ANNUAL REPORT

Anchoring Affordability

allow property owners to be very selective. Everywhere you look or listen these days It’s now nearly impossible for anyone with no you’ll hear something about the availability or or poor credit and any history of criminal affordability of housing. The current housing convictions or housing evictions to find a market is as tight as it’s ever been. Vacancy place to live. rates for rental apartments are under 3%. The vacancy rate for apartments which are This market and housing challenge is Alliance affordable ($1000/month or less) to low wage Housing’s sweet spot. Alliance fills a critical workers and very low-income adults and niche in Minneapolis’ affordable housing families is even lower. marketplace. Our units are some of the most affordable – 30-50% below market rents (and Limited rental vacancies and a luxury housing 15-20% below the affordable marketplace). building boom have put additional upward Alliance Housing also bucks the trend of pressure on rents. More affordable stringent screening criteria. We give nearly unsubsidized housing has disappeared at everyone a second chance at stable alarming rates as owners have sold off housing. Our relational and flexible manage- properties to others who can add a coat of ment practices keep properties an asset for paint, a new kitchen countertop and increase the residents and the neighborhood. the rents. According to Minnesota Housing Partnership data in their “Market Watch: A single adult on social security or Minneapolis as of March 2018”, rent has risen disability payments can rent a sleeping room 17% over the past 7 years. At the same time, from Alliance Housing for as low as $350/ wages have stagnated or dropped for those at month. Most of our residents on a fixed the lowest income brackets. The gap between income earn less than $1000/month. These high rents and low income has made it tough residents share a bathroom and kitchen. for working adults and families to afford a roof While this means giving up a bit of privacy, it over their heads. The biggest gap in afford- also mitigates isolation. Some residents work ability and available apartments is for people for a living – food service, janitorial and temp earning 30% or less of area median income service jobs. Because of the lower rent, - $19, 850 for a single adult and $28,300 for a residents who work 24 or more hours a week 2017 family of four. In addition, low vacancy rates can cover their rent. Tamika has rented a 3 bedroom apartment from Alliance Nicollet studio rents of $495 to $895/month and one- since February 2014 for her family. She is a Binder Folder bedroom rents of $528 to $1053/month. Alliance is Operator for a Twin Cities printing company and earns raising capital dollars for this important and timely project about $30,000 per year to care for herself, spouse and and hopes to break ground in 2020. 2 kids. Her rent is 30% of her income – right on target with what is suggested for us all. Alliance’s bargain rent The rent structure at 3301 Nicollet has been structured of $775 per month allows her extra discretionary income. specifically to provide high quality affordable housing Market rents in South Minneapolis average $1300 for 2 options for low income wage workers. These bedroom apartments which would take up 50% of the individuals are being priced out of the market and are family’s income. Tamika said, “We really like often the individuals in greatest need of access to public our apartment and neighborhood. My kids transit. Specifically, an individual making $10/hour (i.e. are happy and doing well. That’s what janitorial & food service workers) will be able to afford home is all about.” the units, both studios and one bedrooms, with rents at 30% Area Median Income (AMI). Individuals will be able to “My kids Chaz has been an Alliance afford this without subsidy. An individual making $12.50/ are happy and resident since May 2014. hour (i.e. child care, call center, food service management doing well. That’s He is a veteran in food workers) will be able to afford the 30% AMI units, both service – manage- studios and one bedrooms, and also the 50% AMI studios what home is all ment, cook, server and without subsidy. about.” cashier. Chaz currently earns $14 per hour as a restaurant Fortunately, despite much of this bleak news, afforable cook. He only has to work 17 housing is at the top of many political agendas. The hours per week to afford his Minneapolis mayor and many city council members were room rent, and the rest of his elected with housing at the top of the list of their earnings can go toward his priorities. Mayor Frey just announced a $40 million other needs and responsi- proposed 2019 budget for housing, a significant increase bilities, including a newborn in resources available for housing production, preserva- daughter. tion and tenant protections. City council members adopt- ed a $15/hour wage ordinance. They are also considering Alliance’s two and three-bedroom family apartments cost a whole host of policy changes from inclusionary zoning between $735 and $895/month. It would take one or two to property tax abatements that will address the housing individuals working 50 hours per week at $10 per hour to shortage and gap between rents and income. The afford the two-bedroom apartment and 61 hours to afford Governor’s Task Force on Affordable Housing just released the three-bedroom apartment at 30% of their income its findings and recommendations. These recommenda- (verses 67 or 97 hours per week at units generally tions can be a road map to addressing the many facets of considered affordable). While a stretch, many families the affordable housing crisis over the next several years. spend up to half of their income toward rent or rely on Hopefully it will widen the circle of owners, like Alliance, the wages of two or more individuals. Childcare, call who are willing to give renters a second chance and take service, food service management and personal care jobs advantage of new housing resources to anchor much are common in the $10-$13 per hour range. needed affordability in all our neighborhoods.

