Fy 2016 annual report

Strength, stability and self-reliance Annual Report | Fiscal Year 2016

SAN GABRIEL VALLEY HABITAT FOR HUMANITY | FY2016 ANNUAL REPORT

Letter from the Board President

2

To our San Gabriel Valley Habitat Family, I invite you to celebrate the many highlights that are presented on the pages of this year’s Annual Report!

• The three Chestnut Homes were completed with extraordinary effort by our construction staff and volunteers. These homes were dedicated at a special ceremony held on March 12th. We thank the City of Glendale for providing funds to help offset additional costs due to the three-story design of these homes.

With joy, three families moved into their new homes in May 2016 after completing their sweat equity and homeownership training.

• In October 2015, the Board approved the Family Selection Committee recommendation for nine families to be our partners in the Desiderio Homes project.

These families include three families of Veterans who will benefit from the Legacy Gift of “Uncle” Charlie Rouchka. Existing buildings on site were finally demolished and the site conveyed by the City of Pasadena to our affiliate, after ten years of dedicated effort by our Executive Director, Sonja Yates, and our Board Member and Pro Bono Attorney, Tom Bunn. They worked with the Army, HUD and City staff to complete the Public Benefit Conveyance of 1.3 acres of land to build the Desiderio Homes. Then Roger Booth’s company graded the site, and staff prepared for the ground-breaking ceremony on

April 9, 2016. It rained that day, but rain could not dampen the excitement of the new Habitat families, staff, volunteers and all who participated on this special day.

• In all this progress to build these Chestnut and Desiderio homes (making a total of 71), the design and variance process moved forward for six more homes on Lomita Avenue in Glendale. Our architects at [au] Workshop worked diligently to design homes that will be affordable for the buyers. The Board also appointed new Family Selection Committee members including Nina Perry, Cyndi Bolander, Helen Morran-Wolf, Carolyn Flemming, Peg Rogers and me. The Committee held six Lomita information meetings with 800 attendees, reviewed 149 applications, interviewed 35 families, and visited the 18 apartments of the final families being considered. After this process, we know through experience that there is so much more need for a “hand up” to decent, affordable homeownership.

With a little help, our Habitat families can achieve so much, made possible by having a strong roof over their heads and a solid foundation under their feet. These families achieve strength, stability and self-reliance through building their shelter and paying off their mortgages. In FY 2016, four more SGV Habitat buyers paid off their mortgages, bringing the total number of local Habitat homes

that are owned free and clear to ten.

• In support of our Mission, our two Restores produced strong and growing monthly net sales.

It was a challenging year with some oppressively hot summer weather, winter’s wet days and leaks, a significant fire in a dumpster, and imminent threats of the loss of our site to a proposed Metro grade separation (now likely delayed until at least 2020). The staff persevered through all of this, and the ReStores have managed to pay all of the Atwater lease improvements and contribute to Mission Funding.

This is my last Annual Report letter as President of the SGV Habitat Board.

I will take this opportunity to thank my fellow Board and Committee Members, our volunteers, our donors, our shoppers, and most of all our dedicated and hard-working staff. I give special recognition to our staff for achieving our ninth consecutive four-star rating with Charity Navigator and a perfect 100-point score.

I hope all of you continue to support San Gabriel Valley Habitat in your own way.

Elaine Wilkerson Board President

Table of Contents Annual Report • Fiscal Year 2016 July 1, 2015 - June 30, 2016

Letter from the Board President

4

By the numbers

5

Homes. Community. Hope.

6

We build stability

7

We build self-reliance

8-9

We build strength

10-11

ReStores

11 12 - 13

every volunteer

Donate. Shop. Change a life Financials

14

Charity Navigator’s PERFECT SCORE

15

Leadership and senior staff

Building strength, stability, and self-reliance through shelter since 1990

SAN GABRIEL VALLEY HABITAT FOR HUMANITY | FY2016 ANNUAL REPORT

2

impacts our community

3

Every hand makes a difference Volunteers from all walks of life make a difference in the San Gabriel Valley

SAN GABRIEL VALLEY HABITAT FOR HUMANITY | FY2016 ANNUAL REPORT

D

riven by the vision that everyone needs a decent place to live, San Gabriel Valley Habitat for Humanity began in 1990 under John “ACE” Cain’s visionary leadership to form a local affiliate of Habitat for Humanity International.

T

hrough financial support, volunteering or adding a voice to support affordable housing, everyone can help families achieve the strength, stability, and self-reliance they need to build better lives for generations to come!

