Transforming Neighborhoods. Elevating Lives. Building Communities. Block by Block. Brick by Brick. 2012 Annual Report
The City of Wilmington, Delaware INTRODUCTION For 21 years, the Corporation (WHP), a 501 (c) (3) organization, has striven to improve areas of need within the. WHP implements and facilitates projects that increase affordable homeownership opportunities, improve housing stock, raise housing values, reduce blight, and stimulate income diversity. Such projects contribute to overall neighborhood stabilization and vitality. 2012 Development and Financial Highlights Fiscal year 2012 was a year of growth and progress. WHP completed construction/rehab on 4 projects and started development of 3 new townhome projects. During fiscal year 2012, WHP continued our work under six related activities: Second 5 year RISE (Residential Improvement and Stabilization Effort) initiative. Rehabilitation of scattered-site housing projects. Federal HOME & CDBG Grants. Neighborhood Stabilization Program. The stimulation of income diverse projects in RISE areas. Related maintenance of property inventory. RISE FY12 Accomplishments Added 4 units bringing our total RISE production to 309 over a 7 year period. Committed $17,365,000 to the 309 units. Commenced development of a 5 to 10 year investment plan for Wilmington s Eastside neighborhood. Received $963,000 in contributions and pledges to subsidize various projects. Year End Results: Acquired 13 additional properties that included a proposed 13 unit townhome development. During fiscal 2012, 4 units were sold. The interior of the Brownstones at Christina Overlook
Received $279,762 in Neighborhood Stabilization Program funds. Completed construction of a 5 unit LEED Silver Certified project that features geo-thermal heating systems, high efficiency plumbing, and energy star appliances. Completed 95% of the construction of a 7 unit townhome project in Wilmington s Browntown neighborhood which mimics the Brownstones of Brooklyn, New York. Started pre-development work on a proposed 4 unit townhome project located in Wilmington s Westside neighborhood that sat idle for over 5 years. Partnered with JPMorgan Chase and the City of Wilmington to launch a neighborhood study to develop a strategic plan for revitalization of the Eastside neighborhood. WHP sold 16 units, 55 in production, and 9 in the planning stage. WHP RISE Initiative: WHP established RISE during fiscal year 2004 with the following goals: to increase affordable homeownership in the by 210 units, raise property values, entice private investment, reduce blight in three targeted at risk areas of the City, partner with non-profit and private developers, and increase private investment. As a result of WHP reaching its goals at the end of the first 5 year RISE Initiative, WHP has set its goals for the second 5 year RISE program to closely emulate our original RISE goals. The goals are to raise $7,500,000 in contributions and create 150 affordable homeownership opportunities. Income-Diverse Project: Developing affordable homes is WHP s primary mission, but a secondary objective is to create income-diverse projects in Wilmington s neighborhoods. WHP evaluates potential projects in terms of the best outcome for RISE neighborhoods and its residents. We may determine that market-rate housing is more beneficial and as a result, conduct redevelopment projects with for-profit builders for that area. WHP packages blighted properties, markets them to for-profit and private developers while maintaining a contractual level of input, recouping our investment for use in affordable projects as homes are completed and sold. There are times when WHP also will act as the developer of a market-rate home project in order to restore a community to its original splendor. Accordingly, this stimulates further buying interest in the community at-large, creating a link between a former at-risk neighborhood and a stable one eliminating the artificial barrier that divides them. Christina Overlook: WHP purchased abandoned and blighted properties that are situated on several tracts of land in Browntown. In addition, the City transferred several small adjacent lots to WHP. The plan for this site is to develop a 33 unit, market rate townhome project. To date, WHP has done the following: Invested in excess of $1,000,000 in the project. Demolished the industrial building that once located on this site. Received a grant from DNREC to remediate contaminated soil. Worked diligently with the council members and community groups discussing the project and getting their support. Developed a design for the property creating an innovative, urban development. Received final approval from the s Department of Public Works. Went into contract with a local developer and settled on the first 8 parcels. 2700 Baynard Boulevard Project: This is a large, single unit project in Wilmington s 9 th Ward District. The area around this project features large, single homes on a tree lined block. The property was purchased by the and conveyed to WHP to develop. This home has 5 bedrooms, 3 ½ baths, off-street parking and a rear deck overlooking the yard. This house was 95% complete at the end of fiscal year 2012 and on the market for $374,900. For the, fiscal year 2012 was a year of great accomplishments. WHP believes in our vision and strategy and will continue to re-build strong neighborhoods throughout the with the help of our partners and funders...block by Block Brick by Brick. James M. Baker Rob Buccini Steven T. Martin Mayor Chairman Interim Executive Director Christina Overlook, a 33 unit market-rate project, under construction.