Alliance’s newest project at 3301 Nicollet is in the Lyndale neighborhood of Minneapolis - a community facing immense affordability pressures and the surrounding pressures of gentrification. The project’s proposed affordability is in great contrast to the current neighborhood trends. Rents for studio apartments in new, market rate, multi-family properties start at $1200/month. A single full-time worker would need to earn at least $23/ hour to afford the rent at these new properties. Existing properties are in the same range, with studio apartments ranging from $850 to $1500/month and 1-bedroom apartments from $750 to $1700/month. These rents are notably higher than the proposed Alliance Housing

2 2018 FINANCES

Statement of Activities & Changes in Net Assets (For the 12 months ending June 30, 2018)

Support and Revenue:

Contributions $204,552 Government Grants $280,628 Partnership Management Fees $2,935 Rental Revenue $1,736,223 Statement of Financial Miscellaneous Income $18,282 Position $2,242,620 (As of June 30, 2018)

Assets: Operating Expenses: Cash - Operations $403,246 Administrative & Management $100,899 Cash - Restricted $1,782,729 Fundraising $47,433 Other Receivables $85,784 Basic Needs Housing Management $643,233 Prepaid Expenses $101,249 Workforce Housing Management $1,821,523 Rental Properties, Net $21,305,596 Program Services $333,951 Other Assets, Net $20,938 $2,947,039 $23,699,542

Net Income After Debt -$100,521 Liabilities: Forgiveness & Other Changes in Net Assets Accounts Payable $85,324 Accrued Payroll & Related $23,292 Accrued Real Estate Taxes $133,859 Security Deposits $119,895 Debt $9,989,668 Deferred Notes Payable $3,187,908 Accrued Interest - Short & $685,387 Long-Term $14,225,333

Net Assets:

Unrestricted $8,045,568 Temporarily Restricted $1,428,641 $9,474,209

Total Liabilities and Net $23,699,542 Assets:

