A Community of Friends Annual Report 2014

ACOF
Dignity ExcEllEncE community AnnuAl REpoRt 2014


2 | ACOF ANNUAL REPORT 2014
Joint Board Chair & CEO Message
We are pleased to provide you with A Community of Friends’ (ACOF) Annual Report for FY13-14, which provides a snapshot of our work over the course of our 26th year.
After an odyssey of more than ten years, ACOF and our partner, New Directions for Veterans, celebrated the grand opening of two permanent supportive housing developments on the campus of the U.S. Department of Veteran Affairs in North Hills. Known as New Directions Sepulveda I and New Directions Sepulveda II, these two buildings are home to 147 homeless and disabled veterans. These buildings are the first in a series of projects designed to underscore ACOF’s commitment to ending homelessness for veterans; soon to follow will be West Villas, Arlington Square, and Liberty Lane, ACOF’s first project in the Inland Empire.
FY13-14 saw ACOF directing more attention to the clinical needs of our tenants by initiating an evidence-based approach to our work. As a result of the Coordinated Entry System and the mandate to prioritize housing for chronically homeless individuals, we face more challenges related to both processes and service delivery. Generous funding from United Way of Los Angeles enabled us to add a new Residential Services Specialist to our team to provide additional support to services staff when needed. We have increased our focus on substance abuse recovery with the investment of two foundations — S. Mark Taper Foundation and an anonymous foundation.
ACOF undertook a rigorous 18-month selection process to become a NeighborWorks America charter member this year. With only 21 members in California (and less than 250 nationwide), NeighborWorks America provides training, services and other resources to its members to make substantial impact and drive change at the local level for individuals, families and communities.
Going forward, we are positioned to be financially strong. Supported by funders such as The Ralph M. Parsons Foundation and Enterprise Community Partners, ACOF is transitioning the properties in our portfolio from third-party property management to an in-house property management model. We are projecting
Image
Helena L. Jubany, Board Chair
Dora Leong Gallo, CEO
fffthat by the end of 2016 we will have complete management of our portfolio,
allowing us to maintain a greater level of control over service integration as well as the longevity of our buildings.
TBD
Only through the support of our many donors are we able to launch these initiatives. Thank you for your partnership as ACOF continues our work to end homelessness for people with mental illness, ensuring that everyone, no matter what their circumstances, is treated with respect and has a home. Together, we are building independent lives.


ACOF ANNUAL REPORT 2014 | 3
Highlights for FY2014
For over 26 years, ACOF has been the leader in developing, building and operating permanent supportive housing in Southern California. ACOF continues to grow internally and to expand outside of Los Angeles County.
• We completed our irst veteran’s project - New Directions Sepulveda I & New Directions Sepulveda II, providing 147 units of permanent supportive housing for formerly homeless vets. We completed construction on Vista del Rio in Santa Ana, our irst project designed speciically for people with developmental disabilities.
• We broke ground on Avalon Apartments in South Los Angeles, which will provide 55 units for formerly homeless families and low income households.
• In addition to continuing to develop and build in Orange County, we now have two projects in San Bernardino County in our pipeline.
• We became a NeighborWorks Charter Member, expanding our network of resources and support and moving our work into a national arena.
• ACOF took on more direct property management responsibilities of the buildings we construct, bringing the control and care in-house so properties are maintained to ACOF’s standard.
• As a result of our expansion and increased responsibilities, we added
six new positions: two property supervisors; a human resources coordinator; one residential services specialist; a substance abuse recovery specialist and an accounting clerk.
• We now have a Tenant Advisory Council (TAC) currently comprised of 10 tenants from eight different buildings who meet with our CEO bimonthly to advise and to increase tenant engagement.
• Board and Staff began participating in Executive Service Corps’ 18 month “Developing Development Program” as part of ACOF’s strategic plan to increase its base of support to gain unrestricted support for our Residential Services Programs, and other capacity building endeavors.


