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2008 Annual Report
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2008 Annual Repor t - Norfolk Redevelopment & Housing ... · 2008 Annual Repor t. ... Donna Mills - Property Management Director ... Maury graduate Brandie McKenzie and Lake Taylor

Jun 26, 2018

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Page 1: 2008 Annual Repor t - Norfolk Redevelopment & Housing ... · 2008 Annual Repor t. ... Donna Mills - Property Management Director ... Maury graduate Brandie McKenzie and Lake Taylor

2 0 0 8 A n n u a l R e p o r t

Page 2: 2008 Annual Repor t - Norfolk Redevelopment & Housing ... · 2008 Annual Repor t. ... Donna Mills - Property Management Director ... Maury graduate Brandie McKenzie and Lake Taylor

2 NRHA 2008 ANNuAl RepoRt

Mission College Apartments undergo $8 million renovation project.

Page 3: 2008 Annual Repor t - Norfolk Redevelopment & Housing ... · 2008 Annual Repor t. ... Donna Mills - Property Management Director ... Maury graduate Brandie McKenzie and Lake Taylor

From the Executive Director: under one Roof

This has been an exciting year at NRHA. The Authority’s new five-year strategic plan has created a new direction with an energy and focus that’s clearly making a difference – and helping us make a difference within our community.

That plan defines a new vision, mission, values and goals for the organization. Winner of a 2008 National Award of Merit from the National Association of Housing and Redevelopment Officials (NAHRO), the plan pulls together, under one roof, the full range of products, programs and services delivered by an exceptional staff that lives these values every day.

Throughout the year, NRHA has made steady progress – sometimes incremental, sometimes dramatic – toward achieving these goals. This annual report provides the highlights.

NRHA 2008 ANNuAl RepoRt �

Vision: Quality housing choices in neighborhoods where you want to live.

Mission: provide quality housing opportunities that foster

sustainable mixed-income communities.

Values:

Accountability Customer Service excellence Innovation teamwork

Goals:Quality housing opportunities for all.Sustainable mixed-income communities.A strategic business approach.Community engagement and support.

••••

ace itaccountability • customer service • excellence • innovation • teamwork

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� NRHA 2008 ANNuAl RepoRt

Board of CommissionersChairman W. Sheppard Miller, III

(Chairman, KITCO Fiber Optics and President & CEO of Light Tech Fiber Optics)

Vice Chairman Peter M. Meredith, Jr. (Chairman and CEO, Meredith Construction Company)

Hattie Anderson (Norfolk Shipbuilding & Drydock Corp. (retired))

Rodney A. Jordan (Co-founder, MelaNet)

L. Robert “Bob” Layton (President, Atlantic Equipment Corp. (retired))

Robert J. Soble (President and Owner, Pottery Art Studio)

Ulysses Turner (Owner, Atlantic Apartment Rentals/Development Co.)

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NRHA 2008 ANNuAl RepoRt �

Executive Leadership Team

Left to Right: John Kownack - Assistant Executive Director for Housing ReinventionGayle Blackstone - Real Estate Services Director

Julius Norman - Workforce Development CoordinatorJames Gehman - Assistant Executive Director for Development Operations

Richard Archer - Human Resources DirectorMichael Clark - Senior Real Estate Development Specialist

Arlene Hinson - Client Services DirectorBrenda Wilson - Budget and Compliance Director

Ed Ware - Communications and Marketing DirectorDonna Mills - Property Management Director

Shurl Montgomery - Executive DirectorDonnell Brown - Assistant Executive Director for Housing Operations

Clara Graves - Assistant Executive Director for Financial and Administrative OperationsTimothy Coyle - Legal Counsel (not shown)

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� NRHA 2008 ANNuAl RepoRt

HomeNet closes more first-time buyers than any other homebuyer counseling agency in Virginia.

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NRHA 2008 ANNuAl RepoRt �

Providing quality housing oppor-tunities has always been one of NRHA’s main goals. To that end, there was much to celebrate in 2008.

HomeNet set the tone by closing more first-time buyers than any other housing counseling agency in the state – and without a single foreclosure in its seven-year history, despite surging default trends nationally.

The Virginia Housing Development Authority (VHDA) an-nounced that NRHA would receive a SPARC grant of $13 million – more than any other authority in Virginia – for financing affordable homes in the City. Over 80 first-time buyers are expected to benefit. And to top it off, NRHA achieved major milestones, raising its Housing Choice Vouch-er program rating to “high performer.” Robert Jennings, Director, Richmond Office of the US Department of Hous-ing and Urban Development (HUD), remarked that “the Authority staff is to be commended for the excellent implementation and efforts.”

