Financing unique housing solutions

THAnkS TO OuR mulTiFAmily lenDing pARTneRS:

Connecticut Community BankDarien Rowayton BankFirst County BankHudson City Savings BankNewtown Savings BankPeople’s United BankSavings Bank of DanburyUnion Savings BankWebster BankThe Wilton Bank

DemAnD FOR RenTAl HOuSing in CT is rising due to the uncertain economic climate and the increasingly steep cost to familes of purchasing home. However, fair market pricing puts many homes out of reach for low- and moderate-income families.

Connecticut’s rental prices are the 6th highest in the nation. In 2011, Connecticut ranked 50th in housing units built per capita, consistent with a trend stretching back over the last decade. In 2012, affordable housing comprised 10% or more of the available housing stock in only 29 of 169 CT towns and cities.

With the support of the state, and the help of agencies like HDF, these issues are being addressed. So far in 2012, there has been a modest increase in monthly building permits issued, much of it for multifamily housing.

HDF’s MultifaMily lending PrograM offers long-term, below-market-rate financing to developers who build or renovate affordable housing for low- and moderate-income households, including multifamily housing, seniors housing, and special needs housing.

Because of their terms, we were able to finance the costs of the energy efficiency upgrades into the HDF lending program. This allowed us to provide additional energy-saving improvements and achieve Energy Star Certification for our project. It was a win-win for everyone involved.”

- JOHn FARley, dEVELOPER Of 41 GRand StREEt, danbuRy Ct

146 affordable homes created or preserved by HDF this fiscal year

$59.1 million invested through HDF in CT affordable multifamily housing

“

FOReClOSuRe COnTinueS TO lOOm for Connecticut’s unemployed population and remains a very real threat for many of Connecticut’s low- and moderate-wage workers who fear that a medical event or job loss could easily and quickly throw their finances into crisis. Foreclosure filings in CT appear to be increasing once more, with more than 13,000 new filings in our service area in 2012.

With the foreclosure intervention PrograM, HDF counsels these struggling families so that they can avoid financial hardship by understanding their options and choices in the often-complicated foreclosure process.

HDF was so helpful - thanks to my counselor, I am still in my home today. My family was one step away from being homeless, and this program turned my house around. I am so thankful.”

- hdf fORECLOSuRE IntERVEntIOn CLIEnt

new foreclosure filings in our service area in 2012

13,000+

understanding the choices that lead from a crisis to a stable future

HDF BelieVeS THAT FiRST Time HOmeBuyeRS HAVe A RigHT to a safe, secure, and affordable home and the guidance which will help them obtain it. Too many Connecticut families struggle to afford a decent place to live - 66% of CT towns are deemed “not affordable.”

Since 1989, HDF has helped over 7,000 families looking to purchase their first home through our unique and effective first-tiMe HoMebuyer PrograM. Our education and counseling services for low- and moderate-income families ensure that potential homebuyers are ready and able to realize their dreams of homeownership in a responsible and sustainable way.

Thanks To our smarTmove lending

parTners: Citibank

Connecticut Community Bank Fairfield County Bank

First County BankFirst Niagara Bank

Hudson City Savings BankNaugatuck Savings Bank

Newtown Savings BankPeople’s United Bank

Savings Bank of DanburyStamford Mortgage Company

Union Savings BankThe Wilton Bank

Webster Bank

In 2012, HDF’s Smartmove downpayment assistance loan fund grew to

and leveraged first mortgages

totalling over

66%

With HDF’s help, I have been able to become the first homeowner in my family for generations, with the satisfaction of being able to leave something behind for my son.”

- DeAnnA J., Stamford homeowner“

“

$54 MM

$249 MM

CHARTing the way to a stable home

seeking neW SOluTiOnS FoR haRdwoRking Families

CT households struggle to pay their energy bills each year. 59% of CT homes were

built before 1970.300kin SpRing OF 2012, HDF brought together leaders from business, municipal, and nonprofit agencies for the MegaCommunities simulation, designed to uncover new ways to promote wide-scale adoption of energy efficiency measures among residential customers in Connecticut.

