BOARD OF DIRECTORS MEETINGDecember 11, 2014

Consent Agenda

Election of Replacement Director

2015 Budget

Overview

Much greater certainty than initial 2014 budget passed in December 2013; all grant awards in place.

Reflects projects sales/delayed from 2014, and new projects & programs for 2015.

Overall, probably less dev’l activity & demand on staff resources, but…

2015 also looks artificially “better” because of things in the pipeline.

Primary risks in meeting budget still fundraising & dev’l project execution

Still “pending” opportunities for projects & programs, but would be net benefit to NNDC is they came to fruition.

General Operations (G.O.)

2014 Budget Proj 2014 Final 2015 Budget

Interest 1,500 1,515 1,125

Fundraising 40,000 20,919 35,000

Operating Grants 138,700 136,900 151,800

Earned Income 219,550 158,075 185,186

GO Revenues 399,750 317,409 373,111

Admin/Overhead 64,633 64,633 74,398

Personnel 263,662 231,827 267,918

GO Expenses 335,327 296,460 342,315

64,423 20,949 30,796

General Operations

2014 Shortfall in fundraising Shortfall in dev’l fees

from delayed dev’l projects & LP sales

Admin/overhead savings from reduced legal fees & rent abatement

Lower personnel costs due to vacant position

2015 Increased INDI grant,

redux in CHDO Earned –income skewed

higher by carry over projects from 2014

Overhead & personnel costs on par with 2014

Rental Property

2014 Budget Proj 2014 Final 2015 Budget

Rental Rev. 14,600 15,590 1,125

Lease-Purchase 32,540 35,855 23,668

Revenues 47,140 51,845 49,083

Rental Exp. 14,628 8,565 19,269

Lease-Purchase 18,166 18,868 13,989

Expenses 32,794 27,433 33,259

14,346 24,412 15,824

Rental Property

2014 Delayed sale of LP

properties increased revenues.

Didn’t have 23rd Street repairs expenses as budgeted.

2015 Drop in LP revenues

(selling properties in Q1-Q2)

3305 Capitol comes online only mid-year.

Projects & Programs

2014 Budget Proj 2014 Final 2015 Budget

Dev’l Grants 1,500 1,515 1,125

Planned Gain/Loss on Sale

40,000 20,919 35,000

Operating Grants 138,700 136,900 151,800

Earned Income 219,550 158,075 185,186

GO Revenues 399,750 317,409 373,111

Admin/Overhead 64,633 64,633 74,398

Personnel 263,662 231,827 267,918

GO Expenses 335,327 296,460 342,315

64,423 20,949 30,796

Projects& Programs

2014 Budget Proj 2014 Final 2015 Budget

Grants 842,904 422,434 624,225

Planned Gain (Loss) on Sale (861,642) (480,817) (641,348)

Net SF Dev’l Rev. 18,738 58,383 17,123

Other Project Rev. 550,000 128,500 716,300

Program Revenue 226,800 177,000 194,800

Total Revenues 795,538 363,883 893,977

Other Project Exp. 550,000 128,250 628,300

Program Exp. 234,300 185,785 196,800

Total Expenses 784,300 314,035 825,100

NET 11,238 49,848 68,877

Projects & Programs

2014 2131 North construction

delayed to 2015 Some 2014 home repair

projects will fall into 2015

Vac/Abd Housing Loan Program not budgeted (In & Out)

Façade Program not budgeted (In & Out)

2015 2131 North project 3305 Capitol project

NNDC rental Valuation Allowance offset

Vac/Abd Housing Loan Program continues

Non-Cash

Fully depreciated 23rd Street property in 2014 Start depreciation of 3305 Capitol in 2015 Valuation Expense in 2015 taken on 3305 Capitol

Keeps gain from receipt of grant funds and loss on sale in same year

Bottom Line

2014 Budget Proj 2014 Final 2015 Budget

General Operations 64,423 20,949 30,796

Rental Housing 14,346 24,412 15,824

Projects & Programs

11,238 49,848 68,877

Non-Cash (14,448) (11,377) (100,009)

75,559 83,831 15,488

Change in Restr. Revenues 22,290 52,164 (16,634)

53,269 31,667 32,123

Housing Dev’l Opportunities

Glenmore Apartments

24-unit building @ 3630 N. Meridian, “twin” to the Oxmoor Apartments.

Conducted due diligence in 2012-13. Circumstances now create window of opportunity

Owner, Lender, availability of grant funding, experience w/ Oxmoor, potential partners.

NNDC as owner, part-owner, or simply developer Ownership interest preferred, but deal may be too tight, too much

long-term risk.

Approx 30-day period for project feasibility & structuring…. “Go-No Go” decision.

Crown Hill Neighborhood

Continuation & expansion of comprehensive housing revitalization efforts

Expand target area north Broaden types activities, projects, programs

Leverages high-profile, high-priority initiatives: Great Places 2020, Crime & Safety HotSpots

Increased financial resources – operating support, project & program funding Increased partner opportunities: public-sector, non-profit, faith-based, for-profit

partners Increased relevancy, value-add, and continues to reposition & redefine NNDC

within community development system

In-house assessment, planning, partnership-building effort next 2-3 months.

Meeting FrequencyBoard SizeCommittee Work

Governance Discussion

Donor “L-A-I” and Fundraising

Board Development