Restoration Housing 2020 Annual Report

2020 Annual Report

Strong, healthy communities that are safe, affordable, and dignified through the reuse and stewardship of our historic, built environment.

Table of Contents Letter From Isabel.............. Pg. 4

Financial Overview............ Pg. 14

Donor List.............................Pg. 6

Board Info............................ Pg. 17

Year In Review..................... Pg. 8

What’s Next......................... Pg. 18

Annual Projects...................Pg. 10

THE MISSION of Restoration Housing is to develop affordable rental properties for the benefit of limited-income families and individuals through the rehabilitation and preservation of historic architectural resources.

Together we raised

$59,445 in individual and corporate donor contributions

Together we earned

$322,000 in government and foundation grants as well as

$49,570 We welcomed four previously homeless individuals to 326 Dale Avenue for the indefinite future.

in development and management fees

foreign to me now. We were beginning construction on our fourth project, we had just closed on our fifth property, and we were well into the planning process for our third annual Preserve Luncheon. But by mid-March, like most other businesses, our organization had to quickly pivot our operations in reaction to the changing world.

Dear supporters and friends, In reflection of the year 2020, it is impossible to gain much perspective on the overwhelming and cataclysmic changes that occurred as a result of the COVID-19 pandemic. It affected all of us in such tremendous ways and it continues to affect us even if we can begin to see a light at the end of the tunnel. I am reluctant to put too much of a divide between the state of the world a year ago and where we are now as we continue to process so many of these changes.

It is, however, easy enough to say that we began 2020 with a state of optimism and excitement that feels quite 4

2020 Annual Report

That month, staff began working remotely, construction work slowed significantly to limit exposure and risk to our construction crew, and we began creating outreach efforts to donors and supporters through new digital content. We released our first Architectural Minute segment in April followed by five additional videos, with each segment focusing on a different architectural component of one of our historic restoration projects.

We also produced a virtual fundraiser - the Preserve Campaign – that took the place of our annual luncheon in September. Through video content, we welcomed supporters into our restored properties and introduced them to the people we serve and those behind our work. In many ways, this format allowed us to share our work more personally than ever before.

Throughout the year, there were many moments during the construction process of 326 Dale Avenue’s restoration that were challenging and frustrating as

they related to the pandemic - from worrying about the health and safety of the construction workers to negotiating grants, contracts, and tax credit compliance with significant personnel-related delays.

But it all ultimately felt worth it once the house was fully restored and we began welcoming tenants into their new home.

By far, the most impactful moment of the year for me occurred when I toured one of the units with a new tenant and was overwhelmed with an extreme feeling of joy as I thought of the possibilities that the unit would provide. I could sense his excitement at the potential of moving into this newly renovated space full of natural light, freshly restored floors and trim, and new appliances. He is formerly homeless, as are all the tenants of this property, but he now has a permanent home at 326 Dale Avenue coupled with the wonderful support provided through our partnership with ARCH Services. Seeing his reaction to the apartment was all that I needed to know that the fears and frustrations from earlier in the year were worth the effort.

We ended 2020 with much of the same business of a typical year - we were leasing up the units at 326 Dale Avenue, beginning stabilization work on our project down the street, closing on our sixth restoration

project, and finalizing our business plan and budget for 2021. I can’t say that we entered the new year with our usual optimism or excitement and therefore prepared accordingly with a very conservative budget, not knowing what to expect from grants or individual giving. Yet we planned, and continue to plan, for a year with the same mission and the same outcomes as we did before. We are still targeting vacant and dilapidated structures in Roanoke’s historic neighborhoods and we are still restoring them into affordable rental properties – one house at a time.

I have been heartened by how many of our donors and supporters have stayed engaged with us along this journey even when we couldn’t see or thank them in person. We have been encouraged that even in the most dire of times, our mission still resonates with the community. Thank you for your continuous belief in our mission and the work we produce. Here’s to 2021 and the hopefulness a new year brings.

Isabel Thornton Executive Director

We Couldn’t Have Done It Without You

“The values of Pinnacle align very well with the mission of Restoration Housing and our desire and ability to support affordable housing in the markets that we serve. It’s been a challenging time with the global pandemic and we want to make sure that Restoration Housing is well positioned to continue preserving historic homes and more importantly providing the affordable housing we so greatly need.”

