A NONPROFITHOUSING CORPORATION

Annual Report 2015

2 3

As LEED-certified, Avena Bella sets the example that we can all live better by reducing our environmental footprint, cutting our utility bills,

and coming home to a greener place to live. ~ Nate Kredich, Vice President of Residential Market Development, U.S. Green Building Council

Leading with SolarEAH joined the U.S. Department of Energy’s Better Buildings Challenge (BBC), with a commitment to reduce energy usage across our portfolio by 20% within 10 years. This represents 10% of the national target for the BBC White House Climate Action Plan.

President and CEO, Mary Murtagh

We’re proud to partner with EAH Housing. . . their ability to adapt and maximize the potential of solar on affordable housing is virtually unmatched.

~ Scott Sarem, Chief Operating Officer, Everyday Energy

Conserving WaterDo Your Part, Be Water Smart campaign launched in 2014 with water conservation trainings and contests for staff and residents.

Sustainable Practices = Smart, Eco-Friendly Communities

84% of EAH-owned properties are green construction or have green technology retrofits.

““

Crescent Park, Richmond, CA

Avena Bella, Turlock, CA

2015-2016 Board of Directors

Judy Binsacca ~ ChairPat CashmanMichael Collins Doug Elliott ~ Secretary/TreasurerPaul S. Foster ~ Vice ChairWilliam W. ThompsonJoseph F. WalshLinn WarrenLucien P. Wong

To Our Friends,

At a time when rents are escalating and the supply of affordable homes is scarce, EAH Housing is privileged to make a difference in the lives of more than 20,000 residents in California and Hawaii. Today more than ever, we are dedicated to increasing the supply of sustainable apartment homes while also rehabilitating older properties for long-term affordability.

We also know that a home is much more than just a shelter. We’re prepared to go the extra distance to serve our diverse communities — comprised of people of many income levels, educational backgrounds, job skills, religions and races. We work hard to put residents on a path to success.

Each community requires a special touch and we take pride in our work with cities, counties, the private sector, advocacy organizations and other nonprofits to create new opportunities for individuals and families. These partnerships are key to our ability to accomplish good work and bring about social justice.

We are celebrating another successful year that would not be possible without our professional staff and partners. We look forward to strengthening the friendships we have and creating new ones to expand our reach in support of families, seniors, students, people with disabilities and veterans.

Thanks for being part of our family, and for all that you do to make the world a better place.

Mary Murtagh President and CEOEAH Housing

Emeritus Directors

Mark BuellSteven Goldfarb

Hawaii Advisory Council

Chrystn K. A. Eads Wallace S. J. ChingJames KometaniCarole M. LauLynn McCroryLarry RodriguezLucien P. Wong

Kings Valley, Cloverdale, CA

Shelter Hill, Mill Valley, CA

4 5

We operate with the belief that every action can have a positive impact on the community, and on our world.

~ Laura Hall, Chief Operating Officer, EAH Housing

Renovations Started in 2014/15: Buchanan Park, San Francisco Parkview Senior and Parkview Family, San Jose Stonebridge, St. Helena

378 apartment homes

Renovations Completed in 2014/15: Cochrane Village, Morgan Hill Kalani Gardens, Mililani Kings Valley, Cloverdale Sonoma Creekside, Santa Rosa

357 apartment homes

Acquired/Renovated/Preserved: Shelter Hill, Mill Valley

103 apartment homes

Grand Opening, Villages of Moa‘e Kū Phase II: Ewa Beach, October 2014

76 apartments • For older adults, families and working professionals

• Developed by EAH Housing

2014 Kukulu Hale Awards: New Project of the Year, NAIOP Hawaii

Groundbreaking for Willow Housing: Menlo Park, February 2015

60 apartments for veterans

In partnership with the Department of Veterans Affairsand Core Affordable Housing

Groundbreaking for Kolopua:Princeville, July 2014

44 workforce apartments

In partnership with Vitus Group, Inc.