With support and knowledge stemming from continuing collaboration, HDF defined a solution.

The cozy HoMe loan will help households with <80% of AMI to finance energy improvements to their properties.

FALL2011

SPRING2012

SUMMER2012

FALL2012

WINTER2012

Secured Megacommunities grant from NeighborWorks America

Conducted Simulation event at Rentschler Field, in partnership with Booz Allen Halmilton and NeighborWorks America. 80 organizations participate.

Workshop on best practices is held at Pura Headquarters in New Britain; Working Groups are formed.

Working groups craft guidance for state energy planning process

Cozy Home Loan Program recieves CEFIA Innovations Award

COzy HOme lOAn Timeline

HigH quAliTy AFFORDABle RenTAl HOuSing is an urgent need in our communities. Connecticut’s cities have an abundance of 2-4 family homes perfect to fill this need, but these properties are often neglected by absentee owners.

In late 2011, HDF recieved grants to fund the development of the landlord entrePreneursHiP and affordability PrograM (leaP), which will encourage owner occupancy and sustainable development by providing financing, training, and support for new landlord entrepreneurs in target communities.

Benjamin & Gold, P.C. • Booz Allen Hamilton • Bureau of Aging, Community, and Social Work Services • Business Council of Fairfield County • Centerbrook Architects • CERES • Chandler LLC • CitiBank NA • Clean Energy Finance and Investment Authority (CEFIA) • Clean Energy Finance Center • Clean Energy Works Oregon (CEWO) • Clean Water Action • Competitive Resources, Inc. • Connecticut Association for Community Action • Connecticut Housing Investment Fund • Connecticut Legal Services • Consultant to the EEB • CT Center for Advanced Technology • CT Consumer Protection • CT Department of Public Health, Lead and Healthy Homes Program • CT Development Authority • CT Energy Efficiency Board • CT Energy Efficiency Fund • CT Fund for the Environment • CT Housing Coalition • CT Housing Finance Authority (CHFA) • CT Housing Investment Fund (CHIF) • CT Innovations, Inc. • CT Legislature • CT Light & Power/Yankee Gas • CT Municipal Electric Energy Co-Operative (CMEEC) • CT Office of Policy and Management • CT State Senate • CT Technology Council • CTE, Inc. • Darien-Rowayton Bank • DECD • Department of Consumer Protection • Department of Energy and Environmental Protection (DEEP) DSS • Earth Markets • EEB Consultants • Efficiency 2.0 • Efficiency Maine • Electrical Department, Third Taxing District of the City of Norwalk • Energy Efficiency Board, Environment NE • Energy Futures Group • EnergyPRZ, LLC • Enterprise Community Investment • Environment Northeast • Fannie Mae • First County Bank • Gemstone Group • Governor’s Office • Home Energy Solutions Loan Program • Housing Partnership Network (HPN) • I Squared Community Development Consulting, Inc. • Independent CT Petroleum Association (ICPA) • Interfaith Council • JHM Financial Group, LLC • Jonathan Rose Companies • LAMPP Project, CT Children’s Medical Center • Lantern Energy • Manufactured Home Owners Association of America • Mass Save HEAT Loan • Michigan Saves Home Energy Loan Program • National Center for Healthy Housing • National Housing Institute/Shelterforce Magazine • National Housing Trust • NEEP (Northeast Energy Efficiency Partnerships) • Neighborhood Housing Services of New Haven, Inc. • NeighborWorks America • New England Conservation Services • New England Smart Energy Group • New Opportunities • New York State Energy Research and Development Authority (NYSERDA) • NextStep Living • Northeast Energy Efficiency Partnerships (NEEP) • Northeast Utilities • Norwalk Redevelopment • Nxegen, LLC • O Power • Office of Housing, Dept of Economic and Community Development • Office of the Consumer Council, State of CT • Operation Fuel • OPM • Opportunity Finance Network (OFN) • Partners in Collaboration Banking Commission • Partnership for Strong Communities • People’s Bank • R. Pelton Builders, Inc • Related Companies • Rockefeller Brothers Fund • Rural Ulster Preservation Company (RUPCO) • Santa Fuel • Savings Bank of Danbury • Southwest CT Agency on Aging (SWCAA) • Spinnaker Companies • Stamford Partnership • State of Connecticut • State of PA Keystone Home Energy Loan Program (HELP) • Steven Winter Associates, Inc • The New York Times • The Resource Link • The South Norwalk Electric & Water Company • The Business Council of Fairfield • Tohn Environmental Strategies • Town of Wallingford, Department of Public Utilities • U.S. Department of Energy • U.S. Treasury Department CDFI Fund • Union Savings Bank • United Illuminating, Connecticut Efficient and Healthy Homes Initiative • United States Business Council for Sustainable Development • United States Department of Energy (DOE) • Victory Energy Solutions • Waterbury CAP • Webster Bank • Wesson Energy, Inc. • Western Riverside Council of Governments HERO Program • Wilton Bank • WinnDevelopment • Working Families • Wyeth Architects LLC • Yale Center for Business and the Environment • Yale Community Carbon Fund, Yale University • Yale Law School Environmental Protection Clinic • Yale Sustainability Office • Yale University • Yankee Gas

