Home Funders Investors and Partners 2003-2011Annie E. Casey Foundation

Bank of America

BNY Mellon Charitable Giving Program/Peter E. Strauss Trust

Boston Private Bank and Trust Company

Butler Family Fund

Cabot Family Charitable Trust

Catherine and Paul Buttenweiser Foundation

Citizens Bank Foundation

F.B. Heron Foundation

Fannie Mae Foundation

Harold Brooks Foundation

Kenneth Novack

Klarman Family Foundation

Mabel Louise Riley Foundation

Nixon Peabody LLP

Oak Foundation

State Street Bank Foundation

The Baupost Group, LLC

The Boston Foundation

The Boston Private Bank & Trust Company

The City of Boston

The Commonwealth of Massachusetts

The Highland Street Foundation

The Hyams Foundation

The Lynch Foundation

The Morris & Ester Horowitz Family Foundation

The Paul and Phyllis Fireman Charitable Foundation

Vincent Mulford Foundation

2011

Home Funders Annual Report

Home Funders Annual Report 2011 www.homefunders.org

How Home Funders WorksThe Home Funders Collaborative was created to address the

unprecedented crisis in affordable housing for very low income

families in Massachusetts. This partnership of private funders came

together based on the belief that without adequate housing, all other

social investments are at risk.

The Home Funders Collaborative LLC pools Program Related

Investments and grants; these funds are then committed to two

experienced housing finance intermediaries for actual lending.

The Community Economic Development Assistance Corporation

(CEDAC) and the Massachusetts Housing Partnership (MHP) lend

Home Funders capital at very low interest rates to projects that set

aside at least 20% of the units for ELI families and provide long-term

affordability and use restrictions. Home Funders loans are available

at interest rates of 2-3% for all phases of a project — acquisition,

predevelopment and bridge loans, as well as permanent financing. As

of June 30, 2011, Home Funders had raised $21.2 million in Program

Related Investments and grants to lend through CEDAC and MHP.

breakfast ForumThe Home Funders housing forum, Housing Matters: Securing a Future for our Lowest Income Families, drew a standing-room-

only crowd to The Boston Foundation on February 7, 2012. Drawing

together affordable housing leaders from federal and state government,

as well as critical thinkers in housing policy and practice, the forum

was engaging and thought-provoking.

U.S. Department of Housing and Urban Development (HUD) Assistant

Secretary Mercedes Márquez, Lt. Governor Tim Murray and a panel of

experts explored the role of government and philanthropy in creating

and maintaining affordable housing. The panel was moderated by

Xavier de Sousa Briggs, Associate Professor of Sociology and Urban

Planning, MIT and former Associate Director of the White House

Office of Management and Budget, and included Dr. Megan Sandel,

Associate Professor of Pediatrics and Public Health at BU Schools of

Medicine and Public Health, Aaron Gornstein, Undersecretary of the

Massachusetts Department of Housing and Community Development,

and Lisa Alberghini, President of the Planning Office for Urban Affairs.

Dear Friends,

2011 and early 2012 was a busy time for Home Funders. A number of development projects that had stalled in the preceding years completed construction and provided affordable homes for many new families. In 2011, twelve developments that utilized Home Funders financing were able to open their doors, creating a total of 187 units; 40 of these units were affordable to extremely low income (ELI) families.

Today, Home Funders loan products continue to be in high demand through its intermediaries, Community Economic Development Assistance Corporation (CEDAC) and Massachusetts Housing Partnership (MHP). Developers seek out Home Funders low-interest loans to lower their predevelopment costs as well as their long-term operating costs. In addition to raising private capital for its loan products, Home Funders is committed to working with state and local agencies to help direct public resources towards affordable housing for extremely low income families. The collaborative utilized advocacy and public policy platforms to support a number of initiatives: increased bond cap funding for the Housing Innovations Fund; prioritizing projects with higher percentages of ELI units for competitive state funding; and providing new rental vouchers for the Massachusetts Rental Voucher Program (MRVP) in the FY 2013 state budget.

The future will require us to be innovative and committed. Our poorest families continue to face worst-case housing needs – paying more than half their income towards rent or living in severely inadequate conditions. We must continue to streamline the affordable housing delivery system with products such as the Home Funders loans, while seeking out bold new strategies. We have strong leadership and support at the Massachusetts Department of Housing and Community Development for our mutual goals, which provides hope and opportunity for our ongoing efforts.

