ANNUAL REPORT 2014 Celebrating 35 Years of Service 1979 - 2014 1st Group Home (as Consultant) Newington, CT (1979) 1st CIL Realty - CT Group Home Wethersfield, CT (1983) 1st CIL Affordable Housing Project New Britain, CT (1992) 1st CIL Development (for-profit) Windsor, CT (2004) 157 Charter Oak Avenue Hartford, CT 06106 1st CIL Realty - MA Group Home East Longmeadow, MA (1992) 1st CIL Community Resource Manchester, CT (2008) 860-563-6011 www.cil.org CIL CIL’s mission is to create and sustain housing and other community resources that provide affordability, accessibility and independence to those in need. Executive Report This year CIL celebrates 35 years of helping meet the community-based housing needs of people with disabilities in Connecticut. After being incorporated in February 1979 by six statewide disability provider and advocacy organizations as Independent Living Corporation (the Secretary of State’s office would not allow the filing of a corporate name that began with the word Corporation because there were too many already and they didn’t have computerized records) on the heels of a 1978 federal lawsuit brought against the State to close Mansfield Training School, the groups were successful in getting CGS 8-3e passed that spring – the law mandating that groups of six or fewer people with developmental disabilities living together in a home licensed by the State be treated as a single family for zoning purposes. This legislation was probably the single most important factor that has contributed to CIL’s success in developing more than 500 licensed community residences in CT. A similar law was also passed in Massachusetts and we’ve been able to develop more than 100 homes there. In 2012 we achieved a significant milestone with the donation of 300 homes (with an estimated value of $150 million) to the providers prior to the end of their lease terms saving the State $41 million in contracted rent payments. Along the way we expanded our real estate development services to other disability groups to include people served by the State Departments of Mental Health and Addiction Services (DMHAS) and Child and Family Services (DCF), the Federal Veterans Administration and others. For the last 30 years, our Loans and Grants for Accessibility Program (renamed AccesSolutions) has been successful in providing more than $16 million in accessibility home modifications to more than1,500 individuals and families. More recently, we’ve expanded our Construction Services, started developing non-residential space through CIL Community Resources Inc. and created CIL Development Inc. as our for-profit development arm – all the after-tax income from this venture is donated up to CIL parent to support our non-profit mission. We’d like to take this opportunity to express our sincere appreciation to all of the CIL board members, staff, provider agencies, tenants, funders and other stakeholders for the support and encouragement we’ve received over the last 35 years. Starting January 1, 2015 we look forward to many more years of successfully serving our constituents under the able leadership of our new CEO, Kent Schwendy. Martin Legault Todd Bateson CIL CIL’s AccesSolutions program helps people with physical disabilities make their homes handicapped accessible. With funding from the State of Connecticut, private foundations, corporate gifts and CIL’s annual Golf Tournament, we are able to provide both grants and low interest loans (based on household income) to homeowners and renters (with landlord approval). We can provide virtually any type of accessibility modification including: ramps, porch lifts, elevators, automatic and/or widened doorways, kitchen and bathroom modifications, home additions to create first floor bedroom and bathroom space, environmental control units and other assistive technology. We have trained, experienced staff who work closely with every AccesSolutions client to help them achieve the highest level of independence in their home. If you would like to make a tax-deductible donation to AccesSolutions, please go to our website, www.cil.org and click on the Donate icon. Bridgeport, CT East Hartford, CT Wallingford, CT New Britain, CT Windsor, CT Meriden, CT For more information contact Fran Mazzarella at 860-509-6742 or fmazzarella@cil.org. CIL Realty - CT CIL Realty Inc. develops small, scattered-site, community residences for people with disabilities throughout