COllABORATiVe pARTneRS

THAnkS TO OuR leAp FunDeRS:Housing Partnership Network (HPN) and Citi Foundation, CDFI Fund of the US Treasury Department, CT DECD, CT Housing Finance Authority (CHFA) and Norwalk Redevelopment.

HDF provided CEFIA with a terrific platform that brought together a variety of stakeholders to strategically

address significant energy issues. The support offered by HDF ultimately delivered well thought-out options

and opportunities that could further benefit Connecticut communities, residents and businesses in realizing

cleaner, cheaper and more reliable energy. We are very appreciative of HDF’s partnership and commitment to this

effort and look forward to working with the team again.”

- BRyAn gARCiAPresideNt, cLeaN eNergY FiNaNce aNd iNVestmeNt aUthoritY

“

COST TO puRCHASe & RenOVATe A TypiCAl 3-uniT pROpeRTy in BRiDgepORT

Purchase Price$175,000

Non-Energy Efficient Rehab$60,000

Energy-Efficient Rehab$30,000

seeking neW SOluTiOnS FoR haRdwoRking Families

2012AnnuAl RepORT

$-

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

201220112010200920082007200620052004200320022001

TOTAl neT ASSeTS, 2001-2012

ICONS ($200,000+)Connecticut Light & Power Co.NeighborWorks AmericaHousing Partnership Network

TRAILBLAZERS ($50,000+)Connecticut Housing Finance AuthorityFannie Mae Foundation

VISIONARIES ($20,000+)CDFI FundCiti FoundationNorwalk Redevelopment AgencyFirst County Bank Foundation, Inc.

CORNERSTONES ($10,000+)United Way of Western ConnecticutThe Community Fund of Darien

LEADERS ($5,000+)Charles and Judy EatonGE CapitalKeep America Beautiful, Inc.Stephen and Susan MandelSt. John’s Community Foundation

CHANGEMAKERS ($2,000+)Chase Home FinanceStephen WoodwardBank of AmericaFirst County BankHudson City Savings BankNewAlliance FoundationPitney BowesSavings Bank of DanburySpinnaker Real Estate Partners, LLCWebster Bank, N.A.Betsy and Bob McGroarty

