Community CENTRAL VERMONT LAND TRUST Annual Report 2013 Opening Doors to HOME.
MESSAGE FROM THE PRESIDENT OF THE BOARD AND THE EXECUTIVE DIRECTOR Thoreau said, What s the use of a fine house if you haven t got a tolerable planet to put it on? We might also say, what s the use of a fine house if no one can afford to live in it successfully? CVCLT has worked tirelessly to provide affordable housing and care for our planet through green practices. In 2013, we stepped up the challenge inherent in these questions. In this report, you will read about our efforts to be greener and hear about our stewardship of more than 500 rental apartments and mobile home lots. You ll meet our extraordinary maintenance team and CVCLT By The Numbers will give you a sense of our scale in homeownership, rental, community building and real estate development across Washington, Lamoille, and Orange County. As we choose areas of focus for this report, we always feel that so much is left behind. This year, we thought we would try to fill in some of the gaps. CVCLT has made significant progress towards our strategic plan developed in 2012. We began 2013 with an exercise that simplified our efforts over the coming years into four overarching statements of success. They are: Paul Hartmann President CVCLT is known, understood and supported CVCLT s housing is a platform for services that address poverty Through our deep community engagement, Barre is back CVCLT is strong operationally and financially This has allowed us to stay focused during times of opportunity and challenge. Some statements of success saw great opportunity and others challenges. Some experienced both. CVCLT s reaction to both opportunity and challenge is where our greatest strength lies and is how we achieve our impact now and in the future. Being known, understood and supported is in many ways our greatest challenge. Serving three counties and many municipalities makes our overall efforts more difficult to see. The small town structure of Vermont requires full engagement in each community s governance to be truly, known, understood and supported. By effectively using our strategic efforts across our service area, we have laid the groundwork for our success. Our engagement in the larger communities of our service area and statewide advocacy has been part of this work. Most recently, our efforts around branding that engaged the entire board has set the stage for a new a new name and strategic marketing plan in the coming months. CVCLT s housing as a platform for services that address poverty has made significant progress in 2013. The expansion of SASH (Support and Services at Home) from 75 participants in Washington County to 365 participants across our service area has enhanced our programming. Our collaboration with the area Continuum of Care social service agencies and housers that aid individuals and families who are poor and homeless Board of Trustees Peter Goodell Vice President Anthony Mennona Treasurer General Representative Heidi Goodrich Secretary General Representative Nancy Hanson Resident Representative Calvin Smith Resident Representative Tom Stevens Kristin Wood Resident Representative Zachary Hughes Resident Representative Jamie Spector General Representative Carl Hilton VanOsdall Lee Youngman
has been successful, including new programming that leases three units to Central Vermont Community Action Council, one unit to the Barre Housing Authority, which is subletted to Good Samaritan Haven, and one unit to Washington County Youth Services Bureau to serve homeless households in transition. Through our deep community engagement, Barre is back. Again, we have seen significant progress in 2013 toward this goal. In 2013, we moved from an organization poised to make a major impact in our most challenging community to clear successes and opportunities for greater impact. The greatest success to date lies with CVCLT being known, understood and supported in Barre, which is our largest municipality. Additionally, we are poised to develop a 28-unit housing project in downtown that will also house CVCLT offices. The challenge now is to meet the expectations. Our ability to respond to community need is limited only by time and money. CVCLT is strong operationally and financially. This statement of success both encompasses on-going success in our existing programming and the creation of adequate revenue to expand and innovate relative to our other statements of success. In other words, running a strong, successful business allows us to provide solid programming, control risks, and expand opportunities for success. All indicators of success in our financial and operational performance show we are strong. 82 mobile home lots 18 foreclosed homes purchased, rehabbed and sold with a purchase subsidy CVCLT by the numbers $50 million in community assets encompassing 22 buildings 163 single-family shared appreciation/ covenanted properties 1,693 prepared people for responsible homeownership through homebuyer education classes 12 member community Board elderly and disabled SASH participants: 365 staff of 25 70 mile service area 1,650 shepherded people through one-on-one financial counseling 1597 work orders completed annually 181 home rehabilitation loans for families across Washington, Lamoille and Orange counties 338 rental apartments In 2014 we expect to begin a steady period of growth through the end of 2015. We ll be looking for capital support for our many projects and financial support for our core programming. Focusing on our impact and managing growth will be our work. As we move through this period of change and growth, we are committed to sharing the journey with all of you. In peace and purpose, Paul Hartmann, Board Chair Eileen Peltier, Executive Director 2
MAINTAINING A HIGH STANDARD Out of all of CVCLT s lines of business, Maintenance is among the most indispensable, least glamorous and unfortunately, often overlooked departments. Even as CVCLT s portfolio has expanded over the years, the team of four maintenance technicians has risen to the challenge of answering the high demands of that growth. Lead by Director of Facilities J.C. Myers, CVCLT Maintenance employs several strategies to maintain their buildings. The goal of these efforts is to improve response times for maintenance work as well as maintain the overall quality and affordability of the properties for the long term. By establishing operative protocols and systems, hiring new staff, using new management software and opening lines of communication, several operational changes have been made that are proving worthwhile in meeting CVCLT s goal of providing safe, decent and affordable housing to Vermont residents. One operational change that has transformed the organization s ability to succeed is the use of Boston Post Property Management software. CVCLT Maintenance is able to use the BP platform to integrate, systematize, and track multiple aspects of their work. This software has helped CVCLT to create a system that tracks everything from work orders, turnovers and maintenance records to applications, tenant records and compliance documents. As a result, CVCLT s tenants receive more attention, and overall response times are quicker than ever before. Managing year to year an on-going list of capital improvements for 22 buildings used to be overwhelming. With the establishment of an annual work plan, the maintenance team is now able to both reduce capital improvement costs and more reliably stay on budget. Like everything in life, a planned response is always cheaper and more Below: Maintenance Technicians Nate Quinn, Kris Allen, Ryan Carpenter and Jack Leonard. 3
