1. Shelters CAN become Landlords… But it isn’t EASY!! Presenters: Deb Chausse, Executive Director Jennifer Sharkey, Assistant Director, Business and Development June Messina, Assistant Director, Housing and Property Management ICPH Conference: Beyond Housing 2016

2. Vision Making the mission real Complement vs. Competition Injustice of shelter: Believe it to Achieve it Who can do it better? ICPH Conference: Beyond Housing 2016

3. Marketing Board of Directors: Doable as a business endeavor BOD Gaps analysis: skill and geography Telling the story everywhere, listening to feedback Gains and Losses Building on existing success ICPH Conference: Beyond Housing 2016

4. Building Consensus/ Moving Forward Commitment to creating a new non-profit Commitment to finding and acquiring a site Pay a development consultant (or recruit one for your board of directors) Filling the board gaps Learning about public funding sources Branding! Preserve your identity ICPH Conference: Beyond Housing 2016

5. Becoming a Developer: Language and Lingo Site Control Real Estate Market Information Sources and Uses (Acquisition, Construction, Operations) Soft Costs vs. Hard Costs Relocation Requirements Management Plan (Business, Property, Services) Fair Housing And more… ICPH Conference: Beyond Housing 2016

6. So, you’ve identified a site: Pre-development Activities Zoning Land Survey (ALTA) Environmental (Phase I, Hazmat) Community Engagement/Support Operating Subsidies and Compliance (Federal vs. State Contracts) Engineering (Structural, Systems) Appraisal Architectural Schematics ICPH Conference: Beyond Housing 2016

7. Here’s what you’ve spent: $30,000-45,000 Land Survey = $3500 Environmental Phase I = $3000 Phase II = ??? Hazmat = $4000 Engineering = $5000-10,000 Appraisal = $2000 Architectural Schematics = $2000 Housing Consultant = $5000-10,000 Legal Fees = $5000-10,000 ICPH Conference: Beyond Housing 2016

8. Now, you wait… Oh, and during all of this time, you still have shelter programs to operate ICPH Conference: Beyond Housing 2016

9. Good News! You’ve been funded! What did you get and from Whom? State Housing and Community Development Housing Innovation Funds (HIF) Housing Stabilization Funds (HSF) Housing Preservation and Stabilization Trust Fund (HPSTF) City Grants HUD (McKinney-Vento) HOME Funding Community Development Block Grants (CDBG) ICPH Conference: Beyond Housing 2016

10. Good News! You’ve been funded! What did you get and from Whom? Private Sources Mortgage Loans Foundation Grants Fundraising ICPH Conference: Beyond Housing 2016

11. WHEN do you get it? And what do you do while you wait? Bridge Financing: Received from quasi-state agency created for this purpose Banks (Community Reinvestment Act) Private Lending Institutions ICPH Conference: Beyond Housing 2016

12. Development/Construction Environmental Remediation (if needed) Architectural Plans & Construction Documents Request for Proposal to hire a General Contractor (funding requirements) Establish a Selection Committee (to decide on General Contractor) Scheduling/Staffing weekly construction meetings (will likely include a representative from your funders) ICPH Conference: Beyond Housing 2016

13. Development/Construction Requisitions (to submit for construction payments, aka “draw downs”) Change Orders: Any change from the original construction plans (submitted by the Contractor at weekly meetings for approval – should be avoided and are costly) Most significant construction projects take about a year ICPH Conference: Beyond Housing 2016

14. Ownership and Business: The Marriage of House of Hope and House of Hope Housing House of Hope Housing has no employees House of Hope Housing and House of Hope Shelter have contractual relationships House of Hope Shelter bills House of Hope Housing for monthly services House of Hope Housing’s almost exclusive source of operating income is rental subsidies ICPH Conference: Beyond Housing 2016

15. Operating Expenses Property Management Maintenance/Repairs Utilities Property taxes Insurance Vacancy Administrative costs Management fee Audit fees Legal fees Program expenses Supportive Services ICPH Conference: Beyond Housing 2016

16. The Relationship of Property Management and Support Services A shared sense of mission using a team approach with clearly defined roles and responsibilities Lease compliance is the primary tool Housing stability for the tenants and the property is the primary goal Business is separate from Advocacy (good cop/bad cop) Every relationship is important Maintenance employees Housing Advocates Housing Program Manager Business Manager Director of Case Management Assistant Director, Housing and Property Management ICPH Conference: Beyond Housing 2016

17. Outcomes As of December 31, 2015, our portfolio of 22 units (4 properties) had only $940 in accumulated arrears No vacancy in over 2 years Only 1 court ordered eviction since 2005 1 tenant has purchased her own home 48 children live in our buildings And more… ICPH Conference: Beyond Housing 2016

18. Final Word House of Hope Shelter and House of Hope Housing is a community and a team Our teammates extend beyond our local community supporters in Lowell to the individuals representing their state agencies Our 24/7 commercial to our community is our commitment to curb appeal. It is our tangible way to say thank you to all Transferable skills Don’t be overwhelmed! Throw a PARTAY when it’s done!! ICPH Conference: Beyond Housing 2016

19. The Results: