People First: Innovating to Empower Our Communities

BOARD OF DIRECTORS

Hugo Isom

Teresa Shufflebarger

W. Spencer Ragland

Lenus Perkins

Perry Shuttlesworth

MESSAGES FROM OUR CEO AND BOARD CHAIR

Housing that is affordable is critical to addressing the nation’s housing shortage. Families looking to rent or become homeowners face the same challenge, limited stock, and increasing prices.

Throughout 2022, our mission was at the forefront as we worked to address the housing needs of both renters and homeowners, giving equal attention to safety, energy efficiency, rapid deployment, quality, and affordability.

With our Community Development and Revitalization work, we applied innovative construction methods to develop singlefamily housing for working families. This was a continuation of our revitalization work focused on addressing blight and at the same time creating housing options.

Our experience owning and managing rental housing informed our approach to solving for rental possibilities locally. It resulted in the renovation of twelve (12) single-family homes needing critical repairs. The benefit here was two-fold. We addressed blight and the need for safe, quality, affordable housing in a lowincome neighborhood.

Our role as a regulatory partner, working on behalf of the U. S. Department of Housing and Urban Development (HUD), had the greatest impact in 2022. As a high‐performing Performance‐Based Contract

W. SPENCER RAGLAND | BOARD CHAIR

Administrator (PBCA) we provided oversight and served as a resource to over 1,100 properties across four (4) states. Without HUD and these private owners, many of our nation’s families would be in jeopardy of becoming homeless.

Now more than ever, Navigate remains committed to helping address the need for housing in our communities through both innovations and proven methods, all in the interest of people.

Thank you to all our partners and the incredible Navigate team for their dedication to always putting People First. We look forward to everything we can accomplish together in 2023.

CEO Lisa McCarroll and Board Chair W. Spencer Ragland being interviewed at Live on 1st.

In 2022, Navigate saw a year of major accomplishments—from completing innovative modular housing at Live on 1st to upgrading cottages on 5th Court South to another successful year as a Performance‐Based Contract Administrator (PBCA). We ended the year as a stronger organization. In 2022, Navigate’s impact was fueled by our

LISA MCCARROLL | CEO

commitment to putting People First at every level of the organization—from our Navigate team to residents, the communities we serve, HUD, owners, management agents, and our colleagues in the industry.

People First. Whether through our work as a regulatory partner, providing housing, or empowering a community, we lead by remembering People First.

OPERATIONS

GOVERNMENT CONTRACTING

COMMUNITY DEVELOPMENT

ASSET MANAGEMENT

Navigate produced nearly 50 educational Tuesday Tips in 2022. These videos help property managers and staff navigate compliance issues in affordable housing.

GOVERNMENT CONTRACTING

Project-Based Contract Administrator

Putting People First is core to our work in government contracting. For the last 22 years, Navigate has acted as a Performance-Based Contract Administrator (PBCA) for the U.S. Department of Housing & Urban Development (HUD). Core tasks include but are not limited to:

• Voucher Payments (Paying monthly vouchers from Section 8 owners)

• Contract Renewals (Renewing owner’s housing assistance contracts with HUD)

• Special Claims (Helping properties recover losses from unpaid rent and damages to a unit)

• Management & Occupancy Reviews (Comprehensive onsite assessment of operating procedures)

• Health & Safety Issues (Responding to resident concerns about health and safety issues)

Voucher Payments

The cost of housing, food, and energy went up for everyone in 2022, but inflation particularly hit low-income families. Rent inflation was up 7.5% year-over-year in December 2022. That’s the highest rate in 40 years. The rising costs highlight why the voucher program is vital to lowincome families, individuals, people with disabilities, and the elderly. It prevents

homelessness and makes decent, safe, sanitary housing affordable.

Navigate’s Voucher Specialists reviewed and paid 13,515 housing vouchers in Alabama, Connecticut, Mississippi, and Virginia in 2022.

The voucher team processed $773 million in voucher payments in 2022.

Contract Renewals

Special Claims

Owning affordable housing also comes with significant financial risk.

