KATHERINE SANFORD HOUSING SOCIETY AND SANFORD...

Katherine Sanford Housing Society & Sanford Property Management Ltd.

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KATHERINE SANFORD HOUSING SOCIETY

AND

SANFORD PROPERTY MANAGEMENT LTD.

2010 ANNUAL REPORT


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Mandate

To provide quality affordable housing to

people with mental illness and/or addictions.

Vision Statement

We believe that all individuals with a mental

illness have a right to decent, affordable

housing that gives them dignity and

independence.

Highlights

The provincial government announced capital funding

of $205 million to develop 1,006 new supported hous-

ing units on the eight remaining sites donated by the

City of Vancouver. Two KSHS projects—62 units at

1601 West 7th Avenue and 147 units at 215 West 2nd

Avenue were included in the announcement held at our

Smith Yuen Apartments on May 25th, 2010.

(Photos page 3)


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Dane Jansen, President Dennis Dineen, Vice President Lilly Woo, Treasurer Judy Lindsay, Secretary Marguerite Ford, Director

Judy Newman, Director Darlene Marzari, Director Dale McClanaghan, Director Anthony Robinson, Director

Katherine Sanford Ron Yuen Gordon Gram Marilyn Kerfoot Louise Lee Marleen Morris Peter Withers

Sheila Smigarowski Arleen Paré Patti Schom-Moffatt John Currie Christine Judd Janet Flowers

Honourary Members

2009/2010 Board of Directors

Bonnie Rice Paul Loo Stevo Vranjes Mike Brealey Mark Baillie Christina Fong Rebecca Lall

Staff

Executive Director Financial Manager Managing Broker, Property Manager Property Manager Assistant Property Manager Administrative Assistant Office Assistant


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Activities at KSHS this past year can best be

described in three words – ―getting shovel

ready‖. In 2007 the society was selected to

develop two of the 14 sites donated by the

City of Vancouver; however only six projects

received a capital funding commitment in

2009. Since then our goal has been to en-

sure we were ready to start construction as

soon as the provincial government an-

nouncement came to fund the remaining

projects.

The planning and design phases of our two

projects required close collaboration with

our partners and development team. The

62 units of supportive housing to be devel-

oped at 1601 West 7th

Avenue is a partner-

ship with MPA Society. They will provide

support services to tenants and operate the

Community Resource Centre (CRC) incorpo-

rated into the project. Vancouver Coastal

Health will fund the ongoing operating

costs for the CRC which will serve mostly

local area residents with a mental illness.

Our second project on West 2nd

is a partner-

ship with Raincity Housing and Service Soci-

ety for 147 new supportive housing units at

215 West 2nd

Avenue. Approximately half

the units are designated to house people

with a mental illness and/or in various

stages of recovery from addictions.

The Katherine Sanford Housing Society and

Sanford Property Management offices will

eventually move to the West 2nd

Avenue pro-

ject, occupying approximately 1,975 square

feet of commercial space on the ground

floor. This larger office space will accom-

modate the extra staff needed to manage

our expanded portfolio. The location within

the West 2nd

project should improve our op-

erating efficiency.

When the Society was established in 1989

we chose to specialize in developing and

managing property, requiring partnerships

with other agencies that provide support

services. Every opportunity the Society has

to develop a new project and form a new

partnership builds our capacity. We are al-

ways seeking ways to apply the knowledge

and our 21 years of development and man-

agement experience towards improving the

livability and cost effectiveness of the next

project.

Our 20th

anniversary year ended with more

cause for celebration. In May of this year

BC Housing selected our Smith Yuen Apart-

ments as the venue for Premier Gordon

Campbell to announce a capital funding

commitment for the remaining eight sites

donated by the City of Vancouver. The

province will provide $205 million and the

Streetohome Foundation $20 million to

build 1,006 new supported apartments

which includes 209 units for our two pro-

jects. Thanks to the hard work of staff, the

board of directors and the rest of our devel-

opment team this past year we are ready to

get our shovels into the ground.

We wish to extend our gratitude to all our

funding partners, BC Housing, Vancouver

Coastal Health, and the City of Vancouver,

whose ongoing support allows us to carry

out our mandate of providing quality hous-

ing for people with mental illness and/or

addictions.