Maintenance Technician Kris Allen prepares to replace a door at Laurel St. Apartments in Barre. effective than putting out a fire. The annual work plan draws from a long term capital needs plan for each building, provides cost estimates, anticipates availability of funds to pay for the improvements or gaps where new funds need to be found, and produces an exhaustive documented record of capital work projects. In the past, the need to manage from a reactionary place (aka the fire!), did not allow the maintenance team the time necessary to create new systems that just make sense. Recently, Maintenance was able to create a system that allows for the tracking and scheduling of annual inspections and service for numerous boilers, fire panels, fire extinguishers and septic pumping, all of which can prove a daunting task. To simplify this potentially complicated process, CVCLT Maintenance now employs a database that automatically schedules and tracks all of this essential work, freeing up the maintenance staff to focus on more timely issues facing residents and buildings. In recent years CVCLT has focused on reducing the cost of operations costs and its carbon footprint by accessing energy efficiency funds to greatly improve building performance. Much of this has been accomplished through weather sealing, window replacement, mechanical equipment and controls upgrades and improving thermal barriers. Of particular significance is the installation of 18 solar domestic hot water systems, which now serve 66 percent of the buildings in CVCLT s portfolio. In the coming years, CVCLT will continue to make energy efficiency upgrades by improving thermal barriers, air sealing, and replacing windows in those few buildings in their portfolio that have not yet had these retrofits. In the next few years, CVCLT expects to be adding some 60 new units of affordable housing. The maintenance team is excited about the opportunity to use technology such as biomass heat (currently planned for projects in Waterbury and Barre). Another new technology anticipated in CVCLT s new buildings is on-line, real-time monitoring of critical building systems. CVCLT is also committed to energy efficient components such as ramping circulation pumps, exhaust fans and LED lighting. All this is critical as CVCLT prepares to grow in the coming years. The key to success for the maintenance team is to continuously look at ways to improve overall operation. Through ongoing assessments of their performance and striving to become better, Maintenance will make a strong contribution to CVCLT continuing to be one of the premier rural affordable housing organizations. Maintenance Technician Ryan steadies the new door while Kris cuts it to size. 4
is the new GREEN black In October of 2013 CVCLT s Board of Trustees supported the formation of a Green Team intended to formalize the organization s plans to improve and expand environmentally responsible practices in all lines of business. This is part of CVCLT s participation in NeighborWorks Green Organization Program, which lays out specific green criteria for participating organizations and awards successful participants with an official green designation. CVCLT s River Station Condos in Montpelier uses a domestic solar hot water system, installed in 2012. At our first Green Team meeting we spent time reviewing the requirements for the designation and realized that we had already accomplished a lot because of our organizational desire to have green buildings and green homes and a healthy workplace, explains Green Team leader Alison Friedkin. Included in these accomplishments is the installation of solar domestic hot water systems at 2/3 of the properties in our portfolio, 5 Star + Energy Star ratings at North Branch Apartments in Montpelier and Laurel St. Apartments in Barre, and a LEED for HOMES Gold certification for Laurel St. Apartments in Barre. All of CVCLT s real estate development work is done with energy efficiency in mind, from the insulation to appliances to lighting. In addition, five of CVCLT s residential buildings are now smoke-free, with North Branch Apartments adopting this status in April. 5 We were fortunate to check off a significant number of items we ve already been doing and now we are focused on incorporating some key strategies into our business. Some of these strategies include the development of a green practices implementation plan, staff training on topics such as green homes and healthy living concepts, and offering loan funds for green rehabilitation or retrofits of existing homes to make them more efficient. CVCLT also focuses heavily on implementing green technology whenever possible, providing further evidence of the organization s commitment to the environment and a sustainable future. The most recent example is the company s purchase of WegoWise, an online utility tracking tool which will enable CVCLT to analyze energy use at all of the properties in their portfolio. Wego stands for water, electric, gas, oil, explains Director of Facilities JC Myers. After we upload data on our buildings WegoWise produces charts and graphs that show how we compare with other similar buildings nationwide, what times of day and days of the month we are showing peak use, and trends over time in our energy consumption. This knowledge will allow us to make well-guided decisions about how to enhance the energy performance or our entire portfolio. Solar panels atop the roof of River Station Condos. Implementation of the new policies and procedures will take the better part of a year, after which CVCLT plans to formally apply for the green designation. Executive Director Eileen Peltier puts it simply: Having the designation is an important benchmark for CVCLT, but the real goal is the ongoing commitment to a better, cleaner, more sustainable future.