6

2020 Annual Report

David Allen, SVP/Regional President for the SW Virginia Region Pinnacle Financial Partners

Individual Donors Jennifer & David Allen Ellen Bassett Donna Batzel Margaret & Luther Beazley G. Christian Birkett Betty Branch Sara Brooks Robert Brown Janaka Casper Liz Chilton & Bryan Collier Diana Christopolus Bob Clement Mary Bruce Clemons Joe Cobb Laura Conte Richard Cook John Cornthwait Rupert Cutler & Brenda McDaniel Jeannie & Sam Darby Janice & Larry Davidson Jill & Ben Davis

Michelle Davis Morgan Dean Larry Dickenson Nancy & David Dixon Ruth Doan Hoye & John Duckworth Frances Durden Paul Economy Lucy & Frank Ellett Diane & Bill Elliot Kandy Elliot Whitney & Mark Feldmann Thomas Fellers Robert Fetzer Jane & Peter Field Broaddus & Luann Fitzpatrick Louise Forsyth Neal Frank-Rempel Sherry Frantz Susan P. Frantz John E. Gardner III Katrina Goode Karli & Will Griffeth Frederick Gusler Ellis Gutshall Gerald Guzi Ann & Bill Hackworth Hannah Phillips Hale Judith Harrison Mary Harshfield Paul Haskins Carly & Justin Hathaway Richard Hedley Kimberly & Barry Henderson Shirley Holland Hetty & Gunther Hoyt Jill Hume Bonnie Johnson Mary Alison Jorgenson

Matt & Jess Joy Andrew Kegley George Kegley Kathy Kerkering Angela & Nathan Kerr Billy Kingery Tom & Pam Kirchner Susan & A.L. Knighton Caroline & Brandon LaCroix Cynthia & Mark Lawrence Anna & Tom Lawson Jack Lawson Wayne Leftwich Mary Jean Levin Sheryl & Ed McNally Rich McGimsey Ann Martyn & Frank O’Brien Molly Meredith Maribeth & Garth Mills Donna L. Mitchell Marie Muddiman Tom Nasta Michael & Sue Nussbaum Molly O’Dell Cyrus & Amber Pace David Parr Jr. David Peterson Waid Powell Paula Prince Rebecca & Harry Rhodes Catherine & Tack Richardson Jonathan Richardson Beth & Bill Rutherfoord Jeannie & Tom Rutherfoord Molly & Walton Rutherfoord Jennifer Sosnowski CJ Swanson Joy Sylvester-Johnson Suzanne Thorniley

Linda & John Thornton Isabel & Lucas Thornton Fiona Tower Carol Tuning Kim & Alan Turner Damon Williams Lynn & Bart Wilner MaryAnn & David Wine Jeffrey Wood

Corporate Donors Allegheny Partners LLC Boy Scouts of America Troop 17 Brown Edwards City of Roanoke Commonwealth Building Materials Community Foundation Serving Western Virginia Firefli Media Freedom First Credit Union James A. Scott & Son, Inc Lavery’s Sod Farm Lowes Home Improvement Member One Credit Union Pinnacle Financial Partners Roanoke Friend’s Meeting Townside Gardens Varsity Landscaping & Grounds Virginia Department of Housing and Community Development Wells Fargo Advisors Wells Fargo Foundation

Restoration Housing would like to recognize the critical support provided by the City of Roanoke, the Community Foundation Serving Western Virginia and the Wells Fargo Foundation in the form of COVID-19 relief funds that helped us keep the lights on and forge ahead with our missiondriven work during an uncertain time.

2020 Annual Report

7

2020

January

March

May

The City of Danville asked Restoration Housing to share their model as a possible means of rehabilitating their historic fabric.

A total of $6,595 was raised in 24-hours on Roanoke Valley Gives Day.

Restoration Housing was awarded emergency relief grants from the City of Roanoke, the Wells Fargo Foundation and the Community Foundation Serving Western Virginia in response to the pandemic.

