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2015 Annual Report

Our Mission The mission of Spokane Housing Ventures is to preserve existing and develop new

innovative housing options for families and individuals, primarily those with limited

incomes and disabilities, and to help residents access supportive services to achieve

self-sufficiency.

Our History Spokane Housing Ventures (SHV) is a private, non-profit community housing

development organization founded in 1992. SHV offers a broad continuum of

living options that range from supportive housing for the homeless, to four

bedroom apartments for large families, to senior and workforce housing.

A Letter from Our Executive Director 2015 was a landmark year for Spokane Housing Ventures, full of challenges and opportunities. We began the year anticipating that the USDA department of Rural Development would approve the merger of SHV and the Northwest Association for Housing Affordability (NAHA) that we had proposed in the fall of 2014. In January the limited partner of Hidden Pines Apartments Limited Partnership gifted their interest to SHV. That was our 5th investor exit. In February we learned that we had less than two months to move out of our corporate office space and that we needed to either pay significantly more to our landlord for a smaller space or we needed to move out. In March I negotiated a temporary move upstairs and gave notice that we would be moving out in the coming year because we needed more office space to accommodate our growth. We also began work on our first promotional videos in March, interviewing employees and residents, and preparing to encourage online charitable giving. In April we completed the 2014 financial statement audit and we filed our 2014 Form 990 with the IRS in May. Our audited financial statements presented total assets of $14 million for 2013 and 2014. That figure increased to $31 million in 2015 due to the NAHA merger. On June 1 we began managing the first two NAHA properties and we hired the Executive Director of NAHA, Sue Edick, to be our Regional Property and Asset and Manager. On June 2 we put out a request for proposal for a web developer to transform the SHV website. On June 26 we purchased the vacant office building at 2001 North Division to be our new corporate office and we formed the wholly owned subsidiary Hope & Home Team LLC. In July we emailed our first ever quarterly newsletter which many of you received. In August we took and the management of two more NAHA properties and we began working on the new website. In September we received notification from USDA that the SHV-NAHA merger was approved. We celebrated that news at the Housing Washington conference in Spokane in October by hosting a pre-conference reception and sharing a preview of the videos. The next day Sue Edick and I gave a presentation at the conference detailing the innovative parent-subsidiary model of the SHV-NAHA merger. Later that month Community Minded Enterprises signed a ten year lease to be the tenant of Hope & Home Team LLC in the eastern end of our office building. We will all remember the fateful day of November 17, 2015 for years to come. The windstorm hit and much of the City was without power. SHV staff were quick to respond, manning generators, comforting residents and delivering food. Trees came down all over the City. One fell on the roof of the community building at Clare View South and another came down at our apartments in Medical Lake but was caught by power lines and did not hit the building. Ana Matthews, our board member representing Avista Utilities was working around the clock to help Avista respond to the crisis and restore power to the City. Construction was under way at 2001 North Division and our project manager secured a generator just in time to keep construction crews moving. In December we launched our new website. For the first time people could submit an application for housing online, residents could submit maintenance requests online and we began receiving our first online donations. Construction was in full swing at 2001 North Division. At the December board meeting Ryan Jensen retired from board service and Greg Tracy took over as board president. SHV staff and board members demonstrated their commitment and resilience through all of the change and, as always, remember why we do what we do, because there are many who are less fortunate than we are who need a safe and stable place to call home.

New Faces

Sue Edick; Regional Property and Asset Manager (now the Executive Director of the Oroville Housing Authority)

Greg Tracy; Board President (retired from the SHV board in November 2016)

Jon Dawn; member of the board of directors, the finance committee and the audit committee

Rashad Gaballa; Property Management Assistant (promoted to

Regional Manager-West in July 2016)

Tony To, Fred Peck, Steve Williams and Sue Cary celebrate USDA approval of the merger

SHV-NAHA Merger On September 22, 2015, SHV and Washington State housing non-profit corporation Northwest Association for Housing Affordability (NAHA) officially entered a parent-subsidiary merger. This partnership means we will assume management of NAHA’s 357 units across 14 affordable housing properties that serve mostly rural communities throughout the state.

The first phase of this merger began on June 1st when SHV began managing two of NAHA’s Yakima County properties, Sunnyside Manor I and Grandview Square Apartments. SHV will continue to phase in taking over NAHA’s properties until January 2017, at which point the organization will have full management of the NAHA portfolio.

SHV & NAHA Consolidated Financial Reports

Audited financial statements prepared according to US GAAP consolidate

information from the SHV IRS Form 990 and the NAHA IRS Form 990

Total Assets 2015 2014

As of December 31 $31,311,922 $14,110,278

Revenue and Gains 2015 2014

Rent income $2,080,964 $1,253,481

Management fees

435,003

487,100

Interest income

110,694

106,685

Contracts

-

2,650

Donations

6,712

8,600

Grants

93,616

68,351

Forgiveness of debt

2,067

35,449

Recovery of costs

13,244

6,898

Other income

185,341

47,763

Gain on assumption of controlling interest

4,206,576

-

Net assets released from restrictions

22,209

2,791

Total $7,156,426 $2,019,768

Expenses 2015 2014

Program services

$2,929,501

$2,053,721

Administrative management

281,870

223,855

Fundraising and financial development

34,443

2,755

Total $3,245,814 $2,280,331

Looking Forward

Building on the momentum of 2015, Spokane Housing Ventures has had an eventful 2016. As January

1, 2017 approaches, we are managing over 1,100 homes in 30 communities ranging from Spokane Valley

to Goldendale, to Winthrop. We are busy preparing to take over the management of the five remaining

NAHA properties and we are in the midst of leasing up the newest property of our valued partner

Community Frameworks, West 315 Mission LLC. Our thanks go out to all of our partners, funders,

donors and supporters throughout the state and the nation and to all who give so generously to help us

make a difference.

Executive Director

December 26, 2016

2001 North Division Street, Suite 100 Spokane, WA 99207 (509) 232-0170 www.spokanehousingventures.org