Restoration Housing 2022 Annual Report

SEP 21 - OCT 19

2022 Annual Report restorationhousing.org/preserve

Strong, healthy communities that are safe, affordable, and dignified.

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 under-resourced communities through rehabilitation and stewardship of the historic, built enviornment.

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2022 Annual Report

Together we raised

$139,959 in individual and corporate donor contributions

Together we earned

$198,228

in government and foundation grants as well as

$42,513

in development and management fees We welcomed two families to 920 Stewart Avenue

a cost burden that prevents the purchase of other essentials such as healthy food and medicine.

For Restoration Housing, it is intrinsic to our mission that we provide safe, quality housing that gives dignity to our residents while also maintaining affordability that ensures our residents are never cost burdened or forced to make difficult decisions between shelter, safety, and their most essential health care needs.

Dear supporters and friends, #HousingIsHealthCare was Restoration Housing’s theme for 2022. It covered everything from our Architectural Minute series in the Spring to our fundraising luncheon in the Fall. But as with all of our annual themes, housing and health care transcends more than a single year. We have consistently seen the need for more quality affordable housing as a form of preventative health care throughout the nine years that our organization has been in operation. For many households, affordability often coincides with substandard living conditions, leading to safety hazards and health concerns. While for others the shear price of housing creates 4

2022 Annual Report

In early 2022, we began construction on our third rehabilitation project at 920 Stewart Avenue in Southeast Roanoke, a neighborhood that has been wonderfully welcoming to our work and offers many beautiful historic homes in need of restoration. We spent much of the Spring and Summer overseeing construction of the circa 1900 home and working to secure additional grant funding. Thanks to the Roanoke Valley Allegheny Regional Commission, we were able to fill all our funding needs after construction prices soared mid-year. We combined their grant (specifically for affordable housing in the region, provided by Virginia Housing) with the funding we had received the previous year from the City of Roanoke’s HOME program in addition to several other small foundation gifts, fundraising from individual donors, and Federal and State Historic Tax Credits.

By late Summer and early Fall, we were into our busiest

season of the year. We held our annual fundraiser and month-long virtual campaign; wrapped up construction on our sixth rehab project at 920 Stewart Avenue; hosted our annual volunteer event “Community Partnership Day”; and moved in two families making 50% of the Area Median Income into the newly restored historic home. Our luncheon continued to complement our #HousingIsHealthCare theme with keynote speaker Stacey Millett sharing heartfelt remarks on the indisputable correlation between dignified housing and a healthy life. Sadly, I was unable to attend as I had tested positive for COVID two days before the event.

The almost comical timing aside, it seemed somehow appropriate to highlight the need for a safe place to quarantine while discussing the dual themes of housing and health care. Three years into the pandemic and I still constantly feel the importance of safe shelter for our community’s most vulnerable populations. The need for adequate, dignified, and affordable housing is stronger than ever to address everything from mental health support to monitoring a recently discharged patient’s insulin intake.

Towards the end of 2022, our organization worked to acquire 930 Stewart Avenue, our fourth rehabilitation in Southeast Roanoke and our seventh project overall. This small “Folk Victorian” house built in 1895 features many of its original architectural details including two stained-glass casement

windows and an intricately carved front door with original door bell. We can’t wait to finish this project in 2024, when it will house a single family making between 50-60% of the Area Median Income.

This latest house will be just one affordable unit. That sometimes feels like the tiniest drop in the bucket of affordable housing when the need is both overwhelming and constantly growing. Yet I remain confident in our slow growth model. While we may not be solving the affordable housing crisis, we are changing neighborhoods and lives.

Our projects are reinvesting in underserved neighborhoods that have long lacked both public and private support. We are likewise preserving Roanoke’s character with each vacant and blighted yet historic and invaluable house restored. And finally, we are providing real homes with yards, porches, parking, and privacy…all the amenities of home that families of all incomes appreciate. #HousingIsHealthCare and, at its best, housing can also honor history and build community. Thank you for following us and supporting our work in 2022 and beyond!

Isabel Thornton Executive Director

We Couldn’t Have Done It Without You

The impact of Restoration Housing goes far beyond a single house. It has a broader impact on the overall health and well-being of the community. Investing in Restoration Housing means investing in the long-term future of Roanoke –improving one house and supporting one family at a time.