Respectfully submitted by

Dane Jansen Bonnie Rice

President Executive Director

PRESIDENT & EXECUTIVE DIRECTOR’S MESSAGE

Dane Jansen President

Bonnie Rice, Executive Director


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Provincial Government Announcement

Left to right: John McLernon, Streetohome, Rich Coleman, Minister of Housing and Social Development,

Premier Gordon Campbell, Bonnie Rice, Katherine Sanford Housing Society and Mayor Gregor Robertson

7th Avenue West and Fir Street

62 Units

215 West 2nd Avenue

147 Units


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TREASURER’S REPORT

During the 2010 fiscal year, overall reve-

nues were $26,000 lower than last year

mainly due to lower subsidies and organi-

zation fees paid by BC Housing. Overall

operating expenses were up by $58,000 as

a result of increased staffing and benefits.

The increase in Other Income was mainly

due to investment income of $87,000

which is a direct result of the stock market

rebound. Most of the Society’s investments

are Replacement Reserve Funds which have

averaged 5.7% per annum return over the

past five years.

The Society ended the year with a $38,000

administrative surplus primarily as a result

of interest income and organization fees

earned. This surplus was transferred to the

Society’s property acquisition reserve.

Following a review of community contracts,

Vancouver Coastal Health established a cap

on administration costs at 10% of total ex-

penditures effective April 1, 2009. Kathe-

rine Sanford Housing Society was not af-

fected since our administrative costs came

in below 10% of total expenses.

Total assets increased by $0.26 million to

$21.12 million mostly due to increased Re-

placement Reserve Funds. Total liabilities

increased by $0.20 million to $17.58 mil-

lion as a result of Proposal Development

Funding loans received from BC Housing

for the preliminary design and develop-

ment phases of our two new projects on

West 7th and West 2nd Avenue. Despite

cost pressures and budgetary constraints,

the Society has been able to maintain a

healthy financial position.

We gratefully acknowledge our funding

partners BC Housing, Vancouver Coastal

Health and the City of Vancouver whose

support helped us fulfill our mandate. We

extend our gratitude once again to our

auditors, Dale Matheson Carr-Hilton La-

Bonte, our legal counsel, Barbeau, Evans &

Goldstein, our development consultants,

Terra Housing, and architects Neale

Staniszkis Doll Adams and dysarchitecture.

Without their commitment we could not

serve the community effectively in develop-

ing quality housing for people with mental

illnesses and/or addictions.

Finally, on behalf of the Board, I would like

to express our sincere gratitude for the

continued commitment and professional-

ism shown by the management and staff

over this past year that enabled our suc-

cess.

Respectfully submitted by,

Lilly Woo

Treasurer

Lilly Woo Treasurer


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Totals

2010 2009

Consolidated Statement of Financial Position

Assets

Current Assets 1,436,010.00 1,413,642.00

Restricted Cash and Investments 1,703,366.00 1,480,816.00

Property, Plant & Equipment 17,982,419.00 17,971,503.00

21,121,795.00 20,865,961.00

Liabilities and Fund Balances

Current Liabilities 2,890,165.00 2,315,372.00

Mortgage Payable, current portion 4,180,040.00 575,940.00

Total Current Liabilities 7,070,205.00 2,891,312.00

Mortgage Payable 10,506,687.00 14,485,079.00

17,576,892.00 17,376,391.00

Fund Balances 3,544,903.00 3,489,570.00

21,121,795.00 20,865,961.00

Revenue and Expenses

Revenue

BCHMC Funding 1,027,737.00 1,190,451.00

VCH Funding 1,017,191.00 1,001,918.00

Rental Income 401,284.00 397,042.00

Donations 100.00 150.00

Other Income 179,131.00 61,643.00

Total Revenue 2,625,443.00 2,651,204.00

Expenditures

Project Operations

Operating Costs 1,340,433.00 1,362,037.00

Amortization 608,538.00 607,572.00

Wages & Benefits 239,548.00 222,785.00

2,188,519.00 2,192,394.00

Administration

Operating Costs 153,217.00 121,260.00

Wages & Benefits 174,893.00 144,747.00

328,110.00 266,007.00

Total Expenditures before prior year Adjustment 2,516,629.00 2,458,401.00

BC Housing Rent Subsidy Adjustment 45,818.00 (2,240.00)

