I

Dan LopezVice Chair, Century Housing Board of Directors

Carrie HawkinsChair, Century Housing Board of Directors

n 2008, like the rest of the national economy, Century Housing faced changes and challenges of historical propor-tions in meeting our mission. Notwithstanding the most diffi cult economic environment in gen-erations, we are pleased to report that Century’s lending programs successfully helped to create more than 800 new homes and apart-ments aff ordable to individuals and families earning, on average, less than $47,000 or 62% of the area median income.

We are particularly proud of our newly constructed Family Commons at Cabrillo apartment community located in Long Beach that will provide a safe, dignifi ed and nurturing environment for 81 families transitioning from homelessness. Many of our 300 residents at the Commons have a family member with special physical or mental health needs

who will benefi t from the comprehensive, supportive services available on the Villages at Cabrillo campus.

In addition to the creation of new homes, Century continued support for our More Th an Shelter Services programs, including nine after school tutoring centers, a government certifi ed job training and placement program, and two charter middle schools, positively changing the lives of more than 1,200 individuals and families.

Refl ecting Century’s commit-ment to our “double bottom line” of meaningful social impact while maintaining the fi nancial strength to pursue our mission in perpetuity, Century was awarded the second highest rating for social impact and fi nancial strength and performance by CARS (the CDFI Assessment and Rating System), a comprehensive, rigorous, third-

party analysis of community development fi nancial institutions.

Building on our successes in 2008, Century faces the future with the understanding that thousands of Californians are threatened by the loss of their homes through foreclosure; that many live in inadequate apart-ments at a cost that is well beyond their means; and that others lack the necessary education and training to support themselves and their families. In the face of such economic distress, the need for Century’s services has grown even more critical.

We remain confi dent that with your ongoing support, Century will continue to have a positive impact on the individuals and communities we serve throughout Southern California in the coming years. We look forward to working with you to expand and enhance Century’s good works.

WHAT WE BUILD…

Ron GriffithPresident & CEOCentury Housing

2000 2001 2002 2003 2004 2005 2006 2007 2008

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

century housing

annual report 2008

…IS AS IMPORTANTas what we achieve

Aaron WoolerAlan Hoffman Andrea Santana Ara Abramyan Araceli TapiaBartek Malecki Betty O’Quinn Beulah Ku Bonnie Newton Brian D’Andrea Carolina Lizarde Cathy Cates Cynthia Catzalco Fern Hendrickson Gary Zimble Jacqueline Mentenh Jessy Lu Jorge Guerrero Julie Yu Julao

Karen Bennett-Green Katerina Yousef Maria Obledo Maria Ruiz May Hernandez Nadine Felix Olibra Bailey Ron Griffith Rosa Menart Sandra Lew Serybrem Brooks-Bass Shu Farmer Stephen Peelor Steve Colman Stuart Nieman Tim O’Connell Tracey Burns Vermelle Edwards Zina Grant

William G. BrennanExecutive Director,California New Motor Vehicle Board

Earl G. FieldsConsultant,Housing & Community Development

Carrie Hawkins, ChairPrincipal,Herbert Hawkins Company

Diann H. KimPartner,Scheper Kim & Overland LLP

Daniel B. Lopez, Vice Chair Principal,Dan Lopez & Associates

Century Housing Board of DirectorsAlec NedelmanSenior Vice President Business and Legal Aff airs,iStar Financial

Louise OliverRegional Operations Offi cer & Director of Government Contracts,Goodwill Industries of Southern California

Dan WeinsteinPrincipal, Wetherly Capital Group

Darroch F. YoungChief Consultant, California Collegiate Brain Trust

Century Housing Staff

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building stabilityTrue Stories of Changing Lives

For nearly 30 years, Many Mansions has helped thousands of individuals find safe, affordable housing. They also helped two people find one another.

Terry and Joe Lewis first met when they lived in Many Mansions’s Esseff Village, which serves single men and women with disabilities in Thousand Oaks.

Terry had moved to California in 1999 hoping for a better life. With virtually no income, she lived out of her car until she found work at a bakery and a room at a shelter. Soon, she learned about Many Mansions and the organization helped her find a stable residence and more.

“Many Mansions is really a blessing. Th ey helped me get my Social Security, helped me get my benefi ts.” — Terry Lewis

After moving to Esseff Village, Terry developed diabetes. The disease left her unable to walk and her daughter stayed

with her to provide additional care. It was during one of her daughter’s visits that Terry was introduced to Robert, also a

resident. Robert Lewis had entered Many Mansions housing after living several years on the streets and successfully completing a Salvation

Army drug rehabilitation program. The pair quickly became inseparable, recently married, and now live in Villa Garcia, another Many Mansions development for very low-income families.