4 | ACOF ANNUAL REPORT 2014
Housing, Services
and Asset & Property
Management
From AM to A&PM: The Change is Night and Day
ffffAfter years of planning for the change in scale, ACOF plans to take complete property management control of its 39 properties by the end of 2016. Currently, ACOF manages five properties and co-manages 13 properties, with 21 properties managed by third-party companies. With an increased focus on housing individuals and families who are chronically homeless, ACOF will be better able to ensure the team approach so critical between property management and services staff, and to provide in-depth training to property management staff in working with tenants with the most needs. Through increased financial efficiencies, more funds will be available for the long term upkeep of the buildings. Our focus will be on both Asset and Property Management (A & PM), which will enable ACOF to more fully meet its mission and core values of dignity, excellence and community.
In this fiscal year, A&PM:
• Laid the groundwork for the creation and implementation of a comprehensive Property Management Operations Manual with a grant from The Ralph M. Parsons Foundation. This manual will include policies and procedures that incorporate many of the
lessons learned over the last 26 years of oversight over third party property management companies. Many of the policies are specific to partnering with services staff to promote housing retention for formerly homeless tenants living with mental illness.
• As their responsibilities shift, the asset managers for the portfolio have been able to spend less time in the oversight of property management, which allows them to spend more time on the financial, regulatory and physical health of their properties. The asset managers have been performing 100% unit inspections which has resulted in strategic planning for all properties that utilizes a planned approach to property upgrades in line with efficient use of cash flow.
• As is routine, we updated or upgraded nine units this year. We focus on replacing kitchen cabinets, counter tops, bathrooms and flooring. We have learned from experience if we take care of our units as needed, we will extend the life of our buildings and will be able to continue to house tenants in a safe and clean environment, which is essential to promoting mental health stability.


ACOF ANNUAL REPORT 2014 | 5
ACOF HOUSING LEED®S THE WAY
LEED®, or Leadership in Energy & Environmental Design, is a green building certiication program that recognizes best-in-class sustainable building strategies and practices. What makes a building LEED® certiied? There are many things to consider such as renewable energy, water conservation, use of materials, drought tolerant landscaping and high eficiency heating and cooling systems. Not only is this a healthy and sustainable approach to building, it also saves operating expenses in the long run.
Tara J. Barauskas, ACOF’s Director of Housing, is a LEED® Accredited Professional (AP), with a specialty in Homes, highlighting her expertise in design and construction of healthy, lasting homes that use fewer resources. All ACOF project managers are expected to achieve LEED® Associate designation at minimum.
Our LEED® Certiied Buildings
Platinum: Villas at Gower, Osborne Place, Avenida Villas
Gold: New Directions Sepulveda I and New Directions Sepulveda II, Vista Del Rio


6 | ACOF ANNUAL REPORT 2014
Residential
Services
With tenants at 39 buildings across two counties, encapsulating the work of ACOF’s Residential Services Department is not an easy task.
Vibrant Living Program
The belief in a more well-rounded approach to supportive services is what led to the development of ACOF’s Vibrant Living Program, which encourages tenants to improve body, mind and spirit
as they work towards housing stability and self-sufficiency. The program includes three categories of group activities: healthy eating, energizing exercise and creative expression. Our services staff
offers courses in trimesters from September through June. Each trimester focuses on one of the three areas of the Vibrant Living Program, and participation is voluntary. The staff demonstrates how to prepare healthy meals, encourages exercise by leading group walks, or sparks creative expression through the use of watercolor painting. This holistic approach to tenant well-being, coupled with mental health
and support services, can improve tenants’ mental health management and result in fewer relapses or set-backs.
In addition to ACOF’s 34 services staff, we have partnerships with other services agencies (see page 10) to assist us with meeting our tenants’ needs. But how do we know we are making a difference in the lives of our tenants? ACOF created its own Services Metrics as a way to evaluate the outcomes of our work with our tenants. Now in its second year, this rigorous set of measurements applies to both ACOF staff and the staff of our contracted providers. We do this based on our core value of excellence: to provide the most meaningful programming coordination for our tenants as identified from our service planning at our various sites.