INVESTORS ($1,000+)Murtha Cullina LLPPeople’s United BankWofsey, Rosen, Kweskin & Kuriansky, LLPJohn MarchRobin GallagherCharter Oak CommunitiesElyse and Mike PittsMcCarthy Fingar LLPBarbara BudnickBLT Management, LLCCitizens Bank FoundationBill and Patsy DolyakKuchma CorporationRMS Construction, LLCUnion Savings Bank

PARTNERS ($500+)Benjamin BarnesDavid KilbrideJohn FarleyGriffith E. Harris Insurance Services LLCBaywater PropertiesJoseph A. Saffi PCPeter RugenDeirdre SegersonShipman & GoodwinJohn and Charlotte Suhler

BUILDERS ($250+)Ben BarnesCompuledgerClay FowlerNetwork Support CompanyKen and Erna OlsonMark LibermanNaugatuck Savings BankPyramid Real Estate GroupSandak, Hennessey & GrecoAl ShehadiJohn DiMennaFitzpatrick, Mariano & SantosFriedberg, Smith & Co P.C.Donald GustafsonJay HolmRobert and Alison HughesJonathan Rose CompaniesPaxton KinolLasberg Construction AssociatesSir SpeedyThe WorkPlace, Inc.Tzedakah House LLCDavid Walker

NEIGHBORS ($100+)Heidi DeWyngaertPenn JohnsonBill NathansonSy and Harriet WeinsteinRoss BurkhardtGeorge CranstonCathy OstuwJack and Marilyn PenfieldKathy RomagnanoSeymour WeinsteinDave WoessnerPobie JohnstonCharles and Mary Ann AinsworthMartin AndersonBaker Law FirmJohn and Candace BartlettTom and Toni BartramRichard CastiglioniJohn CiullaLaura DammDelaurentis Management Corportation

Jon EckmanAbraham EsfahaniBill FingerBarbara FultonVivian GlussSandy GoldsteinGreenwich Bank and Trust CompanyKevin GremseMary Lee KiernanDeborah MacKenzieWilliam and Virginia MartensLenore ParkerRick RednissAnthony SavareseStamford Downtown Special Services DistrictGregory StantonDick and Donna TaberMohmadfaruk VhoraAlfred Zullo

FRIENDS ($50+)Stuart AdelbergNancy BrownCacace, Tusch & SantagataDoug DyllaSandra FitzpatrickJeff GentesJoseph HarringtonCarl and Helen JaegerPaul KritemeyerJames LaneRhonda LeonePhil McKainSheryl MorrisonNewtown Savings BankFrancine NormannHyde and Ann PerceRedniss & Mead, Inc.Kathleen SampleLouise SternShelley StrohmPeter Truebner

The following donors contributed $50 or more between July 1, 2011 and July 31, 2012. We are grateful for all our wonderful contributors.

thanking ouR geneROuS suppoRteRs

condensed statement of financial position AS OF June 30, 2012

condensed statement of activities and changes in net assets

Cash and cash equivalentsContributions, grants, and contracts receivableMortgage and construction loans receivableHomebuyer assistance loans receivableReal estate acquired in settlement of loansLeasehold and other assetsAssets restricted for long-term investmentAgency assets

TOTAL ASSETS

Notes payable to banksRefundable advances on grantsAccrued expenses and other liabilitiesAgency liabilities

TOTAL LIAbILITIES

Net assets unrestricted Net equity in furnishings and equipment Board designated - lending Undesignated - available for operationsNet assets temporarily restrictedNet assets permanently restricted

TOTAL NET ASSETS

TOTAL LIAbILITIES AND NET ASSETS

Interest income - loansInterest income - investmentsContracts and feesContributionsGrant revenueForgiveness of notes payable

TOTAL REVENUE

Program servicesManagement, general, and fundraisingProvision for credit losses and losses on REO