3 Alison Morse and Peter Yackel Larry Clausen Sandra Gunderson GOOD Paul and Debra Zisla Rachel and John Clevenger John and Barb Haer Barry Cohen Rolf Hage NEIGHBOR Ruth Colby Chip Halbach CIRCLE LEGACY GIFTS Mildred Collier Laurie and Dee Halberg Linda Comstock John Hannahan Mary Jo Henning AFSCME Local 34 Kathleen Conklin Claire Hanson Stacy Becker Michael Peller Steven Conrad Lyle and Cheryl Hanzal Tom Beer and Rita Doucet Deborah Cornell Staci Harbaugh Mike Brown DONORS David and Jeanne Cornish William Hefner Cermak Rhoades Architects Giving Fund Pat Helin Mary Deaner and Ehud Snir Barbara Helling Jim and Linda Comb 1 Better LLC Community Capital Jeff DeGree Mark Hennessey A Fresh Look, Inc. Kelly Delahunty Mary Jo Henning Development Bruce and Teresa Ackland Joe and Jean Crocker William and Colleen Delaney Jonathan Hill Mary Adair Callmie Dennis, Shelon Judy Hinck Flannery Construction Mary Adams Foundation for the Hachett and Shekera Nancy Hirshfield Susan Adams Loyd and Combs/Ebenezer Shalaunda Holmes Development of People Richard Loyd Frerichs Construction Fellowship SDA Church Matthew and Rose Horovitz Sharon Ahern Jessica Donahue Mark Houser Company Tom Albin Mary Gabler Gail Dorfman Jean Howell All Seasons Garage Door Krishna Dorney J.C. Miller & Sons Inc Darryl and Linda Graves Alpine Asphalt Gray Plant Mooty Foundation Greg Downer Insurance Advisors Ameriprise Financial Giving Richard Doyle Helen Jansma Hayes-Gibson International Campaign Mark and Margaret Hottinger Edina Realty Foundation JDS Development Services LLC Caralyn and Gene Anderson Highland Park Branch The John P. and Eleanor R. Barbara Jeanetta and Mark Susan Anderson Richardson David Einck Yackel Foundation Mary Ann Andreason Elmer L. and Eleanor J. Peggy Johnson Nancy Kiskis Anonymous - Patti Neir Charles and Debora Lance Andersen Foundation Tina Johnson Memorial David and Mary Emery Patricia and Russell Juvrud Dean LeDoux Thomas W. Atchison Nicole Lettner Teresa Enriquez Peggy and John Kaatz Axion Real Estate LLC Joan Ericksen Edith Kadlec Bob and Mardie Marshall Carol Bahl Richard and Kimberly Merriam Richard Esquivel Patricia Kasimor Will and Carol Baudler Bob Faulkner Todd and Cheri Kennedy David and Monica Nassif BDS Laundry National Equity Fund, Inc. Mathew and Meghan Finn Elizabeth Kiernat Zakrajsheck Virginia Becker William Fisher Bruce and Deb Kierstead Francis Neir Mariann Bentz Rick and Lisa Nelson Ed Flahavan and Susan Morris and Lana Knopf Tracy Berglund O’Leary Evelin and John Knorr NorthPoint Health and Blueberry Hill Antiques Wellness Center Gerry Flannery and Jean Maggie Knorr Kristin Brehm Henjum Benedict Kohler Ben Olk III and Kris Berggren Ann Breitenbucher Paul Gates Architects Jamey Flannery Jennifer Kotval Broen Housing Robert and Jolene Forsberg David Krall and Mary Burnison Julie Peterson Barbara Broen and Greg Dan and Lynne Rectenwald David and Carol Forsberg Martha Krikava Finzell Yvonne Forsythe Susan Lamb Rajdeep and Jasjeet Singh Henry A. Bromelkamp Fund Steven and Stephanie Smith Jim Fournier Jeremy Lane For Peace and Justice Herb and Olivia Frey Electa Lang Polly Stafford Leo and Sue Bulger Sunrise Banks Frey Foundation Candace Lang Paul and Shannon Burke Paul Gates and Marie Susan and Mark Lasoff John and Jill Trautz Buuck Family Foundation U.S. Bancorp Community Franchett Jeanne Leibel Gretchen Camp Joan Gilbertson Cara Letofsky Development Corporation Arthur Campbell U.S. Bank Ann Godfrey Jarett Lettner Andy Carlson John Goggin and Julie Juneth Lettner Watson Forsberg General Susan Carr Contractors Weighter Twin Cities LISC Alberta Carroll Hal Goldstein Jan and Charlie Lloyd Wells Fargo Foundation Centraire Heating & Air Minnesota Peter James Goldstein Kevin Locke Conditioning, Inc. Fred and Ruth Gonnerman Lockhart Family Fund Welna Hardware, Inc. Steven and Julie Christensen Richard and Debra Wicka Leota Goodney Marna Lorentz Anne Clark John and Nancy Grace Madeleine and Phil Lowry Dan and Carol Wolfe Jean Clark Michael and Sandy Wurm Andrew Grimsley

