Annual Report 2011–2012 HFH GLA Annual Report 2012 | 1 Mission Statement Habitat for Humanity of Greater Los Angeles builds and renovates homes in partnership with God and people everywhere with a goal of eliminating substandard housing by making decent, affordable housing a matter of conscience and action in our communities. Core Values Diversity Integrity Innovation Efficiency Global Perspective Partnership Faith-Based Leadership Sustainability HFH GLA Annual Report 2012 | 2 letter from Habitat for Humanity of Greater Los Angeles (HFH GLA) celebrated a banner year full of significant milestones, new programs, partnerships and a large expansion of our work to help us serve our community. As you read through this report, we hope you see that the support of our donors, volunteers and advocates have helped to make a lasting positive impact in someone’s life. You have helped to not only build homes, but hope and a stronger community. The impact of homeownership in the lives of our families is immeasurable and the story of Toshia Williams, our first HFH GLA homeowner to completely pay off her mortgage, is an inspiration to us all. Her story motivates us to help even more families. To address the growing need for affordable housing in our communities, we have increased and diversified our building models to not only include new home construction but also the rehabilitation of foreclosed homes. Additionally, we have expanded our repair program to specifically help our veteran community. We have been fortunate to have the support of so many who have helped us to fund these much needed initiatives. We thank each and every one of you for the contribution that you have made, from creative fundraisers to faith initiatives to our ongoing partners. All of you have been a key to our success this year. There is still more work that is needed in our local community and around the world to fulfill our mission and we hope you will continue to be a part of HFH GLA’s work! “Owning a home is a dream for most people and to be able to accomplish this dream is more than I could have ever imagined.” –Catalina Osorio, Habitat for Humanity Erin Rank Craig Russell of Greater Los Angeles Partner Homeowner President/CEO Chairman of the Board HFH GLA Annual Report 2012 | 3 “The opportunity to work alongside our neighbors and construct homes for local families shows us firsthand the impact Habitat makes on people’s lives everyday.” –Marshall Croom, Chairman Lowe’s Charitable and Educational Foundation The overwhelming need for housing has provided Habitat for Humanity of Greater Los Angeles (HFH GLA) with a unique opportunity to change lives in the neighborhoods where we work. Our service area encompasses nearly 900 square miles, including most of the City and County of Los Angeles. Los Angeles ranks as one of the least affordable housing areas in the U.S. and HFH GLA is one of the few organizations filling this need for hardworking families. Since our founding in 1990, HFH GLA has built and renovated more than 400 homes locally and plans to serve more than 200 more families in need over the next two years. HFH GLA has been recognized as the top-producing affiliate in California and has also received numerous awards for our work throughout the greater Los Angeles community, and beyond. HFH GLA Annual Report 2012 | 4 “You’re not only changing the family’s life but their children’s lives for future generations by giving them a home and hope.” –Kim McManus, HFH GLA Board Member Strategic Goals With an entrepreneurial spirit, HFH GLA has used flexibility and innovation as a creative force in the development of our 2009–2014 strategic plan; the strategic goals found here are designed to meet the needs of the families we serve, while creating a sustainable future for the affiliate. HFH GLA Annual Report 2012 | 5 Increase housing production and improve building practices: 1 Due to the downturn in the economy and a changing housing landscape in our local community, affordable housing organizations are scrambling to ease the burden. The current housing environment and the hardship suffered by the greater Los Angeles community demands that HFH GLA creatively diversify the traditional HFH building model while significantly reducing costs and improving the sustainability of our homes. Develop strategies to support existing partners and identify new funding sources: 2 Given the current economic climate in California and the widespread financial loss throughout the greater Los Angeles area, HFH GLA seeks to greatly strengthen and diversify its revenue base through a variety of methods to achieve long-term viability. Enhance the involvement of the organization, its stakeholders and partners 3 to create strong advocates: At its very core, HFH GLA is about people and the human experience. We are genuinely committed to the recruitment, development and well-being of our HFH GLA family; it is through them that we may achieve our mission to make affordable housing a matter of conscience and action in our communities. Lead community engagement through