2008 Annual Report
Mission College Apartments undergo $8 million renovation project.
NRHA 2008 Annual Report
From the Executive Director: Under One Roof This has been an exciting year at NRHA. The Authority’s new five-year strategic plan has created a new direction with an energy and focus that’s clearly making a difference – and helping us make a difference within our community. That plan defines a new vision, mission, values and goals for the organization. Winner of a 2008 National Award of Merit from the National Association of Housing and Redevelopment Officials (NAHRO), the plan pulls together, under one roof, the full range of products, programs and services delivered by an exceptional staff that lives these values every day. Throughout the year, NRHA has made steady progress – sometimes incremental, sometimes dramatic – toward achieving these goals. This annual report provides the highlights.
Vision:
Quality housing choices in neighborhoods where you want to live.
Mission:
Provide quality housing opportunities that foster sustainable mixed-income communities.
Values:
ace it
accountability • customer service • excellence • innovation • teamwork
Accountability
Customer Service • • • •
NRHA 2008 Annual Report
Excellence
Innovation Teamwork
Goals:
Quality housing opportunities for all. Sustainable mixed-income communities. A strategic business approach. Community engagement and support.
Board of Commissioners Chairman W. Sheppard Miller, III (Chairman, KITCO Fiber Optics and President & CEO of Light Tech Fiber Optics)
Vice Chairman Peter M. Meredith, Jr. (Chairman and CEO, Meredith Construction Company)
Hattie Anderson (Norfolk Shipbuilding & Drydock Corp. (retired))
Rodney A. Jordan (Co-founder, MelaNet)
L. Robert “Bob� Layton (President, Atlantic Equipment Corp. (retired))
Robert J. Soble (President and Owner, Pottery Art Studio)
Ulysses Turner (Owner, Atlantic Apartment Rentals/Development Co.)
NRHA 2008 Annual Report
Executive Leadership Team
Left to Right: John Kownack - Assistant Executive Director for Housing Reinvention Gayle Blackstone - Real Estate Services Director Julius Norman - Workforce Development Coordinator James Gehman - Assistant Executive Director for Development Operations Richard Archer - Human Resources Director Michael Clark - Senior Real Estate Development Specialist Arlene Hinson - Client Services Director Brenda Wilson - Budget and Compliance Director Ed Ware - Communications and Marketing Director Donna Mills - Property Management Director Shurl Montgomery - Executive Director Donnell Brown - Assistant Executive Director for Housing Operations Clara Graves - Assistant Executive Director for Financial and Administrative Operations Timothy Coyle - Legal Counsel (not shown)
NRHA 2008 Annual Report
HomeNet closes more first-time buyers than any other homebuyer counseling agency in Virginia.
NRHA 2008 Annual Report
GOAL 1: Quality Housing Opportunities for All Providing quality housing opportunities has always been one of NRHA’s main goals. To that end, there was much to celebrate in 2008. HomeNet set the tone by closing more first-time buyers than any other housing counseling agency in the state – and without a single foreclosure in its seven-year history, despite surging default trends nationally. The Virginia Housing Development Authority (VHDA) announced that NRHA would receive a SPARC grant of $13 million – more than any other authority in Virginia – for financing affordable homes in the City. Over 80 first-time buyers are expected to benefit. And to top it off, NRHA achieved major milestones, raising its Housing Choice Voucher program rating to “high performer.” Robert Jennings, Director, Richmond Office of the US Department of Housing and Urban Development (HUD), remarked that “the Authority staff is to be commended for the excellent implementation and efforts.” In the asset management area, HUD Deputy Assistant Secretary Elizabeth Hanson announced that NRHA successfully transitioned its 14 multi-family assisted rental properties to site-based management, accounting and budgeting. “Congratulations on your successful submission and for the work of your agency in converting to asset management,” Hanson stated. HUD made particular note of NRHA’s diversified property management portfolio, saying that, “historically, housing authorities have not been allowed, by limited partnerships, to manage mixed-finance properties, but NRHA has the confidence of owners and investors to manage these properties.” The many personal accomplishments of NRHA residents were celebrated in June at the annual Recognition of Achievement Banquet. Some 300 residents were nominated for recognition this year. Keynote speakers were Norfolk Public Schools Superintendent Stephen Jones and the Reverend Kirk T. Houston. The Master of Ceremonies, WAVYTV news anchor Don Roberts, described the evening as a chance “to celebrate reaching the top of one mountain
NRHA 2008 Annual Report