Our increased emphasis on permanent supportive housing for chronically homelessness people who have a mental health diagnosis lead to the design of a 10 Module Training Program to transition our Residential Services Coordinators into Case Managers. Under the direction of James Ramirez, Assistant Director of Residential Services, implementation of this curriculum will standardize our services methodology and provide greater responsiveness to increased tenant needs, which is anticipated with the implementation of the Coordinated Entry System (CES) in Los Angeles County. All ACOF services staff (newly hired as well as long-term employees) will be required to complete all 10 modules with inaugural training to begin in FY 2014-15.
We are also thrilled to report that the S. Mark Taper Foundation awarded us a grant to support our second full-time Substance Abuse and Recovery Specialist (SARS). Now, with two full-time staff dedicated to this crucial component of our programming, we hope to secure resources for a third position. Metrics training and specialized services will help elevate ACOF’s services programming to a new level.
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Demeiia left her suburban Chicago hometown of Evanston, IL for Los Angeles at 23 because she needed to change her life. Her story weaves through many pockets of our sprawling city – from Eagle Rock to North Hollywood to South Los Angeles and inally, The Jungle1 – where she knew she would die.
Demeiia excelled in school through junior high. She entered her freshman year as an honors student. She would look around at the other kids in her classes and recognize hers was the only black face; she felt as though she did not belong. She began feeling lonely and increased her use of alcohol and marijuana
Demeiia
In October 2012, Demeiia and her infant son, Carter, moved into Brandon Apartments. It took her a few weeks to actually get used to living in a clean, safe place of her own. But then, an innate determination and drive to thrive kicked in. She worked on her education. She stayed away from drugs with support from Narcotics Anonymous, her therapist and on-site services at Brandon Apartments.
Today, Demeiia looks around her apartment and sees that everything she has, everything she has earned, even her young son, “its on a crack pipe.” She will lose it all if
to cope with her feelings. She started ditching school. She hooked up with a gang and started selling drugs. She tried cocaine for the irst time and stopped going to school altogether.
Demeiia provides for her son, attends college, and works full time.
she uses again and she knows it. This motivates her to keep working on herself to remain clean and sober and stable. She has earned two Associates Degrees and is a Drug and Alcohol Recovery Specialist. She is working on a bachelor’s degree in human services at Cal State Dominguez Hills. As part of her curriculum, she will complete an internship with Volunteers of
After moving to Los Angeles,
Demeiia could not stay away
from drugs and her addiction landed her on the streets. She began using her body to make money to buy drugs. On her birthday in April 2008, she was picked up on an outstanding warrant. She was given the choice of going to prison or entering a year’s treatment program. She opted for the program.
In addition to being a recovering addict, Demeiia has been diagnosed with bipolar disorder. Staying clean was a challenge in the sober living home, especially when drug use around her was rampant. But she completed the program.
She had been clean for three years when she got pregnant. When her boyfriend started using again, she was tempted to use also. She wanted to use again. But she didn’t. She moved out and lived in her sponsor’s garage until she learned about A Community of Friends.
America’s Pathways to Home Veterans Services.
Demeiia also has a different perspective about The Jungle than she did a few years ago – she works as a peer advocate for HOPICS (Homeless Outreach Program/Integrated Care System) in their mobile unit, which provides services for currently homeless people with co-occurring disorders in the very area of South Los Angeles where she thought she would die. Now, Demeiia is helping those who are ready to receive the help that is available, the kind of help she needed before she made it to A Community of Friends.
1Baldwin Village, alternatively known as The Jungle, is a community in South Los Angeles with dense, twisty, one-way-in-one-way-out stretch of dead ends is thought to be one of L.A.’s most dangerous neighborhoods.


8 | ACOF ANNUAL REPORT 2014
government grants foundation grants rental
fundraising
Financial Summaryincome (loss) from acquisition of partnership in-kind
fffffffFor the fiscal year ended June 30, 2014, A Community of Friends ended the year with a positive change in net assets of $960,000. This represents a 108.7% increase from last fiscal year. Government contracts for services provision continue to decline annually. In response, ACOF steadily increased foundation support as a percentage of its total revenues - from 8% of its budget to 10% in FY14.
Acquisition of property for future development increased ACOF’s long term assets and as well as liabilities. Total net assets increased by 11%.