TOTAL EXPENSES

Change in net assets

Net assets, beginning of year

Net assets, end of year

$ 3,376,895

241,908

21,189,355

5,081,869

1,518,421

700,982

428,755

13,237,529

$ 45,775,714

$ 21,445,061

600,118

506,916

13,237,529

$ 35,789,624

$ 60,819

6,951,823

1,011,356

1,533,337

428,755

$ 9,986,090

$ 45,775,714

$ 3,229,255

316,612

22,061,624

5,318,465

62,053

692,727

692,727

13,623,898

$ 45,933,389

$ 20,430,240

368,127

701,409

13,623,898

$ 35,123,674

$ 51,353

7,326,367

1,169,100

1,634,140

628,755

$ 10,809,715

$ 45,933,389

2011 2012

$ 1,204,377

31,538

523,988

1,217,040

579,122

1,230,767

$ 4,786,832

$ 2,710,150

511,421

603,610

$ 3,825,181

$ 961,651

9,024,439

$ 9,986,090

$ 1,441,741

7,844

535,461

965,167

737,238

(32,835)

$ 3,654,616

$ 2,265,807

574,166

(8,982)

$ 2,830,991

$ 823,625

9,986,090

$ 10,809,715

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HDF STAFFJoan Carty

President and ceo

Jaclynn Marie Alves Winifred Bailey

Elissa BardDave Carril

John ChamberlainJeannie CustodioMaryAlice Dinho

Todd FaganDenise Fogerty Delila ForehandKayte Graveline

Ashley HamiltonDeborah MackenzieMyriam Mena-Polk

Pat OrmsbySteve Parenti

Melvina Peters Elyse Pitts

Valerie SaizJennifer Sheehy

Sabrina Szeto Mary Thierry

Joanne TaylorRoxana Ubillus

OuR miSSiOn

The Housing Development Fund,

Inc. believes that all households and

families should have the opportunity

and access to affordable housing, and that affordable

housing and economic diversity

are beneficial to communities.

ICONS ($200,000+)Connecticut Light & Power Co.NeighborWorks AmericaHousing Partnership Network

TRAILBLAZERS ($50,000+)Connecticut Housing Finance AuthorityFannie Mae Foundation

VISIONARIES ($20,000+)CDFI FundCiti FoundationNorwalk Redevelopment AgencyFirst County Bank Foundation, Inc.

CORNERSTONES ($10,000+)United Way of Western ConnecticutThe Community Fund of Darien

LEADERS ($5,000+)Charles and Judy EatonGE CapitalKeep America Beautiful, Inc.Stephen and Susan MandelSt. John’s Community Foundation

CHANGEMAKERS ($2,000+)Chase Home FinanceStephen WoodwardBank of AmericaFirst County BankHudson City Savings BankNewAlliance FoundationPitney BowesSavings Bank of DanburySpinnaker Real Estate Partners, LLCWebster Bank, N.A.Betsy and Bob McGroarty

INVESTORS ($1,000+)Murtha Cullina LLPPeople’s United BankWofsey, Rosen, Kweskin & Kuriansky, LLPJohn MarchRobin GallagherCharter Oak CommunitiesElyse and Mike PittsMcCarthy Fingar LLPBarbara BudnickBLT Management, LLCCitizens Bank FoundationBill and Patsy DolyakKuchma CorporationRMS Construction, LLCUnion Savings Bank

PARTNERS ($500+)Benjamin BarnesDavid KilbrideJohn FarleyGriffith E. Harris Insurance Services LLCBaywater PropertiesJoseph A. Saffi PCPeter RugenDeirdre SegersonShipman & GoodwinJohn and Charlotte Suhler

BUILDERS ($250+)Ben BarnesCompuledgerClay FowlerNetwork Support CompanyKen and Erna OlsonMark LibermanNaugatuck Savings BankPyramid Real Estate GroupSandak, Hennessey & GrecoAl ShehadiJohn DiMennaFitzpatrick, Mariano & SantosFriedberg, Smith & Co P.C.Donald GustafsonJay HolmRobert and Alison HughesJonathan Rose CompaniesPaxton KinolLasberg Construction AssociatesSir SpeedyThe WorkPlace, Inc.Tzedakah House LLCDavid Walker