and to let this success fuel our desire to conquer more peaks in life.” Education and workforce development are keys to the future economic prosperity of our residents. This year, youth residents received impressive college scholarships. Lake Taylor graduate and Diggs Town resident, Joseph Saenz was the first recipient of a new Norfolk Foundation scholarship, which is providing a full ride to Virginia Commonwealth University where he is studying robotics and engineering. Maury graduate Brandie McKenzie and Lake Taylor graduate Kristin Clair received Virginia Association of Housing and Community Development Officials (VAHCDO) President’s Award scholarships, and Shiaria Johnson of Lake Taylor also received a VAHCDO scholarship. Often, transportation barriers stand in the way of getting or keeping a job. Delivering a child to daycare or entry level jobs that require late hours, when public transportation is nonexistent, are just two examples. Through Hampton Roads Transit, NRHA won a $252,000 federal grant that will provide enhanced van pooling and other transportation solutions for our residents involved in workforce training.
Energy Star duplexes at Grandy Village receive 2008 Award of Merit from NAHRO.
NRHA 2008 Annual Report
GOAL 2: Sustainable Mixed-Income Communities Green building is a systems-based approach to achieving sustainable buildings that incorporate environmental considerations into every phase of the building process: design, construction, operation, maintenance, renovation and demolition. NRHA green building initiatives, with Energy Star duplexes in Grandy Village and the first affordable EarthCraft home in Hampton Roads, were recognized by NAHRO with a 2008 Award of Merit. But we are painting a much wider swath of green than that. Ground was broken October 31, 2008 for the largest green-built townhome community in Virginia. Twentyseven distinctive new townhouses, built to EarthCraft and Energy Star standards, are rising in the 1500 block of the revitalized Church Street corridor. The dwellings will start at the $155,000 price point, making them the best residential value in Hampton Roads, where new townhouses average $265,000. “Construction of Virginia’s largest green built townhome community adds one more remarkable chapter to the long and storied history of Church Street,” said Mayor Paul Fraim. A new community center at Grandy Village, providing environmental education opportunities, will meet US Green Building Council LEED-Silver certification, and a new 100-unit senior building on the drawing board will obtain a similar level. Grandy Village is also receiving significant shoreline improvements via a wetlands restoration partnership between NRHA, Hampton Roads Transit and the City of Norfolk. On another green note this year, East Beach was one of five finalists for the 2008 Land Development Visionary Award presented by Sustainable Land Development International. East Beach is a traditional neighborhood development on 100 acres of waterfront land along the Chesapeake Bay. The new-urbanist master plan of the site preserves and enhances the natural features of its location. Our communities at various stages of development are creating success stories throughout Norfolk. The $8 million upgrade to Mission College Apartments – complete with high-speed internet, a clubhouse with fitness equipment, outdoor pool and new gateway
NRHA 2008 Annual Report
treatment – typifies the Authority’s push toward quality mixed-income communities that will appeal to a broader range of incomes. The Authority is pursuing housing tax credits for similar renovations at Oakleaf Forest. In Lamberts Point, NRHA is partnering with the Retirement Housing Foundation to build 40 senior apartment residences, which will complement the Village Pointe complex completed in 2002. For the second year in a row, Park Terrace Apartments won an Award of Excellence from the Tidewater Multi-family Housing Council. Turning to Broad Creek, the 70 homeownership units are nearly all built in the Bowling Green phase. On the Northside, 20 new townhomes are complete. Despite a slow housing market, sales have been steady. In a major step for Broad Creek, the Board of Commissioners approved moving forward with the revitalization of Moton Circle, which contains 138 units on 11 acres. These units, built in 1952, would be replaced with rental and homeownership residences at a variety of price points and will accommodate those tenants who want to return to the community and meet return criteria. Following HUD approvals, demolition is expected to begin in autumn 2009. Progress continues on the Salvation Army Kroc Center, linear park and other amenities in this vibrant new community, which will be served by three light rail stations. In Wards Corner, the City has created a Special Services District for NRHA to provide residential revitalization services. Neighborhood response has far exceeded expectations. In Ocean View, a dispute over future redevelopment of a 21-acre parcel from 3rd Bay Street to 7th Bay Street was resolved. City Council decided that the area from 3rd to 5th Bay should be preserved for open space, while from 5th to 7th Bay should be used for residential development. This opens the door for NRHA to begin developing a plan for the 5th to 7th Bay site.