Adam Alexander, Senior Vice President – Commercial Banking Pinnacle Financial Partners 6

2022 Annual Report

Individual Donors Gretchen & Adam Alexander Jennifer & David Allen Jeb & Josephine Arbaugh Margaret Ann Ayers Mary Catherine Baldridge Elizabeth Barbour Cynthia Barnhart Dale Basahm Donna Batzel Margaret & Luther Beazley Anne Beckett Kevin & Kristine Bertholf Judy Bishop NL Bishop Alison & Andy Blanton Sara Bolster Alexander Boone Sara Brooks Robert Brown Vance Camisa Janaka Casper Liz Chilton & Bryan Collier Diana Christopolus Vice Mayor Joe Cobb Jessie Cordle Elaina Corfield John Cornthwait Maggie & Michael Cronise Rupert Cutler & Brenda McDaniel Janice & Larry Davidson Michelle Davis Stephanie & Larry Dickenson Nancy & David Dixon Ruth Doan Hoye & John Duckworth Frances Durden

Alexander Dykes Paul Economy Lucy & Frank Ellett Diane & Bill Elliot Kelly & Russell Ellis Whitney & Mark Feldmann Greg & Betsy Feldmann Jane & Peter Field Broaddus & Luann Fitzpatrick Louise Forsyth Neal Frank-Rempel Cynthia Friedlander Cynthia Gardella Rand & Jan Garrett Katrina Goode & Robert Skelton Leah Greenberg Karli & Will Griffeth Frederick Gusler Katie & Price Gutshall Ann & Bill Hackworth Nolan Hamilton Judith Harrison Mary Harshfield Jesssica Hilbish Helen & David Hill Bob Hiltonsmith Julie Ann & Jon Bradley Hodgson Shirley Holland Kai Yoshida & Kitty Hopkins Ann & William Hopkins Hetty & Gunther Hoyt Betts Jackson James & Mary Ann Johnson Bonnie & Pegram Johnson Kelly Jones Mary Alison Jorgenson Matt & Jess Joy Fred Karnas Andrew Kegley

Angela & Nathan Kerr Billy Kingery Tom & Pam Kirchner Kate Kronau Caroline & Brandon LaCroix Cynthia & Mark Lawrence Anna & Tom Lawson Whitney Leeson Betty & Edmund Lesko Mary Jean Levin Allison Link Donna Littlepage Harmon & George Logan Lauren Lumsden Andrea Martin Sheryl & Ed McNally Ann Martyn & Frank O’Brien Rosemary & William Maxwell Deborah & Thomas McDonald Ann & Garth Mills, Sr. Maribeth & Garth Mills Donna L. Mitchell Marie Muddiman-Beebe Michael & Sue Nussbaum Cyrus & Amber Pace David Parr Jr. Emily Pinkerton Charlotte Porterfield Laura & Waid Powell Shaleen & JP Powell Paula Prince Hon. Sam Rasoul Earl & Stephanie Moon-Reynolds Rebecca & Harry Rhodes Jonathan Richardson Sue Ellen Rocovich Beth & Bill Rutherfoord Jeannie & Tom Rutherfoord Molly & Walton Rutherfoord

Maria Saxton Andrew Scholz Missy Shank Susie Shullman Kim & Kelsey Simcox Jennifer Sosnowski Dr. & Mrs. Bertram Spetzler Angela Stiefbold CJ & Marc Swanson Julie & Bruce Swanson Virginia & Bill Sweet Suzanne Thorniley Linda & John Thornton Isabel & Lucas Thornton Ellen Troland Carol & Lucas Tuning Kim & Alan Turner Molly & Seth Walters Anna Williams Damon Williams MaryAnn & David Wine LaDale Winling Barry & Libba Wolfe Jeffrey Wood Lee Woody

Corporate Donors ACE Hardware – Brambleton Allegheny Partners LLC Blackbaud Giving Fund Brown Edwards Carilion Clinic Carillion Wellness Corelife Eatery Crystal’s Healing Hands Davis H. Elliot Company Firefli

Fleet Feet Roanoke Foti, Flynn, Lowen & Co. Freedom First Credit Union Fresh Market Home Depot James A. Scott & Son, Inc Kiwanis Club of Roanoke Lowes Home Improvement Member One Credit Union One Earth Landscapes Pinnacle Financial Partners PressPressMerch RGM Properties Roanoke Committee of the Colonial Dames Roanoke Friend’s Meeting Townside Gardens Roanoke Friend’s Meeting Roanoke Natural Foods Co+op Roanoke Valley Preservation Foundation Roanoke Valley-Alleghany Regional Commission Sam & Marion Golden Helping Hand Foundation Tazewell Development, LLC The Beirne Carter Foundation The Ken and Judith Joy Family Foundation Thornfield Farm Varsity Landscaping & Grounds Virginia Department of Housing and Community Development Wells Fargo Advisors

2022 Annual Report

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2022

January

March

May

The pre-development phase at 920 Stewart Avenue concluded with HUD’s sealed competitive bid process to secure a contractor.

