Capitol Hill Housing Portfolio Assessment Presentation at AHMA/ARHC Conference April 23, 2014 Jill Fleming Brad Lange

Capitol Hill Housing Founded in 1976 Functions as Community Development Corporation on Capitol Hill, Seattle Owns and operates 44 buildings encompassing 1,197 units 88 units under construction Additional development opportunities in pipeline

History of Asset Management at CHH 2007—Created Asset Management Department Capital Needs Assessments Partial Portfolio Assessment 2013– Asset Management 2.0 Bubble charts and Action Plans

Portfolio Assessment Goal is to provide assessment of portfolio for Board and Senior Management decision making. Evaluated three aspects of each property: Net Income Mission Alignment Financial Sustainability

Mission-Income Matrix

Bubble Scattergram

Scattergram Snapshot in time. Goal is to move properties to Quadrant I. This methodology based on the book Nonprofit Sustainability by Bell, Masaoka, Zimmerman

Quadrant I– Star Properties

Quadrant II– Heart Properties

Quadrant IV– Cash Positive

Quadrant III– Unhappy Properties

Financial Performance Measure Used Net Income as measure of financial performance Adjusted so fee income to CHH is included as Net Income

Net Income

Mission Alignment Settled on five factors: Location, Affordable Housing, Community, Pedestrian Oriented Activities, Building Design.

Financial Sustainability Used projected capital expenditures from Capital Needs Assessments for next seven years. Developed score to compare properties. Size of dot based on score.

Bubble Scattergram

Action Plans Purpose is to provide strategic road map for each property Provide framework to improve property operations. Staff buy in for improvements and timing.

General Building Info Financials including per unit comparisons Capital Needs/ Financial Sustainability

Mission Score Survey resultsTurnover Info Comments Steps to improve property across each metric Goal and timetable

Questions? us at: Jill Fleming- Brad Lange- Thanks for your time!