We celebrate the FY 2016 achievements highlighted below.

4,479 Volunteers lending a hand

26%

of contributions came from individual donors

45

%

of the affiliate’s operational costs were funded by our ReStores 4

F

amilies and individuals in need of a hand up partner with Habitat to build or improve a place they can call home. Habitat homeowners help build their own homes alongside volunteers and pay an affordable mortgage.

20,477 Volunteer Hours

4

more

homeowners celebrated paying off their mortgages

7

18

Exceptional Service Awards We recognized volunteers for their outstanding service. Their dedication and hard work support success for families, ReStores, and build sites.

We are grateful for their service.

Ace Cain Humanitarian Award Family Selection Committee Alice Hamrajbaian George Hernandez Darlene Hubanks Sue Koury Diane McMasters Janelle Williams

Loyal Order of the Bent Nail

more

children moved into safe, decent homes providing the foundation for bright and successful futures

Haydee Garcia John Udell Spencer Hoffman Jonathan Karp Wes Mackey

Loyal Order of Helping Hands Jaeda Velasquez Tom Cain Peg Rogers Andrew Jacobs Tsay Mark Andresen Joan Bouchard Fran Maliszewski

Homes. Community. Hope.

Habitat homebuyers must meet three primary requirements: Need for Decent, Affordable Housing:

Ability to Pay:

220,302

651

people

Mortgage payments

attended one of 7 outreach meetings

A family must demonstrate the willingness to partner with Habitat and invest Sweat Equity in their home and the homes of other partner families.

829

$

Desiderio Homes

Willingness to Partner:

Sweat Equity hours completed by future homeowners in FY2016

made in FY 2016

Lomita Homes

756

107,839

193

$

people

attended one of 6 outreach meetings

hours

Property taxes paid

by future homeowners spent in financial education classes

by homeowners in FY 2016

133

Applications received

143,754

169

$

for the Desiderio Homes, 2015

149

Applications received for the Lomita Homes, 2016

HOA dues paid

hours

by homeowners in FY2016 to maintain homes

future homeowners spent advocating for affordable housing

SAN GABRIEL VALLEY HABITAT FOR HUMANITY | FY2016 ANNUAL REPORT

Low and very low-income families currently living in substandard housing attended outreach meetings.

Habitat homes are not given away.

They are sold to partner families with a zero-interest mortgage.

Each family must demonstrate steady income and must maintain their home.

Building strength, stability, and self-reliance through shelter 5

Strength

Stability

Self-Reliance

Shelter

SAN GABRIEL VALLEY HABITAT FOR HUMANITY | FY2016 ANNUAL REPORT

Healthier, more financially stable lives With a little help, we all have the potential to stand on our own

T

he large and growing need for affordable housing in the San Gabriel Valley means that homeownership is out of reach for most low-income families. San Gabriel Valley Habitat for Humanity works to eliminate these barriers to a better, healthier, more financially stable life. Habitat homeowners help build their own homes alongside volunteers and pay an affordable mortgage.

T

he three families are first-time homebuyers who will not only make payments on a mortgage but also contribute a minimum of 500 hours of “Sweat Equity� in building their homes and those of their future neighbors. They will be long-term partners with Habitat to help others with low incomes (less than 80% of the Area Median Income) realize the dream of homeownership.

S

an Gabriel Valley Habitat for Humanity celebrated completion of affordable homes at 806 E. Chestnut Street in Glendale and held the Dedication Ceremony on March 12th.

Chestnut children ceremoniously cutting the ribbon at the Dedication Ceremony

we build 6

stability

self-reliance Congratulations, Euclid families!

Patricia Aguilar Tomasa Ramirez Maria Magallanes Fausto & Juana Vaca

I

n FY 2016, four more San Gabriel Valley Habitat buyers paid off their mortgages, bringing the total number of local Habitat homes that are owned free and clear to ten.

SAN GABRIEL VALLEY HABITAT FOR HUMANITY | FY2016 ANNUAL REPORT

we build

7

SAN GABRIEL VALLEY HABITAT FOR HUMANITY | FY2016 ANNUAL REPORT

we build

strength Homeownership Promotes Strength and Stability When Habitat families complete at least 500 hours learning construction skills and preparing for homeownership through Family Education classes, they develop confidence and pride of homeownership

I

n October 2015, the Board of Directors approved the Family Selection Committee’s recommendation for nine families to become SGV Habitat’s partners for the Desiderio Homes. These families include three veterans and their families who will benefit from the Legacy Gift of “Uncle” Charlie Rouchka.

