SYRACUSE MODEL NEIGHBORHOOD CORPORATION · 2015-06-01 · S. yracuse Model Neighborhood Corporation (SMNC) continues to maximize op-portunities to improve the quality of life in the

SMNC Annual Report 2013

Quality Housing That People Can Afford

SYRACUSE MODEL NEIGHBORHOOD CORPORATION

Syracuse Model Neighborhood Corporation (SMNC) continues to maximize op-portunities to improve the quality of life in the neighborhood that we serve. Each year brings new challenges and new chances to make our neighborhood a

model in which to live, work, worship, and play.

Our strategic plan calls for us to identify sustainable sources of revenue. This year we set new records for monthly and annual rental collections and collection rates. Draw-ing on our relationships with the City of Syracuse and Home HeadQuarters, we were able to build capacity and add a line of business by entering into a new contract with the Greater Syracuse Property Development Corporation (GSPDC). This brings us new opportunities to provide quality housing that people can afford and at the same time provide the GSPDC peace of mind that value is being added to previously ig-nored housing stock.

Our rental portfolio is at the heart of our agency’s mission and what we do every day. This year we were able to com-plete a full capital needs assessment of all 232 units. In the past, previous assessments like this one were responsible for us being awarded several hundred thousand dollars in grant funding. This year’s project took several months to complete and provides us with a clear planning document outlining our capital needs for the future. It will prove to be valuable in securing new grant funds to maintain and improve our existing portfolio.

We are proud of our ability to obtain grant funds from various sources and we are proud of what those grants mean to our neighborhoods and those we serve. We were able to finish work paid for by the $50,000 Main Street Grant from National Grid. This leveraged other grant funds for a transformation of commercial space along the South Salina Street corridor. We received funding from Solar Liberty to purchase and install solar panels on our property at 107 East Kennedy Street. We are excited as this will be the second SMNC property to host a solar array. I thank these grantmakers for their commitment to our neighborhood.

Our neighborhood is important to us. It is OURS. We take steps each day to make it a better place and we believe we are going in the right direction. NeighborWorks America provided us with a chance to obtain real and meaningful feedback through the Community Input Measurement Project. This survey of not only our tenants but their neigh-bors as well will be an instrumental planning tool to see what is working and what is not in our neighborhood. It will also help us see how residents view the work we do. I am excited to learn the results and find areas where we can provide an even better product to our community.

In closing I would like to say a sincere thank you to the dedicated staff of SMNC. They work tirelessly to transform our portfolio of houses and apartments into comfortable, safe, quality places that our tenants and their families can be proud to call home.

Jim Gaffey

Chairperson, James Gaffey

Message FroM the Chairperson

2Annual Report Photographs by: Tom Francis and Shamara Rufus

ChairpersonCity of Syracuse Division of Code Enforcement

2013 Board of Directors

OfficersChairperson, James Gaffey, City of Syracuse Division of Code EnforcementVice Chairperson, Kitty Rice, Neighborhood Resident Treasurer, Jack Salisbury, CPA, DiMarco, Abiusi & PascarellaSecretary, Cleo Brown, Neighborhood Resident

DirectorsDeputy Chief David Barrette, Syracuse Police Dept.Khalid Bey, Neighborhood Resident & Syracuse Common CouncilorSteven Coker, SUNY Upstate Medical CenterPaul Driscoll, City of Syracuse Dept. of Neighborhood Business DevelopmentEthel Edwards, Neighborhood ResidentWalter Eiland, Neighborhood Resident Carolyn Evans-Dean, Neighborhood ResidentKelly Gaggin, Syracuse Academy of Science Charter SchoolD. Michelle Golembieski, J.P. Morgan Chase BankJoel Grant, Neighborhood ResidentEmma Johnston, Neighborhood ResidentKathleen Joy, AttorneyKesselly Karmara, Neighborhood ResidentNancy McCoy, Neighborhood ResidentStephen Markley, KeyBank NADavid Michel, Syracuse ResidentElsie Phillips, Neighborhood Resident

StaffTom Francis, Executive DirectorTracy Gossiaux, Finance DirectorL. Pierre, Maintenance & Construction CoordinatorChamar Otis, Property ManagerRosemary Oleson, Assistant Property ManagerShamara Rufus, Finance AssistantDavid Bass, Maintenance ForemanBilly Rice, Lead Maintenance PersonRuel Vassell, CarpenterEustacius Donai, CarpenterLouis Osbourne, MaintenanceWilliam Carter, MaintenanceCassandra Harris, MaintenanceMarcus Forbes, MaintenanceWilliam Maldonado, MaintenanceClifford Grayer, Maintenance

Apartment Building SuperintendentsRobert Sauve, 107 E. Kennedy StAnthony Bowman, 118 & 124 W. Castle StWinston Stewart, 451-57 Midland Ave

Tracy Gossiaux, Finance Director; Chamar Otis, Property Manag-er; Rosemary Oleson, Assistant Property Manager and Shamara Rufus, Finance Assistant.