Sincerely,

Geeta Pradhan Chair, Home Funders Collaborative

From left to right: •Liz Curtis Rogers, ICHH; Soni Gupta, HF; Deb Fung, Fireman Foundation; Lt. Gov. Tim Murray; Geeta Pradhan, The Boston Foundation •Deb Goddard, DHCD; Beth Smith, Hyams Foundation; Geeta Pradhan, TBF; Mercedes Márquez, HUD •Professor Xavier Briggs moderating panel: Dr. Megan Sandel; POUA President, Lisa Alberghini; DHCD Undersecretary, Aaron Gornstein •HUD Assistant Secretary, Mercedes Márquez •Lisa Alberghini •MA Lieutenant Governor, Tim Murray

“ You are the envy of the country in terms of how far you’ve come; and you’ve established what is no doubt a best practice.” Mercedes Márquez, HUD Assistant Secretary

Home Funders Annual Report 2011 www.homefunders.org

lAWreNCeThis Home Funders’ project occupies the top three

floors of the Union Crossing complex, offering 60

rental apartments, primarily for low income tenants.

Lawrence Community Works took the lead on this

$40 million deal. Occupying the former Southwick

Clothing factory, the three floors of housing sit

above two floors of commercial space.

QuINCY6 Fort Street offers 34 rental apartments in Quincy’s

central business district. The project consists of

one-, two- and three-bedroom units, with eight

units affordable at 30% of area median income.

This adaptive re-use of a four-story former office

building is sponsored by the Asian Community

Development Corporation. The property is close

to shops, school and the MBTA.

IPSWICHPowder House Village has been almost nine years in

the making. This project consists of two residence

buildings with 48 units of affordable housing.

Located on the 23-acre YMCA campus on County

Road in Ipswich, they provide natural connections to

the community through Y membership and services.

Powder House Village is also home to a new branch

of the Institution for Savings and the new YMCA

Early Learning Center.

lOWellOpened in December, Unity Place was built by the

Coalition for a Better Acre. This project consists of

new construction of a four-story building with 23

rental units in downtown Lowell, including eight

units allocated for extremely low income families.

“ I love talking about the safe, decent, affordable home as a vaccine because a vaccine is more than just a medicine; it is something that changes how your future will be and I really view housing that way.” Dr. Megan Sandel, Children’s Health Watch

From left to right: •Liz Curtis Rogers, ICHH; Soni Gupta, HF; Deb Fung, Fireman Foundation; Lt. Gov. Tim Murray; Geeta Pradhan, The Boston Foundation •Deb Goddard, DHCD; Beth Smith, Hyams Foundation; Geeta Pradhan, TBF; Mercedes Márquez, HUD •Professor Xavier Briggs moderating panel: Dr. Megan Sandel; POUA President, Lisa Alberghini; DHCD Undersecretary, Aaron Gornstein •HUD Assistant Secretary, Mercedes Márquez •Lisa Alberghini •MA Lieutenant Governor, Tim Murray

Photographs: HF Projects by Greig Cranna, Breakfast Forum event by Richard Howard Photography

2011 Project OpeningsHome Funders helped to finance the following

affordable housing projects, which opened in 2011.

WeYmOutHSouth Shore Affordable Housing and Preservation

of Affordable Housing has constructed 20 new

affordable housing units in the Southfield area

of Weymouth. This project includes five units

affordable for extremely low income families.

The Torrey Woods project represents newly built

affordable housing in a relatively high income

community that has already achieved the state’s

10% affordability mandate. This area is also a Smart

Growth site within one-half mile walking distance

of a commuter rail station and is in a mixed-use

area near commercial and employment areas.

State funding priority for projects with 20% ELI

units: In the summer of 2012, the state made

changes to its process of awarding funds to

affordable housing projects, and one change was

significant to potential Home Funders projects.

The Massachusetts Department of Housing and

Community Development established four priority

categories for project applications to the fall 2012

funding. One of these priorities is for housing for

extremely low income (ELI) households, including

families. Projects in this category must include at

least 20% ELI units, which mirrors the threshold

requirement to qualify for a Home Funders loan.

With the state’s funding priority aligned with that

of Home Funders, we hope to see an increase in

projects that include 20% ELI units, thereby adding

to the stock of housing for ELI families.

Massachusetts Rental Voucher Program (MRVP):

MRVP is a critical state-funded resource that assists

extremely low income households in avoiding

homelessness and in moving out of the shelter system.

Rental assistance through MRVP is a cost-efficient way

to help families maintain stable, permanent housing.