E 8

xisting Army buildings on the site were demolished, and the site was conveyed to SGV Habitat by HUD on August 14, 2015, following nine years of dedicated effort by our Executive Director, Sonja Yates, and Board Member and Pro Bono Attorney, Tom Bunn.

They worked with the Army, HUD and City staff to complete the Public Benefit Conveyance of 1.3 acres of land to build Self-Help housing at the Desiderio site and to prepare terms of the Planned Development that includes City’s Public Benefit Conveyance of 4.17 acres from the Department of Parklands. The City parcel will become the new Desiderio Park.

B

ooth Grading and Excavating prepared the site, and staff prepared for the groundbreaking ceremony held on April 9, 2016. It rained that day, but rain could not dampen the excitement of the new Habitat

families, staff, volunteers and all who participated on this special day.

T

he former Desiderio Army Reserve Center property, located south of the Colorado Street Bridge, will be transformed by addressing two complementary priority needs in Pasadena— the need for affordable housing and the need for more open space. This Reuse Plan was approved by the Pasadena Council in 2007 and later ratified by the U.S. Army, the U.S. Department of Housing and Urban Development (HUD) and the U.S. Department of Parklands.

A

s part of the Planned Development approved by the Pasadena Council, San Gabriel Valley Habitat for Humanity will build nine affordable, singlefamily, craftsman style bungalows in a courtyard configuration. The city will build a passive neighborhood park that will include turf areas, trees, security lighting, walkways, picnic tables, benches, play equipment, drinking fountains, a restroom and a parking area.

A

t the Desiderio Launch Gala, District 6 Councilmember Steve Madison, a strong proponent of this reuse plan, shared the history of the decisions that

Together, we build homes, communities and hope SAN GABRIEL VALLEY HABITAT FOR HUMANITY | FY2016 ANNUAL REPORT

resulted in the transformational construction projects that will unfold from 2015 through 2018.

Homeownership is good for children • Children of homeowners are 116 percent more likely to graduate from college compared to children in families who do not own their homes. • 90 percent of surveyed Habitat homeowners in 44 U.S. cities said they could not have owned a home without help from Habitat.

Homeownership improves neighborhoods and strengthens communities

The Desiderio Families

9

SAN GABRIEL VALLEY HABITAT FOR HUMANITY | FY2016 ANNUAL REPORT

10

every visit is a new adventure

Two stores, two unique inventories Every purchase helps to build and repair affordable homes in the San Gabriel Valley

O L

ur two ReStores promote recycling and reuse, and they support the affordable housing mission of San Gabriel Valley Habitat for Humanity. ocally, the ReStores serve community members by receiving donations of usable building materials and selling these home improvement materials to the public at discounted prices. This year, we celebrated record-setting sales as the combined gross revenue for the Atwater Village and Azusa ReStores was over $1,800,000 for the first time since the stores were opened in 2015 and 2009, respectively. This achievement put San Gabriel Valley Habitat for Humanity one step closer to its goal of having ReStore sales cover 100% of the affiliate’s operating costs so that every donor dollar can go toward building, rehabilitating and repairing affordable housing.

H

abitat ReStores’ steady growth is enhanced by strong donations.

Habitat supporters can help by facilitating large business or corporate donations of flooring, lighting, appliances windows, doors and lumber, or by donating valuable items from remodeling projects or from clearing out household goods from garages or attic spaces.

S

an Gabriel Valley Habitat for Humanity ReStores continue to adopt measures to support the affiliate’s commitment to green practices. Donations to our ReStores of gently-used building materials, fixtures and appliances have saved tons of discarded materials from ending up in area landfills. ReStores are committed to being environmentally-responsible businesses.

The public appreciates this commitment and supports the affiliate’s ReStores.

every donation

Maria, Store Associate (Azusa)

In FY 2016, 45% of the affiliate’s operational costs were funded by our ReStores

A

strategic goal of the affiliate is to transform more lives and communities by expanding on this year’s ReStore successes. Locally and nationwide, ReStores are an integral part of Habitat for Humanity’s sustainability model which transforms lives and communities.