L. Pierre, Clifford Grayer, Louis Osborne, Ruel Vassell, Eustacius Donai, David Bass, Chamar Otis, William Maldonado, Billy Rice and Marcus Forbes

sYraCUse MoDeL neighBorhooD Corporation

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Dorothy Adams leaving SMNC for the last time as an employee in May 2013.

SMNC’s mission is to provide quality housing that people can afford. During 2012/13 SMNC owned 101 rental build-ings with 233 units, 55% of the units are in one & two-fami-ly houses. The largest building is 107 E. Kennedy St with 24 apartments. SMNC began acquiring rental property in 1973 the year after it was incorporated.

Most of the rental property was purchased with Commu-nity Development Block Grant or HOME funds through the City of Syracuse and as a rule the properties are the in-digenous houses of the neighborhood that were built prior to 1920. In total there is approximately 300,000 square feet of net rental space.

The market for rental units in the neighborhood has re-mained strong with 50 inquires a month for fewer than 10 available apartments. Rental income has increased by 8% from a year ago and occupancy has stayed level at 95%

Chamar Otis, SMNC’s Property Manager, taking an application for an apartment from a prospective tenant.

Wishing Dorothy adams a wonderful retirement

Dorothy Adams was SMNC Property Manager from 1988 until she retired in May 2013. During that time, SMNC in-creased the number of rental apartments from 60 to 270 and down to 233. When she started there were no fax machines or computers. It was all done with paper and telephone. Dorothy leaves a rich legacy of caring for the tenants and the neighborhood in which they live. Chamar Otis, Dorothy’s successor comes to SMNC with ex-perience in managing apartment complexes in Philadelphia and Syracuse. He is an excellent addition to the SMNC staff

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rentaL prograM

To maintain its 300,000 sq ft of rental space SMNC has a maintenance staff that tackles everything from

extermination, repairing windows, unplugging sewers and mowing lawns.

The maintenance staff worked on 2140 projects last year. Included in that number are 59 apartments that were made ready for re-occupancy. Louis Osbourne

repairing a shower.

Dave Bass re-keys a lock for an apartment of a new tenant.

Marcus Forbes repainting an apartment.

Will Carter doing yard work on an SMNC property.

MaintenanCe UpDate

FaCt:SMNC maintenance staff worked on 2140 projects last year.

This includes 59 apartments that were made ready for re-occupancy. 5

The Midland Lincoln Bellevue project is nearly finished. SMNC has used Federal HOME funds from New York State to rehabilitate several vacant abandoned houses in the area. This past year 200 Lincoln Ave was finished

and work started on 418 Midland Ave. When completed, these homes are sold to owner occupants. In addition to the HOME funds, SMNC has used funds from Onondaga County that were allocated to improve the area around the new Midland Ave sewage treatment facility.

This project has been a cooperative effort of SMNC, Syracuse United Neighbors, Jubilee Homes of Syracuse, the Syracuse Housing Authority and the City of Syracuse. Working together, this neighborhood has been transformed from one that was decaying to one that is vibrant and ready to meet the future.

418 Midland Ave. before construction started in 2012.

418 Midland Ave. during construction in August 2013.

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MiDLanD LinCoLn BeLLevUe projeCt

200 Lincoln Ave. at the start of construction in 2011.

200 Lincoln Ave. in August 2013 at the completion of construction.

Kandise Hayward the new owner of 200 Lincoln Ave.

A Capital Needs Analysis of all SMNC rental property was completed in May 2013. The analysis looked at every property and determined the remaining useful life of each component. For example, each of the 100 roofs

SMNC owns were examined and the year that each will require replacement was determined. This analysis will allow SMNC to more accurately anticipate its capital needs in the future.