CVCLT FINANCIAL STATEMENTS FOR DECEMBER 31, 2013 ASSETS Cash REVENUE Operating 437,916 Asset and Property Management Fees 353,147 Restricted 816,934 CVCLT Rental Property 1,744,712 Subtotal 1,254,850 Development Fees Income 267,046 Accounts Receivable Donations 24,734 Revolving Loan Fund 3,354,451 Other 366,780 Grant Income - Operating 232,200 Subtotal 3,721,230 Grant Income - Program 863,818 Grant Income - RLF 157,534 Construction in Progress 146,906 HOC and Homeland Programs 48,693 Interest 1,130 Property and Equipment Revolving Loan Fund Fees 13,749 Office Equipment 45,187 Total Revenue 3,706,763 Leasehold Improvements 94,062 Land 1,636,655 Buildings & Appliances 8,553,193 EXPENSES Vehicles 68,410 Salaries 1,011,032 Accumulated Depreciation ($1,799,278) Fringe and Benefits 329,569 Accumulated Amortization ($94,062) Operating Costs 193,205 Other 36,108 CVCLT Rental Property 1,407,406 Subtotal 8,540,275 Resource Development 12,300 TOTAL ASSETS 13,663,262 RLF Program 185,548 HOC Program 67,599 LIABILITIES Total Expenses 3,206,659 Accounts Payable 71,083 Accrued Other 543,907 Notes & Mortgages Payable 2,977,372 Net Income 500,103 * TOTAL LIABILITIES 3,592,362 NET ASSETS 10,070,900 TOTAL LIABILITIES AND NET ASSETS 13,663,262 * Includes property acquisition and improvements. DRAFT AUDIT DATA INCLUDES CVCLT PROGRAMS AND WHOLLY OWNED PROPERTIES, NOT PARTNERSHIP DATA. Where Does the Money Go? Management & General Resource Development Property Management Real Estate Development 18% Homeownership 3% Real Estate Development Homeownership Center 61% Property Management 15% Management & General 3% Resource Development 6
CVCLT STAFF Jennifer Allard Chief Financial Office Kristopher Allen Maintenance Technician Norman Benoit Rehabilitation Specialist Ginger Brimblecombe Administrative Assistant Aric Brown Property Manager Ryan Carpenter Maintenance Technician Bonnie Collins Junior Accountant Pattie Dupuis Loan Fund Manager Martha Englert Deputy Director Alison Friedkin Associate Dir., Real Estate Dev. Elizabeth Genge Dir. of Property Management Cara Hansen Marketing/Outreach Coordinator Maggie Kerrin Housing Counselor Jack Leonard Senior Maintenance Technician Brenda Lovely Junior Accountant Amanda Moran-Moshinskie Staff Accountant J.C. Myers Dir. of Facilities Eileen Peltier Executive Director Chandra Pollard Dir. of Homeownership Programs Nathan Quinn Maintenance Technician Kenneth Russell SASH Coordinator Harry Sanderson Housing Counselor Rachel Shatney Property Manager Dawn Torre Compliance Specialist Jennifer Valade Administrative Assistant Two of CVCLT s SASH participants take part in the Silver Sneakers walking program in Waitsfield. The Central Vermont Community Land Trust 105 N. Main St., Suite 209 Barre, VT 05641 Tel: (802) 476-4493 Fax: (802) 479-0120 www.cvclt.org