Each year, we see an increase in donations & revenue A few of the donations we’ve received in the past year: • Huge music collections • Early 20th century luggage • Old Building signage from the 1950s • Star Wars Lego sets • Barbershop chairs • Vintage and New appliances • Surfboards • Lowrey Synthesizer

Sales per square/foot Atwater = $53.98/square foot in FY 2016 Atwater = $38.74/square foot in FY 2015

Azusa ReStore

410 S. Irwindale Ave. Azusa, CA 91702 (626) 387-6900

---------------------------------------------Azusa = $71.92/square foot in FY 2016 Azusa = $57.97/square foot in FY 2015

SAN GABRIEL VALLEY HABITAT FOR HUMANITY | FY2016 ANNUAL REPORT

helps a local family build a decent and affortable home

Atwater Village ReStore

5201 W. San Fernando Rd. Los Angeles, CA 90039 (818) 550-7467

Pasadena ReStore closes to make way for City’s Heritage Square Development, 2015 First ReStore opens

Second ReStore opens

Replacement ReStore opens

in Pasadena,,2003

in Azusa, 2009

in Atwater Village, 2015

2003

2009

2015

11

Financials Total Revenues and Net Assets

10,000,000

ASSETS

JUNE 30, 2016

9,000,000

JUNE 30, 2015

10,000,000

9,000,000

CURRENT ASSETS Cash and cash equivalents Restricted cash SAN GABRIEL VALLEY HABITAT FOR HUMANITY | FY2016 ANNUAL REPORT

Investments Contributions receivable

8,000,000

8,000,000

$

2,984,797

Houses under construction Other assets Total current assets

840,516

961,257

5,000,000

291,896

44,000

4,000,000

220,302

232,890

3,000,000

138,223

115,011

2,000,000

2,228,540

826,552

1,000,000

6,000,000

PROPERTY AND EQUIPMENT - NET NON-CURRENT ASSETS

5,000,000

3,000,000

TOTAL ASSETS LIABILITIES AND NET ASSETS

167,486

122,283

6,880,960

5,932,193

570,013

882,290

2,439,698

2,567,950

9,890,671

9,382,433

2,000,000

Mortgage loans receivable - less current portion

1,000,000

7,000,000

9,148

7,000,000

4,000,000

3,621,052

9,203

Mortgage loans receivable - current portion ReStore inventory

$

-

2008

CURRENT LIABILITIES Accounts payable

2009

2010

24,780 –

183,877

Deferred rent liability

–

23,631

Amounts held for others Note payable - current portion Total current liabilities

129,149

74,171

106,345

106,910

77,088

73,678

337,362

490,088

Revenue

-

Note payable - less current portion TOTAL LIABILITIES

Revenue Revenue

2008

2009

2010

2011

2012

2013

2014

2015

2016

Total Expenses General & Administrative, 5%

2011

2012

2013

Fundraising, 1%

2014

2015

2016

Program Services General & Administrative Fundraising Program Services, 93%

543,510

620,598

880,872

1,110,686

Imputed interest income on mortgage loans 2%

NET ASSETS

Donated services 1%

Other Income 2%

Contributions & grants 20%

Unrestricted: Undesignated

12

NetAsset Asset Net

Support and Revenue

LONG-TERM LIABILITIES

Board designated

Net Asset

27,821

Construction payable Accrued expenses and other liabilities

6,000,000

1,404,311

2,049,543

5,729,056

4,588,649

Total unrestricted

7,133,367

6,638,192

Temporarily restricted

1,876,432

1,633,555

TOTAL NET ASSETS

9,009,799

TOTAL LIABILITIES AND NET ASSETS

$

9,890,671

ReStores sales & donations 37%

8,271,747 $

9,382,433 In-kind contributions 38%

Statement of activities San Gabriel Valley Habitat for Humanity for the year ended June 30, 2016 with summarized comparative figures for the year ended June 30, 2015

This financial information has been extracted from our audited financial statements.

A complete set of financial statements, including footnotes, is available upon request.

The complete financial statements have been audited by Goehner Accountancy.