The Maplewoods @ Olde Huntersville is the largest green built townhome community in the state.
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NRHA 2008 Annual Report
GOAL 3: Strategic Business Approach Taking steps to meet changing requirements and make the best use of our resources requires a focused business model to effectively and efficiently deliver our products and services. Employees are our greatest resource. In that regard, a comprehensive job classification and compensation study is underway, with the assistance of Evergreen Associates, which will produce a revised pay plan, position descriptions and enhanced performance management plan. We want to make sure that we have a motivated staff and can attract and retain the best talent for our organization. Significant progress is being made toward a proposed new, consolidated NRHA office at the nine-acre 910 Ballentine Boulevard site that will truly put our staff and operations under one roof. An architectural and engineering firm has been chosen to design the new building. A new home network called ShareNet was launched. As NRHA’s new intranet, ShareNet will encourage collaboration, provide better access to information and improve efficiency across the board.
For its assisted-rental properties, NRHA is moving to energy performance contracting that will provide retention of energy savings generated, third-party financing for needed capital energy improvements and other benefits. Hampton Roads Ventures (HRV), an NRHA subsidiary, is providing New Markets Tax Credits (NMTC) that are the financial linchpin for two new office developments in Norfolk totaling $100 million. Norfolk’s economic development director told The Virginian-Pilot that, “the development would not have been possible in this economic climate without the New Markets Tax Credit Program.” Over the past five years, HRV has received NMTC awards worth $150 million from the US Treasury Department. Under a $5 million contract with Hampton Roads Transit, NRHA is providing land assembly services for The Tide light rail project. About half of the parcels have been secured thus far, with the remainder to be wrapped up in 2009.
Other 2008 strategic business approach milestones include the appointment of a new Assistant Executive Director of Housing Operations, Donnell Brown. You cannot manage what you cannot measure . A Performance Measures Team has defined and presented to the Board of Commissioners meaningful indicators that assess progress toward our strategic plan goals. A Business Centers Team has developed a preliminary prototype that will give us a better understanding of the income and expenses associated with each of the products and services offered by NRHA. Budgeting and Compliance are now under one roof and this new department is smoothing out the complex budget process, linking it to the strategic plan and coordinating 30 annual outside audits with affected departments.
Donnell Brown
NRHA 2008 Annual Report
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Students from Chesterfield Academy take part in NRHA’s American Wetlands Month event at Grandy Village.
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NRHA 2008 Annual Report
GOAL 4: Community Engagement and Support Keeping our own house in order is important, but so is reaching out to those we serve. From volunteering with our community partners to open houses, media briefings, exhibits, groundbreakings and public hearings…as well as receiving national awards and college scholarships for deserving residents, NRHA has done much to capture the public’s attention and imagination in 2008. Events and programs that engage the community and inform our stakeholders are vital to the success of NRHA. They increase awareness of our activities and offerings, and raise our profile as an industry leader. For example, Jay Fisette, Immediate Past President of the Virginia Municipal League wrote, “Each year at our annual meeting, we try to include a focus on a project of particular interest in the host city. This year’s tour of Grandy Village was one of the most successful we have had.” At the Council of Large Housing Authorities Executive Directors Annual Meeting, Shurl Montgomery shared best practices on a panel entitled, “The Road Ahead in a Challenging Environment,” alongside the Executive Directors from the Boston, Chicago, and Charlotte, N.C. housing authorities. To round out the year, NRHA received the 2008 League of American Communications Professionals Magellan Award for “Most Creative Campaign” for marketing the revitalization of Grandy Village. The campaign was also named one of the “Top 50 Communications Campaigns” of 2008, placing 19th overall out of 457 entries. Competitors included Coca-Cola, Kodak, ESPN as well as NASA and the Department of Defense. “NRHA’s entry proves to be remarkable in light of tremendous competition. Overall, we find this work to be superb,” stated LACP Managing Director, Christine Kennedy.