4 Lowry Hill Neighborhood Anne O’Keefe Trent Senske Turner Family Foundation Association Kari Olk Wayne Serie Clara Ueland J.A. and S.H. Madole Rita and Benedict A. Olk, Jr. Marcy Shapiro UnitedHealth Group Mahoney Ulbrich Christiansen Carolyn Olson T.J. Sheldon US Bank Foundation & Russ, P.A David Olson Sheridan Ventures LLC Verizon Foundation Marcia Mans David Orlady Lyndon and Christy Shirley Veteran’s Painting Nora Marino Gabriel Orlet Tammy Shockley Gary Vig Market Analyst Professionals Joe Palen Eleanor Skelton Tracy and Diane Vig Aaron Martin Lois and Steve Parker Eileen Smith Karen Viskochil Mary R. McCarthy Chuck and JoAnne Parsons Laura Smith Barry Vulcan Peter and Charlotte Peace Presbyterian Church Stephanie Smith Nancy Wachs McDermott Mission Group Carlotta Smith Anthony Waldera Andrew McMahon and Katie Jackie Peak Tanna and Mark Sobocinski Andrea Walker Burns Michael Peckenschneider Deanna Somvong Bettie L. Walker Mike Menner and Margaret Mary Pepin Kate Speed Dewayne and Theo Wee Grosspietsch Jim and Donna Peter St. Joan of Arc Catholic Marvin Welk Jeffrey Meyer John Pikala Community’s CARE James and Lori Wellman Chet and Miriam Meyers Mary Pincumbe Committee Wells Foundation Richard Michel Martin Plantenberg Deb Stack Jim and Sue Welna Cynthia Micolichek Ted and Mary Pouliot David Stanton Pat Welna Minneapolis Area Association Benjamin Pressgrove and Terry and Linda Starks Kristi Wermager and Mark of Realtors Foundation Katharine Cunningham Erica Steinke Gleason Minnesota Brownfields Ron and Kim Price Jim Stengel and Sandra Richard and Sandy Westby John and Pauline Mitchell Proto Labs Foundation Heidemann Western Insurance Agency, Bruce and Audrey Moe George Puzak Donna Stevermer Inc. Paul Moe and Karine Swenson Randy’s Environmental Sally Stinson Chris Wiger and Nancy Moe Services Melissa and Gregory Struve Pellowski-Wiger Jim and Carol Moller Doris Rausch Travis Sutherland Paul Williams Phil and Mary Montgomery Barbara Renshaw Jim and LaVonne Swanson Susan and Mark Williamson Bill Moore and Mary Wagner Mary Resemius Mary Swenson Michelle Lynn Wincell O’Leary Moss and Barnet Brian Rice Margaret Sylte Stanley and Ellen Wolfson Diane Mountford Richard M. Schulze Family Mike and Lynn Szurek Cathy Yandell and Mark Greg Mure Foundation Judith Takkunen McNeil Tim and Mary Nantell Alice Richardson Mark Simonson and Pat Jerilynn Young National Checking Company John and Catherine Ries Thompson Paul Zorn and Janet Petri Elizabeth Nelson Paul Roberts Susan Thompson Margaret Nelson Jeffrey Roy Thrivent Financial Services Tom and Janet Nelson RPZ Testing Thrivent Foundation for Burt Nordstrand Family Fund Sahades Family/Ebenezer Lutherans David Norton Fellowship SDA Church Michael and Dawna Tierney Elisabeth Norvik Saludos a Doris Fund Denise Toussaint Zahara Nur James Scheibel and Mary Pat Al and Parker Trostel Erika Oberpiller Lee Mike Troutman and Amy Thomas O’Connell and Gary Schokmiller Blumenshine Rebecca Heist Colleen Schwartz Eric and Gretchen Tuck

Nicki Lettner: After Jarett joined the Alliance board, I got really taken by the connection between my work as a realtor, helping people find their home, and some of the challenges Alliance tenants have in finding and establishing home. Donating some of my fees makes my work feel more purpose-filled.

5 STAFF Barbara Jeanetta, Executive Director Mariann Bentz, Donor Steward Michael Bobick, Maintenance Assistant/Caretaker Bob Bono, Property Manager Tom Geiselhart, Maintenance Tech Erica Pizarro, Christo Rey Work Study Student Audrey Preston, Tenant Service Coordinator Mary Resemius, Housing Operations Assistant Craig Spivey, Janitor/Caretaker Marv Welk, Contract Accountant

Best wishes and gratitude to Greg Lough who retired in April 2018 after working 20+ years as Alliance’s Maintenance Tech. Greg says he looked forward to a quieter phone (especially after 10pm) and camping after years of fixing leaks, repairing windows and screens and other repairs needed to keep our properties “best on the block.”