FOR THE YEAR ENDED JUNE 30, 2016 Unrestricted

Temporarily Restricted

483,656

46,898

Total

In-kind contributions

1,876,041

–

1,876,041

1,461,132

–

1,461,132

ReStore sales and donations

1,834,352

–

1,834,352

1,448,013

–

1,448,013

Imputed interest income on mortgage loans

119,035

–

119,035

137,104

–

137,104

Donated services

50,540

–

50,540

100,383

–

100,383

Interest income

18,789

–

18,789

21,162

–

21,162

Other income

72,585

–

72,585

73,730

–

73,730

Net assets released from restrictions

89,130

(89,130)

–

278,725

(278,725)

4,743,385

242,877

4,986,262

4,003,905

(231,827)

3,772,078

$

1,014,920

Temporarily Restricted

$

$

332,007

Unrestricted

Contributions and grants

Total Support and Revenue

682,913

Total

$

$

530,554

$

–

EXPENSES: Program services

3,970,769

–

3,970,769

3,199,682

–

3,199,682

225,621

–

225,621

211,795

–

211,795

51,820

–

51,820

118,703

–

118,703

4,248,210

–

4,248,210

3,530,180

–

3,530,180

General and administrative Fundraising Total expenses

495,175

242,877

738,052

473,725

(231,827)

241,898

6,638,192

1,633,555

8,271,747

6,164,467

1,865,382

8,029,849

1,633,555

$

CHANGE IN NET ASSETS NET ASSETS, BEGINNING OF YEAR NET ASSETS, END OF YEAR

7,133,367

$

1,876,432

$

$

9,009,799

6,638,192

$

$

SAN GABRIEL VALLEY HABITAT FOR HUMANITY | FY2016 ANNUAL REPORT

SUPPORT AND REVENUE

2015

8,271,747

13

SAN GABRIEL VALLEY HABITAT FOR HUMANITY | FY2016 ANNUAL REPORT

Charity Navigator’s 4-Star Rating

PERFECT SCORE

O

ur affiliate has received nine consecutive 4-star ratings from Charity Navigator. In 2016, earning a PERFECT SCORE for sound fiscal management and commitment to accountability and transparency!

A mission you can believe in.

A charity you can trust.

San Gabriel Valley Habitat for Humanity

“

The exceptional charities on this list execute their missions in a fiscally responsible way while adhering to good governance and other best practices that minimize the chance of unethical activities. Each has earned perfect scores for its Financial Health and its Accountability & Transparency. Those two scores then translate into a perfect 100 point overall score. Less than one percent of the thousands of charities rated by Charity Navigator have earned perfect scores.

”

- Charity Navigator 14

Only one other nonprofit in our industry shares a PERFECT SCORE

Leadership and Staff Advisory Board

Staff

Elaine Wilkerson, President Greg Barsamian, Vice-President Glen Dawes, Vice-President Nicolas (Nick) Alparaz, Treasurer John Mac Lean, Associate Treasurer Andrew Pittroff, Secretary Thomas S. Bunn III David Battany Christine Bogharian Scott Carpenter Ann Dougherty George Hernandez Nimrod Johnson Bob Law Otis W. Marston Jr. David Van Wyk Emery Younes

San Gabriel Valley Habitat’s Advisory Board is a key support group which provides guidance and inspiration for the affiliate

Dr. Sonja L. Yates, Executive Director Damien Allen, Director of Construction Lindsey Lesher, Construction Superintendent Audrey Booth-Edwards, Grants & Partnerships Manager Kathy Karimi, Volunteer & Youth Programs Manager Lindsey Lottie, Marketing & PR Manager Catalina Velez, Office Manager Sayaka Ota, Accountant Sherri Cubangbang, Accounting Assistant Marty McBride, Family Services Coordinator Darla Kim, Faith Relations Coordinator

John Mac Lean, Chair Alex Agajanian Donna Baker Christopher Burau Tom Doud David Lazier Joan McCarthy Robert Picardo Vince Quinones George Smith Jeff Throop

Honorary Board Comprised of long-term supporters who have shaped and built the effectiveness of our organization. Honorary Board members are dedicated leaders who continue to support the mission and building efforts of San Gabriel Valley Habitat for Humanity Supervisor Michael Antonovich Jon Barstad Jack Conroy Merwyn Fair Charlotte Hogan Barbara Hudson Senator Carol Liu Mary Jane Macy Anthony Portantino

ReStore Staff Blue Gehres, Director of ReStores Merrick Drake, Atwater Village Manager Michael Springs, Atwater Village Assistant Manager Matt Vincent, Azusa Manager Cesar Baltazar, Azusa Assistant Manager Christopher Kahl, Procurement & Partnerships Manager

SAN GABRIEL VALLEY HABITAT FOR HUMANITY | FY2016 ANNUAL REPORT

Board of Directors

15

400 S. Irwindale Ave., Azusa, CA 91702 Office: (626) 387-6899 • Fax: (626) 387-6890 sgvHabitat.org • info@sgvhabitat.org