic increases in insurance costs. In 2023, at our 7th annual NHPF Symposium, we enlisted a gathering of intergenerational experts to see what initiatives will need to be implemented to ensure a robust and reliable future for affordable housing in the U.S. Our research has revealed a shared desire for change across generations. From Gen Z to Baby Boomers, there is a recognition of the need for affordable housing and a willingness ato act. Their collective willpower, combined with strategic initiatives, can pave the way for a stronger base of support for change. Additionally, we must safeguard and expand the Low Income Housing Tax Credit (LIHTC), a proven tool for financing affordable homes. Bipartisan support for initiatives like the Affordable Housing Credit Improvement Act underscores the widespread recognition of LIHTC’s importance. By expanding funding for LIHTC, we can address the growing demand for affordable housing, revitalizing communities across the country. But our efforts cannot stop there. We must embrace innovative approaches to construction to expedite the building process and reduce costs. By leveraging technology and automation, we can further streamline development and meet the evolving needs for future cost containment. We must expand skills-based training programs. We must also create pathways to homeownership and economic stability for all Americans. As we embark on this journey, let us remember that the future of affordable housing depends on our collective action. By co-creating solutions that prioritize inclusivity, sustainability, and innovation, we can build and preserve more, much needed, affordable housing. 2023 provided an excellent blueprint, where NHPF laid the groundwork for myriad types of affordable housing, and with your support, we look forward to increasing our output in 2024 and beyond. Our 8th annual Symposium will examine “Adapting Affordable Housing to the New Realities.” Richard F. Burns, Chief Executive Officer
RICHARD F. BURNS, CEO
THE NHP FOUNDATION | FISCAL YEAR 2023 ANNUAL REPORT 3
Dynamic Growth: Past is Prologue
AS NHPF MARKS ITS 35TH ANNIVERSARY, I continue to be energized by the organization’s unwavering commitment to providing affordable housing in communities across the nation. With costs rising and interest rates remaining elevated, never has the need to build, rehabilitate, and preserve affordable housing been greater. NHPF continued to expand its portfolio in 2023 with seven transformative projects either breaking ground or opening their doors, adding a total of 546 units to cities including Baltimore, Chicago, Hagerstown, Houston, and Washington, DC. Now serving communities across 16 states, NHPF remains dedicated to expanding our reach and ensuring that individuals and families have access to abundant, affordable housing options. One notable endeavor is RoseMary’s Place, a 149-unit development in Houston designed to provide housing for individuals who have experienced homelessness. With financing sourced from various partners, including governmental departments and other not-for-profits, this development represents a continuing effort towards addressing housing insecurity in the region. In addition to new construction ventures, NHPF also continues to undertake successful acquisition and rehabilitation initiatives. The Covent Apartments in Chicago, a historic SRO (Single Room Occupancy) building was revitalized into permanent supportive housing, further underscoring our commitment to repurpose existing structures to meet the evolving needs of our communities. Navigating through a challenging development landscape, NHPF has demonstrated resilience and innovation in securing resources and cementing even more key partnerships. Our utilization of corporate social bonds and strategic collaborations with public and private entities have enabled us to creatively fill financing gaps and ensure that we do our part to add to our housing supply and advance our mission effectively, even when the industry has faced headwinds in moving projects forward. NHPF also continued to serve as a thought leader for the industry, raising awareness of the importance of affordable housing, through its 7th Annual Symposium, “The Future of Affordable Housing.” By incorporating learnings from across the generational divide, NHPF offered solutions for how we can all do our part to ensure that residents live in safe, sustainable housing that won’t require heart-wrenching choices to make monthly rent whether they are just starting out on their own, building a family, or focused on aging in place. NHPF remains poised for continued growth and impact. With ongoing projects such as the Park Heights Senior Apartments in Baltimore, MD; Curtis Cofield ll Estates in New Haven, CT; and Seabrook Square in Austin, TX, we continue to expand our footprint. We are pleased to have forged further west in 2023 laying the groundwork for affordable housing for workers in the resort towns of Colorado who have been priced out of their own communities. As we look ahead, I want to extend my heartfelt gratitude to our partners, stakeholders, and dedicated team members who have contributed to NHPF’s success. Together, we will continue to strive towards our vision of a future where everyone has access to affordable and sustainable housing. Eric W. Price, President
