PUSHING THE BOUNDARIESInnovation in affordable housing2015 Annual Report

PUSHING THE BOUNDARIESFor more affordable housingCPDC’s singular mission is to develop vibrant communities through innovation and partnership. Throughout 2015, a year marked by significant growth on all fronts, we accomplished just that.

In real estate, we entered three new markets: Richmond, VA, Baltimore, MD and the Hampton Roads area of VA. In Richmond, we broke ground on Highland Park Senior Apartments and opened a new office staffed by both our real estate and community development teams. We closed on our first property in Baltimore: 130 units for seniors and non-elderly individuals with disabilities at Hollins House. And in Newport News, VA, we acquired 274 units of workforce housing at Auburn Pointe.

But geographic expansion is not the only way we pushed the boundaries in 2015.

Equally important was our progress toward community development marked by the expansion of our long-standing resident services program—now defined as Community Impact Strategies (CIS). As we focus on community development in key markets, in addition to managing onsite resident services at our properties the CPDC CIS team will focus on strategic initiatives to affect high-level change in the neighborhoods surrounding our communities.

As always, partnerships are integral to our work in affordable housing. In 2015, we leveraged HUD’s Rental Assistance Demonstration tool to partner with Public Housing Authorities in Baltimore, MD and Richmond, VA; the prior resulted in the closing on our inaugural development in Baltimore while the latter yielded the start of construction on our first community in Richmond.

And through yet another key partnership in a Real Estate Investment Trust, CPDC became the first to return capital by way of this innovative and first-of-a-kind financing tool.

Thank you for your support in 2015. We look forward to your continued partnership to help CPDC and communities together, grow and thrive.

J. Michael Pitchford Linda G. Davenport President and CEO Board Chair

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REAL ESTATE DEVELOPMENT | AT-A-GLANCE

PUSHING THE BOUNDARIESFor more affordable housing2015 was a productive year for CPDC that included expansion into three new cities and the leveraging of innovative financing tools and partnerships to support our real estate development pipeline. A year of many ‘firsts,’ we acquired our first property in Newport News, VA; broke ground on our first property in Richmond, VA; and closed on our first property in Baltimore, MD.

Acquired our first property in Newport News, VA, the 274-unit garden style community Auburn Pointe. The project is an affordable housing preservation to provide workforce housing.

Completed a $5 million reinvestment of this Southeast Washington, D.C. community including: rehabilitation of 51 units, renovation of a 5,000 square foot on-site daycare center and expansion of the community center and to accommodate resident programs and a new food pantry.

Through a $23 million recapitalization of this Takoma Park, MD community, all 135 units received new kitchens, bathrooms and flooring. Common areas were also upgraded and a new HVAC system installed.

Closed on our first property in Baltimore, MD: 130 units at Hollins House. In partnership with the Housing Authority of Baltimore City, CPDC is spending $11 million to redevelop the community for low-income seniors and persons with disabilities.

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Reinvesting in Edgewood Commons

In May, 2015 CPDC celebrated the $44 million revitalization of Edgewood Commons and renovation of 550 affordable apartments with a ribbon-cutting for Phase I and groundbreaking to launch Phase II. The redevelopment will transform Edgewood

into an open, vibrant and engaged mixed-income community and position it to keep pace with the fast-gentrifying Edgewood-Brookland neighborhood.

Washington, D.C. Mayor Muriel Bowser and Ward 5 Councilman Kenyan Youth resident at EdgewoodMcDuffie join CPDC for the Edgewood celebration. summer community event.

CPDC Board Chair Linda Davenport and Board Chairman Emeritus Conrad Egan visit a community partner’s display at our May Edgewood Revitalization Celebration.