Over the years, Home Funders has advocated for an

increase in the MRVP budget. Working with housing

practitioners and advocates in the Housing Solutions

Campaign, we sought an increase in the MRVP line

item in the state budget in FY 2013. These efforts

were recognized by Governor Patrick’s administration

and the Massachusetts state legislature and MRVP

was funded at $42 million, an increase of 16% over

the previous year’s budget. This is the first issuance

of new vouchers since the program’s inception, and

they will allow an additional 550 households to access

permanent, affordable housing.

Housing Innovations Fund (HIF): HIF is a program

within the state’s Capital Budget and Improvement

Plan and is a critical funding source for affordable

housing for homeless and ELI families. To date,

19 Home Funders projects have utilized HIF funding,

and Home Funders has been a strong advocate

for increases to HIF. After being cut to $6 million

for FY 2012, Governor Patrick and the Office of

Administration and Finance restored $2 million to

the line item mid-year. In October of 2012, another

$2 million was added to the HIF budget, bringing

it to a total of $10 million for FY 2013. The increase

will help address the backlog of affordable housing

projects that are in the production pipeline and

help build the stock of affordable housing units

across the state.

For more information on Home Funders, please contact Executive Director Soni Gupta by email at sgupta@homefunders.org or by phone (617) 510-4559. Visit our website at www.homefunders.org.

Public Policy Highlights

How has living in a safe, affordable and comfortable

apartment affected the resident family’s life? That

question is best answered through the voices of the

families themselves. Early in 2012, Home Funders

produced a video that featured three families residing

in units that utilized Home Funders financing. These

are their stories.

Bethsaida Cabrera and family were grateful to be

accepted for a unit at Paradise Pond in Northampton,

having lived in her brother’s cramped attic. They have

made a home at Paradise Pond – her husband now has

a steady job as a lab technician, and the three children

are in school and community college. The family

loves being in Northampton, and the schools and

the community around them. “This is what we were

looking for,” declares Bethsaida happily.

Bouncing up and down on her bed, Luineli clearly

loves the charmingly decorated room she shares with

her younger sister, Yandelin. As her mother, Carmen

Maldonado, tells us, everything changed when they

moved into their apartment at Palmer Cove in Salem.

The family enjoys the safety and privacy of their

apartment, after numerous moves that included a

shelter stay. “The kids love it here, always playing and

running around the house,” says Carmen. “And I’m

now working with seniors in the area, helping them

get around. It’s all good.”

Today Cornelius Hood is a married man with two

young children, but his past tells another story. “I’ve

Home Funders Video Overall StatisticsTotal Funding Raised $22,567,500 (PRIs and grants)

Total Projects Financed Since 2003 61

Number of Massachusetts communities these projects are located in 26

Number OF AFFOrdAble/elI uNItS buIlt Or IN CONStruCtIONYear Total Units ELI Units

2003-2009 2,121 684

2011 333 135

Total 2003- 2011 2,454 819

In 2011, 12 developments were completed to create 187 total units, of which 40 were ELI units.

Audit/Financials for the Home Funders Collaborative llC*INCOme Interest Income $151,516

exPeNSeS Provision for loan losses $60,210

Interest expense $152,488

Net Loss** ($61,182)

Member interests, beginning of year $14,686,947

Loan repayments $900,000

Member interests, end of year $15,525,765

* The LLC contains the loan funds. Modest operating funds supported by foundation grants are accounted for separately. As of Dec 31, 2011, the $8.95 million committed to CEDAC had revolved to provide over $29 million in loans devoted to Home Funders’ projects.

** The net loss is due solely to the accounting provision for potential loan losses.

been shot, I’ve been incarcerated, I ended up being

an addict for 10 years on and off, and then when I

got out in 2002, I got my life together.” Like many

families in his situation, Cornelius, his wife Malika

and their two daughters have lived in many places,

not all of them good. Today, Cornelius and his

family live in a safe, affordable apartment in the

Thomas Atkins development built by Nuestra CDC.

Cornelius now focuses on giving back.“I work with

kids on drugs…We try to prevent them from going

through the things we went through and get their

lives back together.”

These stories reflect the trials faced by many

families in similar circumstances, and the positive

turn their lives have taken after finding decent,

affordable and safe housing. The adults are able to

seek and maintain jobs and engage in volunteer

work in their new communities, and the children

are healthier and safer in their new homes.

The eight-minute video can be viewed in its

entirety on the Home Funders website, at

http://www.homefunders.org/breakfast_forum_

info.html.