“[Many Mansions] is a great stepping stone to use to advance in life.” — Robert Lewis

any Mansions has worked closely with local redevelopment agencies to complete ten developments in Ventura, Simi Valley, and Th ousand Oaks that more than 1,000 residents, including more than 250 children, call home. Each Many Mansions’ development provides no-cost resident services, including fi nancial counseling, case management, and after-school programs.

LA RAHADA

In June 2008, Century Housing provided a $1,400,000 acquisition loan to Many Mansions for La Rahada in Simi Valley. La Rahada will have eight rehabilitated apartments for homeless or at-risk men and women with mental disabilities, and expands on Many Mansion’s prior success with the adjacent 14 apartments at Casa de Paz.

Similar to previous Many Mansions developments, La Rahada will benefi t from funds provided by the Simi Valley Redevelopment Agency and HOME funds, and long-term funding for resident services provided by the Mental Health Services Act (Prop 63).

M

BUILDING A FOUNDATION Working with Many Mansions...

need hi res pic

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annual report 2008

...and American Communities

merican Communities creates environmentally friendly, well-designed apartments for low-income individuals and families. Each of American Communities’ ten projects in California is built in suitable locations, out of superior materials and constructed by expert crafts people. All are designed to improve the quality of the lives of families and their future generations.

WITMER HEIGHTS

Century provided a $1.9 million loan to American Communities to purchase the Witmer Street site in 2005. Th e 49 apartments, which replaced 13 run-down homes and apart-ments, are dedicated to families earning about $35,000 per year.

Witmer Heights is in an excellent location, less than a half-mile from the brand-new Vista Hermosa Park (the fi rst park opened in down-town Los Angeles in more than 100 years) and four elementary and secondary schools.

building stabilityTrue Stories of Changing Lives

Before moving to Witmer Heights, the Villata’s struggled to pay $725 rent for their tiny studio apartment. It was “awful” but it was all they could afford. When the Villata’s saw an ad for Witmer Heights they immediately submitted an application and were overjoyed when they were accepted.

“We couldn’t believe it! Witmer Heights is so beautiful, and everything is clean and new — for the fi rst time my son has a bedroom of his own.” — Febe Villata

Shortly after moving to Witmer Heights, Febe was forced to leave her job at a dental office after developing chronic health problems due to the chemicals they used. Despite having worked there for more than six years, she had no health insurance. The property manager at Witmer Heights offered to send her resume to Witmer’s management company. She was hired as an administrative assistant and now has health insurance for her entire family.

In just a short time after moving to Witmer Heights the Villata’s have stabilized their lives. They have a safe clean home, a steady income and greater peace of mind.

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Central Los Angeles

BUILDING BRIDGESWhat the Future Holds

I n 2008 Century Housing had many successes, and we faced our share of challenges. Despite the eff ects of the slowing

economy on our fi nancial investment portfolio, we did see remarkable performance results from our Impact Investments which delivered

signifi cant social and fi nancial returns.

Since inception, we’ve helped build more than 16,000 homes throughout Southern California.

Unfortunately, the need for more homes is only growing. Almost a quarter-million homes and families are facing foreclosure. More than 60% of

renters cannot aff ord their apartments or houses. Nearly two million new residents will move to California in the next two years. Each one of them will need a

home they can aff ord. Meeting this demand requires innovative thinking and willingness to take risks through investments to have a real impact.

Huntington Gardens :: Huntington Beach $12,500,000Living Opportunities Management Company (LOMCO) used a Century acquisition loan to purchase Huntington Gardens, a 185 apartment building for low income seniors. LOMCO will refi nance the property with FHA mortgage fi nancing, preserving aff ordable apartments in an expensive local market. LOMCO has managed the property since it was built in 1981. In fact, Stephen Doty, president of LOMCO, worked on the construction of the building!

Adams & Central Mixed Use :: South LA $200,000Century provided a bridge loan to Meta Housing for a major residential and commercial development with 80 apartments for low-income families and a new Fresh-n-Easy grocery store. Century had previously provided a $5.1 million acquisition loan for the project—the bridge loan was needed because of delays in securing the entitlements for this complex development. Construction commenced in July 2008 and will be completed in early 2010.