Connecticut. These homes are typically licensed and funded by the State and operated by nonprofit service provider agencies. We provide a full scope, turn-key development service, including 100% financing. These services include site selection and acquisition, new construction or renovation of an existing home, and all related services such as architect, engineering, permitting, legal and preparation for licensure. With our existing construction line of credit we are able to move very quickly to place a site under contract once the provider’s operational funding has been approved by the State. We lease the homes to the providers under long-term capital leases during our financing term (typically 30 years). At the end of the lease term, or earlier if the bonds are prepaid, we donate the homes to the provider agencies free and clear. Blissville Rd., Lisbon Main St., Portland Route 163, Montville Old Lantern Rd., Norwalk South Main St., Manchester For more information contact David McKinley at 860-509-6741 or dmckinley@cil.org. CIL Realty - MA As noted on the previous page, CIL Realty of Massachusetts Inc. develops small, scattered-site, community residences for people with disabilities throughout the state. These homes are typically licensed and funded by the State and operated by nonprofit service provider agencies. In some cases the homes are operated by the State. We provide a full scope, turn-key development service, including 100% Pine St., Monson financing. These services include site selection and acquisition, new construction or renovation of an existing home, and all related services such as architect, engineering, permitting, legal and preparation for licensure. With our existing construction line of credit we are able to move very quickly to place a site under contract once the provider’s operational funding has been approved by the State. We lease the homes to the providers under long-term capital leases during our financing term (typically 30 years). At the end of the lease term, or earlier if the bonds are prepaid, we donate the homes to the provider agencies free and clear. Main St., Woburn Century Tub Overhead Track System Allen St., Dartmouth For more information contact Peter Benvie at 508-669-6096 or pbenvie@cil.org. CIL Housing CIL Housing Inc. develops, owns and operates low and moderate income housing through several subsidiaries: CIL Affordable Housing Inc. – acquires one to threefamily properties (most of which are distressed), primarily in the cities of Hartford, Meriden and New Haven, rehabilitates them to a very comfortable, modern standard and sells them to income qualified (typically 80% of area median income or less) first-time homebuyers. Case St., Hartford Laurel St., Hartford Liberty St., Hartford Connecticut Ave., New London Porch Detail CIL Properties Inc., 233 Allen Street Inc., 364 Putnam Avenue Inc. These three subsidiaries own and manage affordable, supportive housing properties. Support services are provided by local social service agencies. For more information contact David McKinley at 860-509-6741 or dmckinley@cil.org Truman St., New Haven CIL Community Resources CIL Community Resources Inc. develops nonresidential properties for other non-profit organizations including specialized schools, administrative offices and dayprogram space. As with our community residence development, we use our construction line of credit to provide turn-key development services to non-profit service providers under long term capital lease arrangements with donation of the property when the permanent (tax exempt bond) financing is paid off. New London Recently we have been collaborating with the Connecticut Nonprofit Association in developing the CT Nonprofit Center, located at 75 Charter Oak Avenue in Hartford. With CT Nonprofits as our anchor tenant and operating partner, this 86,000 square foot office building is being leased to other CT Nonprofit Center—75 Charter Oak Ave., Hartford non-profit organizations under shorter term, operating leases. CT Nonprofits is providing “back office” services to the non-profit tenants in the form of common reception services, meeting rooms, IT support, kitchen facilities and financial services. Waterbury 157 Charter Oak Ave, Hartford For more information about CIL Community Resources contact David McKinley at 860-509-6741 or dmckinley@cil.org CIL Development CIL Development Inc. was created in 2004: 1) to