SMNC expects to meet these needs with a combination of increased rental revenue and funding through the Community Development Block Grant program administered through the City’s Neighborhood and Business Development Department.

Most of the capital improvements to SMNC rental proper-ties are done with carpentry staff.

Left: Eustacius Donai and Ruel Vassell re-coating the roof at 107 E. Kennedy St. in preparation for the installation of solar panels.

Eustacius prepares to start work on a porch roof of an SMNC rental property.

asset ManageMent

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Total Capital Expenditures Needed Per Year 2013 2014 2015 2016 2017 2018 2019$400,000 $375,000 $350,000 $325,000 $300,000 $275,000 $250,000 $225,000 $200,000 $175,000 $150,000 $125,000 $100,000 $75,000 $50,000 $25,000

Syracuse Model Neighborhood Corporation (SMNC) has received an unqualified au-dit opinion from Cuddy & Ward CPAs on both its financial statements for the fiscal

year ending April 30, 2013 and its compliance with U.S. Treasury and U.S. Housing and Urban Development (HUD) Department regulations.

FYE 4/30/2013 highlights

1. Net income before depreciation of $225,000 allowed SMNC to reduce its liabilities by $200,000 and still end up with a positive cash flow for the fiscal year.

2. Included in the aforementioned income and cash flow is $450,000 of grant revenue from the HUD Department via the City of Syracuse, NeighborWorks America, and the Neighborhood Preservation Program. Without this grant revenue SMNC would likely have to sell its real estate in order to meet its obligations and thus its ability to provide quality and affordable housing to Syracuse residents would be greatly diminished.

3. Rental revenue increased for the tenth consecutive year, a testament to SMNC’s staff ’s work ethic and skills and also to the demand for affordable quality housing in the City of Syracuse.

4. Operating expenses excluding salaries decreased nearly $100,000 which, along with insurance proceeds received relating to a prior year theft loss, enable SMNC to pay its employees a modest bonus.

5. According to plan, quarterly reports detailing cash flow for each of SMNC’s approximately one hundred properties were prepared and reviewed throughout the fiscal year ending April 30, 2013. As intended, the timely reports alerted the Board of Directors of potential troubled (none of note at this time) and improving properties.

6. Tracy Gossiaux completed her second year as Finance Director. Her dedication and accounting knowledge have improved both SMNC’s operations and flow of financial information since her arrival and will hopefully continue to do so for the foreseeable future.

FYE 4/30/2014 highlights

1. A balanced budget is projected.

2. Community Development Block Grants are projected to be consistent with the fiscal year ending April 30, 2013 grants, albeit lower than the fiscal year before 2013 and lower than what the Board of Directors feels is needed to bring all of its goals to fruition.

TreasurerJack Salisbury, CPA

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treasUrer’s report

assets 2013 2012Current assets Cash and cash equivalents 175,355 137,294 Rent receivable, net of allowance 30,388 31,014 Grants receivable 40,351 214,454 Note receivable, current portion 0 0 Construction in progress 165,149 326,757 Other current assets 0 0 total Current assets 411,243 709,519

other assets Tenant security deposits receivable 7,784 2,453 Note receivable, net of current portion 42,939 0 Security deposits held in trust 58,857 61,886 Escrow cash 33,400 33,942 Debt reserve cash 46,936 53,551 total other assets 189,916 151,832

Fixed assets Land 704,098 704,098 Buildings and improvements 14,926,785 14,645,222 Equipment 337,724 334,878 15,968,607 15,684,198 Accumulated depreciation (11,211,163) (10,616,118) Netfixedassets 4,757,444 5,068,080 total assets 5,358,603 5,899,912

LiaBiLities anD net assets

Current Liabilities Current portion of long-term debt 107,518 80,884 Line of credit 210,052 221,426 Trade accounts payable 207,433 187,883 Deposits 0 3,350 Deferred revenue 16,578 288 Accrued compensated absences 38,237 39,801 Accrued payroll liabilities 1,916 18,466 total Current Liabilities 581,734 552,098

tenant security Deposits 84,941 86,306Long term Debt, net of Current portion 1,793,187 2,023,761 total Liabilities 2,459,862 2,662,165

net assets Unrestricted net assets, as restated 1,881,461 2,249,986 Temporarily restricted assets 0 0 Permanently restricted net assets, as restated 1,017,280 1,017,280 total net assets 2,898,741 3,267,266 total Liabilities and net assets 5,358,603 5,929,431

Excerpt from preliminary draft audited financial statements

sYraCUse MoDeL neighBorhooD CorporationStatement of Financial Position

April 30, 2013, with Comparative Financial Information for April 30, 2012

FinanCiaL stateMent

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impact surveyAt the behest of NeighborWorks America, SMNC is conducting a survey in the neighborhood to determine how resi-dents feel about safety, government service and their willingness to become involved in neighborhood improvement projects. The survey is being conducted jointly by neighborhood residents and the Community Benchmark class at Syracuse University. The results should be helpful to SMNC in planning future events and projects.