Total Expenditures 2,562,447.00 2,456,161.00

Excess of Revenue over Expenditures 62,996.00 195,043.00

Fund Balance, Beginning 3,489,570.00 3,261,027.00

Prior Year Adjustment (7,663.00) 33,500.00

Fund Balance after Adjustment 3,481,907.00 3,294,527.00

Fund Balance, Ending 3,544,903.00 3,489,570.00

FINANCIALS


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Granville House Kitchen

With our two biggest developments to date looming on the horizon and a continued initiative

to grow our property management services we have good reason for entering our third decade

with optimism.

Our focus this year was to prepare for future growth and plan for the integration of the new

projects into our portfolio. Working with the development team to arrive at specifications for

our new buildings is more challenging than ever as mechanical and other building systems

become increasingly complex. We strive to make the best choices from an operational and

cost perspective without knowing what technology changes will occur in the future.

Funding for special projects has become more difficult

to access, however, we were able to complete several

renovations and upgrades:

Energy Upgrades at Francis – Granville - Westminster

and Pender

Renovated Granville House Kitchen

Numerous re-flooring, re-painting and re-roofing

projects

BC Housing approved new replacement reserve sched-

ules we submitted. The increase in replacement re-

serve funding will allow us to carry out our annual

capital planning more efficiently.

The PHS Community Services Society, our service provider partner at the Smith Yuen Apart-

ments have been operating a program from our kitchen to prepare 1000 much needed meals

a day to residents in the Downtown Eastside. The meal program was recently featured in a

documentary film.

Our subsidiary, Sanford Property Management Ltd., achieved another significant milestone this

year as it became a fully licensed property management company. On April 1st

the Real Estate

Council of BC licensed Sanford Property Management Ltd. to provide Rental Property Manage-

ment Services.

As we embark on our third decade we want to offer a special thanks to our service provider

partners for helping us maintain the quality of our buildings and for the hard work they do

making each one a home.

PROPERTY MANAGERS’ REPORT

Stevo Vranjes Managing Broker Property Manager

Mark Baillie Assistant Property Manager

Mike Brealey Property Manager


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Pin # Property Name Service Provider # of Residents Licensed Care (Group Homes) 1 Banyan House MPA Society 6 2 Birchwood House Emerald Health Care 10 3 Bridge House Coast Foundation Society 7 4 Byron House MPA Society 7 5 Chester House Coast Foundation Society 6 6 Emerald House Emerald Health Care 6 7 Francis House Independent 9 8 Granville House Independent 10 9 Magnolia House Emerald Health Care 6 10 Pender House Coast Foundation Society 8 11 Shaw Place Coast Foundation Society 7 12 Sophia House MPA Society 6 13 Tamarack House MPA Society 7 14 Tilikum House MPA Society 7 15 Westminster House Independent 10 Licensed Care (Short Term Emergency Care) 16 Venture Vancouver Coastal Health 20 Supported Apartments 17 East 16th Apts. PHS Community Services Society 18 18 Smith-Yuen Apts. PHS Community Services Society 52 19 Triumph Apts. Kettle Friendship Society 15 Projects Under Development 20 1601 West 7th Avenue MPA Society 62

21 215 West 2nd Avenue RainCity Housing and Support Society 147

PROPERTY MANAGEMENT

Vancouver Houses Richmond Houses

20

21


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Established in 1998, the society’s social enterprise Sanford Property Manage-

ment has been providing a full range of property management services for the

past 12 years. All profits are redirected to the society to assist us to fulfill our

mission of developing housing for people with mental illness and/or addic-

tions.

Tel: 604.732.5105

Fax: 604.732.5127

[email protected]

www.sanfordpm.com

PROPERTY MANAGEMENT


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Katherine Sanford Housing Society gratefully acknowl-edges support from Vancouver Coastal Health and BC Housing as well as the City of Vancouver and Streetohome Foundation.


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Katherine Sanford Housing Society

Suite 228—2211 West 4th Avenue

Vancouver, BC V6K 4S2

Tel: 604.732.5105

Fax: 604.732.5127

[email protected]

www.kshs.ca

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