develop market-rate housing that meets the needs of local communities; and, 2) to donate any profits made by CIL Development, after paying federal and state income taxes, up to Corporation for Independent Living to support our non-profit mission. A separate Board of Directors has Capewell Lofts, Hartford been created to oversee CIL Development and its subsidiaries, the stock of which is wholly owned by CIL. To date, most of our projects have consisted of reclaiming abandoned, distressed factories and converting them into high quality housing and offices at reasonable prices. In addition to acting as the developer, CIL also acts as the general contractor, thereby eliminating the usual competing interests of these two roles while streamlining the coordination process. Lofts at Sherwood Falls, Kensington Kenyon Falls, Coventry For more information about CIL Development Inc., contact David McKinley at 860-509-6741 or dmckinley@cil.org. CIL Construction Since the late 1990’s CIL has been a General Contractor building new or renovating distressed single and two family homes for sale to first-time homeowners through CIL Affordable Housing Inc. and other local Community Development Corporations. Since then the Construction Department has expanded its activities to include all the CIL Community Resources Inc. projects, all the CIL Development Inc. projects and many community residences for people with disabilities. Many of these projects have included significant historic aspects which require special skill to successfully earn state and federal historic tax credits. Capewell Townhomes, Hartford Our highly skilled staff members are able to work with regulatory agencies and preservation professionals to incorporate 21st century materials into traditional architecture. CIL is fully bonded and has taken on projects ranging from under $100,000 to $18 million. CT Nonprofit Center, Hartford Depot Crossing, Berlin - Before Depot Crossing, Berlin - After School St., Hartford For more information about our Construction Services contact Rob Hedden at 860-509-6746 or rhedden@cil.org. Marty in Verse Thus he happened to come upon The beauty of tax exempt revenue bonds. Letters of credit and low interest rates Put 600 homes all over two states. If you’ve ever seen Marty drive You know he needs some excitement to thrive. He cannot ever take it slow Or settle for the status quo. There is a long tradition at CIL, to end each year at our Christmas party with a poem to summarize So in the ‘90s it was time to try the past year and look forward to the new year. In To use our skills to diversify. keeping with that tradition, Maria Green and David McKinley wrote this Ode to Marty. Supportive housing and homeownership production Coops and condos and CIL Construction. The CIL Board found a real jumpstarter Back in the day of President Carter. Schools and offices and program space “You’re hired,” they said, but it wasn’t funny When they told Marty, “Now find some money!” And a new venture called Stetson Place. Along the way he made sure not to mess With tax exempt status and the IRS. He found out quickly that funding from HUD Was bound to be a development dud. To each regulation we had to conform A corporate for-profit had now to be born. He needed a fast, financing tool To get to the closing of Mansfield School. It took on brownfield remediation Some TOD and historic preservation. With tax syndication and partnerships Homes were developed at a much faster clip. But tax reform in 1986 Caused Marty to come up with a few new tricks. All in all it’s quite a career Covering over 35 years. Add it up, Marty’s been able to collar Funding that totals a half billion dollars. Not bad for a guy, quite smart, quite funny Who did as was told, and found some money. He is very transparent, we know how he feels, He loves churning numbers and making new deals At times on patience he is short, But with the staff he’s quite the sport We all know that is really not your style “I’m spending it all” we’ve heard you say with a smile. The end of a long and successful career, Passing the baton to a civil engineer. Retirement is just the next step in your life, We sure hope you like spending time with your wife! His vacations have gotten more frequent and thrilling To travel with him Linda seems to be willing Congratulations to you we are sending And to the new life you will be spending He decided it was time to go When he hit the big 7-0. But while you are now free to roam, At CIL you will always have a home. Countless memories over time we have shared, Throughout your career you have shown that you cared. Leaving us? New things you’re pursuing? We sure hope this won’t be our undoing! As you go to pastures new, Remember those who have worked with you. Think of us office bound, longing for sun, We’ll think of you out there having fun. Monthly paychecks will be a thing of the past, But if you are frugal, your savings should last. Marty flying into the sunset... CIL Through the Years 1979 1980 CIL develops the Dorothy Street Project for the Greater Hartford Housing Consortium. 