LETTER FROM THE CHAIRMAN & PRESIDENTMazzotta, Sherwood & Vagianelis PC Mengler Mechanical National Maintenance Supply National Resources Richard and Alexis Nightingale Nobile, Magarian

IMPACTREPORT

LETTER FROM THE CHAIRMAN & PRESIDENT

October, 2016

Dear Friends,

We are excited to share Westhab’s 2015-2016 Impact Report. This report highlightsour progress as Westhab continues to grow and evolve to meet today’s needs.

We’ve worked hard to expand the scope of our services and we are proud of our impact, but ultimately Westhab is a story about people. We are blessed to havesteadfast supporters, a vast network of partners, committed leaders, and a talented and passionate staff. These groups all work together to provide the absolute best housing and services possible to the most important group of all: thepeople and communities that we have the privilege to serve.

This is ultimately their story – their goals, their growth, and their accomplishments.Our success is their success. This is Westhab. This is Building Communities andChanging Lives.

Thank you for being part of the Westhab story. We know that we will deepen our impact into the future together.

Sincerely,

Richard Nightingale Jesse KrasnowPresident & CEO Chairman

BOARD OF DIRECTORSJesse KrasnowChairmanRobert H. Petrocelli, Jr.1st Vice ChairmanCesar F. Pereira2nd Vice Chairman

Richard NightingalePresidentWilliam FreyTreasurerJefferson BoyceSecretary

Evans AndersonThe Rev. John P. DuffellKen Hanau David Katz Jonalie Korengold Arletha Miles-Boyce J. Brian Peters Stephen D. Quinn Paul Turovsky

LEADERSHIP TEAMRichard NightingalePresident & Chief Executive OfficerKenneth BelferSenior Vice President, Housing

James Coughlin Senior Vice President, ServicesPatricia VitelliVice President, Finance

Cover building photo (top right): Magnusson Architecture and Planning PC / Ari Burling

GOUVERNEUR PLACE APARTMENTS SET TO OPEN

Sixty-eight households have a beautiful new home in the Morrisania section of theBronx. The Gouverneur Place Apartments includes 50 studio apartments for singles with mental illnesses, and 18 affordable family apartments including a live-in buildingsuperintendent. Our goal is to create a vibrant community life for our residents, withextensive resident programs.

This residence would not have been possiblewithout our extended team of partners. Project funders included New York State Office of Mental Health, Dormitory Authority ofthe State of New York, New York State Homesand Community Renewal, New York City Office ofEnvironmental Remediation, and Enterprise Community Partners in conjunction with United-Healthcare. Our development team includedSLCE Architects, Rende Contracting, Olive Branch Consulting, Ecosystems Strategies, Inc.,and Morris Associates.

As tenants have been scheduled to move in,their reactions have said it all. One incomingtenant shared, “I was just hoping to find a placeto sleep at night. This building will give me ahome.”

On July 1, in partnership with the New York City Department of Homeless Services, Westhab beganoperations at our first NYC homeless program, theWillow Avenue Rapid Re-Housing Center in the PortMorris neighborhood. Our uniquely effective servicemodel, which led to the reduction of Westchester'shomeless population by 70%, has already startedbreathing hope and opportunity into the program.The message has been clear to Willow's 179 resi-dents: we believe in you, there is a pathway to success,and it is never too late to get your life on track.

Westhab's Youth Services presence in the Bronx has also blossomed, now consisting of four programs in Marble Hill, Soundview, Longwood,and the South Bronx serving 675 students. We provide the motivation and support these youngpeople need while delivering the concrete academic and enrichment instruction that will helpthem reach their goals. Programming includes English Language Arts (ELA), Science TechnologyEngineering & Math (STEM), cultural arts, athletics,and leadership development. These talented youngpeople are our future leaders.

BRONX INVESTMENT

Westhab launched new supportive housing programs this year through the Westchester CountyContinuum of Care for the Homeless. Westhab’s‘Turning Point’ and ‘New Start’ programs will reach70 additional households including 8 units designated for young adults exiting the foster caresystem. We now provide housing to 55 homelessyoung adults, including 32 young adult parentsand their children.

Through the New York State Supportive HousingProgram, Westhab has also made a major investment in our after-care services, helping formerly homeless households maintain their housing and thrive in independent living. Our housing retention program now reaches over 250 households with services extending long afterpermanent housing placements.