A ribbon cutting with local officials, partners, and staff celebrated the start of construction at 920 Stewart Avenue.

Isabel Thornton and Maribeth Mills sat down with Tom Landon of Blue Ridge PBS to discuss ‘What It Takes’ to create decent, affordable housing for low-income families!

A Year In Review

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2022 Annual Report

March

April

Restoration Housing launched a threepart installment of its Architectural Minute Series on historic preservation and community health.

Long-time staff member, Pam Kirchner, retired to spend more time with grandchildren.

Project Milestone

Events

News

June

August:

September

November

A Virtual Hard Hat tour of 920 Stewart Avenue gave supporters a look at challenges and interesting finds during construction.

The RVARC Housing Development Program awarded 920 Stewart Avenue a $28,028 grant, making this project 100% subsidized.

Restoration Housing hosted its 4th Annual Preserve Luncheon and launched the Preserve Campaign exploring the theme of #HousingIsHealthCare.

A ribbon cutting celebrated the completion of our sixth project at 920 Stewart Avenue in the Belmont Historic District.

May

July

August

October

A total of $5,000 was raised in 24 hours through the Roanoke Valley’s community-wide giving day, GIVE Roanoke.

Filming for the Preserve Campaign commenced, capturing how quality, affordable housing can change the health outcomes of our community’s most vulnerable.

An entrance sign to Villa Heights was installed through a grant from the Kiwanis Club of Roanoke welcoming the neighborhood to this communal space.

Volunteers came together for the 7th Annual Community Partnership Day to beautify the landscaping at 920 Stewart Avenue in Southeast Roanoke!

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920 Stewart Avenue COMPLETE! 920 Stewart Avenue is now affordable rental housing for two families after a nine-month rehabilitation. The circa 1905 Folk Victorian home located in Southeast Roanoke was acquired by Restoration Housing in late 2020. Like most Restoration Housing properties, the home sat vacant for many years, which left walls, flooring, and interior systems heavily deteriorated despite preventative maintenance done by the previous owner. After more than a year of due diligence and pre-planning, construction commenced in early 2022 to return the home to its original two-family layout, repair all historic material, and integrate modern living amenities.

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2022 Annual Report

Before

In 2022 Thanks in large part to public and private partnerships, Restoration Housing was able to subsidize most of the construction costs in order to keep the rents affordable for low-income families (under 60% of the Area Medium Income). Funding was provided by HOME funds through the City of Roanoke’s HUD offices and a pilot program from the Roanoke Valley-Alleghany Regional Commission (in partnership with Virginia Housing). Additional funding was provided through Historic Tax Credit syndication as well as private foundation and donor support. In Fall 2022, the 2,700 square foot property welcomed two families home to the freshly rehabilitated units including new kitchens with all new appliances, granite countertops, and custom cabinetry, new bathrooms, in-unit laundry, and landscaped yard space.

Acquisition & Rehabilitation Budget $150,000 from the City of Roanoke Community Development Block Grant Program $122,445 from Historic Tax Credits $20,000 from Foundation Support (Louise R. Lester Foundation & Sam and Marion Golden Helping Hand Foundation) $32,000 from Fundraising by Restoration Housing $28,028 from Roanoke Valley-Alleghany Regional Commission’s Housing Development Program

* 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 2022 In 2022, Restoration Housing began the pre-development phase including legal, accounting, design, and financing processes. This project will be 100% subsidized through a combination of Historic Tax Credit syndication, CDBG funding, RVARC Housing Development Program funding, private foundation support, and donor support. Once complete in 2023, 930 Stewart will be a single-family rental opportunity for a low-income family (under 60% of the Area Median Income) with three bedrooms, two full bathrooms, a fully renovated kitchen, and in-unit laundry.