A Year In Review

8

2020 Annual Report

February

April

820 Dale Avenue in the Belmont Historic District was acquired along with a grant from the Sam & Marion Golden Helping Hand Foundation for pre-development costs.

A new video series was launched exploring the design, construction, and stories of historic places in Roanoke.

Project Milestone

Events

News

July

September

November

December

The work of Restoration Housing was captured on film for the first time for the Preserve Campaign through the work of Alex Jones and his visual production company.

Restoration Housing launched its first ever virtual Preserve Campaign, sharing the organization’s story through the lens of staff and tenants.

A ribbon cutting celebrated the completion of four Permanent Supportive Housing units at 326 Dale Avenue.

Restoration Housing acquired its sixth property at 920 Stewart Avenue in the Belmont Historic District.

June

August

October

November

820 Dale Avenue was awarded $150,000 in Community Development Block Grant funding from the U.S. Department of Housing and Urban Development for construction costs.

A Virtual Hard Hat Tour of 326 Dale Avenue gave supporters a look at Restoration Housing’s construction process.

Restoration Housing staff and family installed landscaping, mulched, and established walkways and a parking area at 326 Dale Avenue in preparation for the arrival of new tenants.

Stabilization of 820 Dale Avenue commenced in preparation for a six-month rehabilitation in 2021.

2020 Annual Report

9

326 Dale Avenue

COMPLETE! 326 Dale Avenue is now home to four previously homeless individuals after a year-long rehabilitation. The circa 1890 Queen Anne home once belonged to one of Roanoke’s earliest mayors, Sylvester Seifert, but had suffered from decades of deferred maintenance.

The property was acquired by a preservation-minded buyer and generously gifted to Restoration Housing in the fall of 2018. Following a year of due diligence, Restoration Housing commenced construction in the fall of 2019.

10

2020 Annual Report

Before

In 2020 Restoration Housing completed construction on this 3,200 square foot home in November after a year of construction. Each of the four Permanent Supportive Housing units, one of which is ADA compliant, feature a bedroom, full bathroom, living room, kitchen, and in-unit laundry. This project was fully funded through historic tax credits, grants from private foundations, and the State Housing Trust Fund. The property is managed in partnership with ARCH Services who also provides case management to our tenants.

Acquisition & Rehabilitation Budget $5,000 from Fundraising by Restoration Housing $10,000 from Foundation Support (Truist Foundation & Sam and Marion Golden Helping Hand Foundation) $300,000 from the State Housing Trust Fund (DHCD) $173,998 from Historic Tax Credits

* Project budgets are independent of Restoration Housing for tax credit compliance purposes

After

* Project budgets are independent of Restoration Housing for tax credit compliance purposes

In 2020 Restoration Housing began the stabilization process to correct a 15-degree wall lean as well as significant water damage that rotted floor systems on both the first and second story. Once complete, contractor Square One Inc. will commence a six-month rehabilitation of the property. This project will be funded by historic tax credits and grants from private foundations and public entities, allowing Restoration Housing to complete construction with minimal debt and keep rent affordable for a single family that will ultimately occupy the space.

Aquisition & Rehabilitation Budget $17,500 from Foundation Support (Truist Foundation & Sam and Marion Golden Helping Hand Foundation) $150,000 from the City of Roanoke Community Development Block Grant Program $85,080 from Virginia Housing $10,000 from Fundraising by Restoration Housing $135,551 from Historic Tax Credits

820 Dale Avenue

UNDER CONSTRUCTION! After years of vacancy and deterioration due to a significant hole in the roof, 820 Dale Avenue is on its way to welcoming a family home in the fall of 2021. The circa 1899 Folk Victorian home was acquired by Restoration Housing in early 2020 followed by a year of due diligence.

This will be Restoration Housing’s second project in the newly created Belmont Historic District and Belmont-Fallon Target Area.