NEIGHBORS ($100+)Heidi DeWyngaertPenn JohnsonBill NathansonSy and Harriet WeinsteinRoss BurkhardtGeorge CranstonCathy OstuwJack and Marilyn PenfieldKathy RomagnanoSeymour WeinsteinDave WoessnerPobie JohnstonCharles and Mary Ann AinsworthMartin AndersonBaker Law FirmJohn and Candace BartlettTom and Toni BartramRichard CastiglioniJohn CiullaLaura DammDelaurentis Management Corportation

Jon EckmanAbraham EsfahaniBill FingerBarbara FultonVivian GlussSandy GoldsteinGreenwich Bank and Trust CompanyKevin GremseMary Lee KiernanDeborah MacKenzieWilliam and Virginia MartensLenore ParkerRick RednissAnthony SavareseStamford Downtown Special Services DistrictGregory StantonDick and Donna TaberMohmadfaruk VhoraAlfred Zullo

FRIENDS ($50+)Stuart AdelbergNancy BrownCacace, Tusch & SantagataDoug DyllaSandra FitzpatrickJeff GentesJoseph HarringtonCarl and Helen JaegerPaul KritemeyerJames LaneRhonda LeonePhil McKainSheryl MorrisonNewtown Savings BankFrancine NormannHyde and Ann PerceRedniss & Mead, Inc.Kathleen SampleLouise SternShelley StrohmPeter Truebner

thanking ouR geneROuS suppoRteRs

Dear Friends,

In western Connecticut, economic realities force hardworking families to make difficult choices. When struggling to keep up with rent, utilities, and keeping food on the table, saving for a downpayment often just doesn’t fit. For developers, similar choices often rule out inclusion of affordable units. It is in these spaces where HDF seeks to provide a third option, knowing that delivering affordable housing solutions strengthens communities.

Since 1989, our partners have helped HDF to fill gaps and deliver solutions to the housing issues facing families living and working in America’s most expensive housing markets.

We know that all our partners face many choices about where to dedicate their time, resources, and creativity. As we report on a year of innovation and collaboration at work at HDF, know that all the impact you find here is possible only because of the dedication of our friends and supporters.

Sincerely,

Robin M. GallagherChair, Board of Directors

I have been impressed by the dedication, collaboration and ingenuity of HDF both as they have worked to develop their unique programs, and through their contributions that strengthen the entire NeighborWorks Network.”

- DeBORAH BOATRigHTdirector, Northeast regioN, Neighborworks america

“

Collaboration has fueled a year of innovation and impact at HDF

Jessica FoggThe Spinnaker Companies

Clayton FowlerThe Spinnaker Companies

Robin M. Gallagher, CHAIRWebster Bank

Reyno Giallongo, Jr.First County Bank

Charles F. HowellThe Wilton Bank

Pobie JohnstonRetired

John MarchCitibank

Joseph McGeeThe Business Council of Fairfield County

E. Phillip McKainRetired

Marjan MurrayPeople’s Bank

Jack PenfieldInterfaith Council

Kathleen RomagnanoSavings Bank of Danbury

Lisa A. SandersBank of America

Al ShehadiEnterprise Community Investment

Brian SkardaUnion Savings Bank

Seymour WeinsteinAttorney-At-Law

Below: HDF staff worked at the Clinton Ave. Community Garden in Bridgeport for NeighborWorks Week 2012.

BOARD OF DiReCTORS

Joan CartyPresident and CEO

Governor Malloy and NeighborWorks Northeast Regional Director Deborah Boatright join HDF’s Presi-dent & CEO Joan Carty and Board Chair Robin Gallagher to celebrate HDF’s Charter as a Neighbor-Works Network Member.