Barton Street Townhouses :: Hollywood $1,813,000Claudia Bohorquez, with two other investors, used a CCLC construction loan to build four townhouses in Hollywood, just a half-block from the Paramount Studios lot. Her project stands out in a neighborhood of older bungalows, and helps to create new homeownership opportunities in a popular neighborhood. Th is was Ms. Bohorquez’s fi rst condominium development, and her fi rst deal with CCLC.

Irvine Street Apartments :: North Hollywood $840,000Wyman Dunford and Bogdan Zeldjkovic are entrepreneurial developers who expanded from speculative single-family development into small apartment construction in 2005. Century provided a construction loan for a fi ve-apartment development on Irvine Avenue in North Hollywood, replacing a run-down single family home. Th is was Century’s fi fth loan to Mr. Dunford and Mr. Zeldjkovic, who are having signifi cant impact by building quality homes for low and moderate income families in a distressed part of North Hollywood.

Neptune Street Townhouses :: Wilmington $2,850,000Brian Campbell used a CCLC construction loan to build 10 townhouses in Wilmington, an older area near the Port of Los Angeles and several petroleum refi neries. Th e new condominiums will provide good-quality homeownership opportunities in an area dominated by single-story, but dense, residential development. Th is was Mr. Campbell’s second development fi nanced by CCLC—the fi rst was a four home project in the Harbor Gateway.

BUILDING SUCCESS 2008 Loan Highlights

PHD Scattered Sites :: Koreatown $4,127,182Century participated in an $8.4 million acquisition loan to preserve 84 aff ordable apartments in fi ve properties in Koreatown. LTSC, a long-time Century client, will refi nance and rehabilitate the properties using tax-exempt bond and 4% tax credit fi nancing. Century participated $2 million of its portion of the loan to RSF Social Investment. With the long-term fi nancing in place, LTSC will keep all 84 apartments aff ordable for the next 55 years.

Community Enhancement Corporation :: South LA $169,950Community Enhancement Corporation is a nonprofi t founded in 1992 to revitalize neighborhoods and empower special-needs groups, especially homeless emancipated foster youth. Community Enhancement Corporation is developing the Paul R. Williams Early Childhood Education Center and Health Clinic to serve low-income children and families. Th e center is named for Paul R. Williams, a renowned African-American architect. Century’s predevelopment loan allowed the project to move forward while securing the construction and permanent fi nancing, including more than $2.6 million from CRA/LA.

Skid Row Housing Trust :: Downtown LA $1,500,000Century provided a revolving line of credit to Skid Row Housing Trust, allowing ready access to capital for one of the most dynamic nonprofi t developers in Los Angeles. SRHT has built 280 apartments for formerly homeless men and women in the past fi ve years, through new construction and rehabilitation, with an emphasis on environmental sustainability. Th is line of credit allows SRHT to keep 3 or 4 projects moving quickly through their pipeline by covering predevelopment costs for design, entitlements, assembling fi nancing, and holding costs.

Springbrook Grove Apartments :: Fallbrook $2,991,931Century provided a letter of credit on behalf of ADI, a large developer/builder, to the County of San Diego for the construction of Springbrook Grove, 43 apartments for low-income families in Fallbrook, which is adjacent to Camp Pendleton, the major US Marine Corps base on the West Coast. Diffi culty in obtaining suffi cient credit enhancement threatened to undo the entire deal. Century, based on our experience with four prior loans to ADI, was able to provide the fi nal piece of the puzzle and get construction underway in June 2008.

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A Community of FriendsAccess Community HousingAdvanced Development and Investment, Inc.Alliance Property Group, Inc.AMCAL Multi-housing, Inc.American Communities, LLCAPECBarrio Action Beyond Shelter Housing Development CorporationBi-Coastal Affordable HousingBogdan ZeljkovicBoston Associates/Angeles GroupBrian CampbellCivic Center Barrio HousingCommunity Enhancement CorporationCommunity Resource & Talent Development, Inc.Concerned Citizens of South Central Los AngelesCorporation for Better HousingCorridor Economic Development CorporationCulture and Language Academy of SuccessDanBerg Development, Inc.Dunbar Economic Development CorporationEast L.A. Community CorporationFernando UriarteFoundation for Affordable HousingFrank ShabestariGateway Cities CDCGood Shepherd Center for Homeless Women and ChildrenHermandad Los Angeles EDCHudson Housing CapitalIrvine Housing OpportunitiesJamboree Housing CorporationJim MorrisJovenes, Inc.K2 Redevelopment, LLCKDF CommunitiesL.A. Community Design CenterL.A. Family HousingL.A. Housing Partnership