collaboration and education to propel 4 the work of affordable housing: At HFH GLA, mission success hinges upon its ability to galvanize the Los Angeles community, Goals by educating current and potential partners; we can achieve action-orientated leadership and measurable results. Build and enhance a flexible organizational infrastructure: 5 HFH GLA strives to ensure a solid organizational infrastructure by promoting excellence and growth through education and collaboration. HFH GLA Annual Report 2012 | 6 Financial Position ASSETS Cash & Cash Equivalents: $1,514,138 Prepaid Expenses, Deposits & Other Assets: $548,127 LIABILITIES Accounts Payable: $1,665,959 Accrued Expenses: $537,522 Credit Line: $1,246,692 NET ASSETS Restricted & Unrestricted Net Assets: $22,278,104 Total Liabilities & Net Assets: $30,094,571 EXPENSES Cost of homes sold & program support: $18,247,044 Management & General: $1,388,364 Fundraising: $319,290 Complete Homes To date, HFH has built over 400 homes and is expected to Total Expenses: $19,954,698 build more than 200 homes in the next three years. Operating Income: $983,045 Change in Net Assets: $10,875,222 REVENUE 15% Distribution Ratio/Functional Expense ($$s in audit report) Contributions: $3,201,022 Cost of homes sold & program Cash, Pledges & Grants: $7,215,839 support: $18,247,044 In-Kind Materials, Services & Land: $633,201 85% Management & General: $1,388,364 ReStores (donations & sales revenue): $3,506,069 Fundraising: $319,290 Total Expenses: $19,954,698 NSP Program Grants: $10,595,781 Total Contributions & Grants: $14,299,599 Program Other Income: $267,325 Management/Fundraising Houses Sold & Financed by Habitat: $923,928 Total Public Support & Revenues (Restricted & Unrestricted): $20,052,830 HFH GLA Annual Report 2012 | 7 Highlights Construction economic downturn. Using federal Through a collaborative effort, HFH ConstructionHFH GLA strives to effectively NSP funds, HFH GLA helps low GLA works towards increasing the address the growing housing crisis and very low-income families and affordable housing stock in our with comprehensive and creative individuals realize the American community by building new homes strategies through its different Dream of homeownership through wherever land is available. housing initiatives. responsible lending, creating a positive and immediate impact Home Repairs Neighborhood Stabilization throughout greater Los Angeles. HFH GLA helps low-income Program (NSP2): homeowners restore and maintain HFH GLA has partnered with local New Construction their homes through its Home cities and communities for twenty The HFH GLA traditional building Repair Program. HFH GLA’s Home years. HFH GLA understands model is to build new homes Repair Program aims to alleviate first-hand what it takes to with hardworking, low-income critical health, life and safety transform communities, wanting families and individuals in need. issues around the home. Qualified to ensure that the investment The overwhelming need for and selected homeowners receive it has in homeownership does housing in Los Angeles County has a variety of exterior home repair not fall victim to a challenged provided HFH GLA with a unique services including but not limited economy, putting more families opportunity to change lives in our to exterior painting, landscaping, and neighborhoods at risk of neighborhoods. ramps, roofing, window and door destabilization. In response, replacements. Interior repairs can HFH GLA has expanded its Cost burden and overcrowding include plumbing, electrical work, rehabilitation program by are the most serious problems insulation and ceiling repairs. partnering with The Department of experienced by very low-income Homeowners participate in their Housing and Urban Development area residents, so working repairs by contributing sweat (HUD) in the Neighborhood with volunteers, corporations, equity hours if physically able. Stabilization Program (NSP) to congregations, donors, families purchase foreclosed properties and individuals, we are able to and stabilize communities that tackle this important housing issue have suffered adversely from this throughout greater Los Angeles. HFH GLA Annual Report 2012 | 8 JohnMeet Rosenthal The first Saturday after September 11, 2001 was John Rosenthal’s first volunteer day for Habitat. He was living in New York at the time; and wanted to do something to help, Habitat had an affiliate near his father’s home in Connecticut, and they were only too happy to have an extra pair of hands. When John Highlights moved to Los Angeles in 2003, he transferred his commitment to the Habitat for Humanity of Greater Los Angeles (HFH GLA) affiliate. Green building, Habitat style ConstructionHFH GLA believes in developing affordable housing that is also sustainable. At HFH GLA “green The most memorable moment for John was about building” is defined as providing housing for people with methods, products and processes that a month before Martin Arreola and his family were lessen the detrimental impacts on the health of the human and ecological environment.