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Historic Preservation in Highland Park

In October, CPDC broke ground on our first property in Richmond, VA, 77 new senior apartments at Highland Park Senior Apartments. Highland Park is Phase I of a 3-phase mixed-income, mixed-use redevelopment project that will add more than 200 new units of affordable housing to the area. Phase 2 of the project, 55 one-bedroom apartments for seniors and individuals with disabilities at the Baker School in Richmond’s historic Jackson Ward, also gained traction with the approved transfer of ownership from the Richmond School Board to the city of Richmond. Read more about CPDC’s development plans in Richmond here.

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PUSHING THE BOUNDARIESFor innovation in financing

Partnering with Public Housing Authorities to Preserve and Improve Affordable Housing

The U.S. Department of Housing and Urban Development’s Rental Assistance Demonstration (RAD) is a mixed financing tool allowing public housing authorities to partner with private developers to replace outdated buildings.

CPDC was selected by Richmond Redevelopment and Housing Authority (RRHA) to develop Highland Park

Senior Apartments as the new home for residents of its aging Frederic A. Fay Towers property. This RAD deal also was the launchpad for CPDC’s broader real estate and community development plans in Richmond.

First to Return: Non-Profit Real Estate Investment Trust

In 2015, CPDC became the first of 12 developers to return capital ($4.3 million) to the Housing Partnership Equity Trust real estate investment trust with the refinancing of our Woodmere Trace community in Norfolk, VA. Established in 2012, The Trust is the nation’s first social venture owned by nonprofits and devoted to preserving affordable rental housing.

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PUSHING THE BOUNDARIESReimagining our work in the communityFor CPDC residents, home is more than a physical space we provide. Home is defined by the character of the entire community—and extends into local, surrounding neighborhoods. Neighbors, local businesses, access to nutritious foods and healthcare, nearby resources and opportunities.

Home is only as good as the sum of these parts.

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From left to right, Robert Johns, CPDC Director of Community Development; CPDC Board Chair, Linda Davenport; Richmond Councilwoman Ellen Robertson; RRHA CEO, T.K. Somanath.

Introducing Community Impact Strategies

Our work in the community has long been defined as ‘Resident Services’—high-quality, tailored site-based programs and resources to engage and encourage new opportunity among residents.

Today however, CPDC does more than simply resident services.

Beyond service providers, we have evolved into active participants in neighborhood planning and joint creators of community solutions.

As we work more broadly as a community developer, we have the power to impact change beyond the physical boundaries of our properties for a deeper involvement and investment in entire communities.

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To reflect this shift, in 2015 we redefined our work in resident services and community-building as ‘Community Impact Strategies’ (CIS), a new title that well encompasses our expanded work not only serving residents but collaborating broadly to support the collective interests of local communities.

Richmond Councilwoman Ellen Robertson has been an essential partner and champion in both CPDC’s real estate and community development initiatives in Richmond’s Six Points neighborhood.

“Through our new CIS model, we can reach more people and affect change both inside and outside of our properties.”

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COMMUNITY IMPACT | AT-A-GLANCE

Safety Campaign • CPDC partnered with the Metropolitan Police Department and local non-profits for “Collaborating for Prevention,” an initiative to seek solutions to a spike in D.C. violent crime and understand perceptions of public safety and trust among residents. Read the report Perceptions of Public Safety: Report on the 2015 DC Public Safety Survey.

Volunteers from environmental nonprofit Casey Trees led CPDC residents and community volunteers in a tree planting at our May Arbor View Food & Nutrition Community Greening Day. Dozens of fruit trees were planted on the property, including sweet cherry trees, Asian pear trees and apple trees.

Seniors Supportive Services • Launched at The Overlook, the network improves healthcare access and assists aging in place for nearly 400 CPDC seniors in Ward 8 and the greater community.

Food Access • At our Arbor View Food & Nutrition Community Greening Day, D.C. food and environment leaders came together to improve food access and encourage healthy lifestyles among residents in the Southeast D.C. ‘food desert.’ Partners included Capital Area Food Bank, Casey Trees, MOM’s Organic Market, GNC, KIND Snacks and National Cherry Blossom Festival.