2020 Annual Report

13

Financial Overview

14

2020 Annual Report

Despite the financial upheaval that affected the world during the pandemic, Restoration Housing was able to weather the storm of 2020 largely because of a combination of the generosity of our supporters, relief grants, and from the grant funding that our organization had been awarded years prior for projects that were currently under construction. We also amended our budget in July in order to account for anticipated losses in fundraising revenue (which ended up being an accurate prediction with approximately 25% losses in fundraising dollars in 2020) as a result of the pandemic, thus limiting any anticipated growth that we had originally hoped for at the beginning of the year. Aside from limiting our growth, we were happy to just continue on in the work that we always have been doing. We were awarded Community Development Block Grant Funding from the City of Roanoke for our project at 820 Dale Avenue in Southeast. This significant grant in addition to another substantial grant from Virginia Housing and several smaller foundation grants allowed us to move forward with our rehab efforts on this house, which began in December; thus helping our organization to stay optimistic moving into 2021 with the knowledge that our most critical mission work could still continue.

0%

Revenue 8.0%

69.0%

4.5%

4.2%

Donor & Corporate Contributions $38,108

Fundraising Events $21,337

6.3%

Real Estate Development Fees $29,770

9.0%

Miscellaneous Revenue $42,875

Government & Foundation Grants $322,000

Real Estate Management Fees $19,800

0%

Investments $14

4.5% 4.2% 6.3% 8.0% 9.0%

69.0%

Expenses

57.7%

Compensation & Other Salaries & Wages $45,578

0.6%

2.0% 2.3%

4.6%

6.0%

8.9%

4.6%

4.7%

13.4%

6.0%

0.6%

Payroll Taxes $3,677

57.7%

Insurance, Banking & Legal Services $4,721

2.0% 13.4%

Information Technology $1,847

8.9%

Office Rent $7,004

4.7%

2.3%

Miscellaneous $1,598

Office Expenses $3,606

Accounting Services $10,573

Consultation Fees $452

Board Restoration Housing’s Board of Directors is comprised of a dedicated and passionate group of individuals from all across Roanoke’s various economic institutions. They not only share a commitment to affordable housing but also to the transformative effects of reducing blight and vacancy in our historic neighborhoods.

David Allen

John Cornthwait

Richard Hedley Jr.

Shirley Holland

Nathan Kerr

SVP / Regional President, Pinnacle Financial Partners SW Virginia Region

Partner, Vice President of Products

Certified Public Accountant & Partner, Brown Edwards

Vice President of Planning and Community Development, Carilion Clinic

VP & Branch Leader, Scott Insurance Roanoke

Alison Jorgensen

Walton Rutherfoord

Isabel Thornton

Lucas Thornton

Carol Tuning

Vice President, Council of Community Services

Self-Employed Private Investor

Executive Director, Restoration Housing

Managing Partner of Hist:Re Partners, LLC

Executive Director, Disability Rights and Resource Center

2020 Annual Report

17

What’s Next

EXPANDING OUR FOOTPRINT. 2021 promises to be just as eventful as the previous year with several exciting restoration projects in the works. We’ve been busy with ongoing construction on our fifth project and predevelopment work for our sixth project, not to mention once again recalibrating our signature events and expanding our outreach and education initiatives.

18

2020 Annual Report

820 Dale Avenue Restoration Housing’s fifth project is 820 Dale Avenue in the Belmont Historic District, a circa 1899 Folk Victorian home. It is slated for completion in the fall of 2021 and will be Restoration Housing’s first single-family rental property.

920 Stewart Avenue

The Preserve Campaign

Community Partnership Day

Restoration Housing’s sixth project is 920 Stewart Avenue in the Belmont Historic District, a circa 1905 Folk Victorian home.

Construction will begin in the fall of 2021 and will house two low-income families.

Restoration Housing will launch a new hybrid event, merging last year’s virtual campaign with our traditional in-person luncheon. The theme for 2021 is #StrengthInNeighbors, encouraging reinvestment in Roanoke’s underserved neighborhoods.

Community Partnership Day will once again welcome volunteers to beautify the landscaping at 820 Dale Avenue in the fall of 2021 in the spirit of giving back to the community.

2020 Annual Report

19

FOR MORE INFORMATION on Restoration Housing, please contact Executive Director, Isabel Thornton.

Tel: 540-797-0819 Email: info@restorationhousing.org www.RestorationHousing.org @RestorationHousing Restoration Housing