Annual Report 2010

“I consider Meridian Manor my home – and for a long time I felt like I’d never have one”. - Eunice Smith, Resident, Meridian Manor

Meridian Manor—Northgate Neighborhood

“Security House is wonderful. The place is clean. I live in a nice one bedroom apartment and I can afford the rent. I really enjoy my apartment. I like everyone in the building. I like being able to walk down the street and say hello to my neighbors.” - Robert Duprey, Resident

Message From the PresidentMessage From the PresidentMessage From the President

Sarah Rick Lewontin Executive Director

Tory Laughlin Taylor Deputy Director

Vaughn McLeod Director of Facilities & Construction

Leadership TeamLeadership TeamLeadership Team

Dear Friends,

Our region continues to struggle economically,

impacting many organizations doing good work. I am

pleased to report that our financial strength persists.

In 2010 Housing Resources Group maintained a solid

balance sheet and actually increased its reserves! We

are grateful for an Incredibly focused staff and

board, as well as many committed investors, donors

and lenders who see us as a high-value partner. Together we’re able to

fulfill our mission of providing excellent affordable apartments for individu-

als, families and seniors in Seattle.

Housing Resources Group is dedicated to creating great places to

live. We believe that everyone should be able to afford rent and still have

enough left over for the basics. Equally important, they should be able to

live somewhere safe, clean and well-maintained. In 2010, Housing Re-

sources Group made significant strides in creating more great places to call

home, which will preserve and add 174 apartments with affordable rents for

Seattle residents. We also invested in major maintenance projects that

lengthen the lives of our buildings and create healthier more sustainable

living environments, which is important to us and our residents.

We are committed to working with the community to expand afford-

able housing everywhere. After 30 years, we’ve amassed expertise in the

development, construction and financing of affordable housing. Every year

we help other nonprofits with this sometimes-precarious process and share

what we know about successful property management. In 2010, thanks to

the MacArthur Foundation and the City of Seattle, we completed a new

evaluation and reporting tool that makes property management more effi-

cient and effective. We are excited to share this widely with organizations

managing affordable housing. We believe this kind of collaboration and

sharing is essential to maintaining affordable rents for working people in the

region.

On behalf of all of us at Housing Resources Group, thank you for your

support, commitment and continued collaboration.

Jim Lovell

President

Board of Directors

2010 Board 2010 Board 2010 Board of DirectorsDirectorsDirectors

Marilyn Sherron

AT&T Mobility

Karen Lane

Cedar River Group

Pat Leach

HomeStreet Capital

Brent Lower

Washington Real Estate

President

James H. Lovell

Opus Law Group

Vice President

Tom Martineau

US Bank

Secretary

Virginia Anderson

Community Volunteer

Treasurer

Bryan Friend

Union Bank

Douglas Daley

Harbor Properties

Quentin Kuhrau

Unico Properties

José Quintana

Plum Creek Timber Co.

Ellen Sas

Community Volunteer

Sue Selman Director of Property Management

Susan Williams Director of Human Resources

Shelley Farber Director of Finance

Security House

Located in Belltown

“It’s not just an apartment house, it’s a

home.”

- David Sessoms Sr., Resident

HRG SnapshotHRG SnapshotHRG Snapshot

Established

1980

Since 1980 we have:

Developed

3,092 Apartments

In 2010 we:

Provided Housing to

3,037 People

Connected Services to

86 households

Managed

1,781 Apartments

We are Developing:

271 Apartments

2010 Was Another Great Year2010 Was Another Great Year2010 Was Another Great Year

John Winthrop Apartments

Located on First Hill

Housing Resources Group continues its record of success despite a challenging economy.

While some affordable housing and nonprofit organizations cut back staff and services, Housing

Resources Group maintained its strong position. Thanks to our amazing employees, board and

financial partners we ended 2010 on a high note:

95% annual average occupancy rate (97% occupancy rate on 12/30/2010)

Net cash flow for the year exceeded budgeted expectations

We provided valuable consulting services to help others expand affordable housing in Seattle. We worked with two excellent organizations: Downtown Emergency Service Center (DESC) and Mt. Baker Housing Association.

We guided DESC in the development and completion of a

new 83-unit apartment building in Seattle’s Cascade

neighborhood, where DESC will provide housing and ser-

vices to previously homeless individuals with multiple chal-

lenges, such as mental illness and addiction.

We supported Mt. Baker Housing Association in the pur-

chase and rehabilitation of a 35-unit apartment building in

Skyway,to maintain affordable rents for working people.

We delivered on our commitment to provide well-maintained, healthy homes. Our residents

should be able to live in safe, clean, well-maintained buildings. It’s what they want, and it

lengthens the life of our portfolio.

2011 will be smoke free! In 2010, we started the process to convert all of our properties

to 100% smoke-free buildings.

We managed the successful clean-up of contaminated soil at the Rose Street site, before

beginning construction. We created a sustainable living environment that will protect

ground water from future contamination.

We installed new siding and completed replacement of old windows in Security House, a

107-unit apartment building for low-income seniors in Belltown.

We completed the $1.8 million rehabilitation to increase energy efficiency and environ-

mental sustainability of Meridian Manor, which provides 109 apartments for low-income

seniors in Seattle’s Northgate neighborhood.

We expanded our portfolio, paving the way for more affordable

apartments at a time of increasing need.

With funding secure, we began construction of Rose Street

Apartments in Rainier Beach, adding 71 units to the

neighborhood in April 2011

We assumed management of the UFCW Local 21’s Sunset

House, an 82-unit HUD apartment building for seniors and

people with disabilities. HRG will purchase the building in

2011.