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PUSHING THE BOUNDARIESRefining Volunteer Engagement In 2015, CPDC saw the engagement of volunteers continue to grow with 329 active volunteers that served more than 27,000 hours (a 37% increase over 2014). Whether the service contribution came from individuals serving in ongoing opportunities, AmeriCorps and interns supporting CIS or groups of volunteers engaged in neighborhood events, our volunteers contributed in significant ways to CPDC communities with their gifts of time and experience.

Additionally in 2015, we implemented three new volunteer programs: Volunteer Institute, ServiceWorks and a Student Internship Program and began to build a more comprehensive outreach strategy internally and externally.

CPDC staff completed a community service project at the Habitat ReStore for Affordable Housing Awareness Week in Richmond, VA.

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CPDC welcomed five new service members to our team, with the launch of ServiceWorks, a national initiative to equip underserved youth (age 16-24) with college and career readiness skills through volunteer service and career coaching. In 2015, the ServiceWorks team engaged dozens of youth and additional volunteers that served as success coaches, professional development trainers and service event volunteers. Read about their year of service on our ServiceWorks Blog.

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VOLUNTEER ENGAGEMENT | AT-A-GLANCE

CPDC Seniors Recognized • In November, the District of Columbia Office on Aging (DCOA) hosted their Annual Health & Wellness Fair at CPDC’s The Overlook. DCOA also featured Overlook’s senior volunteers in its newsletter.

Stony Brook Youth ‘Make a Difference’ • More than 60 Stony Brook youth volunteers collected 80 bags of trash in Alexandria, VA for 2015 national ‘Make A Difference Day.’

Nourishing the Neighborhood • At Arbor View, resident volunteers operate a weekly food pantry and twice a month, set up farmer’s market-style food distributions, offering fresh produce and pantry items. The pantry and market are open to the entire Ward 8 Washington, D.C. community. Read more about our work to help feed the community here.

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PUSHING THE BOUNDARIESOperationsA new office in Richmond, VA staffed with two full-time real estate and community development team members and progress toward updating our technology infrastructure for improved organizational efficiency highlight CPDC’s operational strides in 2015.

In fundraising, NeighborWorks of America provided a $125,000 capital grant to support our Hollins House project. We received a $100,000 award from E*TRADE to support general operations, and partner Harkins Builders approved a second $100,000 commitment to support the CPDC Volunteer Engagement Program. Additionally, CPDC completed installation of a new database that improves our ability to track fundraising opportunities and results.

Leading by Example: A Resident Voice in Governance

CPDC has long encouraged residents to take the lead in their communities. Now, they also have a voice in CPDC’s decision-making. In 2015, Aluveller Perkins, a native Washingtonian, was appointed to our Board of Directors as the first-ever resident representative. A 13-year resident of the Northwest Washington, D.C. Wardman Court community and mother of four sons, Perkins fills a unique role for CPDC in offering a resident voice and perspective to the organization’s high-level planning.

Adrian Washington, CEO & Founder, Neighborhood Development Company also joined the CPDC Board in 2015.

“Living in an apartment is like living in a big house. We all have separate rooms, but we all share. When I give back I am giving back to my family and to the community. We all grow.”

— Aluveller Perkins, CPDC resident and Board Member

HONORING A LEGACY: EUGENE F. FORD SR.CPDC celebrates the life and achievements of our founder, long-time friend, and former Board Emeritus Eugene F. Ford Sr. who departed this life on October 21, 2015. Ford’s contributions to the field of affordable housing are innumerable. He was loved and will be missed by CPDC and the entire housing community.

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OPERATIONS | AT-A-GLANCE

External Relations • CPDC received notable media coverage in key markets around major events. President Pitchford also penned our first Op-Ed on community development in Richmond, published by the Richmond Times-Dispatch.