In the asset management area, HUD Deputy Assistant Sec-retary Elizabeth Hanson announced that NRHA successfully transitioned its 14 multi-family assisted rental properties to site-based management, accounting and budgeting. “Con-gratulations on your successful submission and for the work of your agency in converting to asset manage-ment,” Hanson stated.

HUD made particular note of NRHA’s diversified property management portfolio, saying that, “historically, housing authorities have not been allowed, by limited part-nerships, to manage mixed-finance properties, but NRHA has the confidence of owners and investors to manage these properties.”

The many personal accomplishments of NRHA residents were celebrated in June at the annual Recognition of Achievement Banquet. Some 300 residents were nominated for recognition this year. Keynote speakers were Norfolk Public Schools Superintendent Stephen Jones and the Rev-erend Kirk T. Houston. The Master of Ceremonies, WAVY-TV news anchor Don Roberts, described the evening as a chance “to celebrate reaching the top of one mountain

and to let this success fuel our de-sire to conquer more peaks in life.”

Education and workforce development are keys to the future economic pros-perity of our residents. This year, youth

residents received impressive college scholarships. Lake Taylor graduate and Diggs Town resident, Joseph Saenz was the first recipient of a new Norfolk Foundation scholarship, which is providing a full ride to Virginia Commonwealth Uni-versity where he is studying robotics and engineering.

Maury graduate Brandie McKenzie and Lake Taylor graduate Kristin Clair re-ceived Virginia Association of Housing and Communi-ty Development Officials (VAHCDO) President’s Award scholarships, and Shiaria Johnson of Lake Taylor also received a VAHCDO scholarship.

Often, transporta-tion barriers stand in the way of getting or keeping a job. Delivering a child to daycare or entry level jobs that require late hours, when public trans-portation is non-existent, are just two examples. Through Hampton Roads Transit, NRHA won a $252,000 federal grant that will provide enhanced van pooling and other transporta-tion solutions for our residents involved in workforce training.

GOAL 1: Quality Housing opportunities for All

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8 NRHA 2008 ANNuAl RepoRt

Energy Star duplexes at Grandy Village receive 2008 Award of Merit from NAHRO.

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NRHA 2008 ANNuAl RepoRt �

Green building is a systems-based approach to achiev-ing sustainable buildings that incorporate environmental considerations into every phase of the building process: design, construction, operation, maintenance, renovation and demolition.

NRHA green building initiatives, with Energy Star duplexes in Grandy Village and the first affordable EarthCraft home in Hampton Roads, were recognized by NAHRO with a 2008 Award of Merit.

But we are painting a much wider swath of green than that. Ground was broken October 31, 2008 for the largest green-built townhome community in Virginia. Twenty-seven distinctive new townhouses, built to EarthCraft and Energy Star standards, are rising in the 1500 block of the revitalized Church Street corridor. The dwellings will start at the $155,000 price point, making them the best resi-dential value in Hampton Roads, where new townhouses average $265,000. “Construction of Virginia’s largest green built townhome community adds one more remarkable chapter to the long and storied history of Church Street,” said Mayor Paul Fraim.

A new community center at Grandy Village, providing environmental education opportunities, will meet US Green Building Council LEED-Silver certification, and a new 100-unit senior building on the drawing board will obtain a similar level.

Grandy Village is also receiving significant shoreline im-provements via a wetlands restoration partnership between NRHA, Hampton Roads Transit and the City of Norfolk.

On another green note this year, East Beach was one of five finalists for the 2008 Land Development Visionary Award presented by Sustainable Land Development International. East Beach is a traditional neighborhood development on 100 acres of waterfront land along the Chesapeake Bay. The new-urbanist master plan of the site preserves and enhances the natural features of its location.

Our communities at various stages of devel-opment are creating success stories through-out Norfolk. The $8 million upgrade to Mis-sion College Apartments – complete with high-speed internet, a clubhouse with fitness equipment, outdoor pool and new gateway

treatment – typifies the Authority’s push toward quality mixed-income communities that will appeal to a broader range of incomes.

The Authority is pursuing housing tax credits for similar renovations at Oakleaf Forest.

In Lamberts Point, NRHA is partnering with the Retirement Housing Foundation to build 40 senior apartment resi-dences, which will complement the Village Pointe complex completed in 2002.

For the second year in a row, Park Terrace Apartments won an Award of Excellence from the Tidewater Multi-family Housing Council.

