NHPF Fiscal Year 2019 Annual Report

Celebrating 30 Years of Investing in Affordable Housing

MissionThe NHP Foundation is a

not-for-profit real estate

organization dedicated to

preserving and creating

sustainable, service-enriched

multifamily housing that is

both affordable to low and

moderate income families

and seniors, and beneficial

to their communities.

VisionA future where communities

flourish because attractive,

sustainable housing options

and life-enhancing services

are ensured for income-

challenged Americans

A complete copy of our 2019 audited

financials is available upon request

to the office of the:

Chief Financial Officer

122 East 42nd Street, Suite 4900

New York, NY 10168

or by calling 646.336.4940

The Mark Twain Chicago, Illinois

Strand Residences Washington, DC

The NHP Foundation | Fiscal Year 2019 Annual Report 3

IN 2019, NHPF CELEBRATED ITS 30TH YEAR creating and

preserving America’s affordable housing. The anniversary was

marked by many achievements, including the organization’s

100th acquisition.

This past year saw NHPF completing the purchase of nine

properties totaling an additional 1,350 units. We also broke

ground on the construction of The Strand, 86 units of much-

needed affordable housing in Washington, DC’s Deanwood

section in Ward 7. The development will also include the

repurposed restoration of an historic theater. This effort is a

superb example of our development team’s skill in revitalizing

an area while preserving a community. This work is made

possible through fostering partnerships with multiple entities aligned around increasing the value of an underserved

area with a green, sustainable development.

Investing in affordable housing was also the theme of our 3rd Annual Symposium, Affordable Housing Investment:

Impactful Returns Realized. There, NHPF brought together bi-partisan legislators, institutional investor/fund

managers, and other experts to discuss investing in affordable housing as a reliable asset class.

NHPF joined forces with Kingsley Associates, leaders in institutional real estate industry research and top real estate

investment publisher, IREI, to produce a study examining the barriers to private investment in affordable housing. The

findings, which were delivered at the Symposium, revealed the most crucial impediment to institutional investment

was “onerous government regulation.”

Equipped with the results from the study and its own experience, NHPF is better able to anticipate the needs of

potential affordable housing investors while continuing to work diligently with its financial partners to make the

application process easier to navigate.

NHPF has developed an excellent reputation for attracting both private and public investors and creatively packaging

financial sources across its footprint. These include the various JV deals NHPF completed in 2019 with Jonathan

Rose and TPI, Inc., as well as the combination of federal, state, city, and private financing that went into the

redevelopment of The Mark Twain, a storied SRO property in Chicago.

This past year, we also documented a stellar example of implementing an ESG-guided strategy in the successful

acquisition and rehabilitation of Cleme Manor apartments in Houston.

By focusing on current investor satisfaction while attracting new investors to the industry, NHPF looks forward to many

more decades of successful affordable housing preservation and creation.

No one can predict the future; however, affordable housing is a stable investment with solid returns that make it a

favorable real estate asset class in which to invest.

Richard F. Burns Ralph F. Boyd, Jr.

NHPF President & Chief Executive Officer Chair

30 Years of Investing in Affordable Housing

Richard F. Burns Ralph F. Boyd, Jr

4 The NHP Foundation | Fiscal Year 2019 Annual Report

The Mark Twain Chicago, Illinois

The Mark Twain is NHPF’s first affordable SRO

property in Chicago. It is also the first property in the

portfolio to be awarded Enterprise Green Communities

(ECG) Certification, the country’s only national green

building certification program designed explicitly for the

affordable housing sector featuring a comprehensive set

of guidelines to encourage green building practices.

The building is 29% more efficient than it is required to

be by the energy code and achieved a 29% indoor water

use reduction. In addition to bringing this high level of

sustainability to the preservation of an historic building,

The Mark Twain is notable for other reasons:

• It was the first SRO property of this size that was

purchased and preserved under Chicago’s SRO

Preservation Ordinance that passed in November 2014.

• The Mark Twain is a prime example of a highly

effective private-public partnership to preserve a

critical affordable housing resource in an increasingly

gentrifying neighborhood of Chicago

• The mixed-use nature of the property in addition to

significant capital needs required an innovative and

robust financing structure. Approval of 100% Project-

Based Vouchers from the Chicago Housing Authority

and the use of the FHA 220 loan that is designed for

urban, mixed-use properties were unique financing

features of this transaction.

To quote Preservation Chicago, a civic organization

dedicated to the city’s historic architecture, “The Mark

Twain Hotel project is more than just a substantial

reinvestment in a historic Art Deco building, but also

an investment and commitment focused on equity

and affordability in one of Chicago’s most affluent

communities. This renovation project also preserves

the building’s SRO-Single Room Occupancy status, which

has been a goal of the City of Chicago and residents of

many communities, to preserve this type of affordable

housing, which has disappeared at an alarming rate in

recent decades.”

The NHP Foundation | Fiscal Year 2019 Annual Report 5

Strand Residences Washington, DC

The Strand Residences is more than an affordable

housing community. With this undertaking, NHPF is:

• Building replacement housing for residents at Lincoln

Heights and Richardson Dwellings.

• Bringing jobs to DC Residents and contracting

opportunities to DC’s small businesses.

• Providing opportunities for neighborhood retail along

Nannie Helen Burroughs Avenue.

• Implementing Operation Pathways after-school

programs and financial literacy training and other

classes to all our residents.

• Remediating a brownfield that prevented development

on this site and the surrounding parcels.

And we’re doing it all without displacing a single resident

and helping a community business, The China Café,

move down the block so it can continue to operate in the

neighborhood.

The Strand Residences is a textbook case of how public

and private entities come together to do their part to

create and preserve much needed affordable housing.

This project benefited from District Mayor Bowser’s New

Communities Initiative, which provided $15M. The HFA

issued $19M in tax-exempt bonds, DHCD allocated the

Low Income Housing Tax Credits and the DC Housing

Authority administered the operating subsidy. The private

sector also stepped up via funders RBC, Citibank, JLL,

Enterprise Community Partners and M&T Bank. National

Housing Trust provided a critical pre-development loan to

help us bridge capital early in the project. Construction is

well under way and we are also happy to report that The

Strand has received pre-build approval from Enterprise

Green Communities (ECG) Certification.

122 EAST 42ND STREET, SUITE 4900, NEW YORK, NY 10168 • 646.336.4940

1090 VERMONT AVENUE, NW, SUITE 400, WASHINGTON, DC 20005 • 202.789.5300

150 N. MICHIGAN AVENUE, SUITE 2800, CHICAGO, IL 60601 • 312.216.5103

nhpfoundation.org