1982 1985 CIL is funded by the Office of Human Development Services of the U. S. Department of Health and Human Services for its De-institutionalization Project. CIL considers becoming a developer as well as development consultant. Private syndication is first developed as an alternative to public financing sources. Loans for Accessibility program is proposed to, and funded by, the State Department of Housing. CIL mission expands to include development of affordable housing. 1986 Exploration of tax-exempt financing begins. 1987 Realty partnerships refinanced with tax-exempt bonds. ($52,000,000 1987 Series Bonds) Additional group home development financed with tax-exempt bonds. ($24,500,000 1988 Series Bonds). State of Illinois hires CIL as consultant to provide options for community housing in Illinois. 1983 1981 1984 1988 1989 1982 1990 1991 1983 1992 First two bond issues refinanced along with additional group homes and a working capital loan fund for provider agencies. ($110,000,000 1990 Series Bonds). CIL group homes expand to 104 of Connecticut's 169 towns and municipalities. CIL begins operations in Massachusetts. 1993 CIL develops final phase of homes required to enable the closing of Mansfield Training School. 1994 CIL increases its assistance to other nonprofit housing development corporations, including bail-out completion of stalled projects started by others. CIL develops group homes in Southeastern Massachusetts. 1984 1995 1985 CIL incorporated in February, 1979 and legislature awards CIL its first $75,000 operating grant. Martin Legault hired as the Executive Director on September 10, 1979. Housing for 128 persons with disabilities is under development using HUD 202 funds. 1981 1979 1980 2000 1986 1987 1988 1989 1990 1991 1999 1998 1997 1996 1995 1994 1993 1992 2001 2002 2003 2004 2005 2006 2007 1996 Construction begins on first-joint venture, multifamily-housing development in Hartford (Wyllys/Lisbon Cooperative Housing). 1997 First-time homebuyer program begins. 1998 Home modification program for older homeowners begins. 1999 CIL becomes fiduciary and development partner for the Mortson/Putnam Heights neighborhood rebuilding project. 2000 CIL wins “Best Practices” award given by the U. S. Department of Housing and Urban Development. 2001 The CIL Construction Services department completes the 25th home for sale to first-time home-buyers. 2002 CIL secures a parcel of land in Danbury for the building of the 70 unit Stetson Place mixedincome condominium project. 2003 CIL establishes a clearinghouse to foster collaboration between business firms and nonprofit housing developers for the sale of state housing tax credits. 2004 CIL creates CIL Development, Inc. as a for-profit subsidiary for the purpose of developing market rate housing. The proceeds from this activity support CIL's nonprofit mission. 2005 CIL receives funding from the Hartford Foundation to launch AccesSolutions, a program that provides ramps and other accessibility modifications to financially eligible people with disabilities. 2006 Construction begins on First Town Square, a 50 unit, market-rate condominium factory conversion project in Windsor, CT. 2007 CIL issues additional tax exempt bonds in MA. ($20,440,000 2007 Series Bonds) 2008 CIL creates CIL Community Resources Inc. for the purpose of developing non-residential projects for other non-profit organizations. 2009 Construction begins on The Lofts at Sherwood Falls, an 86-unit, market-rate condominium complex involving the adaptive reuse of an historic factory in Kensington, CT. 2010 CIL donates 21 group homes to service providers as a result of the early pre-payment of related 1999 Series tax-exempt bond issues. 2011 CIL donates 276 group homes to service providers as a result of the early pre-payment of related 1990 and 1993 Series tax-exempt bond issues. 