Turning to Broad Creek, the 70 homeownership units are nearly all built in the Bowling Green phase. On the North-side, 20 new townhomes are complete. Despite a slow housing market, sales have been steady. In a major step for Broad Creek, the Board of Commissioners approved mov-ing forward with the revitalization of Moton Circle, which contains 138 units on 11 acres. These units, built in 1952, would be replaced with rental and homeownership resi-dences at a variety of price points and will accommodate those tenants who want to return to the community and meet return criteria. Following HUD approvals, demolition is expected to begin in autumn 2009. Progress continues on the Salvation Army Kroc Center, linear park and other amenities in this vibrant new community, which will be served by three light rail stations.

In Wards Corner, the City has created a Special Services Dis-trict for NRHA to provide residential revitalization services. Neighborhood response has far exceeded expectations.

In Ocean View, a dispute over future redevelopment of a 21-acre parcel from 3rd Bay Street to 7th Bay Street was resolved. City Council decided that the area from 3rd to 5th Bay should be preserved for open space, while from 5th to 7th Bay should be used for residential development. This opens the door for NRHA to begin developing a plan

for the 5th to 7th Bay site.

GOAL 2: Sustainable Mixed-Income Communities

The Maplewoods @ Olde Huntersville is the largest green built townhome

community in the state.

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10 NRHA 2008 ANNuAl RepoRt

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NRHA 2008 ANNuAl RepoRt 11

GOAL 3: Strategic Business ApproachTaking steps to meet changing requirements and make the best use of our resources requires a focused business model to effectively and efficiently deliver our products and services.

Employees are our greatest resource. In that regard, a comprehensive job classification and compensation study is underway, with the assistance of Evergreen Associates, which will produce a revised pay plan, position descriptions and enhanced performance management plan. We want to make sure that we have a motivated staff and can attract and retain the best talent for our organization.

Significant progress is being made toward a proposed new, consolidated NRHA office at the nine-acre 910 Ballentine Boulevard site that will truly put our staff and operations un-der one roof. An architectural and engineering firm has been chosen to design the new building.

A new home network called ShareNet was launched. As NRHA’s new intranet, ShareNet will encourage collabora-tion, provide better access to information and improve ef-ficiency across the board.

Other 2008 strategic business approach milestones include the appointment of a new Assistant Executive Director of Housing Operations, Donnell Brown.

You cannot manage what you cannot measure . A Perfor-mance Measures Team has defined and presented to the Board of Commissioners meaningful indicators that assess progress toward our strategic plan goals.

A Business Centers Team has developed a preliminary proto-type that will give us a better understanding of the income and expenses associated with each of the products and services offered by NRHA.

Budgeting and Compliance are now under one roof and this new department is smooth-ing out the complex budget process, linking it to the strategic plan and coordinat-ing 30 annual outside audits with affected departments.

For its assisted-rental properties, NRHA is moving to energy performance contracting that will provide retention of energy savings generated, third-party financing for needed capital energy improvements and other benefits.

Hampton Roads Ventures (HRV), an NRHA subsidiary, is providing New Markets Tax Credits (NMTC) that are the financial linchpin for two new office developments in Nor-folk totaling $100 million. Norfolk’s economic development director told The Virginian-Pilot that, “the development would not have been possible in this economic climate without the New Markets Tax Credit Program.” Over the past five years, HRV has received NMTC awards worth $150 million from the US Treasury Department.

Under a $5 million contract with Hampton Roads Transit, NRHA is providing land assembly services for The Tide light rail project. About half of the parcels have been secured thus far, with the remainder to be wrapped up in 2009.

Donnell Brown

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12 NRHA 2008 ANNuAl RepoRt

Students from Chesterfield Academy take part in NRHA’s American Wetlands Month event at Grandy Village.

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NRHA 2008 ANNuAl RepoRt 1�

GOAL 4: Community engagement and Support

Keeping our own house in order is important, but so is reaching out to those we serve. From volunteering with our community partners to open houses, media brief-ings, exhibits, groundbreakings and public hearings…as well as receiving national awards and college scholar-ships for deserving residents, NRHA has done much to capture the public’s attention and imagination in 2008.

Events and programs that engage the community and inform our stakeholders are vital to the success of NRHA. They increase awareness of our activities and offerings, and raise our profile as an industry leader.

For example, Jay Fisette, Immediate Past President of the Virginia Municipal League wrote, “Each year at our annual meeting, we try to include a focus on a project of particular interest in the host city. This year’s tour of Grandy Village was one of the most successful we have had.”