David Rufus and Erin Carhart, coordinators of the survey.

paul Malo award

SMNC is proud to be the 2013 recipient of the Paul Malo Award from the Preservation Association of Cen-tral New York.

The award recognized SMNC’s work on the Southside of Syracuse and the respect shown for the existing archi-tecture in the neighborhood.

Students and residents conducting surveys. Student volunteers: Brian, Cathy, Victoria, and Cheryl.

in Memoriam

Ms. Ethel EdwardsSyracuse Model Neighborhood Corporation

Board Member Since 2002

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Impact • recognItIon • In memorIam

thank you, to all those who supported SMNC during the last year.

City of syracuseThe City has supported SMNC since we were founded in 1973. Again this past year, the City’s Department of Neighborhood and Business Development was SMNC’s largest contributor. This funding permits SMNC to keep its 100 rental properties in top condition.

In 2009 the city designated SMNC as the coordinator for the housing portion of the county funded neighborhood improvement work around the sewage treatment facility on Midland Ave. DuringSMNC’s2012/13fiscalyeartheCitycontributed$51,000torehabprojectsthatSMNCwas working in the area. Special thanks to Mayor Stephanie Miner, Commissioner Paul Driscoll and the Common Council for their assistance.

new York state Division of housing and Community renewal (hCr)HCR operates the Neighborhood Preservation Program (NPP), a federally funded HOME pro-gram and the NYS Main Street program. SMNC has been part of the NPP program since 1983. This year SMNC received $64,000 that was used to pay operating costs. The NPP program makes it possible to participate in other state programs that do not have any operating funds attached to them.

In 2008 SMNC was approved for $600,000 in HOME funds that are being used to purchase and rehabilitate dilapidated home that are sold to owner occupants.

In 2009 SMNC was approved for $500,000 in NYS Main Street funds to help with the renova-tions of mixed-use properties on S. Salina St.

Thanks to Commissioner/CEO Darryl C. Towns and Regional Director Dan Buyer and his staff for their support and a special thanks to Senator John De Francisco for his support of these essential programs during the state budget process this year.

neighborWorks america (nWa)SMNC is a NeighborWorks America (NWA) chartered member. NWA is a national corporation funded by Congress to work at transforming communities across the country. SMNC has received support annually from NeighborWorks America for operations and for capital projects. Since SMNC joined the NeighborWorks Network in 1988 they have contributed $1.5 million to SMNC’s projects. Thanks to Deborah Boatright, the Northeast District Director, and Judith Kepner Rose, our ManagementConsultantfortheirfinancialsupport,encouragementandsoundadvice.

national gridThe National Grid Main Street Program contributed $50,000 to SMNC’s South Salina Street MainStreetproject.Thefundswereusedtofinishinteriorcommercialspacesat2301,2842-46and 2850 S. Salina St. This grant brought to a successful conclusion the SMNC’s South Salina Street Main Street Project. Many thanks to National Grid and Linda Clark for their generosity towards community develop-ment.

gas technology institute and nYserDaThe Gas Technology Institute and New York State Energy Research and Development Author-ity (NYSERDA) donated a new combined hot water and heating unit for one of SMNC’s rental properties. The purpose of the donation is to test new technology in a real life situation. SMNC benefitedbyreceivingnewequipmentvaluedat$10,000.A special thanks to David Kandibsky of the Gas Technology Institute.

thank YoU!

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SYRACUSE MODEL NEIGHBORHOOD CORPORATIONPhone:315.475.8437•Fax:315.471.1215

1721SouthSalinaStreet•Syracuse,NY13205SyracuseMNC.org

SMNC is funded by the City of Syracuse Department of Neighborhood and Business Development and the New York State Division of Housing & Community Renewal