Westhab’s Employment Programs have alsogrown, launching targeted programs for youngadults, public assistance recipients, the homeless,and the formerly incarcerated. Through partnershipswith Probation, Parole, and Corrections, Westhabnow engages clients before their release from incarceration and guides them on the path to employment during their transition to communityliving. We’ve also added new occupational trainingprograms to help our jobseekers close the skills gap, and increase their income to earn a living wage.

ANSWERING THE CALL FOR THOSE MOST IN-NEED

193 Families

Homeless HouseholdsMoved to PermanentHousing277

84 Single

Together, our housing and services form a comprehensive community development approach.

Served More Than

10,0002015IMPACT

People

Job Placements

155New Units in Construction$51 million investment

550

400 Special Needs Units serving veterans, seniors, young adults, the formerly incarcerated, and the disabled.

in growth sectors that includehealth care, hospitality andtransportation.

1,521Affordable/Supportive Housing UnitsUnder Management

Out-of-School-Time Programs 9 1,500 young people attend after school and summer programs at five public schools, two community centers and two homeless shelters.

The Dayspring Community Center is coming tolife in Yonkers, and the Campaign for Dayspring isunderway. Dayspring will be the state-of-the-artyouth and adult education center that the NodineHill community in southwest Yonkers sorely needs.Together we can make Dayspring the biggest stepforward for Nodine Hill in a generation.

You can help ensure a bright future for the youngpeople we serve as we guide them on a path tohigher education and careers. You can help peopleget the training and job opportunities they need toraise their families with pride. You can support thiscommunity as it reinvents itself as a strong and vibrant neighborhood.

BE PART OF NODINE HILL’S DAYSPRING.

For more information, contact Nancy Riedl, Directorof Development, at 914-345-2800 ext. 156 [email protected].

DAYSPRING CAMPAIGN

GOVERNMENT PARTNERSWestchester County Department of Social ServicesWestchester County Department of Community Mental Health

Westchester County Workforce Investment BoardUnited States Department of Housing and Urban Development

United States Department of Veterans AffairsNational Endowment for the ArtsNew York State Education DepartmentNew York State Department of Corrections and Community Supervision

New York State Department of LaborNew York State Division of Housing and Community Renewal

New York State Division of ParoleNew York State Office of Mental HealthNew York State Office of Temporary and Disability Assistance

Dormitory Authority of the State of New YorkNew York City Department of Youth and Community Development

City of Mount VernonCity of New RochelleCity of White PlainsCity of YonkersCorporation for National & Community ServiceMunicipal Housing Authority of the City of YonkersWhite Plains City School District

BENEFACTORS - $10,000 +Benchmark Title Agency, LLCDeWitt Wallace Fund for YouthFidelity FoundationKenneth and Ranson HanauHitchcock PresbyterianJPMorgan Chase Foundation

Jesse and Maris KrasnowDavid and Karin KuhnsKristin and Douglas LondalMargaret and Andrew PaulSt. Faith's House FoundationThe Reformed Church of BronxvilleThe Tudor FoundationThe Westchester BankPaul Turovsky and Monica CaseyWebster BankMrs. Judith Weinberg

BACKERS - $5,000-9,999Robin IshmaelMichael and Jonalie KorengoldLasberg Construction Associates, Inc.MacKay Shields LLCPaul McEvoyNew York LifeRobert and Anne PetrocelliRende Contracting Corp.Shadow Infirmary Productions LLCThe Reader's Digest FoundationJohn and Margaret TorellUrban Architectural InitiativesMark and Roseanne WelshimerWithum

PATRONS - $1,000-4,999205 South Waverly LLC25 Vancourt CorpABC Maintenance Inc.Patrick AlagnaAlvarez Educational FundGregory ArcaroStephen BaeKen and Leslie Belfer