Overview of the Financial Statements Balance Sheet Assets 2012 Current Assets Cash & Cash Equivalents $248,445 Grants receivable - Pledges receivable, net 250,000 Total Current Assets $498,445 Non-Current Assets Notes receivable, net $1,741,392 Live-Work receivable - Pledges receivable, net 125,256 Advances receivable, net 22,150 Property held for Development - Net 1,832,600 Capital assets, net 3,441 Total Noncurrent Assets $3,724,839 Total Assets $4,223,284 Liabilities and Net Assets Current Liabilities Account Payable $69,462 Retainage Payable 183,080 Loans Payable 2,079,762 Total current liabilities $2,332,304 Net Assets Invested in capital assets, net of related debt 3,441 Unrestricted 1,887,539 Total net assets $1,890,980 Total Liabilities and Net Assets $4,223,284 Statement Of Revenues, Expenses And Changes in Fund Net Assets 2012 Operating Revenue Real Estate Sales Sales revenue $850,127 Income from equity sharing sales - Cost of Sales (1,911,809) Total Real Estate Sales, net $(1,061,682) Other Revenue Contributions $583,881 Grants 466,107 Miscellaneous Income 15,828 Total Other Revenue $1,065,816 Net Operating Revenue $4,134 Operating Expenses Property acquisition and demolition $33,834 Project contribution 47,338 Program Adminstrative Cost 407,301 Bad debt expense 0 Total operating expenses $488,473 Change in Net Assets $(484,339) Total Net Assets - beginning of year 2,375,319 Total Net Assets - end of year $1,890,980 Construction on the 4 units is underway. WHP s Third Street Project is located on the 1800 block of West 3rd Street in the Hilltop community of Wilmington. This project is a 4 unit, affordable townhome project. These lots were once occupied by 5 homes that were accidently destroyed when a gas line was severed during repairs. This community is very anxious for WHP to complete this project as it represents a rebirth of this community from a neighborhood disaster.
Zanthia s Way Phase I, purchased in August 2011, is a 5 unit townhome project in Wilmington s Brandywine Village neighborhood. These homes were all sold for homeownership in FY 2012. Zanthia s Way, Phase II, 5 units under construction. This property located at 1226 West Street in the Hercules Triangle section of Wilmington, was purchased at Sheriff s Sale. The home was structurally unsound, suffered from severe water damage and significant pest problems which marred the entire block. This project was rehabbed by a DBE builder. 2700 Baynard Boulevard is an income diverse project which consists of a large, single family home that has been vacant for over 15 years and has been an eyesore to this prominent neighborhood. Rehabbed by a DBE builder.
Board Members Mr. Peter D. Besecker Director Department of Planning and Development Mr. Robert E. Buccini President Buccini/Pollin Group Mr. John James Jay Coane, Chief Financial Officer & CRA Officer Comenity Bank The Honorable Charles M. Freel Wilmington City Council Mr. Richard Gessner, Jr. CRA Officer ING Direct Nailah Gilliam Acting Director Department of Real Estate and Housing Ms. Martha Gilman Gilman Development Company Reverend Dr. Clifford I. Johnson Pastor Shiloh Baptist Church Ms. A. Hughlett Kirby Commercial Real Estate M&T Bank Mr. Rodney Lambert President and CEO Woodlawn Trustees, Inc. Mr. Peter C. Morrow Executive Director Welfare Foundation Sharon Oras Morgan, Esquire Fox-Rothschild, LLP Ms. Laura Papas Director of Finance Mr. Fred C. Sears, II President and CEO Delaware Community Foundation Mr. Robert Shiflet Managing Director Global Fraud Prevention Citibank Ms. Helen Stewart Community Development JP Morgan Chase Ms. Tanya Washington Chief of Staff Mr. James Wright Commercial Lending Artisans Bank Ms. Norma Zumsteg Community Development PNC Bank r STAFF Mr. Steven T. Martin Interim Executive Director Ms. Natalie A. Howe Contract Manager Mr. Shane Martin Project Manager CONTRIBUTORS Artisan s Bank Bank of America Comenity Bank Delaware State Housing Authority Delaware Community Foundation HSBC Bank USA, N.A. JP Morgan Chase Laffey-McHugh Foundation M&T Bank PNC Bank Welfare Foundation WSFS Bank
MISSION STATEMENT The Mission of the Wilmington Housing Partnership is to collaborate with select private, non-profit and governmental entities to increase the City of Wilmington s affordable housing stock by promoting renovation/ rehabilitation of existing homes and limited construction of new homes in strategically selected areas, while supporting a diverse income strategy. 800 N. French Street, Wilmington, DE 19801 (302) 576-3000 (phone) (302) 571-4143 (fax) www.wilmingtonhousingpartnership.com