Legally, owners face limitations on security deposits. HUD offers reimbursement through the Special Claims process, with Navigate processing over $2 million in claims last year.

YEAR 2022

COVID-19 Supplemental Payments

In 2022, HUD extended the COVID-19 Supplemental Payments (CSP) available to owners dealing with increased operating costs due to the pandemic. With this funding, owners and agents could address COVID-19 by purchasing PPE, improving cleaning and sanitization, and even paying more for air filtration.

In total, Navigate processed 144 payments in 2022.

$1.8M RECOUPED for resident damages & vacancies

Management & Occupancy Reviews

Relationship Managers (RMs) conduct onsite Management and Occupancy Reviews (MORs) throughout the year to verify a property’s compliance with the Housing Assistance Payments (HAP) contract and any statutory and regulatory requirements.

MORs are a time to document leasing and occupancy practices, maintenance procedures, and the property’s follow-up

on HUD physical inspections. MORs are also a time when the RM and owner or management agent can ask questions or discuss an occupancy-related topic.

Navigate’s RMs conducted 531 MORs in 2022 across Alabama, Connecticut, Mississippi, and Virginia. Most properties met or exceeded the federal mandate.

Corporate Trainer Vickie Bell reviews files during an MOR.

COMMUNITY DEVELOPMENT

Any successful community development effort begins with listening and meeting people where they are. Here at Navigate, we are purposeful in making sure the actual community is central to our work. This was, and will continue to be our approach, including in North Titusville.

We made tremendous progress in 2022. Whether through fulfilling the need for housing, supporting our local school, or making a place for economic growth, the community’s expressed needs were the priority.

As we look to 2023, housing, education, and the community’s economic health will be at the center of our work. And true to our work style, “the community” will be involved every step of the way.

We named the Rayfield I and II models after famed architect Wallace A. Rayfield. One of the first black architects in the United States, Rayfield designed at least 300 buildings, including Birmingham’s historic 16th Street Baptist Church.

Live on 1st

New construction on 1st Street South added three state-of-the-art modular homes to vacant lots in 2022. Designed by architectural partner Design Initiative and factory-built by Franklin Homes, the Live on 1st development offers long-term affordability for the residents beyond rent or mortgage costs. In addition, we worked with Alabama Power Company’s (APC) SMART Neighborhood division to fill these homes with energy-efficient appliances and lighting that can help save the residents up to $900 a year on energy costs. In a December interview with WBHM, one resident noted, “her power bill has never been more than $80 a month.”

APC and their partner Chorus SmartSecure also added intelligent features that keep our families connected and safe, including a smart doorbell and thermostat.

In May, residents moved into the homes under a lease-to-own agreement to eventually become homeowners. Our partnerships with the Hispanic Interest Coalition of Alabama and Neighborhood Housing Services of Birmingham provided housing counseling services to the families to support this pathway to homeownership. We look forward to all three families achieving homeownership.

We partnered with HICA and Neighborhood Housing Services of Birmingham to provide housing counseling to the residents.

Our community development team during the Open House. Real Estate Acquisitions Manager Eric Fancher and Director of Planning and Development Matt Churnock.

5th Court Cottages | Housing Preservation

Navigate not only prioritizes building new homes. We also work to preserve existing housing in the North Titusville community. Along 5th Court South, our Community Development team spent eight months renovating 11 homes and one duplex, in poor condition, with no water or heat, alongside other health and safety issues.

Our priority during renovations was ensuring the families had safe and clean

17 5th Ct S

housing. So, we provided temporary housing while the renovations were taking place.

In July, residents moved back, and they were thrilled with the transformations. One exclaimed, “It doesn’t even look like the same place! Thank you so much.” In 2023, we look forward to renovating three additional units around 5th Court South and beginning work on a new home at 55 5th Court.

Economic Revitalization

Revitalizing communities requires not only investing in housing but supporting economic development. We’ve done this by bringing programs to Marc Steel, the historic site of a former steel foundry. In line with this, Navigate acquired the former Leonard’s BBQ & Burger Hut on 6th Avenue South.

Returning the historic site into service reduces blight in the neighborhood and helps support small businesses while creating new options for the people of Titusville.