ERIC W. PRICE, PRESIDENT
4 THE NHP FOUNDATION | FISCAL YEAR 2023 ANNUAL REPORT
ROSEMARY’S PLACE, HOUSTON, TX
Consolidated Statement of Financial Position For the Years Ended December 31, 2023 and 2022
ASSETS
2023
2022
CHANGE
Cash & Cash Equivalents
$94,904,309
$34,935,258
$59,969,051
Restricted Cash
5,077,563
4,537,254 655,364 171,846 49,000 1,614,616
540,309 (655,364)
Notes Receivable & Accrued Interest
—
Management Fee Receivable
180,220
8,374
Grants Receivable
—
(49,000) (84,707)
Investments In Housing Funds
1,529,909
Land, Buildings, Improvements & Equipment, Net
1,044,092,794
981,320,063 128,352,606 3,962,311 4,013,463 2,506,473 11,361,608 2,529,488 26,476,099
62,772,731 (1,205,254)
Mortgage & Other Escrows
127,147,352 4,448,911 4,382,001 2,604,941 11,955,714 8,376,977 20,328,416
Prepaid Expenses & Other Assets
486,600 368,538 98,468 594,106
Accounts Receivable
Tenants’ Security Deposits Deferred Development Costs Deferred Other Assets, Net
5,847,489 (6,147,683)
Due From Affiliates
Total Assets
$1,325,029,107
$1,202,485,448
$122,543,659
LIABILTIES
Accounts Payable & Accrued Expenses
$30,535,648
$38,335,375
$(7,799,727) 22,278,393
Other Liabilities
29,123,812 2,537,142
6,845,419 2,398,746
Tenants’ Security Deposits
138,397
Mortgage / Notes & Construction Loans Payable
1,060,206,455
981,968,228
78,238,227
& Accrued Interest Asset Management Fees Payable Investments In Operating Entities Accounts Payable / Affiliates
1,093,915 2,885,071 25,319,101
945,965 5,010,290 28,901,273
147,950
(2,125,219) (3,582,172)
Total Liabilities
$1,151,701,144
$1,064,405,295
$87,295,849
NET ASSETS
Without Donor Restrictions / Controlling Without Donor Restrictions / Non-Controlling
$74,825,311 98,056,514 172,881,825
$56,608,230 80,983,776 137,592,006
$18,217,081 17,072,738 35,289,819
Total Unrestricted Net Assets
Net Assets With Donor Restrictions
446,138
488,147
(42,009)
Total Net Assets
$173,327,963
$138,080,153
$35,247,810
Total Liabilities & Net Assets
$1,325,029,107
$1,202,485,448
$122,543,659
THE NHP FOUNDATION | FISCAL YEAR 2023 ANNUAL REPORT 5
Consolidated Statement of Revenues & Expenses For the Year Ended December 31, 2023
PROPERTY OPERATIONS
RESIDENT SERVICES
& MANAGEMENT
CORPORATE
ELIMINATIONS
TOTAL
REVENUES & GAINS
Rental Income
$104,027,968
— —
—
$(66,667) (825,924) (2,776,948)
$103,961,301
Developer Fee Income Resident Services Fee
—
9,827,338
9,001,414
953,279
1,166,320
937,459
280,110
Gain On Sale of Properties Contribution Income /Grants
—
—
—
—
—
1,467,086 1,888,636 15,345,462 2,189,949
756,482
23,894,647 4,357,087 16,074,584 1,292,296
(12,354,975) (6,245,723) (12,400,136)
13,763,240
Financial Revenue Other Revenue Interest Income
— — —
—
19,019,910 3,482,245
—
Total Revenues & Gains
$125,872,380
$1,922,802
$56,383,411
$(34,670,373)
$149,508,220
EXPENSES & LOSSES
Salaries & Benefits
$15,123,078 16,840,994 44,236,043 3,920,830 10,235,835 8,566,598 5,126,563 2,882,376 3,618,858 3,892,656 9,087,212 30,611,743 1,710,393 8,657,247
$915,086
$12,559,708
— —
$28,597,872 16,840,994 41,009,136 5,435,165 10,235,835 8,768,360 5,126,563 4,345,915
Maintenance
— —
—
Interest Expense
1,879,045 1,149,528
$(5,105,952)
Management & Administration
431,474
(66,667)
Utilities
—
—
— — — —
Insurance
12,566
189,196
Real Estate Taxes Professional Fees
—
—
117,484
1,346,055
Property & Asset Management Fees
— — — — — —
—
(1,138,477)
2,480,381 7,440,420
Bad Debt Expense Contribution Expense
3,437,307 430,946
110,457
(9,401,179) (803,468)
116,979
Depreciation & Amortization Other Financial Expenses
16,305
29,824,580
—
—
1,710,393 377,384
Other Losses (Income) In Investment
2,387,066
(10,666,929)
In Housing Funds Discontinued Operations Resident Services Fees
— —
— —
—
—
— —
952,544 2,452,154
(952,544)
Excess of Expenses Over Revenues
3,630,501
963,729
—
7,046,384
Total Expenses & Losses
$168,140,927
$2,440,339
$26,799,854
$(28,024,759)
$169,356,361
Excess (Deficiency) of Revenues
$(42,268,547)
$(517,537)
$29,583,557
$(6,645,614)
$(19,848,141)
Over Expenses
6 THE NHP FOUNDATION | FISCAL YEAR 2023 ANNUAL REPORT
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.
PARK HEIGHTS SENIOR APARTMENTS, BALTIMORE, MD (PAGES 6 & 7)
Rental Income Other Revenue
70% 13%
REVENUES & GAINS
Contribution Income/Non-affiliate
9% 6% 2% 0%
Developer Fee Income
Interest Income
Resident Services Fee
Interest Expense
24% 18% 17% 10%
Depreciation & Amortization
Salaries & Benefits
Maintenance
Utilities
6% 5% 4% 4% 3% 3%
Insurance
EXPENSES & LOSSES
Excess of Expenses Over Revenues
Bad Debt Expense
Management & Administration
Real Estate Taxes Professional Fees
3% Property & Asset Management Fees 1% Other Financial Expenses 1% Discontinued Operations 0% Other losses (Income) in Investment in Housing Funds 0%
122 EAST 42ND STREET, SUITE 4900, NEW YORK, NY 10168 1090 VERMONT AVENUE, NW, SUITE 400, WASHINGTON, DC 20005 159 N SANGAMON STREET, SUITES 200 & 300, CHICAGO, IL 60607 1501 ST. PAUL STREET, SUITE 128, BALTIMORE, MD 21202 nhpfoundation.org
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