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NRHA has always been about making a difference in the lives of Norfolk residents through quality housing opportunities and revitalized communities. With the right programs, strategies and business practices in place, what a difference a year can make –
and all under one roof
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NRHA 2008 Annual Report
Fiscal Year (FY) 2009 Budget The FY 2009 capital and operating budget is $96.7 million. The budget represents a $7.6 million (or 7 percent) decrease over the previous year’s $104.2 million budget
NRHA FY 2009 and FY 2008 Budget Comparison Â
Total
Housing
Development
Other
FY 2009 ($)
96,671,125
66,970,516
27,509,834
2,190,775
FY 2008 ($)
104,241,544
71,084,108
33,157,436
0
$ Change
7,570,419
(4,113,592)
(5,647,602)
2,190,775
% Change
(7%)
(6%)
(17%)
n/a
Housing activities account for 69 percent ($67 million) of the FY 2009 budget. Development activities make up 28 percent ($27.5 million) and other activities make up 3 percent ($2.2 million). Budgeted expenditures for housing operations will decrease by 6 percent ($4.1 million) compared to FY 2008. Development operations expenditures will decrease by 17 percent ($5.6 million) compared to FY 2008. NRHA will receive 48 percent of its total funding from US Department of Housing and Urban Development (HUD) grants totaling $47.1 million. City of Norfolk grants account for an additional 12 percent or $11.6 million; other income, such as development fees, property management fees, bond financing fees, and tax credit equity, accounts for 11 percent ($10.7 million) of expected FY 2009 revenue. These three funding sources reflect $8.9 million, $1.3 million, and $4.5 million reductions, respectively, from the FY 2008 budget. Tenant rent payments account for 17 percent ($16.3 million) of expected FY 2009 revenue and represents a $0.5 million increase from the FY 2008 revenue budget. The remaining FY 2009 income source are reserve balances held and brought forward $11.8 million.
More FY 2009 budget detail may be found at www.nrha.us.
NRHA 2008 Annual Report
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Appendix: Statistical Summary
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NRHA 2008 Annual Report
Appendix A:
Assisted Rental Apartments
NRHA 2008 Annual Report
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Appendix B:
Multi-Family Developments
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NRHA 2008 Annual Report
Appendix C:
Single Family & Townhome Production
NRHA 2008 Annual Report
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Appendix D:
Conservation Projects
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NRHA 2008 Annual Report
Appendix E:
Redevelopment Projects
NRHA 2008 Annual Report
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Appendix F:
Senior Housing Developments
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NRHA 2008 Annual Report
Appendix G:
Assisted-Rental Housing Demographics Total households - 3327 Female heads of household - 2997 Male heads of household - 330 Female household members - 5474 Male household members - 2773 Total household members as of 12/31/08 - 8218 Age distribution: 0 to 17 years - 4150 18 to 54 years - 3049 55 to 61 years - 321 62 + years - 698
Appendix H:
Hampton Roads Ventures
(hamptonroadsventures.com)
New Market Tax Credit (NMTC) Awards:
$50 Million (2007) $35 Million (2005) $15 Million (2003)
Key Projects:
Marriott Springhill Suites – Old Dominion University Hilton Garden Inn Dumas Center for Artistic & Cultural Development Claude Moore Education Complex Historic Crispus Attucks Theatre
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201 Granby Street Norfolk, Virginia 23510-1816 Main Phone Number: (757) 623-1111 TDD for Hearing Impaired: (800) 545-1833 Fax: 757.314.2105 www.nrha.us