Revenue Sources
interest
loan interest fees
admin
misc
30% Fees
26% Government Grants
15% Acquisition of Partnership 10% Foundation Grants
10% Other
9% Rents
Image TBD
STATEMENT OF ACTIVITIES Total Revenue
Land, building and equipment net of depreciation
Total assets
2014
5,733,835
2013
Change in net assets
$ 8,260,972
$ 7,671,256
Total Expense
7,301,243
7,211,445
$ 959,729
$ 459,811
STATEMENT OF FINANCIAL POSITION
2014
2013
Current assets
$ 7,286,793
$ 8,908,143
5,888,578
Other long term assets
25,735,224
20,103,047
$ 38,755,852
$34,899,768
Current liabilities
2,072,290
1,615,372
Long term liabilities
27,049,538
24,601,101
Total liabilities
Unrestricted
$ 29,121,828
374,581
$ 26,225,473
Net assets
9,259,443
8,514,027
160,268
Total net assets
9,634,024
8,674,295
TOTAL LIABILITIES AND NET ASSETS
$ 38,755,852
$34,899,768
Note: Financial data based on ACOF’s audited financial statements.


ACOF ANNUAL REPORT 2014 | 9
ACOF Board and Staff
A Strong Foundation
Every level of ACOF’s organizational structure includes experts in their respective ields. With our values of Dignity, Excellence and Community in mind, we make thoughtful, informed decisions about who we want to represent our organization, whether as employees or volunteers. We take pride in knowing our board and staff are a mélange of cultures, ethnicities and lifestyles and relect our community, which is one key to our acceptance as a NeighborWorks Chartered Member.
Our volunteer Board of Directors includes an architect, real estate attorneys, inance specialists, a construction manager, lenders, mental health providers and two ACOF tenants. Together, the Board sets the tone and guides current and future business decisions, ensuring our organization remains a leader in its ield and keeping our mission at the forefront of everything we do. The board meets quarterly as a group; each board member serves on at least two committees: Executive, Audit, Governance, Resource Development, Finance, Project Review, or Asset Management & Services. In addition, the board participates in an annual retreat.
ACOF has a rigorous and thorough employment process. Each applicant, regardless of their position within the organization, must undergo ingerprinting, a background check and be able to supply both personal and professional references. All of this vetting occurs prior to an oficial offer of employment. We have quarterly all-staff meetings and an annual all staff retreat in addition to social events throughout the year.
At ACOF, we believe before we can build our buildings, we must build a strong team, and keep it strong. Once our buildings are completed, our work continues by inding tenants, moving them in and providing them with the critical services they need to stabilize and grow into their new community of friends. All of this work requires coordination among departments, outside agencies and funding sources.
BOARD OF DIRECTORS (FY13-14) Helena L. Jubany, FAIA, LEED AP (CHAIR) Corporate Director & Managing Principal Jubany – NAC | Architecture
Sean L. Leonard (VICE CHAIR)
President
S.L. LEONARD & Associates, Inc.
Allen Freeman (TREASURER)
Senior Manager, Transaction Advisory Service
Ernst & Young LLP
Mitchell B. Menzer (SECRETARY) Partner
Paul Hastings LLP
Marc Binenfeld
Broker
Metropolitan Leasing and Management Jill Dominguez
Principal
Essergy Consulting
Suzanne Ekerling
Executive Director,
Development and Programs
USC Lusk Center for Real Estate
Philip N. Feder
Partner
Paul Hastings LLP
Elizabeth Garcia
Assistant Director
Department of Public Social Services Susan Kamei
Associate Director
Spatial Sciences Institute, USC
Michael S. Linsk
Real Estate and Management Consultant Jeff Ong-Siong, CPA
Partner
RBZ LLP
James Preis
Executive Director
Mental Health Advocacy Services, Inc. Bridget Tucker
Housing Specialist
SCHARP
Elizabeth Vaughn
Community Volunteer


10 | ACOF ANNUAL REPORT 2014
Services Partners FY13–14
Anaheim Supportive Housing
Community Housing Resources, Inc.