2012 The Town of Berlin designates CIL as the “Developer of the Year” award recipient for its reclamation of the abandoned factory to create The Lofts at Sherwood Falls. 2013 CIL acquires CT Non Profit Center property. 2014 CIL acquires the Capewell Horsenail Factory in Hartford. 2008 2009 2010 2011 2012 2013 2014 Financial Statements ASSETS: Unrestricted Cash Restricted Cash Funds Held in Escrow under Bond Agreements Accounts, Rents, Grants and Other Receivables Prepaid Expenses and Other Assets Net Investment in Direct Financing Leases Properties under Operating Leases Property in Development Property, Plant and Equipment Cost of Bond Issuance TOTAL ASSETS Accounts Payable, Accrued Expenses and Other Liabilities Deferred revenues Permanent and Construction Loans TOTAL LIABILITIES UNRESTRICTED NET ASSETS LIABILITIES: TOTAL LIABILITIES & UNRESTRICTED NET ASSETS $ 30-Jun-14 1,999,617 8,864,549 6,253,139 721,062 2,304,514 87,412,402 18,917,671 23,488,132 5,229,142 3,147,427 $ 158,337,655 $ 4,863,275 1,355,554 138,793,874 145,012,703 13,324,952 $ 158,337,655 REVENUES: Sales of CIL For-Profit Properties Sales of CIL Non-Profit Properties Construction Contract Revenues Interest Income from Direct Financing Leases Rental Income Grant and Fundraising Activities Fees Other Income TOTAL REVENUES 4,345,531 3,728,947 5,177,666 4,515,880 4,898,494 2,413,017 2,520,875 64,734 $ 27,661,144 EXPENSES: Cost of CIL For-Profit Sales Cost of CIL Non-Profit Sales Construction Contract Costs Compensation & Benefits Operational Expenses Interest Expense Depreciation & Amortization Financing Fees Professional Fees Grants and Fundraising Expenditures Office and Occupancy TOTAL EXPENSES 5,456,965 4,398,152 4,781,623 2,216,388 3,306,672 722,332 1,258,465 1,841,386 394,529 1,346,874 389,964 $ 26,113,350 $ NET OPERATING INCOME Loss on Valuation of Assets $ 1,551,794 (638,982) INCREASE IN UNRESTRICTED NET ASSETS $ 912,812 Production Report Cumulative since 1979 LICENSED COMMUNITY RESIDENCE PRODUCTION Residences Licensed or Funded by: CT Dept. of Developmental Services CT Dept. of Children & Families CT Dept. of Corrections / Judicial Dept. CT Dept. of Mental Health & Addiction Services Total CT Residences MA Dept. of Developmental Services HOUSING AND OTHER PRODUCTION Purchased Apartment Developments Supportive Housing Supportive Structured Housing Limited Equity Housing Cooperatives Homebuyer Program Nonresidential Development COMMON INTEREST COMMUNITIES Mixed Income Projects (nonprofit) Market Rate Projects (for-profit) DEVELOPMENT CONSULTING PROJECTS (Not Owned) Licensed Community Residences Limited Equity Housing Cooperatives Supportive Housing Transitional Housing Camp GENERAL CONSTRUCTION PROJECTS "Homes for Living" Renovations Other Construction Initiatives ACCESSOLUTIONS PROGRAM Loans Grants Money Follows the Person Assistive Technology TOTALS Homes People/ Families Development Cost 461 24 11 7 503 125 628 1736 107 372 45 2,260 571 2,831 132 49 10 125 143 255 72 379 394 495 459 1,595 7,225,000 6,520,000 9,594,000 14,847,000 30,757,000 19,598,000 88,541,000 70 145 215 105 290 395 18,395,000 31,400,000 49,795,000 57 16 35 31 139 341 32 65 77 80 595 18,300,000 2,100,000 5,400,000 2,300,000 500,000 28,600,000 82 116 198 162 277 439 975,000 18,970,000 19,945,000 95 495 63 23 676 361 1,118 66 25 1,570 2,629,000 11,903,000 1,641,000 242,000 16,415,000 2,315 7,425 $481,503,000 $160,187,000 12,648,000 14,436,000 2,863,000 190,134,000 88,073,000 278,207,000 BOARDS OF DIRECTORS, CIL CIL DEVELOPMENT INC. Todd Bateson, Travelers, Chair William H. Farley, Retired, Chair Douglas Henley, CREC, Vice Chair R. Michael Goman, Goman+York, VC/Treas Calvin Richardson, Fannie Mae - CT, Treas. Maria Green, CIL, Secretary Maria Green, CIL, Secretary Martin Legault, CIL, Pres/CEO Sharon Malone, BeamPines, Inc., Past Chair Douglas Henley, CREC, Director Martin Legault, CIL, Pres/CEO Sharon Malone,BeamPines, Director David Burnett, Reliance House, Director John Wostbrock, Fin Consultant, Director Joan Ingersoll, MHA Inc., Director Ed Jason, Whittlesey & Hadley, Director CIL MANAGERS Barbara Pilarcik, ACL Inc., Director Kent Schwendy, COO - CEO 1-1-2015 Manuel Silva, MSDesigns, LLC, Director David McKinley, VP Development Marlene Thomas, CSI, Director Robert Hedden, VP Construction John Wostbrock, Fin Consultant, Director Maria Green, VP & Controller