BOARD MEMBERS Mike Brown Andi Marston Kimberly Spates Lisa Buckhalton Greg Mure Miranda Walker Gail Dorfman Fran Neir Chris Wiger Anne Hurd Rick Nelson Dean LeDoux Ben Olk III *Term ended December 2017 Jarett Lettner Marcy Shapiro* Thank you to Marcy Shapiro who ably served as a board member 20+ years. Marcy led the completion of Alliance’s recent strategic planning process and was a strong policy advocacy resource.

VOLUNTEERS The Sahade Family prepares and serves dinner once per month at 2011 Pillsbury. They do it as part of their service commitment through their church, Ebenezer Fellowship SDA Church. The tenants look forward to the home cooked feast. Mrs. Sahade said “We get joy from watching guests devour the meal and appreciate everyone lending a hand to set-up and clean-up.”

Mary Ann Andreason Megan Fatheree Chuck Riesenberg Katessa Archer Mindy Hangsleben Sahade Family – Ebenezer Mariann Bentz Olivia Imbrogno Fellowship SDA Church Rose Carr Jewelean Jackson Patrick Straw Susan Carr Chris Knutson Cindy Vue Mildred Collier Anne Marie O’Keefe John Williams Callmie Dennis, Shelon Hachett & Lois Parker 11 anonymous corporate Shekera Combs – Ebenezer Patrick Presley volunteers facilitated and Fellowship SDA Church Ron Price supported by Hands on Twin Jessica Donahue Tanner Quie Cities

6 2017 Highlights

• Property management operations allowed 141 single adults and 80 families the opportunity to create homes for themselves, regardless of housing and criminal history. Average housing tenure of 4 years for single adults and 2+ years for families. 53% of adults would have been screened out by other landlords and 69% of families.

• Planned and orderly transition through end of Northside Supportive Housing for Families program in March 2018 – 100% of remaining participants continue as tenants of Alliance Housing.

• 100%, $10.6 million, funding secured for Minnehaha Commons. Due diligence through finance closing will allow construction start of September 2018 and become home for 44 elderly adults who have experienced homelessness and other barriers to housing by October 2019.

• Exceeded budget goals for individual gifts and corporate & foundation grants.

• Met operating cash reserve goals 11 out of 12 months.

Alliance Housing was born out of the vision of St. Stephens’ Catholic Church volunteers and emergency shelter staff and residents who wanted to create tangible, long term housing solutions for homeless families and individuals. The nonprofit (not religious affiliated) organization was incorporated in 1991 and took advantage of vacant and available properties at low cost in South Minneapolis. Alliance continues to honor its history by developing housing solutions for homeless, poor and other individuals who lack access to housing market opportunities.

Mission

Alliance’s work makes it possible for individuals and families to create homes for themselves, regardless of income and background by developing and managing housing that is: inclusive, affordable, relational, and flexible.

In addition, Alliance housing challenges the environment that limits our residents’ opportunities.

Values

Alliance Housing values: • Ending homelessness for our residents • Maintaining rents that are affordable for very low income people • Providing a second chance by screening people in • Practicing relational property management

7 NONPROFIT ORG. U.S. POSTAGE PAID TWIN CITIES, MN PERMIT NO. 29032 2309 Nicollet Avenue Minneapolis, MN 555404

PHONE: 612.870.2267 EMAIL: [email protected]

ANCHORING AFFORDABILITY

Please join us!

Alliance Housing’s Annual Fundraising Breakfast Thursday, September 27, 7:30-9am

Town & Country Club, 300 Mississippi River Blvd, St. Paul

RSVP by calling 612-879-7633 or emailing [email protected]

Donations always welcome: Online at: www.alliancehousinginc.org Round-up credit purchases by downloading app: https://app.roundupapp.com