Gateways Hospital & Mental Health Center
Heritage Clinic
Homeless Health Care Los Angeles
HOMES, Inc.
Housing Works
Imagine LA
Kedren Community Mental Health Center
Los Angeles Christian Health Centers
LAMP Community
Mental Health Advocacy Services
New Directions for Veterans
OPCC
Orange County Regional Center
Pacific Clinics
PATH Ventures
Penny Lane Centers
Portals
Project Independence
San Fernando Community Mental Health Center
Shelter Partnership
South Central Health and Rehabilitation Program (SCHARP)
The BE Group (formally Southern California Presbyterian Homes) Special Service for Groups
St. Anne’s Maternity Homes
Step up on Second
Telecare
T.H.E. Clinic, Inc.
United Way of Greater Los Angeles
United in Harmony/Camp Harmony
Government Entities
Los Angeles County Department of Mental Health (LACDMH) Los Angeles Homeless Services Authority (LAHSA)
Orange County Healthcare Agency
U.S. Department of Housing and Urban Development (HUD)
Welcome Home Veterans!
For each new tenant who moves into an ACOF property, we provide them with a “Welcome Home” Basket filled with kitchen towels, shampoo, conditioner, paper towels, laundry detergent, and other essential items. For New Directions Sepulveda I & New Directions Sepulveda II we needed 147 baskets. Bank of America Merrill Lynch – one of the development funders - stepped up with not only a corporate donation of items for the baskets, but also employee donations from multiple departments as well as over 40 volunteers to assemble the baskets and make Welcome Home cards. Other volunteer partners in the project were Alpha Construction Co. Inc., AMJ Construction Management, DE Architects, Gubb & Barshay LLP, and Sepulveda Unitarian Universalist Society.
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ACOF ANNUAL REPORT 2014 | 11
Thank you to all of the Foundations, Corporations and Individuals who supported ACOF’s work in FY 2014.
$100,000 and Above
The Ralph M. Parsons Foundation
United Way of Greater Los Angeles
$50,000 to $99,999
California Community Foundation
Citi Foundation Enterprise Community Partners
LISC
NeighborWorks America S. Mark Taper Foundation
$25,000 to $49,999
Anonymous Foundation Chase Foundation
S.L. Gimbel Foundation Advised Fund at The Community Foundation Union Bank Foundation Wells Fargo Foundation
$10,000 to $24,999
Alpha Construction Company Bank of America Charitable Foundation
Baxter International Foundation
Corporation for Supportive Housing
JP Morgan Chase
Paul Hastings, LLP
Philip and Cindy Feder Walton Construction Services
$5,000 to $9,999
Bank of America Merrill Lynch Barker Management, Inc. Mitch Menzer & Wendy Wolff
$2,500 to $4,999
Allen & Jessica Freeman AMJ Construction Management, Inc. Glendale Fire Systems, Inc. Hartford Security Company, Inc.
S.L. Leonard & Associates, Inc.
Century Housing Corporation Citi
Community Economics
Egan | Simon Architecture Edgewood Partners Insurance Center
Green Dinosaur, Inc. Har-Bro, Inc.
Helena Jubany
ICON Builders Integrated Mechanical Systems, Inc.
Lane Construction Services New Directions for Veterans U.S. Bank
Union Bank
Vasquez & Company LLP
$1,000 to $2,499
California Housing Partnership Corp.
Dauby O’Connor & Zaleski Dreyfuss Construction Foundation for Affordable Housing
GEOCON WEST, INC.
Gubb & Barshay LLP Housing Works
JAG Interiors, Inc.