Aquisition & Rehabilitation Budget $126,676 from Historic Tax Credits $113,000 from the City of Roanoke Community Development Block Grant Program $44,850 from RVARC’s Housing Development Program $10,000 from Foundation Support (Sam and Marion Golden Helping Hand Foundation) $5,000 from Fundraising by Restoration Housing

930 Stewart Avenue ACQUISITION! 930 Stewart Avenue is on its way to welcoming a family home in Spring 2024!

The circa 1903 vernacular home located in Southeast Roanoke was acquired by Restoration Housing in early 2023 after many months of due diligence with construction slated to begin Fall of 2023. While this property had been lovingly looked after by its previous owners, it was vacant for many years and will need a complete overhaul to restore historic materials as well as incorporate modern interior systems and living amenities. Once complete, it will be a single-family rental opportunity for a lowincome family (60% of Area Median Income) featuring new kitchens and bathrooms, in-unit laundry, and generous yard space. This will be Restoration Housing’s fourth project in the Belmont Historic District and Belmont-Fallon Target Area and sixth affordable housing project overall.

Financial Overview

Our organization began 2022 with conservative expectations for growth, acknowledging the continued uncertainty of the pandemic combined with Executive Director Isabel Thornton’s plans to take time with her newborn twin daughters. The year progressed on budget in most aspects of operation apart from increased material and labor costs associated with construction. Thankfully, when costs exceeded our budget, we were able to find additional funding for our project at 920 Stewart Avenue through the Roanoke Allegheny Regional Commission’s Housing Development Program. We likewise found ourselves pleasantly surprised by the City of Roanoke’s newly launched Land Bank, which gave us funding for the acquisition of our next project at 930 Stewart Avenue. Both of these sources were made available through the American Rescue Plan Act, allowing our organization to bridge a daunting funding gap.

As with previous years, 2022 saw much of the same support from our generous and consistent donors, local foundations, and City of Roanoke HUD funding. Combined with historic tax credit equity and the revenue generated from our affordable housing units, Restoration Housing has diversified our sources of income quite extensively over the years. This has allowed us to remain resilient in our persistent mission to provide quality affordable housing through historic preservation.

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2022 Annual Report

0%

Revenue 47.2%

Government & Foundation Grants $198,228

19.6%

Donor & Corporate Contributions $82,450

13.7%

Fundraising Events $57,499

9.4%

10.1%

Real Estate Management Fees $42,514

10.1%

9.4%

Miscellaneous Revenue $39,496

47.2% 13.7%

0%

Investments $54

19.6%

Expenses

51.8%

5%

11.7%

4%

11.5%

1.8%

7.1%

0.9%

5.4%

0.8%

Compensation & Other Salaries & Wages $70,078

0.9% 0.8% 1.8%

4%

Accounting Services $15,850

5% 5.4%

Miscellaneous $15,515

7.1% 51.8% 11.5%

Advertising & Promotion $9,637

Office Rent $7,293

11.7%

Office Expenses $6,833

Payroll Taxes $5,361

Insurance, Banking & Legal Services $2,500 Information Technology $1,174

Consultation Fees $1,147

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

Cynthia Lawrence

SVP / Regional President, Pinnacle Financial Partners SW Virginia Region

President & Chief Operating Officer, Firefli

Certified Public Accountant & Partner, Brown Edwards

Vice President of Planning and Community Development, Carilion Clinic

Director of the Office of Workforce Development, Carilion Clinic

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

2022 Annual Report

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What’s Next

EXPANDING OUR FOOTPRINT 2023 promises to be just as eventful as the previous year with several exciting restoration projects in the works.

We’ve been busy with pre-development on our seventh project and acquisition of our eighth and ninth projects, not to mention once again planning for our signature events and expanding our outreach and education initiatives.

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2022 Annual Report

Winter 2023 The Architectural Minute series will continue with three new installments focusing on the history and present-day benefit of welldesigned, light density housing options called Middle Housing.

Spring 2023

Summer 2023

Fall 2023

A stewardship campaign for the upkeep of Villa Heights will launch in April and include landscape beautification by volunteers on Community Partnership Day.

Construction will commence at 930 Stewart Avenue in the Belmont Historic District, a circa 1905 Folk Victorian home that will house one low-income family.

The Preserve Campaign will once again be a hybrid event, merging our traditional luncheon with a monthlong virtual campaign. The theme for 2023 is #HousingForAll, exploring the need for Missing Middle Housing.

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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