Long-Term Stewardship = Good Business for AllEAH Housing is a regional leader in preserving properties for permanent affordability

in response to the growing national loss of affordable housing.

New Affordable Homes = Thriving Healthy NeighborhoodsFrom Princeville to Menlo Park and Oakland to Ewa Beach, EAH Housing is building workforce,

veteran, older adult and special needs housing that meets the needs of local communities.

Grand Opening, Cathedral Gardens: Oakland, May 2015

100 apartments

• Developed by EAH Housing in partnership with the Oakland Housing Authority

• Close to transit for families and special needs residents

LEED® Platinum Certified

2015 Real Estate Deal of the Year: Affordable Residential Outside San Francisco, San Francisco Business Times

This project respects and enhances Oakland by preserving and reusing the historic rectory building while adding much needed new affordable housing units into one of

the Bay Area’s most creative and thriving neighborhoods.

~ Eric Johnson, Executive Director, Oakland Housing Authority

“

“Cathedral Gardens, Oakland, CA

Villages of Moa‘e Kū Phase II, Ewa Beach, HI

6 7

The EAH Housing Scholarship Fund is made possible through generous contributions from the estate of affordable housing advocate Rebecca Wood Watkin, the EAH Board of Directors, EAH staff and individual donors.

I strive to excel in my courses to make the most of this scholarship. It has changed my world and in turn, I can later “Change the World from Here,”

as my university motto suggests.

~ Yueqing Lin, EAH Housing Scholarship Recipient 2015

Multi-year scholarship recipient from Kukui Tower, Honolulu, HINew scholarship recipient from Edgewater Place, Larkspur, CA

Health & Wellness • Community Gardens and Nutrition• Exercise and Fitness Groups• Health Fairs

“Circle of Strength”, a pilot at Cathedral Gardens, promotes health and wellness for staff and residents in partnership with local service providers.

Kukui Gardens partners with Kalihi Palama Health Center to provide on-site health services for residents.

Education • After-School Programs and Summer Camps• English as a Second Language (ESL) Classes• Financial Literacy Classes• Technology/Computer Resource Labs

Building Community • Holiday Celebrations• National Night Out• Neighborhood Watch Teams• Youth, Family and Senior Programs

Before moving to Cathedral Gardens in Oakland my rent was more than half my income. I also had to wake up at 4

o’clock in the morning to make it to work on time.~ Kiros Gebregzabher, Resident, Cathedral Gardens

Financial Education in Fresno Study Group in Davis

Halloween in Richmond Celebration in Honolulu

Art Class in San Rafael Garden in Oakland

EAH Scholarships = A Brighter Future

Since 2012, EAH Housing has awarded $185,000 in scholarships to 44 students.

“ “

Customized Resident Services = Healthy Living and Enriched Lives

From food for seniors to homework clubs for youth, supportive services for veterans and financial education for families, EAH helps stop the cycle of poverty and put residents on a path to success.

In the 2014/2015 academic year, 12 students from Hawaii and several cities in California including Turlock, Richmond, San Jose, Union City and Fresno received $2,500 annually renewable scholarships from EAH Housing for a total of $30,000.

Through local partnerships, EAH properties are able to offer a variety of services to residents.

9

EAH Real Estate ManagementEAH Housing Populations Served

37% Seniors

2% Disabled

1% Supportive

45% Family

2% Farmworker

30% Fee Managed70% Owned

Kunia Village on Oahu, HI

82 former plantation worker homes Including renovations and rebuilding.

Peacock Commons in Santa Clara, CA

34 homes with supportive servicesfor 45 transitional youth (ages 18-24)

Many are formerly homeless, aging out of foster care or victims of domestic violence. Six homes are set aside for mentors who live on the premises as role models. They help facilitate activities and communications with service providers for case management, employment counseling and independent living skills.

EAH Housing welcomes the opportunity to manage properties for other owners of affordable housing:

Kunia Village - Malanai Architectural Rendering, Oahu, HI

Peacock Commons, Santa Clara, CA

EAH Housing Advocacy Event This annual event is an opportunity for our business partners and associates to come together to better understand the challenges facing our industry. For the first time in 20 years, it was held in Honolulu, HI.