J. Monique Lawshe
Lee Milman
Low Income Investment Fund Marc Binenfeld & Julie Miller Metropolitan Leasing & Mgmt Michael & Wilma Linsk Mnemonic Computers
Susan Leung Kamei
Suzanne Ekerling
Under $999
Abode Communities Adalia Rodriguez Amy Turk
Ana E. Monterro Andrew Sieglen
Ann Chuong
Anne Friedrich Anonymous
Arash Kalifeh Armando Gonzalez B. J. Markel
Ben Rosen
Bernard Altman
Blake Snyder Enterprises, LLC Brenda Coleman
Bridget Tucker
Carmel B. Sella
Caroline Havens
CARS 4 CAUSES
Colleen & Gerald Robertson Craig Boynton
Craig Lawson & Therese Paeters
Cynthia Young
Curtom Dunsmuir
Dalila Sotelo
Dana Trujillo
David Heatherly
DE Architects AIA
Deborah Burkart
Dennis & Cheryleigh Bullock Diana Cardenas
Donna Igelman
Dora & Grey Gallo
Downtown Women’s Center Edward J. Bronson
Elizabeth Garcia
Fisher Inspection Services
FSY Architects Inc.
Gerald Hart
Gonzalez Goodale Architects Grantmakers for Effective Organizations
I. Bruce Speiser
Irv Laxineta
Irwin Jaeger
Isotech Pest Management Inc. Jacqueline Waggoner
James J. Preis
James Kim
James Zapp
Jamie General
Jason Gomez
Jason Lorcher
Jeff Ong-Siong
Jeff Schaffer
Jill McCullough
John E. Rogers
John Krakowski
Jonathan & Pamela Hunter Kamara Green
Karla Acosta
Kelsey Namara
Kim Kari Savage
Kimball Tirey & St. John LLP Kirsten Brownrigg
Kyle Brumitt
Lamp Community
Lance Simon
Lisa Brotherton
Lori Horn
Los Angeles Child Guidance Clinic
Los Angeles Housing Partnership, Inc.
Louis Laxineta
Maddux Paras
Margaret Leong
Maria Joyce Maynard
Market Insights Consulting, LLC
Matthew Wickersham
Michael Checca
Michele Newman
Mike Christensen
Morley Group Foundaiton Nancy Lewis
Nathan Ackeret Neal Berliner Norma Dominguez Oliver Baker
Orion Risk Management Partner Energy Inc. Partnering for Change Peter Barker
Rachel Andres
RALPHS Community Contributions
Randall Lawrence
Rapkin Family Charitable Fund
Reagan Maechling
Rise Phillips
Robert & Gale Johnson Rodney Lane
Rosenheim & Associates Inc. Ruiz Brothers Construction Company
Rushmore Cervantes
Russell S. Kennedy
Ryan Crain
SCANPH
Sean & Gwen Leonard
Sean Rashkis
Shanon Lampkins
Shola Giwa
South Central Health and Rehabilitation Program Special Service for Groups Stephanie Lomibao
Steve Modafferi
T.H.E. Health and Wellness Centers
Teresa Mitchell
Thaddeus Zaleski
The John Stewart Company Timothy Kohut
Tom Gibson
Tom Henley
Travis Sage
Veronica Lewis
Vesta Development Group Victoria Hunt
Zorica Stancevic
Contributions in Memory of Mark Louis Bronson Edward J. Bronson
Contributions in Memory of Wendell Campbell
J. Monique Lawshe
Contributions in Memory of Ken Vrbsky
Fisher Inspection Services
Contributions in Memory of Shirley Waggoner Jacqueline Waggoner
Contributions in Honor of ACOF’s 25th Anniversary Helena Jubany
Contributions in Honor of Dora Gallo
Elizabeth Pfromm
Philip & Cindy Feder
Contributions in Honor of Charles Inada
Sean Rashkis
Contributions in Honor of Elizabeth C. Shavelson Michael Checca
Gifts In-Kind
AMJ Construction Management, Inc.
Bank of America
Bank of America Community Development
Bank of America Home Loans Bank of America Military Support and Assistance Group Dora & Grey Gallo
Har-Bro, Inc.
Helena Jubany
Fresco Community Market Hon. Mark Ridley-Thomas Jessica & Allen Freeman Los Angeles Dodgers Lynn & Jack Wickersham Patina Restaurant Group
And thank you to all who attended our 12th Annual Gala in May as well as those who donated to and purchased from our silent auction. Every donor matters to us. If we have mistakenly omitted you from this list, we apologize and ask you to please contact us at 213-480-0809 x 262.


3701 Wilshire Boulevard, Suite 700 Los Angeles, CA 90010 213.480.0809
www.acof.org