Daniel BernsteinNeil BernsteinJefferson Boyce and Arletha Miles-BoyceBRG CapstoneThomas and Susan BrockCablevisionCannon Heyman & Weiss, LLPRafael CesteroChase BankCM Vernon RealtyCommunity Unitarian ChurchJames Coughlin and Theresa Scura CoughlinDeutsche BankEmilio DiMatteoJoseph and Mary Beth DiPrimaJoseph DiSalvoDollar General Literacy FoundationEast Coast ConferenceEK Hospitality ServiceEnterprise Community PartnersJohn EspositoEvery Supply CompanySteven GirdenRobert GrecoGuttman, Mintz, Baker & Sonnenfeldt LLPJFJ Fuel Inc. Valley Oil CompanyJunior Tennis Foundation, Inc.Katsky Korins LLPDavid and Judy KatzKole Management CorpHerbert KrasnowThe Larchmont TempleJane Liff SchatzAnthony MalloyMarsal Family FoundationTheodore and Keryn MathasMazzotta, Sherwood & Vagianelis PC

Mengler MechanicalNational Maintenance SupplyNational ResourcesRichard and Alexis NightingaleNobile, Magarian & DiSalvo, LLPPatriot National BankCesar Pereira and Rebecca BrunoMs. Theresa PerlJ. Brian PetersMark PfaffPNC Financial ServicesAndrew and Andrea PotashAbraham RabadiRegal Pest ManagementJoseph RosenthalVictor RubitsSani-Pro Disposal Services CorporationKenneth and Tarja SettlesAlan ShvetzSirius LLCSLCE Architects, LLPSteven and Tina SwartzTD Charitable FoundationThe Faley CorporationTLM AssociatesUnited Way of Westchester and Putnam, Inc.Valhalla Girl Scout Troup 1160John Van BomelFrank and Patricia VitelliWalentas FoundationBetsy WalkupTom Warren and Bonnie HurryArtsWestchesterWilder Balter Partners, Inc.Steve Wolff

We gratefully acknowledge the following 2015 major contributors for investing in our success.

CONSOLIDATED TOTALASSETS Cash $1,676,412 Receivables and Other Assets 4,527,454 Due from/Investment in Affiliates 830,182 Property, Plant and Equipment 53,004,215 Property under Development 17,309,243 Assets Restricted to Use 7,158,911

TOTAL ASSETS 84,506,417

LIABILITIESLines of Credit 4,071,666Trade and Other Current Payables 5,070,170 Notes and Other Long-Term Payables 35,215,254

TOTAL LIABILITIES 44,357,090

Limited Partners' Capital 15,322,880

NET ASSETS Unrestricted 7,340,779 Temporarily Restricted 17,485,668 TOTAL NET ASSETS 24,826,447

TOTAL LIABILITIES AND NET ASSETS $84,506,417

Consolidated Balance Sheet - December 31, 20152015 FINANCIALS

In 2015, Westhab generated an operating surplusthrough its core service contracts for housing, supportive services, employment and youth programs. We also sold two buildings, and the salesgenerated a gain on sale and improved our financialposition. Three real estate development projects arein construction, and the new housing will place 155 new affordable units into operation in the nexttwo-year period. Our continued progress has allowed Westhab to invest in our operations and increase our impact.

PROGRAM EXPENSES� Housing Income - 64%

� Contracts for Service - 32%

� Fees, Contributions & Other Income - 2%

� Capital Grants - 2%

� Housing & Services - 66%

� Shelter Operations - 19%

� Employment Services - 10%

� Real Estate Development - 5%

SOURCES OF REVENUE

UNRESTRICTED TEMPORARILY CONSOLIDATED TOTAL RESTRICTED TOTALREVENUES Housing Income $14,982,224 $14,982,224 Contracts for Services 9,480,671 9,480,671Fees, Contributions and Other Revenue 1,889,777 $483,028 2,372,805Capital Grants 0 840,692 840,692Other Income net 1,202,922 0 1,202,922Assets released from Restrictions 1,475,056 (1,475,056) 0

TOTAL 29,030,650 (151,336) 28,879,314

EXPENSESProgram Services 22,798,656 22,798,656General and Administrative 1,971,698 1,971,698Depreciation and Amortization 2,055,196 2,055,196 Fundraising 16,377 16,337

TOTAL 26,841,927 26,841,927

Change in Net Assets Before Allocation to Limited Partners 2,188,723 (151,336) 2,037,387

Change Attributable to Limited Partners 764,419 0 764,419

CHANGE IN NET ASSETS $2,953,142 ($151,336) $2,801,806

Statement of Activities - January 1 to December 31, 2015

8 Bashford Street, Yonkers, NY 10701Phone: 914-345-2800 Fax: 914-376-5014

www.westhab.org