People & Culture: Kids at Work • In 2015, we hosted our second Take Our Daughters and Sons to Work Day. Our young visitors learned about citizenship and community development, building an inclusive community and even completed a volunteer activity!

Toward Technology • We’re working toward increased organizational efficiency through better use of technology. In 2015, we completed the analysis phase of a two-year technology project that will help us streamline and centralize processes, data and documents.

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Financial Management

CPDC remains strong in deal financing, property operations and resource management. We maintain a high standard of financial rigor, ensuring operating expenses are prudent and evaluating our portfolio for new opportunities to generate cash flow. Our ability to reasonably forecast future cash flows allows us to take bold, yet calculated risks when necessary.

This history of solid financial management and a strong balance sheet allowed CPDC in 2015 to take an enterprising approach to our portfolio by funding predevelopment expenses and making additional equity investments in several of our deals. In addition to investing in our portfolio, we continue to evaluate our fundraising efforts to attract new donors and raise capital to fund future deals.

Combined Financial Results, in millions 2015

Cash and Cash Equivalents 7.9

Total Assets 63.4

Net Assets 52.4

REVENUES

Real Estate Development 3.35

Asset Management 0.83

Community Services Contracts 1.39

Grants and Contributions 2.51

Interest and Dividends 1.85

Release of Net Assets 0.54

Other Revenues 0.27

Total Revenues 10.74

EXPENSES

Program Services 6.86

Management and General 2.64

Fundraising 0.11

Other 0.31

Total Expenses 9.92

Change in Temporarily Restricted Net Assets 0.15

Net Income 0.97

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CPDC TEAM

Executive OfficeJ. Michael PitchfordSharea Colmes

Lee AlfordPamela AmosStacie BirenbachMaura BrophyShelynda BrownMatt EngelChristopher EverettDenise Haffenden

Sonya HochevarJessica JonesChristopher LoPianoRiane McWainMandi SolomonSuzanne WelchSuzanne Williamson

Community Impact StrategiesTeAnna AbrahamRyan BartonCora ClarkJeanette CovingtonKhyati Desai-SeltzerDaynna DixonJocelyn Hofstede

Amanda HouseRobert JohnsNicole JohnsonAdriane Lee-DuffJennifer LumpkinJeffery McCauleyWilliam McIntyre

Karrima MuhammadKaron PhillipsJohn PinkneyKatrina PolkSeble SeyoumCynthia Wynn

Operations*Marilyn AklinNicole AntonelliLillian BarwickTiffani BerryLuann Tia BlountJiong DaiListon Dickerson

Jennifer FaussShatice GainesLorraine GordonJerry LaneLeo MiraNeil TeehanHarry Thompson

Meghan ThorntonAlex WonasueBen Zuckerman

*Operations consists of teams that provide support for the entire organization: Finance and Accounting, Human Resources, Information Technology, Fundraising and External Relations.

Real Estate Development & Asset Management

BOARD OF DIRECTORSLinda G. Davenport, ChairPhyllis Caldwell, Vice ChairFernando Lemos, Vice ChairLaura BaileyJames Brodsky

John DillonConrad EganLecester JohnsonBrian McLaughlinAluveller Perkins

Lee RenoShelley RubinAdrian Washington

2015 MAJOR DONORSAlice and Eugene Ford FoundationBank of AmericaE*TRADE Financial

Fairfax County Consolidated Community Funding PoolFreddie Mac Foundation Harkins Builders

LISC RichmondNeighborWorks of AmericaPoints of Light FoundationThe Share Fund

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COMMUNITY PRESERVATION AND DEVELOPMENT CORPORATION

MARYLAND8403 Colesville Road, Suite 1150, Silver Spring, MD 20910202-885-8900 (main) • 202-895-8805 (fax) • www.cpdc.org

VIRGINIA413 Stuart Circle, Suite 300, Richmond, VA 23220804-303-2330 (Real Estate Development)804-303-2333 (Community Development) • www.cpdc.org