ASSET MANAGEMENT

Navigate Asset Management (NAM), our full-service property management subsidiary, has managed two multifamily properties (Four Winds East and St. Charles Villas) in the greater Birmingham market for several years. We acquired these properties in line with our mission to provide affordable housing options for families. In addition, it supports our commitment to provide quality, livable housing options to support older adults and individuals with disabilities in the communities where they live and work. Four Winds East offers 14 units specifically designed for this purpose in Avondale, while St. Charles Villas offers more

than 100 family townhomes in Pratt City, serving more than 300 residents.

In 2022, NAM expanded its housing portfolio by adding 15 single-family homes, which comprise a portion of the newly constructed Live on 1st community and fully renovated 5th Court Cottages in Birmingham’s North Titusville neighborhood.

“NAM’s goal is to lead, serve, and add value to families’ lives by working together as a team,” says Property Manager Shirnice Hendricks.

95%

GIVING BACK & EMPOWERING PEOPLE

The Navigate team on a guided tour of The Way Station in Birmingham, Alabama

AUTHOR | CHRIS SHIRLEY

MARKETING SPECIALIST FOR NAVIGATE

2022 was a record-setting year for the Navigate Gives Back program. As the need for aid across U.S. communities continues to rise due to record inflation, the board awarded 3.1 million dollars to partner organizations across Alabama, Connecticut, Mississippi, and Virginia.

In 2022, Navigate successfully strengthened existing partnerships and created new ones. For example, Grace House Ministries in Fairfield is a first-time award recipient. The ministry provides safe, stable homes for more than 40 girls in Alabama’s Foster Care System. The Tuscaloosa Community Soup Bowl, which serves Western Alabama, is another firsttime recipient. They provide hot meals, additional food, and even hats and gloves

Learn more about Community Soup Bowl

In Jackson, city leaders estimate that nearly 2.5% of the population is unhoused. Navigate’s collaboration with Voice of Calvary Ministries and the MS Housing Partnership helps fight housing insecurity in the region. The agencies also work with families to assist with rent, mortgage, and utility bills. Our partnerships with Prairie Opportunity, Inc. in Starkville and the Catholic Charities of South Mississippi also provide the same support for residents across the state, including housing and utility assistance.

In the northeast, Navigate Gives Back reinforced strong partnerships in Connecticut with the continued support of The United Way of Central and Northeastern Connecticut, which helps struggling individuals and families. The organization helps with emergency shelters, financial assistance, transportation, prescription costs, and more. Navigate Gives Back also helps ImmaCare fund its emergency shelter and mobile outreach. In addition to providing basic needs and meals, ImmaCare helps clients secure the documents needed to move into housing.

CONNECTICUT

In the commonwealth of Virgina, our nonprofit partners work to meet the needs of everyone needing housing, including underserved populations. Sin Barreras works to educate, support, and serve Hispanic immigrants in need of housing in Central Virginia. Our continued partnership with Feed More in Richmond helps provide meals to children both after school and throughout the summer. Feed More also operates a mobile food pantry to deliver fresh foods to underserved communities. Another Navigate partner, Rescue Mission of Roanoke, offers comprehensive crisis intervention. The center offers emergency shelter, hot meals and free medical care.

Learn more about Rescue Mission of Roanoke

ALABAMA

MISSISSIPPI

VIRGINIA

Good Strong Schools: Essential to a Healthy and Strong Community

We strongly believe that well-established schools are the backbone of a thriving community. This is why since 2019, Navigate has formed a partnership with Booker T. Washington K-8, located conveniently within walking distance of our development projects in North Titusville.

Our initial contribution aided the school in launching an ACT Prep program for its eighth grade students. Since then, our collaboration has grown to encompass funding for extracurricular activities like Math and Social Justice Teams, Athletics, and Band, and providing AMSTII certification for teachers.

We are thrilled to announce that as of 2022, Washington K-8 has been removed from the Alabama Department of Education’s list of underperforming schools. We take pride in the students’ achievements and eagerly look forward to our continued partnership with the school.

Students enjoy an end-of-year ice cream social to celebrate the year’s accomplishments.