PartnersLennar Affordable CommunitiesLINC HousingLittle Tokyo Service Center CDCMark & Karen ManfieldMayans DevelopmentMDM Holding, LLCMehdi & Jamez EbrahimzadehMenorah Housing FoundationMeta Housing CorporationMJW InvestmentsMutual Capital AdvisorsNehemiah WestNeighborhood EffortP.A.T.H. (People Assisting The Homeless)Para Los NiñosPico Union Housing CorporationPreservation PartnersThe Related CompaniesScotto Properties, LLCSimpson Housing SolutionsSkid Row Housing TrustSRO Housing CorpSt. Joseph Center, Inc.Steadfast CompaniesStephen DotySustainable Housing CorporationThe Lee GroupThe WIN ProjectThomas Safran & AssociatesUrban Town, Inc.W.O.R.K.S.Wakeland HousingWest Angeles CDCWestern America PropertiesWyman Dunford

Capital InvestorsAlliance BankAmerican Business BankBank of AmericaCalifornia Bank & TrustCalNational BankCalvert Social Investment FoundationCathay BankJP Morgan ChaseCity National BankCommunity Development TrustEastWest BankEnterprise Community Loan FundFannie MaeFar East National BankFirst Private BankFirst Regional BankHanmi BankHSBC Bank USAHousing Partnership NetworkJohn Hancock Realty AdvisorsLow Income Investment FundMellon 1st Business BankMercantile National BankMerrill Lynch CDCNara BankNorthern TrustPacific Western BankRSF Social FinanceSouth Bay BankSunwest BankU.S. TrustWachovia BankWashington MutualWells Fargo Bank

StakeholdersCalifornia Association of Local Housing Finance AgenciesCalifornia Community Reinvestment CorporationCalifornia Housing ConsortiumCalifornia Housing Finance AgencyCatholic Charities of Los AngelesCenter for Community LendingCenter for Housing PolicyCentral City AssociationCommunity Redevelopment Agency of Los AngelesCommunity Preservation CorporationGood Shepherd Lutheran ChurchHousing Authority of the City of Los AngelesHousing CaliforniaLISC – Los AngelesLong Beach Department of Community DevelopmentLong Beach Unified School DistrictLos Angeles Business CouncilLA Coalition to End Hunger and HomelessnessLos Angeles County Community Development CommissionLos Angeles Downtown Rotary ClubLos Angeles Housing DepartmentNational Association of Affordable Housing LendersNational Association of Black VeteransNational Coalition for Homeless VeteransNational Community RenaissanceNational Housing ConferencePasadena NHSSalvation ArmyShelter PartnershipThe California EndowmentThe Campaign for Affordable HousingUS Department of Veterans Affairs Long Beach Healthcare SystemUS Veterans Initiative

BUILDING PARTNERSHIPSWho We Work With

entury Housing had a positive year with an increase in net assets of $1.44 million. Continued growth in loan revenues (interest and fees) and fees from the development of Family Commons at Cabrillo helped to make up for a $700,000 loss in fi nancial investments.

Century also increased its lending capital base by nearly $5 million and improved its deployment rate (loans outstanding to total lending capital available) to 66%.

2008 2007

FINANCIAL POSITION

Total assets $207,710 $183,545

Loans receivable (inc. participations) 107,785 93,981

Allowance for loan losses (1,905) (1,863 )

Financial investments 37,777 27,013

Real estate investments 59,456 50,299

Loans payable 60,227 36,952

Net assets

Unrestricted 129,811 128,366

Temporarily restricted 157 162

Total Net Assets $129,968 $128,528

ACTIVITIES

New loans originated $49,232 $96,166

Net interest income 9,177 6,581

Provision for loan losses (292) (507)

Residual receipt mortgage repayments 721 1,063

Financial investment income (704) 4,808

Real estate income 8,548 4,524

Grants and contributions 343 1,318

Change in net assets $1,441 (59)

OTHER DATA

Total loan capital under management $163,616 $158,995

Net loan loss ratio 0.266% 0.029%

Deployment ratio 66% 59%

other $692,000

lending$9,898,000

real estate &development$8,548,000

REVENUES

lending$5,035,000

G & A$4,510,000

More Than Shelter support$2,621,000

real estate& development$5,527,000

EXPENSES

FINANCIAL RESULTS(dollars in thousands)

BUILDING INVESTMENTS2008 Financials

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