We identified property on Dexter Ave., suitable for about 70

apartments, which we plan to purchase in 2011.

David Sessoms Sr. has lived at

the John Winthrop apartments

since 2004. He’s been retired

since 2001 but spent many

years as a janitor at Virginia

Mason. He is an avid biker and

rides every day unless it’s

raining too hard. In 2010 he

road a total of 1,828 miles. His

goal for 2011 is to top 1,900 miles! David says, “It’s a

blessing to have affordable housing. I can afford the rent

and live in a neighborhood that has everything.”

1% 7%

9%

8%

75%

1% 2% 7%3%

87%

Revenue & Support

Expenditures

Contributions 89,800

Restricted Gifts & Grants 365,500

Development, Construction

& Property Management Fees 1,256,474

Interest & Other 555,500

Rental Income 15,614,900

Total Revenue $17,882,174

Fundraising 184,800

Administration 1,272,700

Program Expenses 1,601,900

Capital Expenditures &

Mortgage Payments 1,417,300

Building Operations 13,106,800

Total Expenses $17,583,500

As a result of our rigorous financial and property management practices, we entered 2011 in a solid financial position. In 2010 we took

steps that will contribute to our historic financial strength and provide Housing Resources Group with capital to invest in new affordable

housing units or maintain those we have:

We refinanced two properties—Graham/Terry and Vine Court—making more than $1.2 million available to preserve and im-

prove our aging apartment buildings, and to buy property.

We refined our asset management tools to improve our buildings physically and financially. We’re sharing this information

through the Housing Development Consortium, Office of Housing at City of Seattle and the Housing Partnership Network.

We remained an active advocate for affordable housing. Every year we monitor for issues and opportunities at the City and State

levels where we can advance the growth of affordable housing. In 2010 we urged the State of Washington to:

Retain the Housing Trust Fund in the very tightly restricted State budget—the State allocated $50 million for the fund.

Pass legislation exempting nonprofits from paying B&O tax on the wages of their employees working in buildings that are owned

by for-profit entities—the legislation passed in 2011 and will save HRG $15,000 per year.

“I never expected to be able to afford living in Seattle so soon. My plans for the

future have changed a lot over the years. Right now, I am excited to be where I am

and about the options that are available to me.”

- Joel M., Cascade Court

2010 HRG Financial Highlights2010 HRG Financial Highlights2010 HRG Financial Highlights

201020102010———Building on a Foundation of StrengthBuilding on a Foundation of StrengthBuilding on a Foundation of Strength

To learn more about giving to Housing Resources Group, please visit us

online at www.hrg.org or contact Sarah Rick Lewontin, Executive Director, at slewontin@hrg.org

Lifelong AIDS Alliance

Lighthouse for the Blind

Sound Mental Health

SouthEast Effective Development

Washington Families Fund

Wellspring Family Services

YMCA of Greater Seattle—Young Adult Services

YWCA of Seattle – King County - Snohomish County

Asian Counseling and Referral Service

Bill & Melinda Gates Foundation

Building Changes

Catholic Housing Services of Western Washington

Downtown Emergency Service Center

Harborview Mental Health Services

HomeStep (Church Council of Greater Seattle)

King County Developmental Disabilities Division

JPMorgan Chase

Key Foundation

The Leonard Leiberman Family Foundation

Nicholas & Diane Lovejoy

The Norcliffe Foundation

Puckett & Redford PLLC

2010 Major Contributors Thanks to the following corporations, foundations and businesses for helping us

create communities that work!

2010 Collaborative Partners

Our work is made possible through our many partners – thank you!

BioClean Inc.

Enterprise

Froula Alarm Systems

GGLO Architects

HomeStreet Bank

HRG Board & Staff

Interland Design

Rafn Company

SMR Architects

The Seattle Foundation

Union Bank

US Bancorp Foundation

Wells Fargo Foundation

“The affordability of the apartment has allowed me to live simply… to pay my

living expenses and have some leftover to enjoy this diverse city we live in. I am

able to spend some money in the neighborhood and downtown... This makes me

happier and healthier which makes me a better neighbor, employee, and parent.”

- Karen Adamson, Bellevue/Olive Apartments

Cambridge Apartments

Located on Capitol Hill

Looking forward to 2011Looking forward to 2011Looking forward to 2011

Rose Street is a new mixed-use building in the Rainier

Beach neighborhood, with 71 one– and two– bed-

room apartments for low-income individuals and

families. People living here can catch a bus in front of

the building for a straight ride to downtown Seattle.

Sunset House, located in Belltown, is an 82-unit HUD

apartment building for seniors and people with dis-

abilities. HRG will purchase the building from UFCW

Local 21 and begin rehabilitation in 2011.

Our mission is to provide excellent affordable apartments that enable low-wage working people,

their families and low-income seniors to live independently throughout their lives.

This report is printed on 15% recycled paper from post-consumer and mill waste.

When Kisha-Marie Jones moved

to Seattle, she had a difficult time

finding housing and employment.

In 2008, after living south of

Seattle for a few years, Kisha-

Marie moved into her apartment

at the Cambridge. Thanks to HRG,

she is able to live in the city close

to her job on Capitol Hill. Kisha-

Marie says, “HRG housing is

preventative. Without HRG there

would be a whole bunch of us on

the street, twiddling our thumbs. Or, we would not be able to

live in Seattle because we couldn’t afford it.”

“I feel like I am a part of the community now, putting in as much as I’m taking out.” - Kisha-Marie Jones, Resident