Take care of what you have.   This simple mantra has profound implications for us all in our personal, professional, and global roles.  I recall hearing it from my parents as a young child, and find myself repeating it over and over at home.  At work I use different terms to represent the same concept - asset management, sustainable practices, relationship building.  All are critical elements of Innovative Housing's business.  It is often easier to get excited about a shiny new project or innovative service program, but the key to long-term success is building slowly and protecting your assets by taking care of what you have.

 

In a very obvious application, this means IHI is focusing energy and attention on maintaining our properties, reducing their operating costs, assessing their capital needs, and planning ahead to address those needs.  IHI has been doing this type of asset management work for over 20 years, but in 2011 we are creating and implementing a comprehensive asset management plan designed to optimize our real estate operations.  As our portfolio grows and ages, it is becoming more and more important to approach this work in a proactive, holistic manner.  Not only will this ensure that valuable affordable housing remains available to households who need it, but it also generates cash flow to support IHI's mission.

 

In a slightly sexier spin on the concept, IHI is committing to green building strategies in both the design and construction of our housing developments.  We have a responsibility to take care of our planet by preserving natural resources and minimizing our impact on the environment.  It is fun to explore ways that we can do this in new projects by using active and passive solar energy, tapping geothermal heat sources, and integrating permaculture concepts (read more about this inside the fold).  We are also identifying improvements at existing properties to achieve energy and water efficiency, reduce CO₂ emissions, and improve overall air quality.  Investing in technology and equipment that creates cost savings for IHI and our residents while protecting our environment makes a lot of sense.

 

Perhaps most important of all, IHI will continue prioritizing our relationships with the people and communities who support us.  During the last two years, as economic conditions posed tremendous challenges for real estate development, it became apparent that relationships were critical to IHI's ability to continue creating affordable homes.  We relied heavily on solid relationships with public funders, bankers, colleagues, and the construction industry to push our projects through to completion.  Taking care of those relationships in the good times - delivering projects on time and on budget, meeting reporting deadlines, and being a good partner - ensures that we have the support we need during bad times.  Today, as we move into a more predictable economic climate, IHI has an even greater appreciation for all of our development partners and each individual who takes an interest in our work, including family and friends who donate to support our mission.

 

Whether we are talking about a favorite toy, a home, the planet we all share, or a relationship with someone who supports our work and dreams, it is important to value what we have and appreciate how fortunate we are to have it.  Take care!

 

Year 15 refers to the end of the original 15-year compliance period for LIHTC properties, when the investor partner who has purchased the tax credits and provided equity for the project typically seeks to exit the partnership and the property must be sold.  All five of the developments IHI preserved are subject to extended use restrictions - some as long as 2044 - but that does not necessarily stop them from being attractive market-rate investments.  In two cases, IHI applied for and was awarded public funds to acquire and renovate the properties.  For another two sites, IHI did not feel that they needed substantial rehab at the time so we simply acquired  and continued operating them.  Our last acquisition of 40 townhome apartments, completed on June 1, 2011, was a mix - the 17-year old property is in need of repairs but did not receive funding from Washington County or the State, so IHI will be paying for targeted repairs out of our own operating reserves.   

 

The Village Square Apartments

One of the properties we

chose to acquire in 2007 without rehab is The Village Square Apartments in Gresham.  As that property approaches its 20th year, it is showing its age and needs  exterior repairs.  IHI applied to the City of Gresham for funding and is very pleased to have been awarded $202,000 to make select capital improvements, including all new roofs, air quality upgrades, and repairs to stairwells and balconies.

 

Village Square provides affordable two and three-bedroom homes to 72 households, mostly large families.  The average income at Village Square in 2010 was just 33% of area median income, or $23,500 for a family of four.  New roofs and other repairs that extend the useful life of the property aren't just physical improvements.  They are investments in the lives of 72 families and valuable housing infrastructure that keeps parents and children in safe, quality homes they can afford. 

 

IHI is proud of our preservation efforts to date as well as our commitment to seek out and preserve additional housing over the next three years.  We look forward to keeping you posted on our progress.