At the Council of Large Housing Authorities Executive Directors Annual Meeting, Shurl Montgomery shared best practices on a panel entitled, “The Road Ahead in a Challeng-ing Environment,” alongside the Executive Directors from the Boston, Chicago, and Charlotte, N.C. housing authorities.

To round out the year, NRHA received the 2008 League of American Communications Professionals Magellan Award for “Most Creative Campaign” for marketing the revitalization of Grandy Village. The campaign was also named one of the “Top 50 Communications Campaigns” of 2008, placing 19th overall out of 457 entries. Competitors included Coca-Cola, Kodak, ESPN as well as NASA and the Department of De-fense. “NRHA’s entry proves to be remarkable in light of tremendous competition. Overall, we find this work to be superb,” stated LACP Managing Director, Christine Kennedy.

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1� NRHA 2008 ANNuAl RepoRt

NRHA has always been about making a difference in the lives of Norfolk residents through quality housing op-portunities and revitalized communities. With the right programs, strategies and business practices in place, what a difference a year can make –

and all under one roof

Page 15: 2008 Annual Repor t - Norfolk Redevelopment & Housing ... · 2008 Annual Repor t. ... Donna Mills - Property Management Director ... Maury graduate Brandie McKenzie and Lake Taylor

Fiscal Year (FY) 2009 BudgetThe FY 2009 capital and operating budget is $96.7 million. The budget represents a $7.6 million (or 7 percent) decrease over the previous year’s $104.2 million budget

Housing activities account for 69 percent ($67 million) of the FY 2009 budget. Development activities make up 28 percent ($27.5 million) and other activities make up 3 percent ($2.2 million). Budgeted expenditures for housing operations will decrease by 6 percent ($4.1 million) compared to FY 2008. Development operations expenditures will decrease by 17 percent ($5.6 million) compared to FY 2008.

NRHA will receive 48 percent of its total funding from US Department of Housing and Urban Develop-ment (HUD) grants totaling $47.1 million. City of Norfolk grants account for an additional 12 percent or $11.6 million; other income, such as development fees, property management fees, bond financing fees, and tax credit equity, accounts for 11 percent ($10.7 million) of expected FY 2009 revenue. These three funding sources reflect $8.9 million, $1.3 million, and $4.5 million reductions, respectively, from the FY 2008 budget. Tenant rent payments account for 17 percent ($16.3 million) of expected FY 2009 revenue and represents a $0.5 million increase from the FY 2008 revenue budget. The remaining FY 2009 income source are reserve balances held and brought forward $11.8 million.

NRHA FY 2009 and FY 2008 Budget Comparison  Total Housing Development Other

FY 2009 ($) 96,671,125  66,970,516  27,509,834  2,190,775 

FY 2008 ($) 104,241,544  71,084,108  33,157,436  0 

$ Change 7,570,419  (4,113,592) (5,647,602) 2,190,775 

% Change (7%) (6%) (17%) n/a

NRHA 2008 ANNuAl RepoRt 1�

More FY 2009 budget detail may be found at www.nrha.us.

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1� NRHA 2008 ANNuAl RepoRt

Appendix: Statistical Summary

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NRHA 2008 ANNuAl RepoRt 1�

Assisted Rental Apartments Appendix A:

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Multi-Family DevelopmentsAppendix B:

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NRHA 2008 ANNuAl RepoRt 1�

Single Family & Townhome ProductionAppendix C:

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20 NRHA 2008 ANNuAl RepoRt

Conservation ProjectsAppendix D:

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Redevelopment ProjectsAppendix E:

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22 NRHA 2008 ANNuAl RepoRt

Senior Housing DevelopmentsAppendix F:

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NRHA 2008 ANNuAl RepoRt 2�

Appendix G: Assisted-Rental Housing Demographicstotal households - ��2� Female heads of household - 2���Male heads of household - ��0Female household members - ����Male household members - 2���

total household members as of 12/�1/08 - 8218Age distribution: 0 to 1� years - �1�0 18 to �� years - �0�� �� to �1 years - �21 �2 + years - ��8

Appendix H: Hampton Roads Ventures (hamptonroadsventures.com)

New Market Tax Credit (NMTC) Awards: $�0 Million (200�) $�� Million (200�) $1� Million (200�)

Key Projects: Marriott Springhill Suites – old Dominion university Hilton Garden Inn Dumas Center for Artistic & Cultural Development Claude Moore education Complex Historic Crispus Attucks theatre

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201 Granby StreetNorfolk, Virginia 23510-1816

Main Phone Number: (757) 623-1111TDD for Hearing Impaired: (800) 545-1833

Fax: 757.314.2105www.nrha.us