160 attendees including outgoing Hawaii Governor Neil Abercrombie; Honolulu Mayor Kirk Caldwell; Senator Brian Schatz; State Senator Suzanne Chun Oakland; and Jun Yang, Executive Director, Office of Housing Honolulu

2014 Annual Advocacy Event, Honolulu, HI

There is nothing more pressing this evening, here in Hawaii, than providing more than shelter, providing a home. The commitment you’re making in this area is as fundamental to our decision about the kind of human beings we’re

going to be as anything you’re going to do in your life.~ Neil Abercrombie, former Governor of Hawaii

Please join us in this important work!Advocate for more affordable housing Donate www.eahhousing.org Find us on

8

Comprehensive Real Estate Management Services = Optimal Return on Investment

In 2014/15, we continued to pursue innovative cost-efficient technologies and sustainable operating standards across our diverse portfolio of apartment home communities.

EAH Advocacy = Greater Support for Affordable Housing

EAH Housing engages in resident and community education and organizing to promote government policy, funding and housing solutions for those who suffer from the housing crisis.

“

5% Student8% SRO

10 11

EAH Housing Financial Report Our Mission is to create community by developing, managing and promoting quality affordable housing. Established in 1968, EAH Housing is one of the most

respected nonprofit developers in the western United States.

Our Vision is of balanced communities comprised of people of many income levels, educational backgrounds, job skills, religions and races, with attractive and affordable

housing. We believe this balance enhances the quality and richness of all our lives.

CREATING COMMUNITY

475 Employees in CA and HI

• Partnerships with 55 municipalities and 15 counties

• Serving urban, rural, older adult, family, student, special needs and veteran populations

BUILDING HOMES

92 properties and 7,268 apartments

• Acquired 25 properties in two states

• More than $1 billion in developed housing

MANAGING PROPERTIES

111 properties with 8,961 unit leases• Own 6,496 units

• Fee Management = 30%

• Serving more than 20,000 residents

Income Expenses

Real Estate Development Real Estate Management Communications Administration

Real Estate Development Partner/Asset Management Fees $ 558,000 Development Fees $ 5,765,000 Affiliated Organizations $ 20,142,000 Ground Lease/Rental Income $ 79,000 Other Income $ 100,000 Total $ 26,644,000

Real Estate Management Management/Accounting Fees $ 7,587,000 Partner/Asset Management Fees $ 558,000 Ground lease/Rental Income $ 79,000 Other Income $ 181,000 Total $ 8,405,000

Communications Grants $ 197,000 Scholarship $ 18,000 Donations/Sponsorships $ 309,000 Total $ 524,000

Income Total $ 35,573,000

Real Estate Development Property Development Expense $ 5,398,000 Capital Contributions $ 1,206,000 Total $ 6,604,000

Real Estate Management Property Management Expenses $ 8,722,000 Total $ 8,722,000

Communications Marketing/Advocacy $ 731,000 Fundraising $ 40,000 Total $ 771,000

Administration Management and General $ 961,000 Total $ 961,000

Expenses Total $ 17,058,000

Income

Expenses

1. End of year net assets increased by 39.5%2. Current and long-term liabilities & obligations increased by 3.5% Surplus income is designated for prudent reserves, future financial liabilities and the preservation and creation of affordable housing.

Items of Interest

Fiscal Year 2014/15

A NONPROFITHOUSING CORPORATION

California

2169 E. Francisco Blvd., Suite BSan Rafael, CA 94901Phone: 415-258-1800Fax: 415-453-4927TTY: 800-735-2929 EAH Inc. California BRE #00853495

Hawaii

1001 Bishop Street, Suite 2880Honolulu, HI 96813Phone: 808-523-8826Fax: 808-523-8827TTY: 866-835-8169

EAH Inc. Hawaii RB #16985